What is Forex and how does it work?

Forex, also known as foreign exchange or FX trading, is the conversion of one currency into another. It is one of the most actively traded markets in the world, with an average daily trading volume of $5 trillion. Take a closer look at everything you’ll need to know about Forex, including what it is, how you trade it and how leverage in Forex works.

How FX Trading works

Trading Forex involves the buying of one currency and simultaneous selling of another. In Forex, traders attempt to profit by buying and selling currencies by actively speculating on the direction currencies are likely to take in the future.

Forex Trading For Beginners special features:

• Simple and easy navigation
• Large print (easy reading)
• Compatible with 99% of smartphones
• Small space on device required only
• No irritating pop-ups/ads in the middle of the page
• No in-app purchase required
• Priceless learn to trade tips
• 100% Free Download

KEY TAKEAWAYS

• The Forex market is a network of institutions, allowing for trading 24 hours a day, five days per week, with the exception of when all markets are closed because of a holiday.

• Retail traders can open a Forex account and then buy and sell currencies. A profit or loss results from the difference in price the currency pair was bought and sold at.

• Forwards and futures are another way to participate in the Forex market. Forwards are customization with the currencies exchanged after expiry. Futures are not customization and are more readily used by speculators, but the positions are often closed before expiry (to avoid settlement).

• The Forex market is the largest financial market in the world.

• Retail traders typically don't want to have to deliver the full amount of currency they are trading. Instead, they want to profit on price differences in currencies over time. Because of this, brokers rollover positions each day.

The many topics in our humble A Beginner's Guide to Forex Trading app includes:

+ What is Forex
+ Who trades at the Forex market
+ Why become a Forex trader
+ When one can trade on Forex
+ Successful Trader Tips and how to get started
+ Trading View Charts
+ and more!

It takes time to master Forex trading, but once you have, a whole new world of opportunities opens up for you. You may become an account manager and start getting profits not only from your trading, but also as a commission for managing accounts.

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Have a nice day!