The Complete Guide to the World of Forex
If you have landed on this page, it means you are curious about this extremely popular market. Here you will find the information you need to better understand what forex is.
Let's answer four key questions
What is forex
Why trade forex
The advantages of forex with Example16
How to open forex positions
What is the forex market?
The foreign exchange market, also known as the forex (FX) market, is a decentralized international financial market in which investors and speculators exchange one currency for another. Transactions do not take place on an exchange as with stocks or commodities, but directly between the parties, in the so-called over-the-counter (OTC) market.
Forex is not a market of mere financial speculation: it has ancient origins and was born from the commercial need to exchange one currency for another in order to conclude transactions. Today trading takes place on the interbank market, non-stop 24 hours a day, five days a week, across four main trading centers around the world.
Why trade forex?
Buying and selling goods and services abroad
In a global economy, businesses operating abroad and buyers purchasing outside their home market must convert currency to complete international trade. Whenever a person or business needs to buy something in a foreign currency, a forex trade is required.
Speculation
Most transactions in the currency markets aim to generate a profit. Speculators are not interested in owning a foreign currency to use it, but in profiting from market fluctuations between the purchase price and the sale price.
Open 24 hours, five days a week
The interbank network spans four major sessions, so positions can be opened and managed around the clock during the trading week.
Advantages with Example16
Spreads from 0 pips on the Gold account, swaps from $0, leverage up to 1:200 on forex and a personal analyst assigned to your account.
How to open forex positions
Choose a currency pair, decide the direction of your trade, set your position size and apply stop loss and take profit levels. Our analysts and the SharpTrader educational portal can help you build a plan before you place your first order.
Ready to trade forex?
Open an account and get access to major, minor and exotic currency pairs with institutional execution.