Introduction to Forex Trading

Forex, also known as foreign exchange, is the largest and most liquid financial market in the world, with an average daily turnover of over $6 trillion. Forex trading involves buying and selling currencies with the aim of making a profit from the fluctuations in their exchange rates.

Forex trading operates on a decentralized market, which means that there is no central exchange where all transactions take place. Instead, trading is conducted electronically over-the-counter (OTC), through a global network of banks, financial institutions, and individual traders.

The Forex market is open 24 hours a day, 5 days a week, and trading can be conducted from anywhere in the world, making it a highly accessible market for traders. The market is also highly volatile and can experience rapid price movements, making it an attractive market for those looking to capitalize on short-term trading opportunities.

Forex trading is often leveraged, which means that traders can control larger positions than their initial investment, amplifying both potential gains and losses. As a result, it is important for traders to have a solid understanding of the market and the risks involved before participating in Forex trading.

In the following lessons, we will dive deeper into the structure of the Forex market, currency pairs and exchange rates, trading strategies, and risk management.