How to Trade Forex for Beginners: A Simple Guide to Getting Started
How to trade forex for beginners can seem overwhelming at first, but the idea is simple. You exchange one currency for another and aim to profit from changes in their value. If you are new to trading, this guide will walk you through the basics in a way that is easy to understand and apply. Understanding What Forex Is Forex, also known as the foreign exchange market, is the largest financial market in the world. It is open twenty-four hours a day, five days a week. Currencies are traded in pairs, such as EUR/USD or GBP/JPY. The first currency is called the base currency, and the second is the quote currency. Your goal is to predict whether the base currency will rise or fall compared to the quote currency. Learning the Key Terms Before you start, it helps to know some common words used in forex. A pip is the smallest price movement in a currency pair. Leverage means using borrowed funds to increase the size of your trade. The spread is the difference between the buying and...