Jakarta, CNN Indonesia —
Trading forex one of a kind investment which is quite interesting. You need to know the meaning trading forex to be able to understand more.
Forex (foreign exchange) is itself a foreign currency trade. Like trading, the goal is to make a profit.
Simply, trading forex such as buying foreign currency and then storing the currency for a certain period of time and reselling it when the value of that currency experiences an increase or appreciation of the exchange rate.
However, the profits obtained are generally small if you do this way of forex investment.
To reap more profits, investors buy and sell forex online like stocks. As with any investment, of course there are risks that come with it.
The higher the profit, the higher the risk of loss. In order to get a complete understanding, here is a review of forex trading.
Understanding Forex Trading
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Illustration. Definition trading forex can occur because of the need for the use of a foreign currency. (CNN Indonesia/Adhi Wicaksono)- – |
In Indonesian, foreign exchange or forex can be called foreign exchange or forex. The meaning is the same, namely a trade by exchanging foreign currencies for profit.
Citing various sources, understanding trading forex This can happen because of the need for the use of a foreign currency. For example, when you want to travel abroad, which requires you to transact in the currency of the country concerned.
The currency exchange turned out to be profitable. Profits are obtained from the difference in the value of the currency traded.
To get a bigger profit, investors must observe and analyze the condition of the money market and various factors that can affect the value of currencies in the world.
Difference between Forex and Stocks
 Illustration. Although both are liquid types of investments, there are some differences trading forex and stocks to know. (iStock/sankai)-– |
Stocks and forex are types of liquid investments. Even so, there are some differences between the two. Summarizing various sources, here are the differences between forex and stocks.
1. Stocks have no ‘leverage’ option
In general, understanding leverage is the use of borrowed funds that increase the return on an investment. In trading forex, investors can exercise the option ‘leverage‘ with a certain ratio.
2. Trading hours
Stock exchange trading hours are limited from morning to evening following the IDX (Indonesian Stock Exchange) trading schedule. While on trading forex, trading hours last for 24 hours.
3. Fundamental analysis
In its implementation, forex does not require fundamental analysis. While stocks prioritize fundamental analysis which aims to make the purchased shares have a good foundation to continue to rise.
4. Investment objectives
Investments are generally aimed at long-term profits. In forex, currency values tend to fluctuate, so forex is more appropriate for trading or trading rather than investing.
While stocks can be used as a trading tool as well as an investment. Stocks with good performance tend to fluctuate continuously so that they can be used as trading and investment alternatives.
Read understanding full forex trading on next page…
Understanding Forex Trading and the Difference with Stocks
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