Category: 2.How Do You Trade Forex?

All forex quotes are quoted with two prices: the bid and ask. In general, the bid is lower than the ask price. What is “Bid”? The bid is the price at which your broker is willing to buy the base currency in exchange for the quote currency. This means the bid is the best available price at which you (the trader) can sell to the market. If you…

Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is that, in every foreign exchange transaction, you are simultaneously buying one currency and selling another. How do you know which currency you are buying and which you are selling? Excellent question! This is where the concepts of base and…

As a forex trader, you are speculating on whether one currency will rise or fall in price against another currency. So “forex trading” can be defined as the process of speculating on currency prices to try and make a profit. The value of a currency is influenced by economic, political, geopolitical events, and trade and financial…

The forex (also known as FX or foreign exchange) market refers to the global marketplace where banks, institutions, and individuals speculate on the exchange rate between fiat currencies. The forex market is the largest financial market in the world.