Introduction to Forex

In this section we will explain what is Forex, for which we will have to overcome us to the antecedents of Forex. But also we will have to do that it is handled in Forex, that evidently is currencies, and as how we will read these currencies. Also we will see that advantages have operating with currencies.

Surely some persons said to you that Forex is a great business, and many things. But we want to speak you clearly, if your you are a novice at this moment you will not have to take to Forex like a business because you starting in this world, possibly in a future that we waited for is near for you, Forex will be a business, but to at this moment we advised you that you take it like a hobby, while you are practicing and improving. So don’t risk money, better you practice with an demo account,, this way you did not risk your money.

Logically in Forex when operating with currencies we will have to know how to read them, as well as how to buy and to sell them. It is why we will have to understand two important concepts as Enter Long and Enter Short.

Surely you have heard often in the news "Stock Market has raised X points...", then the form to measure the ascents and slopes of a determined currency also are made by means of points that are known like Pips. But when we bought, our purchases are measured in Lots.

For the moment we will explain you in this section which is benefits and losses, as well as what are the leverage and so feared Margin Call. Even although you think that the leverage does not have importance at the time of opening an account, if it has it but that we explain you in another section.

It is why we will explain you what is the Margin Call, but for explain you that we will have to explain you other referring concepts to your account.

You will have to consider the rules that you must follow, or principles that all operator would have to follow to be successful in this market. This market is a demanding market, and therefore it requires discipline. So the discipline in Forex is an important matter and it is something that you will have to impose yourself.

However, to buy or to sell a currency we will need to broker, but not all brokers are equal. When we say that they are not equal we referred to that not all are in a certain agency. And for that reason we will explain the main agencies that exist in the world. But also we have to see how the broker operates, which platforms uses and which politicy it has. Evidently we will not be able to name the policies of all brokers but we will speak in general.

But to see the potentials of Forex we will have to compare Forex with other existing markets in the world as they can be the Stock Market and the Market of Futures. Of that way we will see the advantages and disadvantages of each market.

In order to finalize this section we will make a review of the explained concepts. Next you will be able to see the sections that we will see.