What Is Currency Trading (Forex)?
Currency trading involves buying one currency while simultaneously selling another, in pairs (e.g., EUR/USD). The Forex market is the largest and most liquid financial market in the world.
Major Currency Pairs
PAIR | NAME | NOTES |
|---|---|---|
How Currency Trading Works
Pairs System: Always trading one currency against another
CFDs/Spot Trading: Most common methods for retail traders
Leverage: Often high (e.g., 50:1 or more), amplifying gains/losses
24-Hour Market: Open 5 days a week, globally
Why Trade Currencies?
Liquidity: $6+ trillion traded daily
Leverage opportunities
Diversification
Profit from rising or falling currencies
Risks
High leverage = high risk
Economic/political news can cause volatility
Requires close monitoring and quick decision-making
Can be affected by interest rates, inflation, trade data, and geopolitics