Forex Trading: A Comprehensive Guide for Beginners
Forex trading, also known as foreign exchange trading, is the process of buying and selling currencies in the global financial market. With a daily trading volume exceeding $6 trillion, the forex market is the largest and most liquid financial market in the world. Unlike stock markets, forex operates 24 hours a day, five days a week, allowing traders to engage in transactions across different time zones. This guide will provide a detailed overview of forex trading, including how it works, key terminologies, trading strategies, risk management, and tips for success. What is Forex Trading? Forex trading involves exchanging one currency for another at an agreed-upon price. Currencies are traded in pairs, such as EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen). The first currency in the pair is the base currency , and the second is the quote currency . The exchange rate indicates how much of the quote currency is needed to buy one unit of the base curren...