What is Forex Trading?
Forex trading is shorthand for foreign exchange trading. It is the process of trading currencies in a global market and speculating on the strengths of currency, buying and selling against one another.
Forex is one of the largest markets in the world, with trillions of dollars being traded 24 hours a day, five days a week. For that reason, it is viewed as a good starting place for beginners.
The transactions in forex trading boil down to the idea of pairs—one currency against the other. In trading, you are speculating whether the first currency in the pair will go up or down against the second. The trader makes money depending on whether you bet the value will go up or down.
Why choose Forex Trading?
Forex trading is highly accessible as it isn’t tied to a physical location, with everything happening digitally. To begin trading all you need is a computer and access to the internet. As trading goes on all day that means you can trade at any time you wish, if you are doing it alongside another day job.
Due to the size and accessibility of the market, there are a lot more education materials out there for you to mine away at and absorb before you commit any money. The size of the market also means there is a lot of money moving around.
And more chances to make it.
What you Need to Succeed
Before stepping into the forex market, you need to understand it. Taking the time to educate yourself on the basics of trading, market analysis and forex will help you develop an idea of what you want to do with your money. You may not be able to touch the money with your hands, but it’ll feel real if you lose it.
As you educate yourself on forex, you’ll need to learn how to evaluate risk. Is the trade worth it? Am I putting in too much? Not enough? Learning how to risk assess each trade will feed into how you form a trading strategy and help you win more times than you lose.
That might seem like a lot to learn but there are articles and guides that break down the concepts to make forex trading easy to understand.
Forex Trading in 2021
Trading in currency is hugely affected by current events. This year the market has been more volatile than ever, with prices going up and down rapidly.
A gradual return to normalcy in the market is on the cards in 2021. The election of Joe Biden has brought stability to the US Dollar, which is an integral part of the forex market. With the introduction of covid vaccines and the end of the pandemic seeming nearer, the world (and global markets) may soon find itself on more solid ground.
For up-to-date news on the forex market be sure to go to over to dailyfx.com.
Get in the Game
There’s no time better than now to get into forex trading, so get going. For all things UK business and a huge collection of calculators from currency to VAT, head over to calculator.co.uk.