Forex trading refers to trading being carried out at the foreign exchange market. It is the largest financial market in the world where over $5 trillion exchange hands daily. The ease of trading is an attractive side of Forex. It’s also attractive because it doesn’t have a lot of negative effects on their income.
It’s an over-the-counter market for all and sundry where anyone can trade in most popular currencies in the world. Banks, institutions, investors, and individuals speculate on currencies in this decentralized global market. Currencies are traded in pairs by using one to buy another with a view to making a profit. However, profit and losses are common to Forex as they are to all markets
Forex trading is also enjoying its popularity because of the flexibility of trading hours. Traders are able to buy and sell currencies every hour round the clock throughout the five business days.
And Forex also thrives as a result of trading CFDs. That’s the contract for difference basis without the buyer owning the assets.
Common Currency Pairs in Forex
The most popular currency in pairs Forex are:
EUR/USD: Euro vs US Dollar
USD/JPY: US Dollar vs Japanese Yen
GBP/USD: British Pound vs US Dollar
However, these are by no means the only currency pairs in the Forex market. Other currencies are also making their marks in the market are
AUD: Australian Dollar
CAD: Canadian Dollar
CHF: Swiss Franc
HKD: Hong Kong Dollar
NZD: New Zealand Dollar
NOK: Norwegian Krone
PLN: Polish Zloty
SEK: Swedish Krona
SGD: Singapore Dollar
TRY: Turkish Lira
ZAR: South African Rand
Any two of these currencies can combine to form currency a pair on the exchange based on market realities.
Trading in Forex is not limited to these fiat currencies. Other assets commodities are being traded in Forex. These include:
Crypto: Digital currency assets are being traded in most of Forex trading platforms due to its profitability. Crypto is making millionaires of Forex investors daily.
Stocks: A lot of renowned investors, such as Warren Buffet, have made a lot of money from buying and selling stocks. Forex platforms provide a good opportunity for profiting from trading in stocks.
Commodities: Commodities are highly traded in Forex. Notable among those commodities are cocoa, coffee, crude oil, and metals. The key to making good money from trading these commodities at Forex is the understanding of their fundamentals including factors affecting their price.
You can consider including Forex trading in your list of side hustles. And don’t forget to share your thoughts with us using the comment box below
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