Fri. Jul 30th, 2021

Financial Planner

Tips, tricks and guidline for financial planner

What is forex and how does it work?

What is forex

We talk about the issue with Marco Castillo who has experience of trader in the Colombian market.  The first thing that is recommended is to risk money that is willing to lose and in the words of Castillo. It is not a small amount if you open an account of only $ 50 dollars it is possible to lose them in a single operation. For starters, it is best to do it with amounts over $ 1,000. Due to its high volatility it is considered a high risk alternative. So if you are less risk-tolerant better consider other options.

What is forex

The dynamics of FOREX is simple to understand at first glance through trading platforms. This dichotomy must be kept in mind at the outset to avoid bad experiences in terms of profitability (capital losses) notes.

With regard to its operation, this consists of a variety of quoted buy and sell pairs of currencies (currencies) 24 hours a day, with opening day on Sunday (New Zealand) and closing on Friday (United States) in Schedule of 5 pm (Colombia time). Participants in this market are central banks, commercial banks, international funds institutional investor’s brokers and dealers and individual investors. Negotiations are made through electronic platforms provided by the broker of choice.

For what type of investor is it appropriate?

Although it is easy to access this market through a FOREX account, since it can be done in minutes, it is recommended mainly for individuals who have previous experience in other financial markets stocks, bonds, and futures, options hand in hand with an appropriate trading or trading plan. This market is ideal for high-risk profiles with minimal risk aversion.

It is important to keep in mind that about 90% of the individuals that access this market lose the totality of the initial funds in a short period. Taking into account all the advertising and marketing deployment globally any natural person could perform FOREX operations, even from their mobile phone tablet or pc. The dilemma is how prepared each individual who accesses an account to assume the swings of an efficient market.

Is it legal in Colombia?

In Colombia, any resident of the country is allowed to make financial investments abroad external Resolution 008/2000, of the Bank of the Republic. If you would like to know about Forex trading you could choose Forex No Deposit Bonus.