FOREIGN EXCHANGE
Trade Foreign Currency Exchange
Trading in foreign currency exchange (Forex or FX) involves the buying and selling of different currencies. The main goal for traders in this market is to earn profits from changes in the value of one currency against another. For example, a trader might buy the US dollar (USD) and simultaneously sell the euro (EUR) if they believe the USD will increase in value compared to the EUR.
Traders have access to various strategies to spot potential trading opportunities. These include technical analysis, which focuses on price patterns and market trends, and fundamental analysis, which considers economic indicators and events. Often, traders use a blend of these methods.
It's important to note that trading in the foreign currency market is not without its risks. These include the possibility of financial loss due to sudden shifts in market conditions or currency values. Understanding these risks and developing a well-thought-out trading strategy is crucial.
For personalised guidance tailored to your specific needs and goals, our team of financial advisors is available to provide expert advice.
What is Foreign Exchange?
The foreign exchange market is the market for global currencies, but what is currency trading? Currency trading is among the most popular markets to trade and the most liquid and well established in the world. That’s because it consists of the most prominent national economies across the globe, and the currencies that represent each region, and the forex market dictates the exchange rate for each national currency.
Each nation’s fiat currency is impacted by several factors, including supply and demand, national debt, political factors, natural disasters, events, and much more. Because so many different things can affect the price of forex currencies, causing them to fluctuate, each makes for a great asset to trade, and because each country is impacted by its own unique factors, each trading pair behaves differently.
Major currency pairs to trade:
The four major forex currency pairs available for trading include EUR/USD, GBP/USD, USD/JPY, and USD/CHF. The major pairs are all based on the US dollar, which is the currency of the largest economy in the world, and the major reserve currency across the globe. Most assets and markers are priced in USD, making it a natural fit for many of the highest traded forex currency trading pairs.
Exotic currency pairs to trade:
Trojan Markets also offers more exotic forex currency pairs, including AUD/CAD, EUR/CHF, GBP/JPY, and many more. In total, Trojan Markets provides traders access to 14 exotic trading pairs in addition to the four major forex currency trading pairs. These more obscure and exotic markets make for a unique trading experience as each currency in the pair reacts to different sets of factors causing price fluctuations.
The forex currency market trades 24 hours a day, except for weekends.