What Is Forex Trading?
FX trading allows you to speculate on the changes in currency
strengths over time, trading currencies and buying or selling one against the
other. Forex traders seek to profit from fluctuations in the exchange rates
between currencies, speculating on whether one currency's value, like the pound
sterling, will go up or down in relation to another, such as the US dollar.
With over 5 trillion dollars’ worth of currencies traded
globally every day, the foreign exchange market is the most traded in the
world, making it a highly liquid and dynamic market. This high market liquidity
means that prices can change rapidly in response to news and short-term events,
creating multiple trading opportunities for retail FX traders.
+ Why is leveraged Forex trading popular with investors?
- Trade on rising and falling
markets
trade on
falling markets (going short) as well as rising markets (going long)
- Leveraged product
use a small amount of money to control a much larger
position
- Volatility
currency prices are constantly fluctuating with each
other offering frequent trading opportunities
- 24-hour trading
an OTC product, not restricted to physical exchange
hours
- Liquidity
spreads tend to remain tight meaning your dealing
costs remain low
