Forex trading is business trading of nation’s currency on purpose to get the profit. Foreign Exchange or Forex is work electronically within a network effect so there's no exact to know the stock exchange. The example how Forex work is when you buy Euro currency then at the same time you sell the Yen currency, it’s called EUR/JPY.

Here I would to explain the basics of Foreign Exchange. It will be the explanation about what the trading means and the characteristics of this trading. These basics can help you to start your journey in Forex, check this out!

Basic of Trading

What is trading? Trade is a concept of buying and selling something like stuffs, property and services with payment by buyer to seller, then the exchange of stuffs or property between parties. There are lot kind of trade and here I will explain about it and also the best forex trader you can find. 

Forex (or FX) refers to the foreign exchange markets, where currencies are traded. It is the biggest growing financial market in the world, with an average daily turnover of almost $2 trillion – many times the total traded volume of the US stock exchanges. 

The forex market subsists of a worldwide wired network of buyers and sellers of currencies, it means people around the world can do this trading. Then, trading all done over-the-counter (OTC), which means that there is no central exchange where orders are matched. If you are looking for 24-hour action, you can find it in this global trading system, where no physical barriers exist and activity moves seamlessly from one major financial center to another.

The Characteristics of Trading Forex

Every trading has their own character, and the Forex do so. Forex knowns as a currency trading that people around the world can do. This is an example how forex work, on some case if you think that the Yen is going to "win" against the Euro, you can put the JPY/EUR, which means to buy the pair. 

If the exchange rate will go higher you can make some profit. But if you think the value of yen is going to down or "lose" against the Euro, you can begin a trade by selling JYP/EUR.

Then, Forex trading has another characteristic namely, 24 hours global market. The market take action in worldwide and open for 5 days a week. It just like the market open in the morning at New York and late at Indonesia, when Indonesia want to close the market, the market in United Kingdom is still open. So, the market of Forex is open 24 hours all around the world. 

Forex trading has an amazing liquidity. The forex market is the world’s most liquid market. The fact is more than $2 trillion changing hands every day, traders do not have to afraid about liquidity. When you trading in any currencies like big economy currencies: USD, JPY, EUR, JPY, GBP, and even IDR, you do not to worry about the liquidity. 

This is especially when they are paired up with the US dollar, because US dollar is biggest and the best currency when you want to paired up with others currencies.

There are the basics of Forex that you must know. The basics is good for you if you just start your own. If you want to know more about Trading and Forex broker, DIDIMAX’s forex broker is a wise choice for you.

In DIDIMAX, there are lot of information about forex on it and you can learn about Forex there for free. If you looking for broker, DIDIMAX is the best choice for you who wants to start forex trading.