Forex, or what is the same, the currency exchange market, has been facilitating international trade since the times when communications were much slower than today, specifically since the Bretton Woods detached the price of the dollar (world reserve currency) from the gold standard, since although currency exchanges were also carried out before, since the end of the gold standard the dollar exchange rate was no longer fixed and the US currency was now free to float freely with respect to the rest of international currencies, which was no small feat, since the dollar is found in the most liquid pair exchanges.
Although this market was initially limited to a more professional area, in recent years it has become increasingly accessible to the general public, so it is necessary to know not only how to do it, but also the potential risks, since that indeed, there are risks as well as potential opportunities.
Forex on mobile
The Internet and smartphones have been two of the most disruptive technologies of the twenty-first century, and thanks to this, connectivity between people around the world has increased in ways that no one could have foreseen, and in the same way it allows everyone access to services that previously were either exclusive to professionals or required a very high effort on the part of amateur traders.
Now this is no longer the case, since anyone of legal age can do forex trading as long as you have a cell phone that can connect to the internet (it can also be done from the computer, and in fact it is the most comfortable method to, among other things, consult graphs and analysis) to be able to open a short or long position at any time. place and time, and this of course has risks, such as the investor not investing enough time in learning about the instruments or what it means to do leveraged trading and its risks, very different from a classic purchase and sale despite the fact that Many novice investors may be confused by believing that forex trading involves acquiring the currency, and this is not the case at all.
For the rest, forex is a market well known to the most classic investors, probably along with the raw materials market and the stock market, but it is usually the gateway for many first-time trading investors, perhaps because it handles concepts with which most people are familiar with, which thanks to technology is very well complemented by the greater accessibility of tools such as the economic calendar, which helps to more easily manage information that affects currency prices, such as quarterly unemployment data, the CPI or a multitude of industrial indicators, to give just a few examples.
In addition, forex brokers can offer other instruments with which to trade on their platforms, which have their own characteristics and peculiarities.
Not only has the way of investing changed, but also the instruments
Before 2009, cryptocurrencies did not exist, and today, only bitcoin is trading above $50.000 and capitalizes more than a trillion dollars, and of course they have become another instrument for trading, although as already mentioned has said have particularities, such as that the level of leverage allowed on some platforms can be much lower, since it is a very volatile asset and too high leverage would imply excessive risk even for the most experienced traders.
To get an idea of what volatility entails, just look at a bitcoin graph. If you look hard enough, you will be able to find instantaneous drops of thousands of dollars from time to time that may sometimes respond to nothing more than the action of a whale. So a trader who had correctly predicted an uptrend and opened a long position would still see his position closed against, so it is very important to take into account the level of leverage used.
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