Frequently Asked Questions About Forex Trading
Forex trading means buying and selling currencies to profit from changes in their exchange rate, on a market that turns over more than $6 trillion a day. Here are quick answers to the questions traders ask most before they start.
What is forex trading?
Forex trading, also called foreign exchange or currency trading, is the practice of buying and selling currencies with the goal of making a profit from changes in their exchange rate.
How does forex trading work?
You speculate on how one currency will move against another. If you expect the euro to gain value against the US dollar, for example, you buy EUR/USD; if the euro then rises as predicted, you can sell the position for a profit.
How big is the forex market?
Forex is the world's largest financial market. Daily turnover exceeds $6 trillion, dwarfing global stock and bond markets combined.
When can I trade forex?
The forex market runs 24 hours a day on weekdays, so you can trade around the clock without waiting for a single exchange to open.
Is forex trading risky?
Yes. Currency values move continuously, and you can lose money as well as make it. Only trade with funds you can afford to lose.