"Trading Expansion"

Forex trading, or FX trading, involves buying and selling different currencies with the aim of making a profit. At its core, forex trading is about capturing the changing values of pairs of currencies.

Trading forex is similar to equity trading. Here are some steps to get yourself started on the forex trading journey.

TThe spot market is where currencies are bought and sold based on their trading price. That price is determined by supply and demand and is calculated based on several factors, such as: Current interest rates Economic performance Geopolitical sentiment Price speculation

PA forward contract is a private agreement between two parties to buy a currency at a future date and a predetermined price in the OTC markets. In the forwards market, contracts are bought and sold OTC between two parties, who determine the terms of the agreement between themselves. A futures contract is a standardized agreement between two parties to take delivery of a currency at a future date and a predetermined price. Futures trade on exchanges and not OTC. In the futures market, futures contracts are bought and sold based on a standard size and settlement date on public commodities markets, such as the Chicago Mercantile Exchange (CME).

YThe most basic forms of forex trades are long and short trades, with the price changes reported as pips, points, and ticks. In a long trade, the trader is betting that the currency price will increase and that they can profit from it. A short trade consists of a bet that the currency pair’s price will decrease. Traders can also use trading strategies based on technical analysis, such as breakout and moving averages, to fine-tune their approach to trading.