Currency trading is a global activity where money is converted into other currencies for trading or banking purposes. Forex trading is about speculating on the exchange rate value of one currency rising or falling against another, and accounts for some of the most efficient trading on the planet. Unlike the stock exchange and commodities markets, Forex is traded without the constraints of a physical exchange via a virtual online platform that connects participants from all over the world.
Over the past century, the foreign exchange market has grown to become the largest in the world. Today, an estimated $5 trillion is traded every day, fuelled by fast execution speeds and low transaction costs.
There are many benefits to trading Forex. The market is large, liquid and can deliver significant rewards in return for relatively small investments, making it the market of choice for many first-time investors making their initial foray into the world of trading.
The Forex market is characterised by its identifiable trading patterns. Armed with up-to-the-minute market information, a wealth of knowledge about past performance and an understanding of economics, it can be possible to predict with great accuracy a rise or fall in market conditions.
However, with fundamental factors are able to swing the market quickly and heavily in one direction or another, patience, discipline and a well-defined strategy are important to ensure you enjoy success from the very start.