What is FX Trading?
If you’ve been on holiday and changed your Euros for a foreign currency, then you’ve already touched upon currency trading! The FX market simply gives you the opportunity to take it to the next level and exchange more currencies quicker and cheaper than you would have done at a bureau de change or bank.
What is the forex market?
The forex market (short for the foreign exchange market) is the world’s largest financial market. With between four and five trillion dollar’s worth traded every day it’s approximately ten times bigger than the global stock markets combined and it’s open 24 hours a day, five days a week. With all that money flowing around there are always profits to be made.
How does forex trading work?
Currencies are always valued relative to one another, so forex trades are always made in ‘pairs’. For example, let’s say you think the Euro (EUR) is going to go up in value against the US dollar (USD). To make that trade you’ll need to buy the EUR/USD pair. You’re effectively buying the Euro and selling the US dollar at the same time.
The key thing to remember when you buy or sell a currency pair is that your instruction refers to the currency on the left, which is known as the BASE Currency. So ‘buy EUR/USD’ is a view that the Euro will do well against the US dollar whereas ‘sell EUR/USD’ is a view that the Dollar will strengthen against the Euro.
What currencies can I trade with Skilling?
Skilling offers you more than 70 currency pairs that are available to trade 24 hours a day, from Sunday evening to Friday evening. To find out more about currency pairs offered for trading, read this article.