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What Is Forex
The foreign exchange market (forex) is a global
decentralized or over the counter (OTC) market for
the trading of currencies. It is the largest and most
liquid nancial market in the world. The forex market
allows participants, such as bank and individuals, to buy,
sell or exchange currencies for both hedging and speculative
purposes.
How It Works
01
Market Participant
The forex market consists of various participants, including banks, nancial institutions, corporations, governments, and individual traders.
The forex market consists of various participants, including banks, nancial institutions, corporations, governments, and individual traders.
02
Currency Pairs
Currencies are traded in pairs. For example, the EUR/USD pair represents the exchange rate between the Euro and the US Dollar.
Currencies are traded in pairs. For example, the EUR/USD pair represents the exchange rate between the Euro and the US Dollar.
03
Bid and Ask Prices
Each currency pair has two prices. the bid price (the price at which you can sell the base currency) and the ask price (the price at which you can buy the base currency).
Each currency pair has two prices. the bid price (the price at which you can sell the base currency) and the ask price (the price at which you can buy the base currency).
04
Spreads
The difference between the bid and ask prices is known as the spread. It represents the cost of trading and is typically measured in pips.
The difference between the bid and ask prices is known as the spread. It represents the cost of trading and is typically measured in pips.
05
Leverage
Forex trading often involves leverage, which allows traders to control larger positions with a smaller amount of capital. However, leverage can amplify both prots and losses.
Forex trading often involves leverage, which allows traders to control larger positions with a smaller amount of capital. However, leverage can amplify both prots and losses.
06
Market Hours
The forex market operates 24 hours a day, ve days a week. It starts with the opening of the Asian session on Sunday evening (EST) and ends with the closing of the US session on Friday afternoon (EST).
The forex market operates 24 hours a day, ve days a week. It starts with the opening of the Asian session on Sunday evening (EST) and ends with the closing of the US session on Friday afternoon (EST).
RAY4X Available —
Smart Package
Trading accounts can be overwhelming. The options are endless, and there are a lot of things to consider when choosing the right account type. But at SmartFX, we want to simplify everything for our valued clients by providing them with a single and optimal trading account that best suit their trading style.
Our Package Return
Tyro Account | 387.5% | |
Legit Account | 275% | |
Delight Account | 285% | |
Fortune Account | 250.25% | |
Divine Account | 202.5% |
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