What Is Forex Trading?

If you are reading this article then you are probably looking for more information regarding Forex trading. You may already be familiar with the phrase as you may have come across it on The television or on various websites, however just what is Forex trading? The Forex market is Operated 5.5 days a week and is it available to anyone who has a computer as well as an Internet connection. Forex trading can be carried out from anywhere in the world and it is Important to point out that it is completely different to stock trading. 


Forex trading involves a particular trader buying and selling different currency pairs and Currencies from various countries are then traded against each other. For example the Currency in Europe apart from the UK is known as the Euro and in the United States the Currency is known as the US dollar. Currency pairs include the EUR/USD which is the Euro and The US dollar and the GBP/JPY which is the British Pound and the Japanese Yen. There are a Variety of different currency pairs that can be traded and Forex trading is the process where You will either buy or sell a currency with the knowledge that it will either go up or down. You can Then make a profit based on the price you purchased it at and by how far it moves. 

You may be wondering why an individual would want to trade the Forex market instead of the More traditional stock market.The main reason is that the Forex market is open 5.5 days a Week and it is a 24 hour market.This means that the Forex market gives you the ability to open And close your trades at anytime of the day. The other main reason why people choose the Forex market is because it is a volatile market which means you can make large profits if you Are lucky enough to be on the right side of the trade. 

FreeDigitalPhotos.net

Forex trading is quite similar to more traditional methods of trading. However instead of Purchasing bonds or stocks then you will be buying and selling currency pairs with the Knowledge that you will make a profit from its movement.


The word Forex is actually an acronym for the "Foreign Exchange". There are many places Online where trades can be completed either through a market maker or a broker. In order to Place an order this usually will only require a few clicks of a button and when your order has Been received then it will be passed on to a partner in the Interbank Market so that your Position can be filled. Once you decide to close your trade then the broker will finalize your Position on the Interbank Market and your Forex trading account will then be credited with any Gains or losses you have made. 


When you first start trading Forex then it can be difficult to understand the process so it is Recommended that you get some training in order to learn about how the Forex market works. You can also learn about Forex trading charts which will then increase your understanding of How the market operates.