You Don’t Pay Commissions In Forex Trading

| Total Words: 556

The Foreign Exchange market is the largest financial market in the world. In the US alone, it has a daily trading volumes of $1.2 trillion dollars, which outshines the stock, bond, and other commodity markets. But just what is currency trading or Forex trading, as it is more commonly known?

Forex trading is where you will buy one currency and sell another, or it may be a combination of a few different currencies in total. Your trading involves matching one currency against another. That is, you buy the Euro hoping it will rise against the U.S. Dollar. Which also means you hope the U.S. Dollar will fall against the value of the Euro. This does not mean you wish the U.S. Dollar bad tidings, it is just you are trading using economic information about the two currencies. You can do the same for the Swiss franc against the Japanese yen. Most people probably call this form of trading speculation. But consider that some individuals and groups make millions of dollars daily using the techniques available for trading in currencies.

You would usually do Forex trading using a margin. This means you leave a small deposit with your broker and can trade for many times the value...

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