Currency Trading for Beginners

over the course of the next few minutes we’re going to go through some of the basics of the foreign exchange market how it works how people trade it and what makes currency pairs move so in this latest video with trading – and so what I thought we’d do is take maybe something of a step back now I appreciate plenty of people are quite familiar with foreign exchange trading but for some people it might be a new thing so we’ll do a few minutes just explaining how this market works when you’re trading what you’re actually trading and what makes currency pairs move now first of all foreign exchange market it’s the biggest market in the world Bar None it trades trillions of dollars a day around the clock so it appeals to both traders who are trading small size jadwal tv

and larger size because it’s relatively easy to get your trades filled and the cost of doing business is much lower when compared to other markets with currency markets no currency moves in isolation so we have the idea of of currency pairs one currency quoted against another so to make sense of this let’s take a quick look on the platform so we’re on the trading two-on-two platform let’s click the search tool up here top left and see what’s available to trade let’s click on currencies now so here’s the list of various currencies Australian dollar Canadian dollar Swiss franc Czech koruna and so it goes on so there are potentially hundreds of permutations we could trade for example

if we go down to here the PLN polish zloty if you wanted to you could take a view on the Polish zloty against the Japanese yen polish zloty against the Mexican pesos there are all sorts of combinations you can do it what most people tend to do in the beginning at least is stick to the major markets that the major currency pairs because there’s normally plenty going on in those markets and with trading – and – if you’re trading 25,000 units or less 01:56 you can trade these with zero spread so let me just highlight these by typing in zero at the top so there we go that the most popular market euro dollar then we have the other Majors dollar Japanese yen Pound US dollar and the dollar against the Swiss franc so when we’re looking at currencies and currency pairs it’s all about relative value is one currency stronger or weaker than another currency and to get an idea of this let’s take a look at how one currency pair has moved over recent months so all the currency pair is showing is