Here are answers to our most frequent queries related to Forex Trading.
Currency trading, also known as “foreign exchange,” “Forex,” or “FX” is one of the largest financial markets in the world. With over $4 trillion traded every day, the forex market is a global market that individuals and corporations can invest that the value of one country’s currency will rise, while another country’s currency will fall. There are many ways to trade the forex market. It can be traded fundamentally or technically, day-trading, scalping, swing trading, and long term. The value of currencies is influenced by economic factors, geo-political events, supply and demand, and market sentiment.
Currency exchange rates are always displayed in pairs. The first currency pair is referred to as the “base currency” and the second currency pair is referred to as the “quote”. If the EUR/USD currency pair was trading at 1.30, that means it would cost $1.30 to have 1€URO. The most actively traded currency pairs traded are called the “majors”. They include the U.S. dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar and Australian dollar. Pairs not including major currencies are referred to as “exotics.”
Forex is an over-the-counter market, meaning trading is not done on an exchange, but between banks, major liquidity providers, and forex brokerages. Traders can trade forex using leverage with software provided by their broker. One of the most popular retail Forex trading platforms on the market is the MetaTrader 4 (“MT4”) platform. Institutional traders and banks trade with Currenex.
The Forex market is open Sunday 5 PM ET to Friday 5 PM ET. Beginning in Sydney, it makes its way around the globe to Tokyo, London, and New York as each business day opens. Open 24 hours a day, it is the world's most traded market.
A demo account is a great way to get familiar with the Forex market and software and practice in a risk-free trading environment. Using real-time market data, demo accounts enable traders to enhance their risk management skills and develop strategies that can be applied to live trading.
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