Kathy Lien , Boris Schlossberg , Casey Murphy , Chad Langager and Albert Phung The foreign exchange market forex or FX for short is one of the most exciting, fast-paced markets around. Until recently, forex trading in the currency market had been the domain of large financial institutions, corporations, central banks , hedge funds and extremely wealthy individuals.

The emergence of the internet has changed all of this, and now it is possible for average investors to buy and sell currencies easily with the click of a mouse through online brokerage accounts. Daily currency fluctuations are usually very small.

This makes foreign exchange one of the least volatile financial markets around. Therefore, many currency speculators rely on the availability of enormous leverage to increase the value of potential movements.

In the retail forex market, leverage can be as much as Higher leverage can be extremely risky, but because of round-the-clock trading and deep liquidity , foreign exchange brokers have been able to make high leverage an industry standard in order to make the movements meaningful for currency traders.

Extreme liquidity and the availability of high leverage have helped to spur the market's rapid growth and made it the ideal place for many traders.

Positions can be opened and closed within minutes or can be held for months. Currency prices are based on objective considerations of supply and demand and cannot be manipulated easily because the size of the market does not allow even the largest players, such as central banks, to move prices at will.

The forex market provides plenty of opportunity for investors. However, in order to be successful, a currency trader has to understand the basics behind currency movements. The goal of this forex tutorial is to provide a foundation for investors or traders who are new to the foreign currency markets.

We'll cover the basics of exchange rates, the market's history and the key concepts you need to understand in order to be able to participate in this market. We'll also venture into how to start trading foreign currencies and the different types of strategies that can be employed.

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The Forex Market By Investopedia Staff Share. Introduction to Currency Trading Forex Tutorial: What is Forex Trading? Reading a Forex Quote and Understanding the Jargon Forex Tutorial: Foreign Exchange Risk and Benefits Forex Tutorial: Forex History and Market Participants Forex Tutorial: The forex market has a lot of unique attributes that may come as a surprise for new traders.

With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected.

What is Forex, why to join, how to join - FXOpen

Here are the top 5 forex risks to avoid. In an increasingly globalized economy, the significance of the foreign exchange marketplace cannot be underestimated. Investment clubs have been around for several decades and are simply groups of people who get together to invest.

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