In simple terms, forex trading is not much different from any buying and selling transaction, because forex trading is an activity of exchanging two different currencies with the aim of profiting from the difference between buying and selling. For example, if someone from Indonesia wants to buy 100 Dollars while at that time the exchange rate for Dollars is Rp. 13,100 per US Dollar while the selling dollar exchange rate is Rp. 13,200 per US Dollar, it means that the difference in price per US Dollar is Rp. 200 or Rp. 200 x $100 = Rp. 20,000 per 100 US Dollars.
Then, after two weeks the dollar price rose to Rp. 13,600 per US Dollar then it means that if someone sells 100 USD that he has, he will get a profit difference of Rp. 13,600 – Rp. 13,200 = Rp. 400 per US Dollar or Rp. 400 x $100 = Rp. 40,000 per 100 US Dollars.
Forex Trading and Forex Market Illustrations
It’s just that forex trading is not an offline buying and selling transaction activity in certain places directly face to face, but occurs in an invisible market in an online network in a tool that is on our computer which is usually called a software or trading platform. .
At this time, along with the development of increasingly sophisticated technology, trading platforms are no longer limited to only computer software. Trading platforms are now available on android and iphone applications that make it easier for traders to transact forex trading without being limited by space and time.
Android and iPhone applications are portable which are installed on smartphones that can be carried anywhere, so through this technology the trader will very easily carry out forex trading activities wherever and whenever he wants.
The forex market is very much different from the market we are used to seeing as a traditional market. In the forex market that is traded is the currency of all countries on this earth, so the forex market is not tangible like a market that we commonly see but a market that is in an online network where everyone can buy and sell currencies only from their respective homes. -each.
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Everyone can also act as a seller as well as a buyer at the same time. Forex traders come from various circles, ranging from the government of each country, central banks, financial companies, speculators and others.
The scope and global forex trading players make the forex market much in demand by many people because it is very attractive and profitable. Financial turnover in the forex market is so large that it reaches 5.3 trillion dollars per day, making the forex market a highly liquid transaction center by opening up buying and selling opportunities in unlimited transaction sizes regardless of the amount.
The forex market is open 24 hours in 5 days from Monday to Friday which can provide opportunities for forex traders to make transactions without time restrictions, anytime and anywhere by adjusting the available spare time. In general, currency trading in forex trading is divided into 4 time sessions, namely:
Australian Market (Sydney) at 05.00 – 14.00 WIB.
Asian markets (Tokyo) namely Japan, Hong Kong & Singapore at 07.00 – 16.00 WIB.
European markets (London) , namely the UK and Germany at 13.00 – 22.00 WIB.
American Market (New York) at 20.00 – 05.00 (tomorrow).
Currently, to carry out forex trading transactions is no longer limited to computer-based software but can be done very easily using only a smartphone or iphone, simply by downloading the mt4, mt5, cTrader or other trading platforms, which are already available on the Google Playstore or AppStore, we can do analysis and forex trading transactions anywhere and anytime.
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HOW TO CONNECT TO THE FOREX MARKET
The forex market is an invisible place that is connected through an online connection system using internet technology on a centralized network. To be able to connect to the forex market a retail trader must go through an intermediary called a forex broker or broker.
Forex broker is a company or individual that has access to the forex market in real time that connects retail traders with the real forex market. There are many forex brokers who are currently present to enliven the world of forex trading , from fake brokers to trusted brokers that are well regulated.
It is very necessary to be very careful before you join one particular forex broker so that you do not become a victim of rogue forex brokers who will only deceive and cheat their clients.
If you find it difficult to choose which forex broker is right and safe for you, then you can choose one of the best and most trusted forex broker recommendations for Indonesian professional traders below.