Forex trading: What is Forex trading, risks, history, pros and cons

Forex trading has become immensely popular in recent years owing to its high degree of accessibility. If you want to leverage the opportunity in the currency market, then this article can tell you everything you need to know about forex trading. This piece explores currency as an asset class, as well as highlights the risks associated with forex trading. It further delves into the history of forex to help you better understand how the currency system has evolved over the last 100 years. The article also elaborates on the strategies you can employ to enhance gains.

Simply put, foreign exchange or forex trading is a marketplace where conversion of currencies takes place among buyers and sellers with the aim of earning a profit. It is a decentralised, largest traded market in the world comprising individual traders, institutions, brokers, and banks with an average daily trading volume of around $6 trillion. It is open 24 hours a day, 5 days a week.  Forex trading has become immensely popular in recent years owing to its high degree of accessibility. Anybody with internet access can indulge in forex trading. Unlike the stock market, it is open 24 hours a day. Moreover, forex trading works in a straightforward way. So, with a clear understanding of how the market functions, you can leverage the investment in forex for better gains.  Under...