What Is Forex Trading Plus?

What Is Forex Trading Plus?

What Is Forex Trading Plus ?

 Speaking of investments, of course, there are many tools to choose from, one of which is forex trading.

When talking about forex trading, this tool is risky, but its benefits are also great.

Refusing to be forgotten was so risky that even celebrity Kevin Aprilio incurred huge losses and owed IDR 17 billion.

But you need to know that investing is inseparable from risk.

In fact, you should be skeptical if there is an investment that claims to be risk-free.

Then what is the investment for forex trading?

What are the advantages and disadvantages?

Let's clean up together!

1. What is forex trading?

Forex trading is a type of investment vehicle that uses foreign currencies or foreign currencies, abbreviated for forex.

This forex uses physical currency, which means that you actually keep the dollar or any other currency purchased.

But now there is also online forex trading, so it is easier and more flexible.

This investment is also known as forex trading for profit.

Usually, one of the parties buys a certain token amount of currency in order to get the difference in profit.

Those who trade forex, of course, have experience and always take the time to see and analyze the various factors that influence the fluctuations of global currencies.

How does forex work?

Forex is actually a form of investment where you buy foreign currencies or foreign currencies and expect the value of the purchased currency to rise.

For example, when buying dollars worth Rs. 10 thousand, and the current total dollar is Rs. 14 thousand then the profit will be Rs. 4000.

Basically, this forex trade should include certain currency pairs and can be traded under certain conditions in order to maximize profits.

2. Forex trading plus or minus

There are, of course, the pros and cons of investing in forex, given that all types of investments should have their own advantages and disadvantages.

So let's discuss in more detail.

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Take advantage of different exchange rates

The return that investors get is the difference between the exchange rate they are buying and the current exchange rate.

You can do this by buying dollars when they are low in value and reselling them at a higher price, or buying at a higher price and reselling them at a higher price.

Meanwhile, there are three possibilities for the dollar to move: up or up, flat or sideways, and down or down.

If it rises, a large profit will be made, but if it decreases, the value of the currency will also tend to decrease.

Before making dollar investments, you must first know the purpose of these investments.

Also, make sure that before you start trading forex, you also provide an emergency fund that you can use for what happens suddenly and unexpectedly.

Transactions can be made flexibly

Forex has many advantages, one of which is that funds can be traded 24 hours a day.

Obviously, this is different and different from transactions that can occur in the capital market, because the forex market will be active 24 hours a day, five days a week, so you can conduct any type of transaction.

But make sure that if you want to buy foreign currency, you should know that each country has a different opening schedule.

More flexible

In addition, there are dealers or brokers in the forex market as well, so the market becomes more liquid and prices remain stable.

Thus, traders can close and open their positions at the market price.

without additional charges

There are almost no transaction fees in the online forex market, and there are a few fees that vary in amount, such as the cost of withdrawing money from a forex account.

Benefits can be felt immediately

Another advantage that traders can get is that they can take advantage of the price increases that occur due to the difference between the buy and sell prices of the buy order.

Meanwhile, when the sale takes place, the profit will be derived from the difference between the selling price and the buying or closing price.

You have a margin system

In addition, there is margin trading, where the purchasing power of investors can exceed the amount of capital they have.

If this is the case, of course, the profits generated will be two-way when the market goes up and the price goes down.

Of course, this may not apply to other types of investments such as stocks.

3. Weaknesses

The ups and downs of forex

It should be noted that each investment has its own drawbacks, including foreign exchange.

The first disadvantage of this investment