Short for Foreign Exchange which is exchanging one currency for another. Forex trading is the purchase of one currency and selling of another simultaneously for profit
BeginnerEarly Stages For Beginners8 Topics
Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
Margin & Leverage2 Topics
IntermediateIdentifying Scams2 Topics
Brokers for Beginners5 Topics
Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Counter Trend Trading/ Counter Trend Lines
- Moving Average
- Top-Down Analysis
- Consolidation Trading (Breakout, Retest, Continuation)
AdvancedUsing Indicators6 Topics
Technical Analysis (Part 2)8 Topics
Market Structure5 Topics
Fundamental Analysis9 Topics
CompletionRisk Management for Beginners8 Topics
Psychology for Beginners7 Topics
Personal Psychology Questions2 Topics
What Is Forex Continued… (QUICK FACTS)
Okay, now that I’ve explained how to make and lose money in the Forex market and how we all use it whenever we travel to another country, let’s get into some facts about the Forex market.
The stock market is more glamorized than Forex, as Forex can be more volatile and less strict, but it is not bigger. A lot of people have the misconception that the stock market is the biggest financial market in the world and let me let you in on a little secret: IT’S NOT. That would be the Foreign Exchange Market!
Let me put it to you this way:
The New York Stock Exchange (largest stock market in the world) has an average trading volume of around 22 BILLION. That’s a lot of transactions!
The Forex Market has an average trading volume of 6 TRILLION. Yes, that’s with a T.
This just shows how much bigger the Forex market is in comparison to the Stock Market! Although the currency market is bigger, don’t look at the 6 trillion number and think that number is there because of all of US (speculators, retail traders). We actually make up a very small amount of the overall Forex transactions that occur; roughly around 5%. Most of the volume comes from central banks, major hedge funds, corporations, and other larger financial institutions. We’ll discuss them more a little later.
Anyway, on top of being the largest and most liquid asset market in the world, it’s also a decentralized market. What that means is there’s no central exchange like the Stock Market has the NYSE, Nasdaq, and more. Buyers and sellers don’t need to meet at a traditional exchange because everything is done online! So although you’ll see a physical booth at the airport, you won’t see a physical Forex exchange as you would if you were in the stock market.
With the market being decentralized, the Forex market is open Twenty. Four. Hours. A. Day. 5. Days. A. Week. 24 HOURS! That means no matter what time of the day it is, someone in the world is trading in the Forex market. Essentially it does mean you can set your own trading schedule. Whether you want to trade in the morning, in the afternoon, or at night after work, there’s no schedule on what time you HAVE to trade. The stock market is only open from 9-5, so you physically have to be ready for the bell when the market opens! EVERY. MORNING. Now while some people like trading every morning, there are some people who like choosing what time to trade. With Forex, there is no bell to signal that the market is open. The market is open 24/5!
Side note: There are some benefits to trading at certain times over others, but we’ll get into that as we continue on throughout this course.