What is the forex market?

The foreign exchange market, also known as the exchange rate market, or Forex, is the global financial market in which currencies are traded. The concept of currencies refers to all the foreign currencies of a country, but in this market, the currencies are any of the currencies that can be bought and sold. To understand it easily, it is a world-wide and decentralized market in which the sale of currencies is carried out.
This market was created with the objective of favoring the monetary flow that occurs with international trade., that is, the possibility of getting a type of currency that you need to buy a product. It is the largest and most liquid market in the world, in which transactions worth 5 billion dollars can be made, more than in all stock exchanges together. In addition, the large number of agents and currencies that exist, cause that there is always a lot of liquidity in the market.
The most elementary level can be found in people who travel to places that have different currencies than their country. In this way, we sell our currency to get the effective currency of the country in which we are located. But in addition to people and businesses for trade, they are essential for banks and countries, as it helps to make international investments because it allows countries to obtain benefits in one currency and pay in another.
Before we look at how forex trading, there are forex online course you can take to gain some knowledge and also boost your confidence.

How does Forex Trading work?

The “FX trading” or Forex Trading is about exchanging one currency for another currency taking advantage of negotiation at an exchange rate in favor, this being the main criterion for the operations of this market.

Forex market features

Among the characteristics of the forex market are:
Large scale: A large number of currency exchange operations are reported around the world, configuring what is considered the largest financial market.
Variety: Many types of actors participate, from international entities to natural persons who approach an exchange house. Likewise, a high range of financial assets is offered.
Agility: It is easy to communicate. Transactions can be made by various means such as the bank window or through a computer.
Utility: It allows to satisfy the need of the agents for a particular currency. This is important, for example, if the parties that have closed a contract are not in the same country. In that case, normally the buyer must acquire foreign currency.


Most common currency market instruments

Cash foreign exchange transactions: They are buying and selling currencies in which the time that elapses does not exceed more than two business days.
Forex term transactions: These are forex trading operations in which the amount and price of the currencies are fixed at the time of contracting but the delivery thereof is made at a time set in the contract. Term operations represent 70% of the total operations carried out.
Financial derivatives: There are 5 within derivatives:

  1. Financial foreign exchange options: A contract that gives the right (not the obligation) to exchange one currency for another at a specific rate on a specific date.
  1. Futures  Forex (Foreign Exchange Futures) is an exchange of currencies at a certain date and under the agreed rate.
  1. Non-negotiated currency contract (undeliverable forwards): a contract usually negotiated trans-territorially, which is settled after the base of different currencies.
  1. Future futures (outright forward): It is an exchange of one currency for another at the rate of a predetermined future day.
  1. A currency swap (foreign exchange swaps): It is a contract that is characterized by the peculiarity of buying and selling a number of currencies, and reselling and repurchasing the currencies at a certain rate on a specific date.

Currency Market Institutions

The main participants of the exchange market are
Commercial banks:  These financial intermediaries allow you to trade currencies to your clients. In addition, they buy and sell coins in the administration of their deposits, seeking to maintain, for example, a percentage in dollars.
Central banks: They are the monetary authorities of each country. These entities intervene to avoid strong fluctuations in the exchange rate. For this, they have monetary policy instruments such as certificates of deposit.
Companies: They go to the exchange market to buy and sell currencies. For example, they may be importers who need to acquire foreign currency to pay their suppliers.
Exchange houses: They allow the public to change part of their capital from one currency to another. They carry out cash transactions.

Who is Rob Booker?

Rob Booker is a forex trader and has a professional degree outside of investments, although he concluded his law studies, made a radical change to full-time currency trading, also dedicated to the teaching of this discipline, dictates seminars and conferences.
In less than five years, he went from being a trader with venture capital of $ 2,500 to become a client of a major bank in which he negotiates an account of respectable size.
He focuses on forex trading and focuses on the preservation of capital, his number one rule of negotiation is: “If I can’t make a system work in my tests, then I don’t use it in real money trading.
A fan of lifestyle and sports attire, his cheerful and relaxed approach attracts a large number of followers. He is one of the funniest traders known, as well as one of the most humble, and has taught his teachings to over a thousand traders who all consider him his friend, for the way he strives to maintain a relationship of Life with each of them.
According to Rob Booker Reviews, Rob helps remove the veil behind Forex trading. He emphasizes the important pillars in trading: Psychological control, adequate capital management, and having a reliable strategy.
He also stresses the importance of maintaining high energy levels and being constantly driven and motivated. While most trading podcasts and traders alike focus on the nitty-gritty of trading Rob Booker has a ‘big picture’ way of looking at the Forex market. His podcasts and training programs teach traders the importance of patience and discipline. Those who do not have these qualities are simply not qualified to devote themselves to this fast-paced and highly-rewarding world.


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