The Forex Trading Market
Forex is the virtual location where global currencies are traded. The total market flow of Forex is about $4.9 trillion U.S. per day. This makes it the largest electronic market, essentially dwarfing all the stock markets.
What is Forex Trading?
Forex Trading involves the act of trading currencies on a specific direction on a currency pair. The exchange rate between two currencies is the rate at which one currency will be exchanged for another. Forex traders use available data to analyze currencies and countries like you would companies, thereby using economic forecasts to gain an idea of the currency’s true value.
The Benefits of Forex Trading
Unlike stocks, forex trades have low, if any, commissions and fees. Even so, new forex traders are always advised to take a conservative approach and use orders, like stop-loss, to minimize losses. High leverage, gives traders the opportunity to achieve dramatic results with less capital that is typically required with other types of trading. Forex trading requires training and strategy, with the right training one can gain and ‘edge’ in the markets.