Are you a beginner in forex? This is an introduction to forex for beginners. I have written a fundamental introduction to forex for beginners and every one who wants to understand how forex trading works.
forex for beginners

You must have come across the word Forex so many times online and you may be wondering what it means.
Well this article presents a detailed breakdown of what Forex means and is all about. It reveals the basic things you should know about Forex and forex trading.


Forex stands for foreign exchange. It is the buying or selling of one currency in exchange for another. It is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism.


It is the most heavily traded market in the world because people, businesses, and countries all participate in it, and it’s an easy market to get into without much capital.


Due to the worldwide reach of trade, finance and commerce, forex markets which are the platforms for trading forex are fast becoming the largest and most liquid asset markets in the world.


The Forex market has no central marketplace for foreign exchange. This is because Forex trading is done through an electronic means known as over-the-counter (OTC).


The over-the-counter (OTC) electronic system is one in which all transactions occurs via computer networks between traders around the world.
24 hours a day, five and half days a week, currencies are traded on the Forex market. It is a very active market as trading occurs almost at anytime of the day.


The trading transactions in the Forex market involves the purchasing and selling of two currencies simultaneously. The two currencies involved in Forex transactions are referred to as base currency and quote currency.


In a Forex pair which looks like this, EUR/USD, the base currency is the first currency that appears in the pair that is “EUR” while the quote currency is the second currency in the pair which is “USD” in my Forex pair example.
What Is the Forex Market?

The foreign exchange market is the place where currencies are traded. The need for the exchange of currencies can not be over-emphasized becuase people from all works of life need to exchange them in order to carry out their businesses and pay for goods and services.

As a Nigerian trying to buy something from the United States of America you would need to change your Naira into the accepted mode of exchange in the US and that is dollars. Also, to travel from Canada to France, one would need to exchange Canadian dollars used in Canada to the currency used in France.

The peculiar thing about this market and all of its exchanges is that it is not confined to a physical location or place. You can exchange your local currency for any other currency of your choice electronically in a technology known as Over-The-Counter.

Source: https://tradersplatform.net/blog/forex-trading-for-beginners/