What is Forex?
Forex (Foreign Exchange) is the largest financial and the most liquid market in the world that allows making investment in more than one product, including primarily countries’ currencies; precious metals such as gold, silver and platinum; agricultural products – among others – cotton, coffee and cacao; metals – nickel and copper; goods – natural gas and petrol; countries’ indexes and stock certificates and CFDs.
Who can perform transactions in this market?
Anyone who has an interest and would like to invest in world markets can easily become engaged in buying and selling transactions in Forex market.
What is the size of Forex market?
Forex market which is the largest and most liquid market of the world has a daily transaction volume of over 5 trillion dollars.
What points must be considered before making investment?
Products that are the objects of transactions, the operation and the rules of the market are different than those in the other markets. Therefore, before starting to trade on Forex market, one must be informed about the operation of the market and get the required training.
It is important that all of the investors who would like to trade on this market begin with a demo account. In addition they need to be informed about the market in terms of trading strategies and market tracking. Before entering the market, you can get information about online trading platform, orders, positions, security, profit/loss relations, trading conditions and other details by contacting your customer representative. You can also attend free trainings and webinars to develop your trading skills.
Is Forex risky?
The most important point that needs to be paid attention to in Forex is using the leverage system rationally. Leverage system is the biggest advantage this market offers to you. Still, the nature of the system does not allow us to say that Forex is risk-free. However, the researchers show that the reason of losses in the market is the lack of experience, the investors’ high appetite for risk and high earning expectations.
Basic and technical analyzes which you will be able to make after gaining experience in the market for a certain period of time, your training and personal investment strategies will all pave the way for your protection from the risks in the market.
Is trading possible with any instrument in Forex market?
You can trade simultaneously with any instrument you want over trading platform . This is a market which allows transactions with many different instruments such as parities, commodities and indexes, and you can trade in this market with any product that is suitable for you in terms of security, earning and risk relationship.
What is leverage?
The most distinctive feature of Forex, which distinguishes it from other markets and makes people prefer it, is the leverage. The system which allows bigger-volume transactions with small capitals is called leverage. Thanks to the leverage, investors have the opportunity to achieve the transaction volume up to the certain multiples of the amount of security that they have in their accounts.
Which transactions can be performed with leverage?
You can perform transactions at leverage rate of 1:200 with your security at Limit Forex. For example, you can achieve a transaction volume of 200 thousand USD by using 1:200 leverage with your security of 1000 USD.
What points must be considered in transactions performed with leverage?
Leverage allows you to trade in multiples of your current security. Therefore, before start trading with leverage, the first thing you need to do is to determine the leverage rate accurately. If high leverage is used carelessly, it might lead to unwanted outcomes. Transaction must be performed with the right strategy without ignoring the fact that high leverage poses as high a risk as the high profit it might derive you.
Is brokerage house required for transaction?
You need to choose the brokerage house that provides the service quality that is the most suitable for you to be able to start trading in this market. You can trade in Forex market anytime and anywhere as long as you have access to internet connection.
How can investors follow up their transactions?
Investors can follow up all of their transactions by contacting (their) customer representatives or through trading platforms.
At what time one can perform transactions in Forex market?
Forex is a market where you can trade for 24 hours, 5 days.