What is the forex market? It is a market where currencies and financial instruments created on their basis are traded. Among the market participants are state central banks, large commercial banks, managers of financial institutions and individual traders. The daily turnover of the global market is 5 trillion dollars. Private traders account for 300 billion of this amount.

 

Forex market opportunities, thanks to which it remains popular:

1. An additional source of income, although it can also become a core business.

2. It takes less than $100 to enter the market. It's just as easy to find all the necessary Forex knowledge on the Internet. 

3. Thanks to mobile applications, you can trade anywhere where there is an internet connection.

4. Forex market works 24 hours, five days a week. It means that the trader chooses the time convenient for him to trade.

5. High liquidity - in the forex market you can be sure that "the goods will always find sale". That is, the currency will be bought/sold for the corresponding number of monetary units.

What are you trading on the forex market 

In the forex market, there are two main ways of trading: currency exchange and CFD trading - financial instruments. Currency exchange is also called the spot market. Derivative financial instruments include:

• Forwards - contracts under which a trader agrees to buy/sell a currency at an agreed price on an agreed date. The deals are concluded privately.

• Futures are the same as forward, but futures are traded on the central market. Due to the presence of a central clearing house in the transaction are considered safer.

• Options - the right (but not the obligation) to buy/sell an agreed amount of currency at a certain time at a certain price.

• Swaps - the simultaneous purchase and sale of equal amounts of currencies. The meaning of such a deal is in making a deal with the most beneficial interest.

However, the forex SG spot market remains the most popular. Spot means sell right now, at the current price. The currency is exchanged directly at the price that the market sets. The most actively traded currencies, according to "Triennial Central Bank Survey Foreign Exchange turnover in April 2019":

• United States dollar USD (US$) - 88.3% in the volume of daily transactions

• Euro EUR (€) - 32.3%

• Japanese yen JPY (¥) - 16.8% 

• Pound sterling GBP (£) - 12.8%

• Australian dollar AUD (A$) - 6.8%

• Singapore dollar SGD (S$) is ranked 13th, with 1.8% of the daily forex market volume.

 

How to Start Trading in the Forex Market

To begin with, you need to educate yourself. There is a lot of literature on the Internet for those who want to start trading. What else you need:

• Capital - now you can enter the market even with 1 dollar minimum deposit. In most cases, 100 dollars will be enough for a successful start.

• Software - most retail traders, trade on Metatrader 4 or 5

• Reliable Singapore forex broker. It means MAS license, good education, good trading platform and wide range of markets.

• Constant awareness of economic and political developments around the world. Economic calendars, news sites, etc. help in this.

The forex market can bring big profits. The main thing is to be an attentive and educated trader.