Have you ever wondered what people are talking about when then mention Forex? Our top beginner questions can help clarify what it is and how to get started.
What is Forex trading and how does it work?
‘Forex’ is short for foreign exchange, also known as FX or the currency market. It is the world’s largest form of exchange, trading around $4 trillion every day, and it is open to major institutions and individual investors alike.
The single most important thing on the FOREX market is the exchange rate between two currencies (a currency pair). As the value changes between currency pairs investment money can be made (or lost). Currencies are grouped into pairs to show the exchange rate between the two currencies; in other words, the price of the first currency in the second currency.
An investor you can trade on the FOREX markets via a Forex Broker, there are lots of tools provided out there to help you trade on the markets, MetaTrader being one of them.
When can I trade Forex?
The FOREX market trades 24 hours a day Monday - Friday. The exact opening times on the market depend on the timezone you are in. The table below shows the times it is open in the different timezone around the world.
What are the risks of Forex Trading?
As with all investments care should be taken, it is also wise to start with a demo trading account to understand how to invest and the risks. It is recommended that money invested should be money you can afford to lose (in worst case), borrowing money to invest is a bad idea.
Many tools offer bots for auto trading, and signals that your account can follow. This means you are following other traders. Again no system is 100% perfect. There are many courses avaliable that can help you get started.
How do I start Forex Trading?
All you need to get started is a computer with internet access and a trading account with a FOREX broker.
We recommend ICMarkets and anyone who signs up with our link we will guide you through the setup of the account. Just click the link and signup, we will be notified and contact you.