Blog Introduction: If you’re reading this, it’s likely that you’ve at least heard of forex trading. But what is it? In the most basic sense, forex trading is the act of buying and selling currencies. However, there’s a lot more to it than that. Here’s everything you need to know about forex school for forex trading.
What is Forex Trading?
Forex trading is the act of buying and selling currencies. The goal of forex school is to buy low and sell high, or to sell high and buy low. This can be done in two ways: through a spot market transaction or a futures market transaction.
The spot market is the current market price for a currency pair. The futures market is an agreement to buy or sell a currency pair at a set price in the future. These transactions are all done through brokerages, which are firms that deal in foreign exchange transactions.
Forex trading can be done 24 hours a day, five days a week because there is no central forex market. Instead, currencies are traded on an over-the-counter basis, which means that transactions are conducted between two parties without going through an exchange.
Major currency pairs are always traded against the US dollar (USD). The USD is considered the base currency while the other currency is considered the quote currency. For example, if you’re buying EUR/USD, you’re buying euros and selling dollars. If you’re selling AUD/JPY, you’re selling Australian dollars and buying Japanese yen.
Opposite Trades – When open opposite trades with different lot sizes on the same account this will result in one trade being Hedge Equalizing while 2 trades execute at different times which will produce an imbalance in your trade plan due to time differences in both trades executing.
Foreign exchange trading has become increasingly popular in recent years because it offers traders a unique opportunity to make money in global markets. With 24-hour trading and highly leveraged positions, forex trading can be extremely profitable.