What is Forex 2021? How to Make Money? Is it safe? – Introduction to Forex
Forex; It is a market that covers all of the international markets where foreign currency exchange is made and has a very wide transaction volume. Those who want to make money with Forex need to create an investment strategy. By learning technical and fundamental analysis, determining their boundaries and acting with investor psychology, they can earn money by spending time on the market.
What is Forex Definition?
Forex expansion Looking at; It means Foreign Exchange. It means changing money. Investments are made in the currencies of different countries through the Forex market and it is aimed to increase the value of the existing money. Forex market is not controlled by a central institution. The dynamics in the Forex market are being created with the infrastructure called InterBank, which is established by the major banks and central banks of the countries. You can participate in the market as an individual user or make investments through an intermediary institution. In line with the movements of local banks and central banks, transactions are carried out in the Forex market in order to earn by investing at the right time according to the price movements of currencies. Since the Forex market has its own dynamics, the investor must first comprehend the terms and dynamics of Forex.
Is It Possible To Make Money From Forex?
In Forex, it is possible to lose as well as win. An investor who has sufficient knowledge about the dynamics of the Forex market, follows the market well and makes accurate estimates about the prices of the instrument he invested in; He can double his current money in Forex. Thanks to the high leverage ratio, they can earn much more than the amount invested. However, since it is very important to make a good risk analysis, mistakes that can be made regarding investments can also cause loss of money. If it is necessary to give an example; Warren Buffet, one of the richest people in the world, lost $ 1.9 billion in the Forex market.
Is Forex a Reliable Market?
Forex reliability When evaluated, it is a market that became legal as of August 2011. Forex brokerage houses are audited by the Capital Markets Board and the extent to which companies take care of investors’ rights is questioned. Institutions can provide services under certain rules and conditions. Since CMB inspections are carried out, reliable transactions can be made with brokerage houses in the Forex market. However, it is of great importance that the investor pays attention to the licensing of the institution when choosing a brokerage house and to choose a reliable and audited institution.
How to Invest in Forex?
Those who want to play in Forex can trade their currencies through simple software. Investments can be made in Forex through brokerage firms. The Forex market is open 5 days and 24 hours, and brokerage houses allow up-to-date market information to be obtained 24 hours a day, 5 days a week. In this way, the best investment decision can be made and the right investment tool can be preferred.
After choosing a successful, reliable, well-known brokerage firm with a CMB license, an account must be opened through this institution. Then the savings allocated for investment should be transferred to this account. Afterwards, trading transactions can be started. The profits obtained as a result of the transactions are transferred to this account. However, if there is a loss as a result of the transactions; the loss is deducted from the amount in this account. The amount earned from the account can be withdrawn at any time. The methods of withdrawal and deposit of brokerage houses vary.
Which Currencies Can You Trade In The Forex Market?
Currency pairs that can be traded on Forex; Many currency pairs such as USD / TL, GBP / USD, EUR / USD, USD / JPY and USD / CHF. The most traded currency pair made in Turkey; USD / TL. In these currency pairs, the first currency is the commodity, while the second currency is the currency. If it is necessary to give an example; If an investor who will trade in USD / TL currency pair buys, he / she buys dollars against TL. In case of sales; It makes a transaction of selling dollars against TL. During these transactions, it does not matter which currencies are in the investor’s account. Trading software and brokerage systems; The investor, as it automatically executes the exchange and transactions in currencies Forex can easily perform transactions in the market.
How to Make a Profit in the Forex Market?
In order to make money in the Forex market, the investor has to buy the investment instrument with a low price and sell it when the price rises. If it is necessary to give an example to the basic logic of making a profit in Forex; An investor who buys the US dollar at TL 7.79 starts to make a profit when the dollar goes above this amount.
In order to make a profit, the investor must correctly determine the time and point to trade in investment instruments. For this; they need to know and apply technical analysis and fundamental analysis methods. Experienced and professional investors need to benefit from both technical analysis and fundamental analysis in order to take the right positions. However, since price direction and movements can be predicted more clearly with technical analysis, investors attach more importance to technical analysis than basic analysis.
What is the Definition of Technical Analysis?
Technical analysis; It is an analysis method in which price chart analysis and indicators are followed in order to estimate the direction of the investment instrument’s price, and estimates are made by means of special tools. Although it may seem difficult at first for an investor who is just starting to trade in the Forex market, it is a very easy method.
There are many resources and courses on how to make technical analysis on the internet. In addition, institutions that are intermediaries for trading in the Forex market provide information about technical analysis in their free training. If the investor is determined and disciplined; It is possible that within a few months he will learn the basics of technical analysis.
What is Fundamental Analysis?
Fundamental analysis; It is an analysis method that predicts the future prices of currencies based on the economic and political conditions of developed countries that are important for the market. The policies followed by countries such as the USA, England, Japan and Germany should be followed. After the economic news of the countries, estimates should be made about how this will affect the market. In the long run, fundamental analysis is used and if it is necessary to give an example, if an event occurs that will affect the economic situation of the USA, this means that the value of the US dollar will increase. This causes investors to turn to the dollar. There is an increase in dollar prices due to the sudden increase in demand for the dollar. Depending on this increase, investors can open the right positions according to their investment strategies and make a profit.
What are the Advantages of the Forex Market for Investors?
Forex’s advantages for investors is as follows:
- It is an online market that can be followed and operated from anywhere. Without doing any work based on spending money such as marketing, recruitment, advertising, profit can be made in the Forex market by only estimating the directions of investment instruments. There is no competition with other investors in the Forex market. Every investor is in competition with himself.
- In order to earn in Forex, it is necessary to learn the functioning of the Forex market well. If the person learns how to trade in the Forex market correctly; It can earn a lot of money with low investment.
- Thanks to the leverage system, it is possible to earn large amounts of money by spending very low amounts of money. If it is necessary to give an example; invest in the stock market an investor who wants Forex It has to deposit a higher amount of money than its market. However, it is possible to start investing with a small account in Forex and then earn bigger money.