Understanding Leverage in Forex Leverage is one of the most important concepts for anyone trading foreign exchange. It allows a trader to control a larger market position with a smaller amount of capital, but it also increases the speed and size…

What Moves Currency Prices? Currency prices are constantly changing. The Australian dollar may strengthen against the US dollar one day and weaken the next, while the Japanese yen, euro or British pound can react sharply to economic news, central-bank decisions or…

Major, Minor, and Exotic Currency Pairs Explained The foreign exchange market is built around currency pairs, but not all pairs behave in the same way. Major, minor, and exotic currency pairs differ in liquidity, market participation, volatility, spreads, and the economic…

How the Forex Market Works The foreign exchange market, or forex market, is the global marketplace where currencies are bought and sold. Unlike a traditional stock exchange, forex is not centred on one physical exchange. Instead, currency transactions take place through…

What Is Forex Trading? Forex trading, short for foreign exchange trading, involves buying one currency while simultaneously selling another. The objective is generally to speculate on changes in the relative value of currencies, although foreign exchange markets also play a fundamental…