Certainly the forex market in Poland is experiencing a renaissance of its popularity. However, not everyone who met with this name knows the secrets of investment. Before you are tempted by your first investment, it is worth taking a closer look at the subject.
Basics of the forex market
Forex (also known as the abbreviation FX) is a specific over-the-counter (OTC) market. It is also worth noting that forex trading is not centralized, and this means that it does not have its permanent location. Currently around 90% transactions they are speculative transactions, which creates an extremely attractive investment place for traders from almost all over the world.
On the forex market, currency pairs are traded with a three letter code and their value is always presented as the ratio of the value of one currency to another. The most popular currency pairs that you can operate on the forex market are:
EUR / USD – euro / US dollar;
GBP / USD – pound sterling / US dollar;
USD / CAD – Canadian dollar / US dollar;
USD / JPY – US dollar / Japanese yen;
USD / CHF – US dollar / Swiss franc.
Currency pairs are divided into several categories, of which Majors are the most popular, i.e. currencies associated with the world’s largest economies. Recently, contracts based on cryptocurrencies such as bitcoin are gaining popularity.
Advantages of investing in the forex market
To start your adventure with the market forex, you must set up a trading account. Nowadays, the most popular way is to invest in currency using specialized investment platforms offered by various brokers. Thanks to this, you can invest at any time without leaving your home.
It is also worth mentioning a derivative instrument – the CFD (Contract for difference), thanks to which you gain under the volatility of the underlying asset. This is extremely convenient because it does not require physical purchase.
Despite the fact that there are still negative voices about forex, as the proverb says: “who does not risk does not drink champagne”. It is important to consciously build your own investment strategy and modify it as needed. Another undoubted advantage is the availability of investment for 5 days a week (excluding weekends) around the clock. In addition, the forex market is the most active market in the world, and with a good strategy and low own work input, you get a chance to make a profit. Everyone will find the right investment instrument on the forex market: currencies, commodities, shares and bonds, and the operating leverage gives you the chance to profit even at the slightest changes in exchange rates.