What Is Forex Trading
Forex trading can simply be defined as an act of selling and buying various currencies.
Many currencies are traded all over the world by many people, which made forex one of the largest financial markets
with a daily turnover of nearly $5 trillion.
Currencies are traded in pairs because they are bought and sold against other currencies on the basis of their exchange rate.
Which currencies can be traded?
While trading forex you can use many types of currencies in pairs.
Normally one can choose from 80 types of pairs to trade FX online.
These pairs have been categorized into three categories to trade forex easily, like:
Majors or Major Pairs :
Majors are the currency pairs that are most commonly traded.
Almost 85% of forex trading is done with Majors.
These pairs may include USD/JPY, EUR/USD, USD/CHF, GBP/USD, USD/CAD and NZD/USD.
Cross pairs or Crosses :
These are the pairs of currencies in which USD is excluded.
JPY/CAD and GBP/JPY are some of the examples of commonly traded cross currency pairs.
Exotics or exotic pairs :
In these pairs, one major currency and one currency of a developing economy are included.
USD/HKD and USD/ZAR are some of the examples of exotic pairs.
A full list of currency pairs and the terms of trading them can be searched online.
Importance of trading signals in forex trading
When you are trading forex for the first time then you will have to learn a lot of things to be a successful forex trader.
Trading signals are one of the things you should know about while trading forex online or manually.
What are the trading signals?
Trading signals are part of the services provided by professional traders, market analysts or brokers to other traders,
novice as well as experienced, through email, SMS, desktop or Whatsapp to inform them
about future trading conditions on the basis of the present market of forex.
When one subscribes for these trading signals then he need not monitor the forex market for making decisions for their next forex trade.
But before subscribing with a signal provider you should go through their track record to ensure about their reliability
on the basis of the correctness of their previous signals.
No need of analyzing the forex market is one of the main benefits of subscribing for trading signals in the forex market.
Market analysis is done by the providers of these signals.
By monitoring and analyzing the signals they tell you when to enter in forex trade and when to exit.
Written By : YOUSSEF J A ALMEER