What is foreign exchange trading?

The foreign exchange market is where foreign currencies, such as the Euro and the US Dollar, are bought and sold by individuals, companies, financial institutions and international banks everyone if fact, who is looking to benefit from the huge potential for profit from speculation. Foreign exchange trading has many names; some of the most popular are forex, fx and currency trading.

When you buy and sell foreign currencies, you are buying one currency against another. This means that when you see EUR/USD on a trading platform, you can either buy or sell this pair. If you choose to buy, you will be buying Euros with US Dollars. If, on the other hand, you decide to sell, you will be selling Euros with US Dollars.

The currencies explained:
EUR = Euro
USD = United States Dollar
GBP = British Pound
JPY = Japanese Yen

Hope to "see" you soon for the next chapter

Francesco