Forex stands for forex (foreign exchange). It is considered as the biggest and most liquid currency exchange market in the world, with a daily turnover of over $4 trillion.
Trading Forex involves the buying of one currency pair and simultaneously selling of another. This can be done either by opening a BUY or a SELL position on the trading platform. This is done based on speculation of the future direction currencies are likely to take: open a BUY position if you predict the market price will rise, and a SELL position if you predict the market price will drop.
Opening and closing Forex positions is simple and is comprised of these steps:
If you wish to close a position, please follow these steps:
The base currency or transaction currency is the currency against which the exchange rate is quoted. It will always be the first currency of the pair. For example: in EUR/USD the base currency is euro.
The quote currency (also: secondary currency) is the second currency quoted in a currency pair. For example: in EUR/USD the quote currency is dollar.
No. There is no need for any previous experience in order to start trading forex. You will get all the support you need to start trading.
The maximum leverage you can trade with is up to 200:1.