I am pretty new to all of this, and it got me thinking, what exactly is forex trading? I feel if we have a topic to address this exact question, it would stop others from making this same topic in the future.
It’s essentially the trading of foreign currency. It’s kind of like when you go to another country and they give you their currency to use. You may end up getting more money to use in said countries, so that’s why people do forex trading.
I haven’t really done it much, but wouldn’t mind giving it a try one of these days.
So, as Franky said, it is trading one currency for another currency. When you travel from the U.S. to Europe, you sell Dollars and buy Euros. When Japan buys wheat from the U.S., they sell Yen and buy Dollars.
The Forex market is the biggest in the world, and becuase it is always daytime somewhere, the market is always open on weekdays, 24/6.
About 15 years ago, the forex market opened up to retail traders looking to speculate and make money. Most people lose money as they do not understand what they are doing. The 2 major reasons for failure is poor money management and greed. But if you can conquer these 2 issues and get a good broker, you can make some serious coin.
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