What is Forex Trading and How Does it Work?
In this article, we will take you through the basics of what is Forex trading.
- How does Forex trading work?
- What is maximum leverage in Forex?
- What’s the meaning of swap in Forex trading?
We will compare the Pros and Cons of swing vs day trading, the benefits of Forex trading, and whether you can get rich by trading Forex.
Finally, we’ll tell you how you can choose the best Forex trading platform, the best forex broker to start trading Forex, and conclude with a forex glossary and beginner’s FAQs.
What is Forex Trading?
What is Forex Trading all about? – Forex (FX) trading, or foreign exchange trading, is the largest financial market in the world, with $6.6 trillion worth of FX transactions taking place daily. This averages out at $250 billion per hour worldwide.
In simple words, answering our primary question: “What is Forex Trading” – forex trading is the process of making a profit from buying one currency while simultaneously selling another.
In the past only large banks, financial institutions, and trading houses could actively trade in the forex marketplace. In recent years, however, online trading and increased access to financial service providers like sai and accessible trading platforms like MetaTrader 5 have made it easier than ever for novice retail investors to trade in Forex.
Fortunately, as an individual trader, you no longer need a large amount of capital to trade in FX. By using leverage from a regulated and trusted financial service provider, you can start forex trading with small amounts.
Tip: The terms forex, FX, foreign exchange market, and currency market are interchangeable, and all refer to the forex market.
