What is forex trading in simple terms?

Hello readers, welcome to our blog in today's article we'll try to make you understand forex trading in the simplest language so that you can easily understand as a new aspiring forex trader.

In today's world, the word forex trading has become more and more popular as days pass due to the high advancements in technology and the easier trading has become, so if you're wondering what this viral  concept is, then you are in the right place.

What is forex?

Forex literally stands for foreign exchange. As the words suggest Foreign Exchange is the exchange of one currency for another, So you might be wondering, okay then, how do I get to make money from this exchanging of foreign currencies from one to another. That's where forex trading comes in. Probably since the year 1880 when J.M. do Espírito Santo de Silva (Banco Espírito Santo) applied for and was given permission to engage in a foreign exchange trading business, the business has been going on till today.

Basically what happens here is that one currency pair is traded against another currency lets say the EUR against the USD,This is called a pair or a quote written as EUR/USD if the EUR loses value compared to the dollar. This pair will be selling so sellers will make profits, and if the EUR gains value compared to the USD meaning the pair will be buying and the buyers will make a significant profit. That's as easy as it can get, so many different pairs are traded in the forex markets and traders follow a plan to know that its the right time to place a buy or sell order from there acounts.

Pros and Cons

The forex market is a very huge market with an approximate volume of  6.6 trillion USD daily meaning there is alot of money on the table to be made, however forex trading is very risky as statistically 90% of the retail traders like you and me fail at this business. It requires alot of discipline and knowledge to make a dime in the forex market, so trash all the nonsense the last Guru you watched on instagram told you about getting rich over night, thats the bitter truth, as Ive been trading 5 years now and I can firmly say to you right now that forex trading is not a get rich quick scheme. Give it time, learn and become the trader you dream to be.

• “Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt.”_Paul Tudor Jones

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