Introduction to Forex

This video will help you understand the forex market and what it means to be investing in the forex markets.

About the forex market

The forex market is by far the most traded worldwide. Over $3 trillion dollars are spent in online forex trading each day. Trading has been brought closer to you through the use of many different software system including the fxtrader360 web and mobile applications.

When can I trade forex

trading forex is done any time of the day/night 24/5. on fxtrader360, you can invest in forex from monday 00:00 to friday 23:59

Forex definition 
forex is short form for foreign exchange. It means trading the value of one currecy against another. Take for example once you see EUR/USD 1.2001, this means the value of the EURO against the United states dollar is 1.2001. There are multiple currencies traded online including the EURO, US Dollar, The Japanese yuan, the Canadian dollar, Australian dollar among others. So whenever you see USD/JPY or AUD/USD basically it means you are trading the value of the first listed currency against the other.

A Pip

a pip is defined as the movement by the smallest unit of forex. Take for example if the EUR/USD is 1.0000 and moves to 1.0001, that is a move by 1 pip. Notice the movement in the last decimal from 0 to 1

What does trading forex mean?
Let me go back to the essentials of business. Whenever you establish a business, the target is to buy something at a lower price and sell it off at a higher price to turn a profit. Same logic applies to you trading forex the plan is to buy the currency pair at a value lower price than you sell it off. take for example buying EUR/USD at 1.0000 and closing at 1.0050. The only difference is that with forex, you can make money whether the price is going up or down. This is where the buy and sell orders come in as defined below.

Buy order

Once you place a buy order. You are basically telling any forex system that the higher the price goes, the more money you make. If the price of the EUR/USD moves from 1.0000 to 1.0050 you would actually be making profits

sell order

Sell orders mean that the lower the price goes, the more you make from that specific trade eg a move in the EUR/USD from 1.0020 to 1.0010 would mean you are making more money as the price falls