Forex trading is the buying and selling of currencies in the foreign exchange market. The main aim of forex trading is to take advantage of the price movements between two currencies.
In Forex trading, one currency is bought while another currency is sold at the same time. The supply and demand of the currency determines the price of one currency. When a currency's demand increases, its value will also increase relative to other currencies.
A pip is the smallest unit of price movement in a currency pair. It represents the change in the value of a currency and is used to calculate profit or loss in Forex trading.
Leverage is a tool that allows traders to increase their investment capital, thereby increasing their potential returns. For example, a leverage ratio of 1:100 means that for every $1 invested, a trader can trade up to $100 in the market.
The amount of money needed to start Forex trading varies from broker to broker, but a general rule of thumb is to start with at least $500. While at Fx Trade Fund Global you can start with just 100$.
The foreign exchange market is open 24 hours a day, five days a week. The best time to trade depends on individual trading strategies and market conditions, but typically the most active trading times are when the major financial markets are open.
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