Forex trading has gained popularity as a viable way to make money in the markets. Investors are attracted to the Forex market due to its high liquidity levels, with transaction volumes exceeding an estimated $6 trillion daily. The Forex markets also offer quick returns compared to other investments, which is attractive to investors. Investors can also tell whether their decisions are right or wrong.
Forex trading is betting that a currency shall either rise or fall against another currency. Forex pairs are composed of two currencies paired against each other. Therefore, Forex trading means trading different foreign currencies against each other. In the global financial markets, forex trading is not limited to investing in forex pairs only since Forex brokers offer many other instruments. Investors can trade other financial instruments such as precious metals, including gold and silver, crude oil, and various digital currencies that have become quite popular, in addition to global companies' stock CFDs and indices. If you want to invest in the forex market, here's how to do it.
Various brokerage firms can help you invest in the forex markets by opening a trading account with one of the internationally recognised and trusted companies, be it a demo account or a real/live account.
Forex trading is carried out 24 hours a day, five days a week, since the forex market is primarily operated by a global network of banks through four major forex trading centres in different time zones, starting from London through New York and Sydney and ending in Tokyo.
To start trading:
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Determine which currency pair you want to trade.
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Then, make your buying and selling decisions.
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Execute your orders, including stop-loss orders.
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Monitor and close your trades at predetermined exit points.
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Close your positions at the appropriate time without panicking.
Although the forex market operates 24 hours a day, some factors affect it significantly and could trigger massive moves in either direction. Here are some of them:
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Central banks announcements.
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Economic events.
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Political news and events.
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Technical and fundamental analysis.
Therefore, you should follow all economic and political events directly affecting foreign exchange or forex markets.
To access the forex trading market, you must choose a reliable trading broker subject to international rules. Global financial regulatory agencies usually regulate such brokers to ensure the safety of your funds.
Here are a few steps to help you choose the right forex broker:
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Are they globally licensed?
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Do they offer excellent customer service?
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Are the trading platforms offered reliable?
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How much leverage do they offer?
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Methods and ease of making deposits and withdrawals.
The above criteria will ensure you make the right decision when choosing your preferred forex broker. In addition, these crucial points will ensure that you get a satisfactory trading experience, unparalleled customer service, and the best chance at being a successful trader.
High-risk investment warning: Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Any opinions, news, research, analysis, prices or other information contained in this presentation is provided as general market commentary and does not constitute investment advice.
Editors’ Picks
EUR/USD moves sideways below 1.1800 on Christmas Eve
EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.
GBP/USD keeps range around 1.3500 amid quiet markets
GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.
USD/JPY corrects further to near 155.80, gives up entire BoJ policy-led gains
USD/JPY surrenders its entire gains made on the BoJ policy announcement day, and retraces to near 155.80. Investors are in vogue over the outlook of the BoJ’s monetary tightening campaign. The Fed is expected to cut interest rates by at least 50 bps next year.
Editors’ Picks
EUR/USD Price Annual Forecast: Growth to displace central banks from the limelight in 2026 Premium
What a year! Donald Trump’s return to the United States (US) Presidency was no doubt what led financial markets throughout 2025. His not-always-unexpected or surprising decisions shaped investors’ sentiment, or better said, unprecedented uncertainty.
Gold Price Annual Forecast: 2026 could see new record-highs but a 2025-like rally is unlikely Premium
Gold hit multiple new record highs throughout 2025. Trade-war fears, geopolitical instability and monetary easing in major economies were the main drivers behind Gold’s rally.
GBP/USD Price Annual Forecast: Will 2026 be another bullish year for Pound Sterling? Premium
Having wrapped up 2025 on a positive note, the Pound Sterling (GBP) eyes another meaningful and upbeat year against the US Dollar (USD) at the start of 2026.
US Dollar Price Annual Forecast: 2026 set to be a year of transition, not capitulation Premium
The US Dollar (USD) enters the new year at a crossroads. After several years of sustained strength driven by US growth outperformance, aggressive Federal Reserve (Fed) tightening, and recurrent episodes of global risk aversion, the conditions that underpinned broad-based USD appreciation are beginning to erode, but not collapse.
Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026
Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.
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