What is FX?

FX that has been a growing awareness of the financial instruments between individual investors.
There are also many people already familiar with the rule of FX already, but for those who are going to start FX,here we will briefly explain the advantages of FX.

What is FX?

FX (Foreign Exchange Margin Transaction) is a transaction that deals profits by buying and selling foreign currencies such as US dollar and Euro. It is also called foreign exchange margin trading, and the word "FX" comes from "Foreign Exchange" meaning foreign exchange in English.

For example, if you buy it when the US dollar is cheap and sell it when it is expensive, you generate revenue. More specifically, if you buy the US dollar at 1 dollar = 100 yen and sell it when you get 1 dollar = 110 yen, you will earn 10 yen per dollar. If you bought a thousand dollars then you will earn 10,000 yen ($ 1,000 x 10 yen) profit. Of course, contrary to speculation there might be a case where the dollar will be 90 yen. In this case, if you bought $ 1,000, you will lose 10,000 yen ($ 1,000 x 10 yen).

1万円の利益 10万円(100円×1,000ドル) 1ドル=100円のときに1,000ドル買う 11万円(110円×1,000ドル) 1ドル=110円のときに1,000ドル売る

You can trade with less funds.

Maybe you will think that it isn't the same as a foreign currency deposit? The big difference between FX and foreign currency deposits — it's leverage.
Leverage is a small amount of money to run a large fund. In the previous example, I gave an example of buying $1,000 for 1dollar = 100 yen.In this case, when you travel abroad or make a foreign currency deposit, you will usually need 100,000 yen ($1,000 x 100 yen). But with FX, it is not absolutely necessary 100,000 yen to make a $1,000 deal. It is a feature of FX that allows you to trade the amount of money of several times - dozens of times. Provided that you have deposit in FX company as collateral.However, since the leverage is high-risk high return, those who traded FX for the first time would be good to start trading by setting a lower leverage.

Trade large amounts with less funds.

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