In the following article, we will look at some of the things people don’t tell you about the Forex market! It is super important that you know this so you can know how to take advantage of the market!
Most of the people who enter this world of investments and the stock market enter through binary options or Forex. Why? Because there is a lot of publicity for these markets. But the reason there’s so much hype is that it’s much easier to manipulate these markets. Forex just so you understand, it’s the difference between two currencies, for example, the euro or the dollar.
People don’t tell you about the exchange ratio!
In Forex there is something called the exchange rate between the pairs. When you are going to make money in trading, which is a short-term investment, you will have to say if the value of the currency is going to go up or down. So, then you can place an order and say well, I think the dollar will go up or down.
Well, it is going to get stronger against the euro. And when you put in the order, and if it works you will earn money. Obviously, there is the other side in this trading world that will say you can make a million dollars in a second weekend. And this is not necessarily true! So, be very careful with that. As you can see, it is very important to have a strategy. Or, a system that helps you minimize risk and maximize profits.
Unregulated market, people don’t tell you about this!
So, this is simply Forex. The thing that people don’t tell you is that this Forex market is not centrally regulated. It is technically illegal, but in no country can they make it completely illegal because the countries need the currencies.
When we are talking about a market that is made for speculation, Forex is not necessarily made for that. So, there is no centralized regulation that regulates the activity or the businesses that are offered in this world of Forex. At this moment, unfortunately, all the markets are manipulated, but some are more manipulated than others.
In the case of Forex, each country individually regulates the financial system, the economy, and everything else, but they cannot necessarily regulate what happens in other countries and since you are not centrally regulated, there is no centralized place where people can see what another is doing and that is precisely the problem with Forex.
Do you trade against the broker?
When you are trading the Forex market, you are not trading against the market. You will be trading against the broker or the financial identity. And, at that time is where the financial identity has the opportunity to manipulate the things that you do against them.
In these markets, for example, you deposit 100 dollars and go and buy a currency and basically, you should be buying it in the market, but it is not the market price. There is a difference called Spread and this is basically what the broker charges or the financial identity so that you can operate in the market. Yeah, so that you can enter and exit and speculate and of course lose money!
When the information is not centralized, the problem is that it is in the interest of the broker because it is not an entity that makes money. So, it makes money with the positions you make, this is called the double spread.
Does Forex charge commission?
People don’t tell you that Forex doesn’t charge commission. Well, the commission is the spread, the difference between the market price and the current price that they are giving. So, many brokers manipulate this and that is where it is called the double spread. For example, stocks or futures do not exist, that is, the broker does not manipulate the orders that you place in the market, you just have to wait for a difference between what a person wants to sell and what a person wants to buy.
Finally, remember that there is advertising to make money and this is said to happen from one moment to the next. Beware of people who tell you that in the world of trading, you can only make a lot of money. It is true, but you can also lose a lot. So we hope that the information about Forex will be of great help to you.