The Foreign Exchange (often abbreviated as Forex or FX) market is the largest market in the world with daily trading volume of over 5.4 $trillion in April 2013*. With its high liquidity, low transaction cost and low entry barrier, the 24-hour market has attracted investors around the world.
The following modules aim to introduce the key concepts in forex trading, the terminologies and the characteristics of the FX market. The modules first introduced the concept ‘spread’, which is the most important transaction cost in forex trading, how the spread is presented in the price quotes, what is the significance of it and what is the trick behind it.
As most of the retail customers choose to trade forex with margin account, the articles then introduced what is margin trading, what is the significance of margin, how to trade a margin account and how to choose the correct leverage ratio. In trading online forex, there are many types of orders that you can make to facilitate your trades.