💱 What is forex trading?

Foreign exchange (forex or FX) is a decentralised global marketplace for trading national currencies. Unlike stock exchanges, there is no central location — trades happen electronically between banks, brokers, and traders worldwide. Currency pairs like EUR/USD quote the value of one currency relative to another. When EUR/USD is quoted at 1.0850, it means 1 Euro equals 1.0850 US Dollars.

The forex market operates 24 hours a day from Sunday evening to Friday evening, following the sun across major financial centres — Sydney, Tokyo, London, New York. Daily trading volume exceeds $7.5 trillion, dwarfing every other market combined.

🚀 Why trade forex?

• 24-hour market: Trade around your schedule, not Wall Street’s.
• Deep liquidity: Enter and exit positions at the price you expect, even in size.
• Low transaction costs: Tight spreads on major pairs, often under 1 pip.
• Leverage: Control large positions with small capital (amplifies losses too).
• Bidirectional: Profit from both rising and falling markets.

📈 How to trade forex — a step-by-step guide

1. Choose a regulated broker: Look for FCA, ASIC, CySEC, or NFA regulation. Never trade with unregulated brokers.
2. Open a demo account: Practice for at least 3 months before risking real money.
3. Learn technical analysis: Study chart patterns, support/resistance, moving averages, and RSI.
4. Follow the economic calendar: Central bank meetings, CPI, and employment data drive major moves.
5. Develop a risk management plan: Risk 1–2% per trade, set stop-losses before entry, never move stops against you.
6. Keep a trading journal: Track every trade — entry, exit, reasoning, result — and review weekly.