Forex Trading Overview
Forex (Foreign Exchange) trading is the global marketplace for exchanging one currency for another. It is the largest and most liquid financial market in the world, with over $7 trillion traded daily.
How It Works
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You trade currency pairs (e.g., EUR/USD, GBP/JPY).
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You’re buying one currency while selling another.
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Profit is made by predicting whether the price of one currency will rise or fall against the other.
Key Features
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Open 24 hours/day, 5 days/week
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Operates across major financial hubs: London, New York, Tokyo, Sydney
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Highly accessible via online platforms (e.g., MT4, TradingView)
What Moves the Market?
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Economic news (interest rates, inflation, GDP)
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Geopolitical events
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Central bank policies
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Market sentiment and speculation
How to Trade
Choose a currency pair to trade
Analyze the market (technical or fundamental)
Decide whether to buy (long) or sell (short)
Manage risk using stop loss and take profit
Close the trade for a profit or loss
Why It’s Popular
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Low startup capital needed
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Leverage offers higher returns (but also higher risk)
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Traders can profit in rising or falling markets