The World Wide Forex market
Forex is a trading 'method' also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any country.
Different currency rates happen and change every day. What the value of the dollar may be one day could be higher or lower the next. The trading on the forex market is one that you have to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. The main trading areas for forex, happens in Tokyo, in London and in New York, but there are also many other locations around the world where forex trading does take place.
The most heavily traded currencies are those that include (in no particular order) the Australian dollar, the Swiss franc, the British pound sterling, the Japanese yen, the Eurozone eruo, and the United States dollar. You can trade any one currency against another and you can trade from that currency to another currency to build up additional money and interest daily.
The areas where forex trading is taking place will open and close, and the next will open and close. This is seen also in the stock exchanges from around the world, as different time zones are processing order and trading during different time frames. The results of any forex trading in one country could have results and differences in what happens in additional forex markets as the countries take turns opening and closing with the time zones. Exchange rates are going to vary from forex trade to forex trade, and if you are a broker, or if you are learning about the forex markets you want to know what the rates are on a given day before making any trades.
The stock market Is generally based on products, prices, and other factors within businesses that will change the price of stocks. If someone knows what is going to happened before the general public, it is often known as inside trading, using business secrets to buy stocks and make money - which by the way is illegal. There is very little, if any at all inside information in the forex trading markets. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but more on the value of the economy, the currency and such of a country at that time.
Every currency that is traded on the forex market does have a three letter code associated with that currency so there is no misunderstanding about which currency or which country one is investing with at the time. The eruo is the EUR and the US dollar is known as the USD. The British pound is the GBP and the Japanese yen is known as the JPY. If you are interested in contacting a broker and becoming involved in the forex markets you can find many online where you can review the company information and transactions before processing and becoming involved in the forex markets.
Trading Shares For A Living Via Spread Betting
About 8 years ago I started to notice that certain friends of mine had quit their jobs but continued to live very luxurious lifestyles - seemingly without doing very much. I thought they must just be using up their savings until I discovered they were all making a fantastic living by spending just a few hours a week doing something I had never heard of before - "financial spread betting".
More and more people are now becoming familiar with the phrase "financial spread betting". Once, the sole preserve of City Whiz kids or sophisticated gamblers, financial spread betting is now gaining in popularity as a great way to earn a very sizeable tax-free income without the risk of losing the shirt off your back!
So why is financial spread betting becoming so popular. Well, with a bit of understanding and practice, ordinary people, with no prior experience, can earn enormous sums whilst controlling their risks and limiting their losses. You do not even need a stockbroker or a city dealing account to do get involved. An on-line account is very simple to open and anyone with web access can do it.
Spread betting, aka futures trading, is easy to understand if you stick to a simple index like the FTSE 100 or the DOW JONES.
In basic terms, this is how it works:
When you buy a 'future' you take a position on what you think the index (e.g. the FTSE 100, or the DOW ) will be at some future date - e.g. June 2005. Let's say the FTSE is currently at 5200 and you think it will rise over the next three months as 'terrorist fever' abates. You would buy the June FTSE at (say) GBP10 per point. For every point it rises, you make GBP10. If it goes up 100 points, you make GBP1000. Of course, if you get it wrong and the index falls by fifty points (say), you lose GBP500.00.
You need of course to be very aware of the risks before you get involved. As with any investment or business, you can lose money. If, by nature, you are a timid, cautious person, then it is definitely not for you. But if you have some money to play with, and aren't risk adverse, then financial spread betting is the one of the best possible ways you can make a great deal of money completely tax free and there are clever ways of limiting your losses so you never lose more than you can afford.
Unlike most businesses, it is possible to get involved with an absolute minimal outlay and take a position without buying a single thing. You do have to 'back' your position with a certain amount of cash, but this is 'insurance' money, NOT stake money.
The best thing is you can try it for free without any risk at all. You can 'dry trade' with 'monopoly' money until you get a feel for how it works and are confident enough to start using real money.
Financial spread betting has become so popular primarily because of the relationship between risk and capital. It is highly leveraged and you can make huge profits with only a limited amount of capital and risk. The fact that there is (unlike with most investments) no stamp duty or tax also helps make it extremely attractive.
So if you are of the right temperament, spread betting can be a very lucrative way of making an amazing income in your spare time. But be warned, if used recklessly or without the correct knowledge it can result in large losses.