Forex (Foreign Exchange or FX) is a market where the values of currencies of different countries are bought and sold on a spot basis. In this market, besides country currencies, CFDs (Contract for Difference) written on spot values of commodity, stock and stock market indices can also be bought and sold.
Forex trading does not take place in an organized market. All transactions are made through banking in this market, which has international supervision and is traded by the world's largest banks and financial institutions. Therefore, there is no single market or centre.
The daily trading volume in the Forex market is around 5 trillion dollars. With this figure, it is the most liquid market in the world.
Forex market has the ability to be traded 24 hours a day, 5 days a week. Since the transactions take place in the international market, there is no time period in which no transactions are made due to time differences. The market, which closed at 23.59 on Friday night, reopens as of 00:00 on Monday night. No chance to trade on weekends
Anyone who is not restricted from opening an investment account for any reason can trade in the Forex market. When you do the same in a leveraged market, you can buy $50,000, not 5,000, with 1:10 leverage. In this case, you take a position as if you have 10,000 dollars in your hand. When the exchange rate is USD/TRY=5,200 a month later, when you exchange the dollar, you will have made a profit of 2,000 TL over 52,000 TL. As seen in the example, leverage can enable you to make more profit by investing a larger amount with the same capital. However, you should take into account that in the event of a loss, you may lose all of your initial coverage.
Forex market has certain advantages over other markets. These; High liquidity: With its high trading volume, forex is considered the most liquid market in the world. Therefore, it is very difficult for speculation and especially manipulation in the market. Leverage opportunity: You can trade in a larger amount than your collateral deposited in the Forex market. Opportunity to invest in different instruments: You have the opportunity to invest in parities, commodities, stock market indices and securities in the Forex market. Ease of trading: You can easily trade 24 hours a day from anywhere you can connect to the internet via the electronic platform in the Forex market. In addition, you can trade both in the downward and upward direction with different order types in the market. Low transaction cost: Transaction costs are very low as there are no commission fees in the Forex market.
Forex market is a leveraged market. Leverage shows how many times your capital can be traded. It allows you to take a large position with a small amount of capital.
Spread refers to the difference between trading prices. This difference may increase or decrease according to the fluctuation in market conditions.
When the position you have opened a take profit order reaches a certain profit level, it sends an automatic order to close the position. The stop loss order is the type of order that is used to limit your loss in case the position you opened loses. Stop loss orders protect you from high losses in market movements against your position.
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