In this article, We learn about “Forex Trading “.Let’s Go!
Forex Trading is the simultaneous buying of one currency and selling of another.
When you trade in the Forex market, you buy or sell currency pairs.
As one currency rises or falls in value relative to another, traders decide to buy or sell currencies to make a profit.
Retail foreign exchange traders participate in the foreign exchange market as speculators, hoping to profit from exchange rate fluctuations.
Each currency in the
currency pair is listed with a three-letter code.
The first two letters represent the country (or region), and the third letter represents the currency itself.
For example, USD represents the U.S. dollar, and CAD represents the Canadian dollar
Leverage is “the number one cause of death for Forex traders”.
When you are new to Forex, you should always start small trades with lower leverage until you know what you are doing.
Are you overwhelmed by these fringe terms? Check out our Margin 101 course on margin which breaks it all down for you, easy and hassle-free.
What affects currency prices?
The exchange rate of
currency is determined by the supply of and the
of
currency on the market.
The supply and demand for money may be affected by the following factors:
- A country’s current inflation rate and expected future inflation rate.
- Country balance of payments
- The monetary and fiscal policies of national governments.
- Various economic indicators raise expectations about the country’s economic health
- The difference between domestic and foreign interest rates and central bank intervention.
Forex Trading for Beginners
For new Forex traders, it is important to establish an educational foundation before risking large amounts of real money.
It is important to understand the foreign exchange market
We recommend that you complete our Pipsology Academy, our free online course that helps beginners learn how to trade Forex.
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.
