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Forex Trading

Forex trading information

The concept of trading forex and currencies has become a popular choice for day traders with the introduction of online forex trading platforms and brokers to the internet during the 1990's. The Forex market is by far the most liquid worldwide market and is open 24 hours a day (Mon-Fri) for trading in all time-zones.

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Day traders tend to prefer the forex market for online trading due to its volatile reaction to news, market data, and because of its trending nature. Forex is the simultaneous buying of one currency and selling of another as forex is traded in what is known as "cross pairs" for example GBP/USD (£/$) or EUR/USD (Euro/$).

Brokers will typically quote a price with a spread between the bid and offer, usually of around 3-5 pips, from which you can buy or sell the pair then profit from closing the position with a trade in the opposite direction.

Since forex trading became popular there has been an huge influx of online forex brokers and trading platforms to the web. Finding your way through them all is a daunting task for most newcomers to forex trading. It is always best to open an account with an established broker with a good online trading platform.

Please be aware, trading Forex is risky and you could lose your invested capital.

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Forex trading is the name given to the buying and selling of currencies on the global financial market. It's beyond doubt the largest financial market in the world, with an insane amount of daily trading volume that dwarfs the stock market. Traders usually jump into Forex to speculate on daily fluctuations that can happen during a day. Things like economic data and markets opening in different timezones can lead to large movements that you might not see in other markets. Forex is a 24 hours a day, five days a week market, this is why is has a great appeal to many, compared to stocks which have a limited trading session. This does come with risk, as movements can be pretty volatile, you must study and understand what is going on at all times to protect your trading.