What is Forex? Here’s How Forex Works

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Forex stands for Foreign exchange . This is a form of foreign exchange transactions. Usually more commonly referred to as foreign exchange or foreign exchange. Foreign currency exchange occurs because of the need for foreign currency itself. For example, you want to go abroad, shopping in another country, and the like.
There are also those who exchange foreign currency for trading. People who trade forex are called forex traders. To trade forex, you need experience and understanding of the various factors that influence the rise and fall of currencies in the world.

This is included in investment activities for the future. It does require capital but not too big. If there is indeed a bigger fund, of course the better it is to invest through this forex.

How Forex Works

Many ordinary people who judge forex only rely on predictions. Whereas in forex there is a way it works, not only from predictions there are calculations and also analysis. There is their own way to do   forex trading and not everyone can do it properly and correctly. For those who have been in this world for a long time and have a lot of experience, they will know how forex works.

The trader  or the perpetrator  of trading  robot trade used to manage and execute the transaction itself or can also use the services of  a broker  who is credible. Brokers  here are not only intermediaries but also as providers of  forex trading facilities  . The facilities in question are security systems, means for transactions, to separate accounts.  Brokers  also provide information assistance to  traders  so they can analyze the market.

Then, in  forex  also does not have a center or reference value for the currency. This means that no party can move the market price if it does not have sufficient funds or capital. Transactions in forex trading   occur due to fluctuations in foreign currency exchanges caused by various factors. Factors in question such as world economic turmoil to geopolitical conditions.

So how, are you interested in starting forex investing?

Opening a Forex Account

Forex trading is a lucrative business, but it must be handled carefully and with caution. this is because the user must deposit a certain amount of funds as an initial deposit before carrying out real trading activities. You certainly don’t want your funds to be lost by irresponsible brokers, right?

So the first thing you have to do as a way of trading forex is to choose a trusted broker. The characteristics of a safe and trusted broker are recognized legality, responsiveness, and various testimonials related to service, quality, and facilities from its users.

The following is a list of the best and most trusted brokers for trading forex, namely:


1. Octa Investama Futures

Octa Investama Berjangka is one of the Forex Brokers in Indonesia and has been registered with BAPPEBTI. It is suitable for those of you who want to do forex trading activities using a local broker. There is also no doubt about legality, apart from being registered with CoFTRA, forex broker Octa Investama has also been registered with ICDX and ICH.

And what is Octa Investama Futures Broker? you can read  click here  and if you don’t have an Octa Investama Futures account, you can  click here

2. Olymp Trade

Worldwide Trading Platform since early 2014 , Free account available , Real account deposit $10 , Platform available 24/7 on all PC or android devices , Easy deposit withdrawals and can be done within 24 hours , 0% Deposit and Withdrawal Fees.

Olymp Trade is the winner of the following industry awards:

  • Best Trading Platforms 2018
  • The best fb trader community in Indonesia (2018)
  • Best Financial Broker CPA Life Award (2017)
  • Innovative IAFT Broker Award (2017)
  • ShowFx World’s Fastest Growing Broker (2016)

Understanding the Risks and Potential Losses

Every business certainly has risks, but every businessman must be able to minimize these risks so that they do not cause big losses. Because the potential profit from forex trading is high, it must also be known that the risk of loss is also high.

Make sure you take the rare diversification in investing before jumping into trading. Putting all your money in this investment would be very dangerous. Therefore, you must be able to understand the impact that will occur before making a policy or decision.

In Forex Trading, there are several important terms that you must know. By knowing this, it will be easier for you to read the business situation so that it is profitable. Some of these terms include:


Bid is a button for traders who will buy based on the foreign exchange price level. While in trading language it is referred to as a button to open a buy position.

tick value

That is the smallest price change in a market which is located to the right of the decimal point. The number of ticks in a point is measured by the number of ticks moving to the left of the decimal number. This value depends on one type of stock.


That is a change in value between two currencies. For example, EUR/USD is located at 1.1208 and then moves to 1.1209. A difference of 0.0001 is called 1 pip.

Lot Size

Lot size is the size of the transaction that involves the entire contents of the thing being traded. Lot is a unit of measure in transactions where the numbers are always round or intact.

Orders (Risk Management)

Risk management is a way and effort of traders to eliminate and limit various types of financial risk.

Stops and Limits

A stop order is a notification that instructs the trader to buy above the market price or sell below the current price.

Margin calls

Margin call is a form of warning for traders to immediately add or increase the margin of money in order to continue trading transactions.

Stop loss

That is the maximum point of loss or loss that can be accepted. When the trade reaches this point, the order is automatically driven by the system.