This is a step by step guide to currency trading, but you can jump around using the left navigation bar. If you already have a general understanding, you might want to skip to Level 1. If you already trade, you could jump to Advanced, or Trading Strategies.
What Is Forex?
Although it doesn’t get as much media attention, the foreign exchange market (more commonly known as “forex” of “FX”) is the largest financial market in the world. According to the Bank of International Settlements, in April 2016, trading in the foreign exchange market averaged over $5.1 trillion every day. Simply, forex is the market in which currencies, or money, are traded. While it may seem counterintuitive, the forex market allows you to buy and sell money.
There is no one-stop shop for buying and selling currencies; trade is conducted through a lot of individual dealers or financial centers via electronic networks. The forex market is open 24 hours a day, five days a week, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. This means, at any time during the day you can buy or sell currencies.
With the constant improvement in technology, dealing in currencies is now more accessible than ever. Historically, the foreign exchange market was the domain of government, hedge funds and large companies with significant exposure to international markets. However, with the wide spread access to the internet, firms now offer the ability to open accounts and trade currencies to almost anyone. All you really need, in terms of hardware to get started, is a computer or mobile device with access to the internet.
