ACTUAL FOREX TRADING
BECOME A PROFITABLE FOREX TRADER
Common Forex Questions Answered by a Forex Trader
"You have likely heard of Forex and Forex trading, but what is it, and why is it important?
Learn the answers to your Forex questions below..."
Question: What is Forex?
Answer: Forex is the abbreviation for foreign exchange, which is the market where global currencies are bought and sold.
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Forex can sometimes be called the Foreign Exchange Market, Foreign Exchange, the Currency Market, or FX.
Currencies are constantly changing prices. The Forex market provides real-time prices of currencies.
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Unlike other financial markets, the Forex market is open 24 hours a day and has no central exchange. This means Forex is traded globally 24 hours a day!
Question: What is Forex Trading?
Answer: Forex trading is buying and selling currencies.
The Forex market provides real-time prices of currencies. It offers the public - you and me - an opportunity to buy and sell currencies. Buying and selling currencies is called speculating or trading. Most buyers and sellers in the Forex market are speculators (traders).
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You can learn the basics of Forex and Forex trading by clicking on the free course below. The free program includes a free Forex Q&A PDF!
Question: Why do people trade Forex?
Answer: Currency value (or price) is continually changing. Currencies increase and decrease in value. Traders buy and sell currencies to make a profit from these price movements. They do this by purchasing a currency and then selling the currency for a higher price in the future.
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People trade and invest in the Forex market with the intent to make money.
Question: How do people trade Forex?
Answer: The Forex market is only accessible by using a Forex broker. Without a Forex broker, you cannot trade Forex. A Forex broker offers access to the Forex market.
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You can learn more about Forex brokers in my Ultimate Guide to Forex Brokers. You can open a free demo trading account here.
Question: Can you make money trading Forex?
Answer: Yes, but most lose money.
To trade Forex profitably, you need an edge (a trading strategy) and emotional discipline.
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This website will teach you how to be a profitable Forex trader. I suggest starting with my free Forex training material. All the content is free.
Question: What is Spot Forex?
Answer: Spot Forex is trading in the actual exchange at the current market prices.
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There are other ways to trade Forex, such as CFDs, spread betting, and Forex options.
Question: What is the best way to learn Forex?
Answer: You should focus on the following in order: learning the basics of Forex, learning the basics of technical analysis, learning the basics of fundamental analysis, and then start practicing with a free Forex demo account. All these steps are detailed in my Become a Forex Trader Guide.
Question: How long does it take to become a Forex trader?
Answer: Becoming a Forex trader is not easy - it takes time, practice, and great discipline.
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You can speed up the learning process by taking my Ultimate Forex Trading Course or signing up for my Forex Mentor Program. Both options include access to a real Forex trader to answer your Forex market questions.
Question: Can I trust Forex brokers?
Answer: There are Forex broker scams and brokers that cannot be trusted.
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Ensure you trade using a well-regulated broker. I have my broker recommendations here. These are brokers I personally trade with. They are strongly regulated.
Question: What is leverage?
Answer: Trading with leverage is trading on margin, i.e. funding only a portion of your open positions.
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Leverage enables a trader to make more significant returns and losses. It is a double-edged sword.
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I explain leverage in detail, including the advantages and disadvantages of leverage, in my Forex Leverage Guide.
Question: What is a limit order?
Answer: Different brokers use different terminology. Generally speaking, limit and stop orders are orders to open a trade at a specific price in future. On MT4, the orders work as follows:
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Buy limit - an order to buy at a specific price that is below the current price
Sell limit - an order to sell at a specific price that is above the current price
Buy stop - an order to buy at a specific price that is above the current price
Sell stop - an order to sell at a specific price that is below the current price
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Entering a trade at the current price (instant execution), this is generally called buying at the market, one-click trading, or market execution.
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If you are using MetaTrader, I have a Complete MT4 Guide, which covers all the basics for free.
Question: What are swap rates?
Answer: Swap rates (rollover rates) are the interest paid or earned when holding a Forex position overnight.
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Swap rates are usually applied every weekday (Wednesday receives a three-day rollover as it includes the weekend rates).
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The overnight rate is based on interest rates.
"If you want to learn to trade Forex successfully, I suggest you follow my free content. When you're ready, consider my Forex Coaching Program"