Home > Learn FX Trading > Currency Trading Overview: Learn How to Trade Currency

What is Currency Trading all about? (Also referred to as Forex Trading)

The currency market

The currency trading (foreign exchange, Forex, FX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds, and private individuals like you.

'Leverage' is the Forex advantage

The ratio of investment to actual value is called 'leverage'. Using a $1,000 to buy a Forex contract with a $100,000 value is 'leveraging' at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.

 

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How does one profit in the Forex market?

Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs.

The advantageous thing about the Forex market is that regular daily fluctuations - in the regular currency exchange markets, often around 1% - are multiplied by 100! Easy-Forex generally offers trading ratios from 1:50 to 1:200).

How do I start trading currency?

If you wish to trade using the Easy-Forex Trading Platform, or any other, you must first register and then deposit the amount you wish to have in your margin account to invest. Registering is easy with Easy-Forex and it accepts payment via most major credit cards, PayPal, Western Union. Once your deposit has been received, you are ready to start trading.

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