What is Forex Trading? Guide for Beginners
Forex, short for foreign exchange, involves trading one currency for another for various purposes such as business, tourism, and international trade.
Forex trading entails speculating on currency prices to earn potential profits. By trading currencies in pairs, traders predict the rise or fall in value of one currency against another.
Forex is traded on the forex market, open to buy and sell currencies 24 hours a day, five days a week. This market is used by banks, businesses, investment firms, hedge funds and retail traders.
The value of a currency pair is influenced by trade flows as well as economic, political and geopolitical events. This creates daily volatility that may offer a forex trader new opportunities. Online trading platforms provided by global brokers like FXTM mean you can buy and sell currencies from your phone, laptop, tablet or PC.
