Forex Tutorial: What is Forex Trading?


How to become a Forex Trader in the Philippine Full Guide (Tagalog Tutorial PART 1) Metatrader 4 Tutorial + Trading Strategy (How to trade Forex Tagalog Tutorial PART 2) Get Free $30 No Deposit Bonus, Just sign up and Validate your XM Account. Start trading Forex without risking Money.

Currency prices are based on objective considerations of supply and demand and cannot be manipulated easily because the size of the market does not allow even the largest players, such as central banks, to move prices at will. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. However, with the advent of electronic trading and numerous forex brokers , the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.

List of best Forex brokers in Tagalog

Forex Trading Guide and Tutorial For Begginer is a Free E-Book written by LearnForexPro Team which contains basic learning materials to start forex trading. This E-book also offers comprehensive forex trading calculation together Basic Forex Trading Tutorial and Guide.

The forex market provides plenty of opportunity for investors. However, in order to be successful, a currency trader has to understand the basics behind currency movements. The goal of this forex tutorial is to provide a foundation for investors or traders who are new to the foreign currency markets. We'll cover the basics of exchange rates, the market's history and the key concepts you need to understand in order to be able to participate in this market.

We'll also venture into how to start trading foreign currencies and the different types of strategies that can be employed. Introduction to Currency Trading Forex Tutorial: What is Forex Trading? Foreign exchange is the act of changing one country's currency into another country's currency for a variety of reasons, usually for tourism or commerce. Keep pace in the competitive and fast-moving foreign exchange forex markets by knowing the economic factors and indicators to watch.

The forex markets can be both exciting and lucrative. Find out what jobs exist in this space and how to get them. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.

This means that the U. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate. The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world.

It dwarfs other markets in size, even the stock market, with an average traded value of around U. The total volume changes all the time, but as of August , the Bank for International Settlements BIS reported that the forex market traded in excess of U. One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter OTC , which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange.

The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone.

This means that when the trading day in the U. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly. Spot Market and the Forwards and Futures Markets There are actually three ways that institutions, corporations and individuals trade forex: The forex trading in the spot market always has been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time.

However, with the advent of electronic trading and numerous forex brokers , the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators.

When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.

What is the spot market?