Learn the fundamentals of currency trading and start your journey to becoming a successful forex trader
Forex (foreign exchange) is the global marketplace for trading national currencies against one another. It is the largest and most liquid financial market in the world, with a daily trading volume exceeding $6 trillion.
Currency trading occurs 24 hours a day, five days a week, across major financial centers in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney.
The most traded currency pairs in the world are known as the Majors. They include:
Forex trading offers several advantages over other financial markets:
Master the language of forex trading with these essential terms
Pip The smallest price move that a given exchange rate can make based on market convention.
Spread The difference between the bid and ask price of a currency pair.
Leverage Using borrowed capital to increase the potential return of an investment.
Margin The collateral required to open and maintain a leveraged position.
Lot Standardized quantity of a financial instrument.
Market Order An order to buy or sell immediately at the current market price.
Limit Order An order to buy or sell at a specific price or better.
Stop Order An order to buy or sell when the price reaches a specified level.
Stop-Loss An order designed to limit an investor's loss on a position.
Take Profit An order to close a position at a specified profit level.
Technical Analysis Analysis of historical price patterns to predict future movements.
Fundamental Analysis Analysis of economic indicators and news events.
Sentiment Analysis Measuring the mood of market participants.
Carry Trade Borrowing in a low-interest currency to invest in a higher-yielding one.
Swing Trading Holding positions for several days to capture short-term trends.
Compare historical performance of major currency pairs over the last three years to identify the best trading opportunities
Based on our analysis of the last three years, EUR/USD has shown the most consistent performance with moderate volatility, making it ideal for both beginners and experienced traders. The GBP/USD offers higher volatility for those seeking greater profit potential (with increased risk), while USD/JPY is suitable for traders interested in safe-haven currencies during market uncertainty.
Select a currency pair to view performance data
Select a currency pair to view trading recommendations
Stay updated with the latest market movements, economic events, and trading opportunities
Find answers to common questions about forex trading
The best time to trade forex is when the market is most active, which occurs during the overlap of trading sessions. The most volatile and liquid sessions are:
The amount needed to start forex trading varies by broker and trading style:
Remember that leverage allows you to control larger positions with less capital, but it also increases risk.
For beginners, the EUR/USD is often recommended because:
After gaining experience, traders often expand to other major pairs like GBP/USD, USD/JPY, and AUD/USD.
Key economic indicators that impact currency values include:
