Trading and currencies: an overview

What is trading?

* Buy and sell foreign currencies to make a profit from exchange rate fluctuations.

* The foreign exchange market ("Forex") is the world's largest financial market, with trillions of dollars traded daily.

How does trading work?

* Currencies are traded in pairs, such as EUR/USD.

*Traders buy a pair if they believe the value of the base currency will rise against the second currency.

* They sell a pair if they think the value of the base currency will fall against the second currency.

What are the risks?

* Trading is a risky activity, as you can lose money if exchange rates move against you.

*It is important to understand the risks before starting.

Tips for beginners:

* Learn the basics of trading.

* Start with a demo account.

* Invest only what you can afford to lose.

* Use risk management strategies.

* be patient.

Useful resources:

* FOREX.com website

* IG website

* Saxo Bank website