Forex is an international currency market, where currency exchange operations are carried out around the clock at free, market prices. It is not an exchange, but the methods of making money in Forex are very similar to the exchange ones.
In Russia, the term "Forex" is more often understood as speculative currency trading through banks or dealing centers using leverage or margin. Since the beginning of the 90s, Forex has been advertised as an opportunity to quickly and consistently earn big money sitting at a computer in a specialized center or at home. If this were true, the average player in terms of income would be compared with the richest people on the planet.
How does it work
Hourly and every minute, exchange rates relative to each other change. Having bought a certain amount of currency at one price, you can subsequently sell it at a higher price and make a profit. Or vice versa, selling more expensive, buying cheaper. So that the profit is not a penny, dealing centers provide leverage. Its essence is that the broker, at the time of buying or selling currency, provides a loan in an amount 100 times higher than that used by the participant. At the time of completion of the transaction, the loan funds are returned, and the participant receives either profit or loss. The system is configured so that the size of the loss does not exceed the participant's (trader's) deposit.
In Russia, there is practically no legislation regulating the work of brokers and dealing centers. Therefore, carefully choose a dealing center to which you will carry your money.
As a result, theoretically, any trader can risk the amount of $ 100 and make a profit of the same $ 100, or even more. The main thing is to guess whether the rate will go up in the near future or go down. And in order to increase the possibility of a successful forecast, dealing centers train their clients in methods of technical and fundamental analysis of the market situation.
Real earnings
The basic principles of trading are simple and it seems that any more or less smart person can master them. Then you can practice on a demo account with virtual money, then start trading with your own money.
Professional traders work either with foreign brokers or with large Russian banks. But keep in mind that a large bank accepts trading deposits of at least $ 10,000.
But in reality, everything is much more complicated. As a rule, even after several successful transactions, the participant loses all his capital and leaves with nothing. Then he either gets disappointed in Forex, or carefully analyzes his mistakes and comes back. After realizing his mistakes, the trader begins to act more prudently. This is how the process of turning a beginner into a professional takes place. According to statistics, out of 100 newbies in 2 years, only 1-2 remain in Forex. After a few years, traders become able to successfully trade Forex without losses. Naturally, not everyone becomes a professional. And the level of their income, as a rule, is not much higher than the percentage of bank deposits. After all, their goal is not to make money quickly and a lot, and not to lose all their money again.
