I will tell you a secret that will make you EVEN RICHER!!!!
Please do not divulge it to anyone.
Banks have devices outside called "Automatic Teller Machines". If you are lucky enough to see one, approach it carefully and respectfully and it gives you FREE MONEY !!!!
I BET YOU HAVE WONDERED WHY PEOPLE QUEUE OUTSIDE SUCH MACHINES.
NOW YOU HAVE LEARNT WHY !!!!
Simply put, trading in the Forex market involves exchanging foreign currencies, which means exchanging one currency for another.
Now, going into more detailed and more complicated trading concepts in the Forex market.
The Forex market is a global currency exchange market internationally. This applies to both international and local currencies for some countries. Trading in the Forex market is divided into two possible parts: institutional and retail.
Most currency exchange transactions take place institutionally. The biggest traders are international and local banks, which exchange currencies among themselves. This is either because one bank takes a loan from another in international currency and repays it, either because the banks are trying to diversify the foreign exchange reserves, or for many other possible reasons why we do not intend to discuss in detail A. Most information on institutional trading, if you do this as one person, is that this trade determines most of the trade that you will lead in the retail trade. This is due to the fact that you will not be able to join the Interbank network, which is a club reserved exclusively for banks in the world with sufficient capital to trade on a large scale.
The institutional currency market also includes large capital funds and companies that engage in currency exchange in order to generate income and additional profit for themselves.
Retail is what all individual Forex traders do. Some institutions are also involved in retail, but no individual investor (unless it is a person with an exceptionally high net value) will not be able to participate in the interbank network or to trade on a large scale in the Forex market.
Retail trade by individual traders is done using trading platforms offered by different brokers around the world. Such brokers offer their services as compensation in the form of fees levied on traders through spreads or otherwise, although the preferred method for most traders is the spread method.
An individual retailer will trade with one of these retail brokers, with capital from 100 USD to higher numbers. They will trade currency pairs-such as USDAUD or USDCAD or other less popular currency pairs. Currency pairs are a way to swap one currency pair to another in a way that yields profit. Most brokerage houses offer a limited number of currency pairs.
Brokers will also offer a platform or different platforms to work with. The most popular ones are MetaTrader 4 (MT4) MetaTrader 5 (MT5) Ctrader and Webtrader. Some brokers will have their own trading software.
I hope this responds to your question at the most basic level. Good luck in trading!
To become a forex trader and make money on a regular basis, it is essential that you be organised and work in an intelligent manner. Success in the foreign exchange market depends on the trader's trading strategy as well as the discipline with which the trader applies his strategy.
Actually, there is complacency amongst private retail traders. Many of them assume they are actually buying and selling foreign currencies when they place trades. They assume their broker is buying and selling currency on their behalf.