Forex is the abbreviation for Foreign Exchange, which is also known as the International Currency Market.
The foreign currency market is seen wherever a currency is traded with another. In the world’s largest market, with more than two trillion dollars traded daily, which includes negotiations between central banks, big banks and currency speculators, governments, and multinational corporations.
One of the characteristics of this market is that unlike other financial markets, it does not weigh a physical location. It operates through an electronic network of banks, companies, and people who exchange one currency for another.
Trading in Forex is done through pairs, buying one currency, and selling another. Traders speculate on the price difference, know how to choose EA Forex (วิธีเลือกEA Forex which is the term in Thai) making a profit or a loss when they vary.
The Forex market has quickly gained popularity, due to its high liquidity, while online trading has made Forex a good investment option, not only for large institutions and banks but also for private investors around the world.
Most operations in the Forex market focus on five currencies: the dollar, the euro, the pound sterling, the Swiss franc, and the yen.
Types Of Lots In The Forex Market
The lots in the Forex market are the units, that is, a lot is the minimum amount of currency for which a transaction is made.
The different types of lots that are handled in the Forex market are:
Standard Lot: Equivalent to $ 100,000.
Mini Lot: Equivalent to $ 10,000.
Micro Lot: Equivalent to $ 1,000.
This modality allows buying and selling very large amounts of money with low investment, while at the same time, they are dedicated to different kinds of investors.
An investor can leverage very strongly, with a low investment. For example, we can control $ 100,000 with an investment of $ 1,000, which would represent leverage of 100 to 1.