When trading in Forex, currencies are traded in pairs. The numerator is known as the base currency and the denominator is known as the ‘quote’ or ‘counter’ currency. Each currency has a three letter acronym (rather like an airport code) and currency pairs are expressed like this: base currency/counter currency. So for example, USD/EUR is [...]

New traders must choose a broker who has the right type of Forex trading platform to suit their needs and it can be a bit overwhelming when there are so many to choose from. To make this task a little easier, new traders can start with finding a broker who uses the most common platform [...]

The reason most people get involved in Forex trading is that it is possible to make big returns for a small outlay. The leverage ratio (i.e. the amount of money required to invest versus the potential returns) is very high in Forex trading compared to other types of trading so it is a very attractive [...]

Forex trading is a form of betting on the foreign exchange markets (Forex) between currencies. Forex traders buy one currency and trade it against another one, hoping that the one that they have bought will become more valuable than the other one. Forex traders use a Forex trading platform provided by their broker to facilitate [...]

When you are trading in Forex, you are effectively investing in the economic well-being of a nation in comparison to another nation. So if you sell British Pounds for US Dollars, you are betting that the US economy is going to do better than the UK one. But what are the factors that can influence [...]

You may find some websites that claim to offer risk-free trading but that is nonsense. When you are trading substantial sums of money, there is always the possibility that you could lose money as well as make it. Making sure that you are well briefed, that you understand the market, and are using reliable Forex [...]

Some websites make wild claims about how much money you can make from Forex trading if you only download their guide or follow their advice. Like any form of trading however, successful Forex trading is dependent on understanding the rules and becoming as educated as you can possibly be before starting trading. Many brokers offer [...]

Forex trading is very simple in essence. Traders convert their money into a different (or counter) currency and hope that currency increases in value. Then they covert back into the original (or base) currency and they have made a profit simply by moving one currency from another. For example, say you had £90 (in Forex [...]

In the 1930s there was a worldwide depression with a number of monetary crises leading up to the start of the Second World War. At the end of the war, leading countries got together under the initiative of the US and signed the Bretton Woods agreement. This agreement sought to prevent the appalling destabilisation of [...]

There is a good deal of confusion about these terms but, in Forex trading, they are effectively two sides of the same coin as you are always trading in currency pairs. Taking a long position is the most traditional form of trading and is where you buy a currency pair at a lower price and [...]