What is Forex trading?

Forex trading is the most traded market in the world. According to an estimate, more than 10 trillion trades take place every day.

Forex means Foreign Exchange Market.

When you buy a product from another country or take any kind of service, the payments made by you are called forex trading. Buying or selling global currency is called forex trading. Thus, when there is a business between two countries, they exchange foreign currency through product or service.

But in the trading we are talking about, a trader estimates whether the value of a country’s currency will go up or down compared to the currency of another country. Therefore, in this, the currency pairs of two countries are always traded like USD / INR. Here USD means UNITED STATE Dollar and INR means Indian Rupees. Here the trader estimates whether Indian Rupees will go up or down compared to the dollar. If the trader’s prediction is correct then he gets profit and if not then he has to bear the loss.
Currency Trading Pairs in India
EURo, pound, yen and Dollar.

Interesting Facts About Forex

You will be surprised to know that despite the Forex market being so big, it has no office nor any employee. There is no building in the world to run the Forex market. So now you must be thinking that how does this Forex market run?
The answer to this is that it forms a chain of computer network by joining the trading computers from all over the world. And the computers of these trading terminals are run by big banks, big institutions and retail investors trading from every corner of the world.
Yes, this is how the Forex market runs.
In the past, only big banks and big institutions used to trade in the Forex market but later it was opened for retail investors.
The Forex market is a market that runs continuously throughout the day.

Learn and practice Forex:

Before trading, understand the Forex market. How does it work? What kind of chart patterns does it form? Always be ready to learn and keep practicing.

Brokerage account:

To trade in the Forex market, you have to open a SEBI registered brokerage account.
Trading strategy: After learning the Forex market and opening a brokerage account, now you need a trading strategy on which you can trust and trade on that trading strategy.

Choosing the right Forex market for trading:

There are 3 types of Forex market.

1 Spot market,
2 Forwards and Futures market,
3 Option market.

In the spot market, currency is bought and sold on the basis of its value. Whereas in the Forward and Futures Market, there is an agreement between two parties in which the value of the currency is already determined. And the transaction between the two parties takes place according to the terms and conditions included in the agreement.
The option market is exactly the opposite of this. There is no trading on real currencies in it. It works on a contract in which the value of currency is fixed on the basis of a date determined in the future and trade takes place accordingly.
Traders will be very happy to know that those who have a low budget for trading can easily trade here as compared to other markets.
How did you like this information given by me, do tell me by writing in the comments, if you have any suggestion or question related to the forex market, then do write that too