Introduction to Forex Trading
In our first course, you will be introduced to the world of Forex trading. You will learn what Forex trading is all about, why someone chooses to trade Forex, and what actually happens when you make a Forex trade.
We will take you from a simple explanation of how Forex works to the selection of the various currency pairs that make up Forex trades. We will discuss how currencies are listed on the Forex markets. What is the base currency and what is the quote currency? How do the global Forex markets interact?
We will also review the many reasons why someone might trade Forex rather than a different investment vehicle, and detail both the advantages and disadvantages of this type of trade.
This course will provide the background needed to understand our more advanced courses in Forex trading.
We begin with an introduction to Forex trading and the world of the global Forex market. It is important to try to understand the basics from the beginning so the aspiring trader can answer the question "What is Forex?" beyond simple currency exchange.
In this introductory lesson, we will bring you into the world of Forex trading, the foreign exchange markets and what trading Forex is really all about.
So why trade Forex? There are many reasons to trade Forex and this lesson will discuss several of them, each of which might induce a novice trader to take the plunge into Forex trading.
When you have finished the lesson, you will understand the opportunities available in the Forex markets.
So, why trade Forex? Once the reasons become clear, many are eager to jump on the bandwagon. Why trade Forex? To make money, of course, would have to be one of the main reasons!
In this lesson, we will show the difference between trading Foorex and other exchange-based markets, and why trading Forex through a broker can be very profitable.
What actually takes place when you trade Forex? What does it mean when we talk about "currency pairs"?
The concept of Forex trading can be a little tricky to grasp. Trading stock involves the buying and selling of a piece of a company while Forex trading involves buying a portion of a country’s currency. The price of one currency in a currency pair is measured against another currency. It’s like going to the bank and exchanging a dollar for a euro. You are selling your dollar and buying a euro or a part of a euro.
The Euro/US Dollar is a currency pair.
This lesson will go into more detail regarding the currency pairs list.
What actually causes the market price of anything to move?
The answer is the interaction of supply and demand.
How does supply and demand affect prices?
In this lesson, we will show how the supply and demand for the two currencies that make up a currency pair move its market price from moment to moment.
With hundreds or even thousands of online Forex brokers to choose from, the abundance of choice can be bewildering. How to know which one of these brokers is right for you when you are ready to choose an online broker?
In this lesson, we will explain a little about how online Forex brokerages work, and outline the important questions you should ask in determining which one to open an account with, when you are finally ready to take that step.