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Forex Trading for Beginners

Forex trading is the exchange of one currency for another. Traders speculate whether the prices of these currencies will rise or fall in relation to one another. The forex market is the biggest financial market in the whole world. Approximately, $5.1 trillion is traded every day, easily surpassing other markets, such as the stock market.

Forex trading is, in fact, a vital part of the global economy as people are constantly in need of making foreign trades. To be able to do that, they must exchange what currencies they have into the ones they need. This has made the forex market the giant it is today.

Thanks to the ever-improving technology, Forex trading has never been more accessible. Back in the day, the foreign exchange market was comprised of governments, big companies and hedge funds. But with the introduction of the Internet, virtually anyone can engage in Forex trading as long as he has a computer and an internet connection.

Where and When Does Trading Take Place?

Forex trading does not consist of one central place to buy or sell currencies. Instead, there are plenty of individual dealers or financial centers where the actual transactions take place. Since the forex market operates 24 hours a day, five days a week – traders can buy or sell currencies any time they wish from virtually any place around the globe.

Forex trading is carried out in a context of currency pairs, such as USD/JPY, USD/GBP or EUR/USD. Whenever traders buy a certain currency, they do it in hope that its value will go up against the opposite currency. Much like commodities, currencies are displayed in quotes depending on the current market rate.

Factors that Affect Currency Prices

Here are some of the main factors that affect currency prices:

RIMarkets offers its clients a great variety of currency pairs to invest in. Clients also enjoy a plethora of investment tools meant to help them monitor leading market trends, optimize their transactions and enhance their trading experience.