Starting to recognize the ins and outs of forex trading, what forex is and how it works, and delving into the important things in the forex industry, of course there are a lot of facts and things that you need to learn. Especially if you really intend to jump into the forex industry with the aim of getting big profits in every trading activity. This requires patience and time and a lot of capital to become a real expert in this industry.

Another important thing for you to know is some general facts about the forex industry. Including the good and unique things about this global industry, as well as the unpleasant things that often happen in the forex industry. The goal is none other than to prepare yourself as best as possible before actually entering this industry. So that later there will be no regrets because the insight you have yourself is more than enough.

The Largest Financial Markets in the World

You need to know this one fact. Forex or the abbreviation of foreign exchange itself is the largest financial market in the world. In one day, the forex market itself trades money worth trillions of US dollars.

Not a small amount of course and not a playful activity with high profits either. This can happen because most of the size and large liquidity in the forex market, there will always be buyers and sellers ready to transact anytime and anywhere.

Trading is done 24 hours a day

As mentioned above, forex is the largest global financial market. It is no wonder that trading in the forex market itself is done 24 hours a day and five days a week. This is what allows you and other traders to trade at times that suit your own time.

However, in general, this trading takes place during New Zealand market hours on Monday, until the United States market closes on Friday night. In Indonesia, this means that the forex market is open from 5 am on Monday to 5 am on Saturday.

Small Transaction Fee Amount

In every trading process there is a forex transaction fee that must be paid by traders, this is called spread. In the forex market itself, the amount of this transaction fee is usually less than 0.01% of the size of your own forex account. So, the larger the size of your account, the greater the transaction fee. Even so, in terms of percentage, the value is still relatively small compared to other markets.

Devices and Accounts Used Free

For those of you who want to jump into the forex trading industry, don't worry. Most online forex brokers or brokerage firms now offer to open a free demo account along with access to information and news in the forex industry.

With this free tool and account, it means you can do demo and simulation. At the same time, you can also see the live market price display. This is good for those of you who want to hone your skills in the forex industry.

Profit by Buying and Selling

There are two ways to make a profit in the forex market, namely by buying or selling forex which also depends on whether the price is moving up or down. This may happen because in forex trading itself there is a purchase of one currency and a sale of another simultaneously. This arguably unique arrangement allows traders to buy and sell at any time, allowing you to make a profit at any time.

High Leverage Level

In the forex market, brokers usually provide high levels of leverage. In fact, it can reach 400 times the investment of traders. For example, at a leverage of 500, this means that it is possible to invest in the value of 1000 US dollars and can control the currency of 500 US dollars. This leverage gives traders the potential to quickly increase the size of their accounts while keeping the risk at a minimum.

High Accessibility

Be thankful for the advancement of digital technology including the internet that allows you to trade forex simply by using two things. Use a device such as a laptop or smartphone and an internet connection. With these two things, the forex trading process becomes more accessible to anyone and allows for better profits.

Small Initial Capital

Each trader (individual) can open a trading account worth 200 US dollars. This means that novice traders have the option to start with small capital and increase their account value quickly later with the power of compound interest. Anyone who has sufficient initial capital can join forex trading.

Regulatory Limits Still Limited

Now, the forex market specifically in Indonesia is still supervised by Bappebti. However, globally there are still no heavy and strict regulations. The forex market itself is still considered an over-the-counter (OTC) market which means there is no central exchange or location for traders to meet and make transactions. Thus, the regulation is still very limited.

Important Facts That Are Rarely Discussed

In addition to the “sweet” facts above which are also general in nature, there are other facts that you also need to know, especially regarding the forex industry itself.

  • Capital is proportional to profit

The facts in the forex industry have been mentioned above, but need to be clarified again. In this trading, there are traders with small accounts that can present a greater risk of margin call. It is true that trading can be started with very little capital, especially when compared to other markets or investment sectors.

However, it is important to remember that in practice, forex trading itself basically also uses business principles. So, it is clear that you cannot expect to make hundreds of US dollars in profit every week with just a 50 US dollar account size.

  • Don't Miss the Moment

It's all about momentum and making the most of it. Maximizing your trading when the odds are in your favor is perfectly fine as part of your strategy. Especially if you're a beginner trader.

The concept is the same, traders who actively trade will sharpen and hone their skills faster. Especially in quick analysis and making accurate decisions, especially in very active trading sessions than in relatively quiet trading times.

  • There Will Often Be Mistakes When Trading

Always remind yourself that trading mistakes will not only happen once. This is because the conditions of the forex market, the world economy, and countries that are always dynamic make conditions not always uniform and predictable. For that, being a sensitive trader and continuing to develop yourself is an obligation that must be done in order to maintain sharp trading power at all times. A big mentality is also needed here.

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