Forex Trading Basics
How to Start Forex Trading
Foreign exchange trading, also known as forex or FX trading, refers to the buying and selling of foreign currencies. Rather surprisingly the forex market is a lot larger than the stockmarket, with trades amounting to over $ 2 trillion every day. This is more than 100 times the amounts traded on the New York Stock Exchange.
FX trading is executed on the so-called “interbank” market, which is an OTC 
or over-the-counter market, as trading takes place directly between the two individuals involved, over the phone or electronically. Due to the fact that trading centers are distributed worldwide forex trading is carried out 24 hours a day.
The largest forex market is the spot market, so-called because trades are settled immediately, i.e. after two banking days.
A major advantage of forex trading is that it continues 24 hours a day, from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT).
A further advantage is that the highly liquid nature of the forex market, this ensures that there are always buyers and sellers with which to trade, it also guarantees narrow spreads and price stability.
Forex trading is often commissionless which makes it very attractive to frequent traders.
Gearing (leverage) means that positions worth up to 100 times your margin deposit are possible.
Given the very large sums of money involved you might think that only institutions or extremely wealthy individuals trade the FX markets, but in truth you can open an account with some firms for just $250. No doubt some of them will be advertising on this site.
It is also just as east to go short as it is to go long, which is sometimes not the case with the stockmarket. It is however also just as easy to lose money, so plenty of research and homework is required.