Forex Trading for Beginners

How does forex trading work?

To trade forex is to buy and sell currencies – with the aim of making a profit. Forex trading will always involve two currencies at a time, the base currency and the quote currency. The difference in price is where you’ll make your profit or loss.

Is forex trading risky?

Any kind of trading has its risks and that’s crucial to always keep in mind, but it can also create profits which is why so many people do it. Again, we can’t encourage you enough to start trading on a demo account if you’re new to forex trading. Once you’re ready for a live account, you should always fully consider the risks involved.

Forex Trading for Beginners

What is a position?

Forex for Beginners

Long position: this is when the trader has bought a currency with the expectation that it will increase. Once the currency is sold back, the long position is considered closed.
Short position: this is when the trader has sold a currency with the expectation that it will decrease. Once the currency is bought back, the short position is considered closed.

Forex Trading for Beginners

What currency pairs are most popular in forex trading?

While you can trade almost any currency pair in theory, there are certain pairs that are consistently the most traded. These are called Major pairs (it’s in the name) – they make up 80% of the entire trading volume in the forex market.

These major pairs are associated with stable economies and therefore offer low volatility and high liquidity. Example of major pairs include the aforementioned EUR/USD, the USD/JPY (the US Dollar and the Japanese Yen),

Forex Trading for Beginners

GBP/USD (British Pound and the US Dollar) and the USD/CHF (the US Dollar and the Swiss Franc). Another characteristics of major currency pairs is that there’s a smaller risk of them getting manipulated and the spreads are usually pretty small.

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What are cross currency pairs?

Cross currency pairs are also known as Crosses, and are pairs that do not include the US Dollar – which immediately makes them more volatile and less liquid than Majors. While the US Dollar features in every major pair, Crosses are concerned with more ‘minor’ currencies like the EUR, the GBP and so forth. Popular pairs in the Crosses family include the EUR/GBP, the GBP/JPY and the EUR/JPY.

What are exotic pairs?

Exotic pairs – or just Exotics for short – are those currencies that come from smaller economies and the so-called emerging markets. They’re usually paired up with a major currency. Because these offer the least amount of liquidity and the highest volatility of the three brackets, they are regarded as the riskiest to trade.

How Does Forex Trading Work?

Forex Signals Strategies known as Forex Strategies for all to use and learn from. FxPremiere.com brings you great amounts of Signal Strategy learning Guides. With over 200 Different Trading Strategies in Forex its Crucial to understand which ones really work and which ones don’t, depending on your trading times. Some work great before or after news releases and some on certain time frames. We at FxPremiere.com have compiled a few sections for you to read from. Forex Strategies Learn from some of the most exclusive posts we have made which also include the 4 most essential Forex Strategies. Other FX Strategies include: Technical Strategies | Fundamental Strategies | Popular Strategies | Forex Strategy Articles.

The fundamental forex strategies for trading based on fundamental events and how they affect the forex market.
The technical forex strategies for trading based on technical (mathematical and statistical) analysis of the forex rate charts.
The popular forex strategies section contain forex strategies based both on fundamental and technical trading. You’ll find here the most crucial strategies for your forex career and therefore they are in a different section.
In the forex strategies articles section you’ll find information on implementing the best forex strategies in your forex trading process: stuff like risk management, matching guides between a personality type and the relevant trading strategies, etc – Forex Signals Strategies.
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