HomeINVESTFOREXWhat is the foreign exchange market (Forex)? Forex is a scam...

What is the foreign exchange market (Forex)? Forex is a multi-level scam?

What is the forex forex market?

Are you learning about the foreign exchange market (Forex)? This is a huge market and some people still don't know about it. So today, Blogtienao (BTA) brings you the most basic knowledge about the foreign exchange market.

Now, let's also Blogtienao find out What is Forex? .

✅What is the Forex market?

Forex stands for Foreign Exchange. It also has many other names such as: Foreign Exchange Market, FX, etc. In Vietnam, it is called the foreign exchange market.

This is a global decentralized marketplace for exchanges currency. Because this is a global market, it has super high liquidity and huge trading volume.

The average 24-hour trading volume in the foreign exchange market is about $6,6 trillion (April 4), an increase of 2019 trillion compared to April 1,5.

✅The history of the forex market

In 1971, the Bretton Woods money management system was abolished in order to keep the exchange rate constant. Countries with strong economies have pegged their currencies to gold.

Since then, countries have gradually moved to a floating exchange rate system. At this time, based on actual supply and demand will determine the buying and selling value of those coins on the market.

Historical developments in 1971 were the cause of the formation of the current foreign exchange market.

✅Features of the FX market

  • The market is global in nature
  • Extremely high liquidity
  • Easy access
  • Continuous operation 24 hours a day, 5 days a week

✅Forex is a multi-level scam?

Forex is not multilevel at all!

But there are projects that borrow the name of Forex companies, foreign exchange exchanges, forex robots, .... They call for investment packages and then you just sit and not count money.

It is these components that give Forex a bad reputation. So, don't misunderstand Forex as multi-level or a scam!

Scam earn 300% profit from forex robot
Source: thanhnien.vn

✅Who can join the forex market?

Previously, only the big banks traded Forex. But with the development of the Internet, all barriers are broken. Now, everyone is participating in this market.

You are a person with modest capital. You have an Internet-connected phone. So you are eligible to participate in the market already!

Maybe you don't know!

When you travel to Thailand. You change from VND to Thai Bath (THB) for personal spending. By doing this, you accidentally joined the Forex market.

Who can join Forex

✅Should I invest in Forex?

Anything that generates profits has risks. The higher the profit, the higher the risk. The foreign exchange market is no exception. Some people make a profit, some people lose. In order to win the market you must first beat yourself. You must have discipline as well as your own risk management.

When you are new to the market, you should use it with a small amount of capital. When you feel you have gained experience, you can gradually increase. Moreover, you should prepare well when entering this market. Because this is an emotional game. When you let emotions overwhelm you, you've already lost.

“To get profit without risk, get experience without risk and get reward with nothing. This is as impossible as living without being born.” – APGouthey

Is Forex Investment Risky?

✅How to "make money" in the Forex market?

As is known when participating in the foreign exchange market, people always sell one type of foreign currency to get another foreign currency. In this market, you only need to judge the price up or down. From those judgments, you make profitable trading of currency pairs.

For example: You have Euro (EUR). You see the price of EUR increase against the USD. At this point, you will choose the EUR/USD currency pair to sell Euros. This means you sell EUR for USD. On the contrary, when you see the Euro price fall and you think it will rise again. You also choose the EUR/USD pair to buy EUR with USD. This buying and selling action will bring you profit in this market.

Profit in the Forex market

Market analysis

Market analysis helps you reduce the risk of entering orders. At the same time, it increases the probability of winning significantly. But to judge which direction the market is going is really not that simple. However, you can still analyze based on several methods.

Market analysis

Fundamental analysis

With this method you have to monitor the situation of a country. The strength of the currency goes hand in hand with the strength of the nation. You should follow the news, news… about the situation of that country.

For example, the US-China trade war, the yuan's price dropped to a record. At the same time, gold becomes a safe haven for investors. The demand for gold increased, so in terms of price also increased.

With this analysis will help you have a long-term view of the market. From there make the best investment decisions.

Fundamental analysis

Technical analysis method

This is the method that traders often use. Past data, indicators, candlestick patterns… help you judge part of the market's trend. Because prices tend to repeat what happened in the past.

This method helps you to have a short-term, medium-term or even long-term view of the market.

Technical analysis method

Psychoanalysis

Unlike other markets. The Forex market is difficult to manipulate, so prices are determined by supply and demand. When a coin rises in price. That proves it has many people thinking this currency will increase rather than decrease in price. To find out which side prevails. You don't need to analyze graphs or news. The only thing you need to do is analyze the market sentiment. Market sentiment is difficult to grasp. But you can also join communities to follow. From there, you can partially predict the overall sentiment.

Psychoanalysis

✅Trading time of the forex market 

This is a decentralized market, so there is no specific transaction point. The forex market is very dynamic. It operates 24 hours a day except Saturday and Sunday.

Although operating 24/24, the market is also divided into sessions. Main sessions: Australian session (Sydney time zone), Asian session (Tokyo time zone), European session (London time zone), American session (New York time zone). Each session will have different volatility and trading volume.

Usually the trading volume is high in the European session. The market was more active when the US session started.

When the two European and American sessions overlap (New York morning and London afternoon) is the busiest time. The volume of transactions at the moment makes up the majority of the market of more than 5 trillion USD a day.

Forex trading session

✅Conclusion

Hope this article has helped you to know the forex market What is Forex? okay then!

If you still do not know what Forex is, do not hesitate to leave a comment below the article. Blogtienao (BTA) will try to answer your questions as soon as possible.

Thank you for reading the article and good luck!

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Pham Quoc Dathttps://phamquocdat.net
I'm just a simple man trying to make my way in the crypto space.
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