What is Forex?
The foreign exchange, which is often named just FX or forex, is the world’s marketplace for exchanging currencies. They trade against each other, which allows market players to exchange pairs, for example, EUR/USD, GBP/USD, or USD/JPY.
It is the most liquid global market due to the global reach of trade. The price of each pair changes every day considering economic events, so traders can speculate on these movements by setting orders on buying or selling currency pairs.
Why Choose Forex?
The market is open 24/5 during weekdays
The volume of the Forex market
Choose any convenient time for placing deals and earning money! The market opens first in Australia, then trading in Asia begins, going next to Europe and proceeding to the US. It means that the movement of prices of specific currency pairs may differ due to various economic events in these parts of the world. However, all this gives an opportunity for every trader to make money.
Trade Major and Exotic
There are major and exotic pairs you can trade:
The majors always include USD. There are 7 of them -
The exotic ones are more volatile and sometimes lack liquidity. They represent currencies of developing countries and one of the major currencies. The most popular exotic pairs are
Benefit from Any
Traders can earn not only when the price is glowing and they buy low and sell high. There is a chance to make money if the economy is receding.
Bulls or “bullish” traders expect the price to increase. They commonly open long positions and wait until the price grows, and then sell the asset with profit. The majority of traders are bulls, as the increase in the economy can be forecasted relatively simply. If the economy is on the rise, GDP is rising, and there are generally positive events, the price for a currency may grow and bring profits to such traders.
Bears of “bearish” traders choose an opposite, more pessimistic strategy and benefit from lowering the price. They sell assets to buy them cheaper when they fall. This style is less popular due to high market volatility and possible threats. Bears focus on negative economic news.
There are also several trading styles, a handful of popular strategies you can use, recommendations on using indicators, and other tips that you can discover in our ‘Trading Tools section. Learn more about Forex trading, pips, bids, spreads, trading indicators, and leverage by visiting ‘Trading for Beginners’ and ‘eBooks’ pages.
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