What Is Currency Trading?
Currency trading or also known as foreign exchange (Forex) where its trading market open 24-hours except on Friday evening to Sunday evening. In currency trading, currency is traded in various lots; standard lots, mini lots and micro lots.
- Open 24-hours, closed on Friday till Sunday Evening
- Pairs and pips
How It Works
Currency trading is done in pairs, you buy a currency and sell another currency. And all currencies are priced out to four decimal points. A percentage in point, is the smallest increment.
Forex trading is done in pair unlike the stock market trading where you can buy or sell a single currency. In forex trading you buy a currency and sell another.
Price In Percentage
Price in percentage or pip is the smallest increment in trading. One pip equals 1/100 of 1%.
In forex trading there are three types of lots; Standard Lot, Mini Lot, and Micro Lot traded. It is suggested for both retailers and beginner traders to trade using micro lots.
There three trading sessions for forex currency trading; European, Asian, and United States. So each market currencies are traded during each respective market hours.
Who Is It For?
- Central Banks
- Individual Investors