Forex, what you need to know about the most liquid financial asset in the world

Investing in the financial world is, historically, a fundamental trait of Italian savers, once spoiled by the particularly attractive yields of government bonds and, in a broad sense, of the so-called “free-risk», Which could include« senior »bonds issued by the most solid credit institutions and« class I »life policies.

Today, however, the scenario has radically changed. Thanks to the expansive monetary policy of the European Central Bank, which has lasted for over a decade and has accelerated further over the past three years, rates have turned negative. And yields in the “guaranteed capital” sector have plummeted, especially for maturities a short term.

Advantages and pitfalls of Forex

It goes without saying, therefore, that the savers of the Beautiful country they had to change their habits, trying to get one adequate revaluation of its financial assets. Online trading, in this sense, represented the best possible solution, giving way to obtain more satisfactory returns over the past ten years and to achieve excellent diversification of their savings.

One asset, more than others, has brought even the less experienced to the financial world: Forex, an acronym for Foreign Exchange Market. Thanks to it it is possible to invest in the world of currencies from all over the world, which, unlike what happens at the bank counter, are exchanged at variable rates and not fixed. Forex, as obvious as it may be, cannot be a trader’s only investment solution.

Like all financial instruments potentially harbingers of excellent performance, Forex also incorporates pitfalls and exposes the investor to the potential loss of a portion of the invested amount. It is good practice, in this sense, to allocate only a part of your own financial resources, avoiding a large concentration and using it, in fact, as an excellent ingredient to diversify the assets present in a financial portfolio.

To invest in Forex, however, you can get one extraordinary support from the great world of the web, where there are some serious and reliable portals to make, consciously, an effective one forex trading. The best sites, in this sense, explain in a simple and understandable way what are the strengths and weaknesses of this world through the “Forex guides”, as well as providing useful suggestions on the best strategy to follow.

Forex: the “balance sheet” forty years later

To understand when Forex was born as we know it today, we need to go back to 1971. Nixon, at the time president of the United States of America, decided to release the value of foreign currencies with the dollar, in turn directly correlated with that of the‘oro. A measure that sanctioned an epochal revolution and allowed the currency world to move freely based on the financial concept «demand offer», which has always governed any market.

A change of course that many analysts, at the time, saw as a decidedly risky move, because it would also have exposed the currency market to speculation. But after forty years it can be said, although there has certainly been no lack of speculations, that that historic decision it has brought more benefits than harm to traders around the world.

Forex, in fact, is the more liquid financial market, the one where the largest transactions – both numerically and quantitatively – in the financial world take place, with beyond 6 trillion dollars exchanged daily. One aspect, the liquidity, of fundamental importance, which allows traders to be able to sell the chosen pair at any time and implement trading strategies including short range.

Forex allows you to invest in all currencies in the world. However, the major currency pairs traded are: USD (US dollar) / Eur; GBP (British pound) / USD (probably the most influential in the forex world); USD / JPY (Japanese yen); the aforementioned EUR / GBP; EUR / JPY; GBP / JPY.

Source: RSS Economia by

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