What is Forex?
Forex, also known as foreign exchange or FX for short, is simply the conversion of one currency into another.
The average trading volume is $5.3 trillion per day, which makes it more massive than the stock market and one of the most actively traded markets in the world.
Benefits
Trading conditions and the best chance of profiting are top things a trader looks for when deciding on a market to trade. Millions of traders across the globe agree on the forex market, fitting these criteria for many reasons. Below we have focused on the top six:
Market Hours
The forex market is open 24 hours a day, five days a week from 5 pm EST Sunday to 4 pm EST Friday.
Long or Short Positions
When trading a currency pair, you can establish a short (sell) position or long (buy) position.
High Liquidity
Every day there are a large number of buyers and sellers looking to trade the 5.3 trillion dollar market.
High Volatility
Volatile price movements can lead to massive profits when the price movement is predicted correctly.
Currency Pair Options
With over 80 currency pairs available, trade opportunities for potential profit are not hard to find.
Ease of Access
You can trade forex from anywhere via an app downloaded to your smartphone.
24H
Market Open Hours
24 hours a day 5 days per week.
5.3T
Per Day Volume
Stock market is 30 times smaller.
Forex Trading
When one currency changes into another, a forex trade takes place. When trading forex, a currency pair is always exchanging, and this happens by selling one currency pair while simultaneously buying another.
Profit happens when the value of a currency pair increases or decreases depending on the initial trade position.
Power of Leverage
In forex, leverage allows the control of a large position with a small amount of capital. When trading with leverage, the profit or loss of a closed position is based on the full size of the trade.
Therefore it’s important to understand risk management as leverage can be beneficial or harmful.
(learn how to manage your risk by downloading the free guide)
Solving the industries biggest problems
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