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The forex market is the largest and most liquid financial market in the world, active 24/7.
Capitalizing on currency fluctuations, traders can speculate on the strengths and weaknesses of one currency compared to the others.
With the ability to trade around the clock, forex offers unparalleled opportunities for profit-making, attracting traders from all corners of the globe. Additionally, leveraging Contracts for Difference (CFDs) adds a layer of flexibility and potential for higher returns.
At its core, forex trading operates on the principle of exchanging one currency for another to profit from changes in exchange rates. Every currency pair has a base currency (listed first) and a quote currency (listed last).
The exchange rate represents how much of the quote currency is required to buy one unit of the base currency. Various factors, including economic indicators, central bank policies, geopolitical events, and market sentiment, can influence forex trading. Traders analyze these factors to decide when to buy or sell currencies.
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Forex trading involves buying and selling currencies on the foreign exchange market to gain from changes in exchange rates.
Spreads in forex refer to the difference between the bid (buy) and ask (sell) prices of currency pairs, representing the cost of trading.
To trade forex, you need to open an account with a licensed forex broker, deposit funds, choose currency pairs, and execute trades through a forex broker. You can analyze the market using technical and fundamental analysis for more informed decision-making before executing trades
Forex CFDs are Contracts for Difference that allow traders to speculate on the price movements of currency pairs without owning the underlying assets. CFDs enable traders to gain from both rising and falling prices.
Forex trading operates 24 hours a day, five days a week, starting from Monday morning in Sydney, Australia, and closing on Friday evening in New York, USA.
Forex prices are shaped by economic indicators (like GDP growth and employment data), geopolitical events (elections, tensions), central bank policies (interest rates, monetary policies), and market sentiment (investor confidence, risk appetite).