Forex

Learn more about Forex!

Forex, or also known as FX is a shortcut for foreign exchange. Foreign exchange is the process of changing one currency into another one for several reasons. The reasons for this exchange can vary from commerce and trading to even tourism. Based on a report form the bank for international settlements (a global bank for national central banks) the daily worldwide volume of forex trading reached the staggering amount of 7.5 trillion usd in 2022.

What is the Forex market?

The forex market, or foreign exchange market, is the market where currencies are traded against each other. Unlike a “market”, this market market has no central marketplace. It is done over the counter (“OTC). This practically means that all transactions are done electronically by traders worldwide instead of one central place where one could change a currency into another one. The forex market is open 5 days a week and 24 hours a day. In large financial centers in cities such as New York, London, Paris, Sydney, Zurich and Tokyo, daily exchange transactions are being conducted. Due to the time differences, this means the market can be very active at any given time of the day and the exchange rates are changing non stop.

The Forex market; How does it work?

The forex market is busy non stop. As mentioned 5 days a week and 24 hours a day. In the past, mainly institutional firms were trading on the exchange market but over the years, more and more private traders have joined and started to become a large part of its daily volume.

The Forex spot market

Price speculation

Economic performance

Politics

Interest rates

The spot market is where currencies are sold and purchased, depending on their price. This price, such as in many different industries, is based on supply and demand and its calculation depends on different factors such as.

Once an exchange deal has been initiated on the spot market, this is also called a spot deal. This is the transaction where one side delivers the agreed currency and the other receives the amount in the other currency at its exchange rate.

How can you start trading Forex?

Trading forex at LBC is fairly easy. Below, we outlined some simple but very important points which might help you along the way if you are a new forex trader.

Learn, learn and learn.

Firstly, we advise you to learn as much as possible. Open an account with us and familiarize yourself with the trading platform and website in general. Learn from external sources as well that will provide you with the knowledge to trade forex.

Develop a trading strategy.

It is vital to develop a trading strategy for yourself. Many people trade with emotions and this is something which we do not advise. It is important to be objective and recognize good opportunities that will make sure you open the right positions.

Keep paying attention.

The forex market is a highly volatile market and rates can go either up or down in an instance. Therefore, your focus is of high important. We advise you to check the positions you will open both at the beginning and end of your day and if you are trading multiple assets, make sure you have enough funds in your account.

Naturally, LBC offers a fully equipped learning center where you can obtain endless quantities of knowledge before starting your Journey in the forex world. We offer our services to both beginning and professional traders and aim to always update our learning center with the latest information available on the market. Open your account today to see what you can learn before placing your first trade!

So, what are the fundamentals of trading currencies?
Like any other, or at least most of the investments anyone will ever make in his or her life, the fundamental concept is to buy something at a cheaper or lower price and to sell it with a profit. Forex trading is based on this concept as well. Since currencies are highly volatile, it is very possible to profit from the varying rates of currencies and so, LBC offers a fairly simple platform where such currency trading activities can be conducted.