Foreign currency trading takes place at the international foreign exchanges in, for example, London, New York, Frankfurt, Sydney and Tokyo. At an average daily turnover rate of US$ 5 trillion, the foreign exchange market is the largest liquid financial market in the world. Foreign exchange trading is possible 24 hours 5 days a week.This page provides you with some essential information to help you understand the basics of Forex trading, including:
What is Forex trading?
What are the benefits of Forex trading?
Who should trade Forex?
What tools do you need to trade Forex?
Basically, when you place a Forex trade you’re believing a currency is going to move in one direction either up or down, relative to another currency.
For example, you might think the Euro (EUR) is going to increase in value against the American dollar (USD) so you could place a trade to buy the EUR/USD currency pair. If the Euro rises you would make a profit; if it drops you would incur a loss. Inversely, if you thought the Euro was going to decrease in value you could place a trade that would benefit from that price movement.
Before launching with a live account, traders should spend time familiarizing themselves with the way the Forex market works and establishing a realistic trading strategy based on their individual goals.
There are plenty of reasons why people choose to trade Forex, from wanting to earn some extra income to evaluate their assets in the world’s largest financial market of Forex. Here are three of the main reasons our clients enjoy Forex trading:
It doesn’t matter if you’ve never traded before, only a little or have a lot of time to trade – Forex trading offers opportunity for everyone. Forex trading is particularly popular for the following:
As an introduction, a new trader could consider starting with the following basics:
As you advance your trading, the following tools may be of use: