Forex Trading For Beginners, If you are reading this article then you are a forex trader or you are interested in Forex Trading. Let’s explore some things about forex trading together.
What is Forex?
The simple answer to this question is, Forex is the global market of currencies that allow one person to trade currencies. That’s it? Yes, that’s the basic definition of forex.
If one thinks one currency will be stronger than the other currency and end up correct then he/she can make a profit. Now, you may have a question on your mind. How do I know which currency will be stronger in the future? Well, that’s the tricky part you have to learn many things about forex trading and analyze the whole currency market. It takes years to become successful in the forex market.
Size of Forex Market, Forex Trading For Beginners
The Foreign Exchange market is usually known as “Forex” or “FX”, is the largest financial market in the world. Forex market is a global, decentralized market where the world’s currencies exchange. In this market, the currency traders buy currency and hope that they will be able to sell them in the future at a higher price. The total number of transactions per day is $6.6 TRILLION USD. Yeah, that’s right 6.6 TRILLION. The largest stock market in the world is New York Stock Exchange and which trade volume is 22.4 USD per day. So, now you can understand how large the Forex Market is. Forex Trading For Beginners
Forex market is open 24 hours a day and 5 days a week. So you can trade any day at any time except weekends.
What is trade in FOREX? Forex Trading For Beginners
The perfect answer to this question is money. Yeah, that’s right money trade in Forex Market.
Because you are not buying anything physical in this market. You exchange one currency with another according to the exchange rate. The exchange rate is the main factor in the forex market. You can trade any currency in the forex market. All the currency classified into three categories. Forex Trading For Beginners
Currency Category: There are three categories of currency pair
- The “Majors”
- The “Crosses”
- The “Exotics”
The major currency pairs always include the U.S. dollar.
Cross-currency pairs do not include the U.S dollar. Crosses that involve any of the major currencies are also known as “minors”.
Exotic currency pairs consist of one major currency and one currency from an emerging market.
There are a lot more things to know about Forex before starting trading forex. Always remember that you may lose all of your invested money in forex trading.
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