What is Forex trading?

FX trading allows you to speculate on the changes in currency strengths over time, trading currencies and buying or selling one against the other. Forex traders seek to profit from fluctuations in the exchange rates between currencies, speculating on whether one currency's value, like the pound sterling, will go up or down in relation to another, such as the US dollar.

With over 5 trillion dollars’ worth of currencies traded globally every day, the foreign exchange market is the most traded in the world, making it a highly liquid and dynamic market. This high market liquidity means that prices can change rapidly in response to news and short-term events, creating multiple trading opportunities for retail FX traders.

How does Forex trading work?

When trading currencies, you can speculate on the future direction of the market, taking either a long (buy) or short (sell) position depending on whether you think the currency’s value will go up or down.

When trading currencies, you can speculate on the future direction of the market, taking either a long (buy) or short (sell) position depending on whether you think the currency’s value will go up or down.

Example of the Euro Dollar pair.

The Euro is the base currency and the US Dollar is the quote. If the price of the EUR/USD pair is 1.06325 it means that 1 euro is equal to 1.06325 dollars.

Selling

Alternatively, you would sell a currency pair if you believed that the base currency will weaken in value against the counter currency.

f we think the Euro will decrease in value against the US Dollar we would place a sell trade and for every pip the Euro falls against the US Dollar you will make a profit.

Forex is a margined product

Also known as leveraged trading, this means you can put up a small amount of money to control a much larger amount.

Which currency pairs?

Commonly traded currency pairs are traditionally divided into three groups related to popularity and liquidity: majors, minors and exotics.

Is Forex trading right for me?

Forex trading is ideal for investors who want the opportunity to trade on a market that is open 24 hours a day, while at the same time minimizing trading costs and potentially profitting from markets that are rising or falling. However, it contains significant risks to your money and is not suitable for everyone. We strongly suggest trading on a demo account before you try it with your own money.

Acerca de las cookies en este sitio
Este sitio web utiliza cookies propias y de terceros para mejorar tu experiencia de usuario y obtener información estadística. Para poder seguir navegando pulsa en "Sí, estoy de acuerdo". Podrás retirar este consentimiento en cualquier momento a través de las funciones de tu navegador. Ver nuestra política de cookies.
SI, ESTOY DE ACUERDO
Disclaimer: All content is provided for fun and entertainment purposes only.