What is Forex trading?
Speculative Forex trading is an exciting world with fortunes lost and gained daily, it isn’t for the faint hearted. So what makes forex trading such an exciting endeavor? Forex trading and forex market is as simple as it is complex. Simple in the way how anybody from any part of the world with internet access and a few hundred dollars can trade it; and complex in the way how innumerable factors affect the daily movement of the global currencies. Needless to say if you don’t know what you are doing you can easily get hurt. In fact even seasoned professionals can and do routinely lose money in Forex trading. But what keeps millions of traders, small and large, coming back? It is the simplistic nature of speculative Forex trading in a market place that offers a level playing field for small and large traders alike. You can certainly apply the saying “it takes a couple of weeks to understand but a lifetime to master” in Forex trading.
In Forex trading, you buy and sell currencies-buying the stronger currency against the weak and vice versa. There is no restriction in the order of your transaction, meaning you can sell a currency pair first and buy it later, commonly known as “shorting” (if you think the market will move down before it goes up). Understanding the basics of Forex trading is a must before you venture into the world of currency trading
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