Forex Demo Account Article:

Learn About The Forex Market
By Jon Provencher
With over $1.2 trillion being traded every day it is easy to say that the (Foreign Exchange) Market, is the largest market in the world. In fact this figure represents more turnover than all the world's stock markets combined. When trading the currency of one country is traded against another. The exchange rate is the rate at which they are traded. Trades can be executed through a financial institution or broker using the phone or internet. has only recently been made accessible to small investors with the introduction of the internet and is a growing market. In 1997 there were only 1.7 million trading accounts compared to more than 6 million today.

The most commonly traded pairs are referred to as the 'Majors' and comprise the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY; and the Swiss Franc (USD/CHF). The Canadian Dollar (USD/CAD) and Australian Dollar (AUD/USD) are also commonly traded. The market functions through a global network of participants rather than through a central exchange with most brokers and banks using a centralized feed to ensure the reliability of their quotes. The quotes are usually made up from the top 300 or so large institutions. It has been estimated that anywhere from 70%-90% of the trades are speculative. This means that the person or institution placing the trade has no intention of taking delivery of the currency, they are simply speculating on the movement of the currency.

Clearly with $1.2 trillion being traded, the market is extremely liquid. This means that with a click of your mouse you can immediately buy and sell at the prevailing rate. You will never get stuck holding currency you want to sell.

With the introduction

of the internet, trading has never been easier. As is such a highly traded market, there are a lot of brokers to choose from, offering differing rates of commission (also referred to as spread) and trading platforms with different features. Most platforms will allow you to pre-enter buy and sell orders at your preferred price, along with stop loss (to minimize your loss if the trade goes against you) and profit target. Many firms also offer free 'demo' accounts. A demo account will allow you to practice your skills trading with virtual money before you put any real money at risk. Most brokers also offer real-time charts for and popular technical analysis tools.

A large advantage of trading is the amount of leverage that you can use with some firms offering up to as 200 to 1 leverage, allowing you to place a $10,000 trade with a $50 margin. The use of leverage can help those with limited funds to trade large quantities on the market. A large number of brokers also offer 'mini' accounts allowing traders to place much smaller trades than standard accounts.

Forex trading also has the advantage that you can trade both sides of the market, you are able to enter trades both LONG (expecting the market to go up) and SHORT (anticipating the market will go down).

The market is open 24 hours, closed only from Friday evening to Sunday evening. This means you will never get stuck with opening/closing gap problems. The fact that the market is open 24 hours makes it a more accessible market for part-time traders as trades can be placed at a time that is practical for you.

To get more information on trading and and bullion, visit the link below or try searching in google.

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