FOREX trading is your best way to be successful
Gain access to the largest market in the world and speculate on the price movements of currencies
What is FOREX?
The global foreign exchange market is one of the fastest markets. High liquidity and the ability to trade with leverage have increased the popularity of this market.
Forex trading is the simultaneous purchase of one currency and the sale of another. Currencies are traded in pairs. There is a base currency and a quote currency. An example of such a trade would be an EUR/USD, which means buying EUR and selling USD.
WHAT ARE CURRENCY PAIRS?
Forex is always traded in currency pairs, for example, EUR/USD. The first currency (EUR) is called the “base currency”. The second currency (USD) is known as the “counter currency”. The way currencies are displayed shows how many units of the counter currency you can buy with one unit of the base currency, or in other words, how many US dollars you can buy for one euro. Currency pairs are divided into 3 main types.
Most major pairs contain the US dollar as a base or counter currency. These pairs are the most traded. They usually include EUR/USD, GBP/USD and USD/CAD.
Currency pairs that do not contain the US dollar are called “minor currency pairs”. They can include EUR/GBP, EUR/CHF, GBP/JPY and CHF/JPY.
Emerging or exotic currency pairs are made up of a major currency paired with an emerging or small but strong economy. Emerging currency pairs include USD/NOK, USD /HKD and EUR/CZK.
How to trade FOREX?
In each transaction, the buyer gives something to the seller, and vice versa. In Forex trading, the buyer gives the money to the seller, and the seller gives the buyer money in another currency. Thus, every Forex trade takes place in the form of speculation on a currency pair.
Thanks to careful analysis, traders can predict the potential direction of a currency’s price movement and try to make a profit based on price fluctuations.
When to trade FOREX?
There is no centralized exchange for forex trading. So, traders can access Forex market 24 hours a day, 5 days a week.