Beginner Guides on Giant Pips Academy are designed to simplify the journey into trading for newcomers.
These guides cover the essential building blocks of trading, from understanding currency pairs and forex terminology to mastering the basic tools and strategies needed to make informed decisions.
What is Forex trading?
Forex trading, also known as foreign exchange trading or currency trading, is the global marketplace for buying and selling currencies.
It involves the exchange of one currency for another at an agreed-upon price known as the exchange rate. The goal of Forex trading is to profit from the fluctuations in the value of currencies relative to each other.
In Forex, participants include banks, financial institutions, corporations, governments, and individual traders. The market operates 24 hours a day, five days a week, and is the largest financial market in the world, with a daily trading volume exceeding $6 trillion.
Trading can be done in several ways, including spot trading, futures, and options contracts. It is commonly used for international trade, investment diversification, and speculative purposes with traders aiming to capitalize on price movements in currency pairs such as EUR/USD, GBP/USD, and USD/JPY.
For many, trading offers opportunities for profit, but it also carries significant risk, requiring knowledge, strategy, and risk management to succeed.
