This is a step by step guide to currency trading, but you can jump around using the left navigation bar. If you already have a general understanding, you might want to skip to Level 1. If you already trade, you could jump to Advanced, or Trading Strategies.
 

What Is Forex?

Although it doesn't get as much media attention as the stocks or bonds markets, the foreign exchange market (more commonly known as "forex" of “FX”) is the largest financial market in the world. According to the Bank of International Settlements, in April 2016, trading in the foreign exchange market averaged over $5.1 trillion every day. Simply, forex is the market in which currencies, or money, are traded. While it may seem counterintuitive, the forex market allows you to buy and sell money.

There is no one-stop shop for buying and selling currencies; trade is conducted through a lot of individual dealers or financial centers via electronic networks. The forex market is open 24 hours a day, five days a week, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. This means, at any time during the day you can buy or sell currencies.

With the constant improvement in technology, dealing in currencies is now more accessible than ever. Historically, the foreign exchange market was the domain of government, hedge funds and large companies with significant exposure to international markets. However, with the wide spread access to the internet, firms now offer the ability to open accounts and trade currencies to almost anyone. All you really need, in terms of hardware to get started, is a computer or mobile device with access to the internet.

 

How Forex Is Unique

Related Articles
  1. Trading

    Top 5 Forex Risks Traders Should Consider

    With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Here are the top 5 forex risks to avoid.
  2. Trading

    Forex or Stock Trading: Which Works For You?

    Even though the odds favor stock trading, forex trading has several advantages to offer a particular type of investor.
  3. Trading

    Why It's Important To Regulate Foreign Exchange

    In an increasingly globalized economy, the significance of the foreign exchange marketplace cannot be underestimated.
  4. Trading

    How To Trade Forex Right Now

    With the expected continued world volatility in the near future, there is a lot of money to be made in the forex market. How can you make the most of it?
  5. Trading

    Forex Tutorial: The Forex Market

    In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market.
  6. Trading

    The Pros And Cons Of Trading Forex In An Overseas Account

    The Dodd-Frank Act of 2010 could impact whether overseas accounts benefit FX investors.
Frequently Asked Questions
  1. How Do You Calculate Inventory Turnover?

    Inventory turnover measures how many times inventory has sold during a period and provides insight into a company's inventory ...
  2. Which constitutional amendment made income tax legal?

    The story of income tax is ripe with stops, starts and court battles.
  3. Why would a stock have no par value?

    Corporations sometimes issue shares with no par value because it helps them avoid a liability should the stock price take ...
  4. Do nonprofit organizations pay taxes?

    Learn more about section 501 of the IRS tax code, and how it exempts qualified nonprofit organizations from federal taxes ...
Trading Center