TRADING FOR BEGINNERS
Learn forex trading
- WHAT IS THE FOREX MARKET?
- WHAT IS FOREX TRADING?
- WHAT IS A FOREX BROKER?
Foreign exchange (also known as forex or FX) refers to the global, over-the-counter market (OTC) where traders, investors, institutions and banks buy and sell currencies.
Trading is conducted over the ‘interbank market’, an online channel through which currencies are traded 24 hours a day, five days a week. Forex is one of the largest trading markets, with a global daily turnover estimated to exceed US$5 trillion.
Understanding Currency Pairs
All transactions made on the forex market involve the simultaneous purchasing and selling of two currencies.
These are called ‘currency pairs’, and include a base currency and a quote currency. The display below shows the forex pair EUR/USD (Euro/US Dollar), one of the most common currency pairs used on the forex market.
Forex Trading Q&A
Understanding Forex Charts
What are technical indicators and FX signals?
Technical indicators are mathematical calculations that use historic price action and volume to forecast future price movements, providing trade entry and exit signals. These signals suggest a potential time and price for a trader to enter a trade, in order to profit from the predicted move in price. Technical indicators are usually displayed over or below price charts to help traders identify trends and overbought or oversold situations.
Forex indicators are designed to describe short-term price trends and are useful for finding the right currency pair, price level and time to enter or exit a trade. Common technical indicators include: