What is a Trading Forex

What is Forex Trading? Forex trading is a type of investment instrument that uses foreign currency or foreign exchange , which is shortened to forex.

What is a Trading Forex
What is a Trading Forex

Talking about investment, of course there are lots of instruments to choose from, one of which is forex trading.

Talking about forex trading, this instrument is quite risky, but the benefits are indeed big.

Refusing to forget, because it's so risky that even celebrity Kevin Aprilio has experienced a big loss and has to be in debt of IDR 17 billion .

But you need to know that investing is inseparable from risks.

In fact, you should be suspicious if there is an investment that claims that it has no risk.

Then, what exactly is a forex trading investment?

What are the advantages and disadvantages?

Come on, let's peel together!

1. What is Forex Trading?

Forex trading is a type of investment instrument that uses foreign currency or foreign exchange , which is shortened to forex.

This forex uses physical currency, which means you actually hold the dollar or other currency that you purchased.

But nowadays, there is also online forex trading forex trading, so it's easier and more flexible to do.

This investment is also known as forex trading with the aim of making a profit.

Where usually, one party will buy a certain nominal amount of currency to get the difference in profits.

Participants who trade forex, of course, are experienced and always take the time to see and analyze the various factors that influence the fluctuations of world currencies .


How Does Forex Work?

Forex is actually a form of investment where you buy a foreign currency or currency and hope that the value of the purchased foreign currency will increase.

For example, when you buy dollars with a value of Rp. 10,000 and currently the total dollar is Rp. 14,000, the profit you get is Rp. 4,000.

In essence, this forex trading must involve certain currency pairs and can be traded according to certain conditions to achieve maximum profit results .


2. Plus-Minus of Forex Trading

Plus minus forex investment of course there must be considering all types of investment must have their own advantages and disadvantages.

Therefore, let's discuss it more deeply.


1. Profit 

Profiting from Differences in Exchange Rates

The profit that investors get is the difference between the exchange rate when you buy and the exchange rate that is currently happening.

You can do this by buying dollars when the value is still low and selling them back at a higher price or buying at a high price and selling them back at a higher price.

Meanwhile, there are three possibilities for dollar movement, namely up or uptrend, fixed or sideways and down or downtrend.

If it is going up, then big profits will be obtained but if it goes down, then the value of the currency will tend to decrease as well.

Before making a dollar investment , you should first know the purpose of this investment.

Also make sure that before starting forex trading, you have also provided an emergency fund that can be used for something that happens suddenly and suddenly.

Transactions Can Be Made Flexible

There are lots of advantages of forex, one of which is that fund transactions can be done 24 hours a day.

This is clearly different and unlike transactions that might occur in the capital market because the foreign exchange market will be active 24 hours a day, five days a week, so you can make any transaction.

But make sure if you want to buy foreign currency you have to know if each country has a different opening schedule.

More Liquid

In addition, there are also dealers or brokers in the foreign exchange market, making the market more liquid and prices will remain stable.

Therefore, traders can close and open their positions fairly at the market price.

No Additional Fees

Transaction fees in the online forex market do not actually exist, it's just that a number of fees are charged, the number of which is very diverse, for example, the fee for withdrawing funds from a forex account.

Benefits can be felt immediately

Another advantage that traders can get is that they can take advantage of price increases that come from the difference between the buying price and the selling price on the buy order.


Meanwhile, when selling, profits will be obtained from the difference between the selling price and the buying or closing price.

Have a Margin System

In addition, there is trading using a margin system, where this can make the buying power of investors higher than the capital they have.

If you have this, of course, the profits are two-way when the market goes up or the price goes down.

Of course, this is unlikely to apply to other types of investment such as stocks.

2. Lack

Forex Ups and Downs 

It should be noted that every investment must have drawbacks, including foreign exchange.

The first drawback of this investment is the effect of fluctuations in foreign exchange rates.

As is well known, the rupiah currency can become so weak that it could even be risky to buy dollars because of course they are expensive.

Waiting for the Indonesian currency to strengthen can also take time, so it can make forex trading suffer losses.

Existence of Government Interference Origin of Currency

Another risk is interference from the government of origin whose currency is being traded on the foreign exchange market.

The intervention in question is intervention from the central bank of the country by increasing interest rates, releasing bonds from the government as well as buying foreign exchange on a large scale.

By knowing the pluses and minuses of forex investing, you can choose the type of investment that suits your abilities as well as your funding needs, both for short-term and long-term investments.

3. Recommended Sites - Sites that Become a Reference for Forex Trading 

Lots of forex sites are often used as a reference for investors to find out various things about market movements, the economy and so on.

In addition, with this forex news, businesses can conduct fundamental analysis before placing orders or opening positions to buy or sell.

Fundamental analysis is very important for traders so that profits will increase.

Anything?

1.Bloomberg

Bloomberg is a business portal, where all business related information is available here.

You can find, starting from forex or foreign currencies, currency or currency movements including rupiah, commodities, futures and stocks.

By looking at Bloomberg, you will find out about economic developments.

2. Forex Factory

Apart from that, you can also see the forex factory site which is the choice of traders.

As the name suggests, this site provides a variety of fundamental and technical information about forex.

Not only that, this site will also publish live economic calendars every day to provide information about forex trading.

The economic calendar provided by Forex Factory will be a reference for traders, to find out changes in every world currency.

3. dailyFX

Apart from that, there is also the dailyFX site which is almost the same as the forex factory, only the difference is that there is analysis from forex experts including forex signals.

4. XE

There is also another forex site called XE , where a lot of news about currency sites is available complete with detailed reviews, so it will be easier for traders to analyze various kinds of forex fundamentals.

5. Yahoo Finance

When talking about the most favorite forex trading site and can always be accessed easily, it's Yahoo Finance .

This site is often used by traders and investment experts to pay attention to forex trading news.

This site is always updated and updates information about currencies or currencies quickly, so that it is visited by many ordinary people and business people.

6. Financial Times

Next is the Financial Times which provides updated information in the world of forex trading.

One of the advantages is the more neutral nature of reporting, because this site is not owned by the United States government.

The Financial Times also allocates a larger space regarding forex trading in developing countries, including the Asian region, especially regarding world-class currencies.

So, the information that traders will get will not only focus on the main currencies.

7. CNBC

The next site that is a favorite among traders is CNBC .

This information portal also allocates a large enough portion to contain the latest information about the world of forex trading.

In fact, traders can access it at any time, because the news is available 24 hours a day.

After knowing some of the sites that are references for forex trading, you can more wisely do fundamental and technical analysis.

Doing forex trading cannot be done carelessly, because the risks are relatively large.

That's why, before you jump in you have to really understand and understand how it works and the ins and outs to get the maximum profit.

If you are still a novice investor and still want to make an investment, you can start with instruments that are not too high-risk, such as deposits, money market mutual fund investments , and you can also buy bluechip stocks .

Apart from that, you can also learn about investing fundamentally by funding in KoinP2P from KoinWorks because the system works the same.

While funding with capital starting from IDR 100,000 you can also get returns of up to 18% per year , you know.

Come on, start funding! 

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