What is Forex?

The popularity of online trading has increased significantly in recent years. More and more people have become enthusiastic about the idea of ​​putting their money to work. Where previously people mainly chose to keep money in a savings account, nowadays people mainly choose to trade online.

Forget the interest on savings and take a chance on great returns

It is not for nothing that investing is called the key to growth among enthusiasts. Nowadays you hardly get any interest on your savings, which makes a savings account hardly profitable. More and more people are therefore choosing to trade online. When you trade online, you have the chance to get great returns. It does not matter whether you opt for shares, bonds, real estate or other investments, the chance of a great return is always lurking.

Don’t let your savings get eaten

Not only the current interest rate is a real culprit, the ever-rising inflation is also a nasty culprit. If you leave your money in the savings account, inflation will eat it up like a nice bag of nuts. By investing you can protect your wealth and teach inflation a lesson.

By investing in assets that the inflation learn a lesson, you make sure you keep your purchasing power up to scratch. Your money is not worth less, but more.

Investing: Dynamic and exciting investing

Despite the fact that the popularity of investing is increasing, there is also a large group that thinks that investing consists only of serious hassle. Yet investing is certainly not just serious hassle, you can even compare it to a party of diversification. When investing, you can choose various investments, which prevents you from only betting on one horse. The advantage of this is that if one investment is in a slump, your other investments will rise. This makes investing a dynamic and exciting way to make your money work for you.

Forex: Foreign Exchange or currency trading

A popular way of trading online is Forex. If you’re new to the world of online trading, you’re probably asking yourself: What is Forex? Forex brings you into an exciting world of buying and selling currencies. You will soon feel like a world traveler collecting currencies and selling them at the right time. By selling at the right time, you can make nice profits yourself.

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The biggest advantage of Forex is that you don’t actually need to have physical currency. Online trading is all done electronically, so you can easily carry out your transactions via an online trading platform.

An example: You go on holiday to a country on the other side of the world. In this case you need local currency. In this case, you go to a local exchange office, where you have your own currency converted to the local currency. The aforementioned example is actually the principle that you can expect on the Forex market, but on a larger scale. On the Forex market you can buy and sell your own currencies based on their own value.

Benefit from fluctuating exchange rates

When you choose Forex, you can easily benefit from the fluctuations in exchange rates. For example, if you think that the euro will rise compared to the dollar, it is wise to buy euros. When the euro has risen, you can sell them again. The difference that has occurred between the buying and selling price is immediately your profit. The latter is therefore also referred to as ‘trading on the foreign exchange market’.

Although trading via Forex is very easy and accessible, it also has its risks. You can make very nice profits, but you can also receive losses. It is therefore important to act wisely, so that you can limit the risks. For example, you can choose to set stop-loss orders. This allows you to limit the risks of losses.

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