Trade Forex

Forex trading works by buying one currency while simultaneously selling another currency in a currency pair. The exchange rate between the two currencies determines the value of the trade. Traders speculate on whether the exchange rate will rise or fall, aiming to profit from these price movements.

Forex prices are influenced by a wide range of factors, including economic indicators (such as GDP, inflation, and employment data), central bank policies, geopolitical events, market sentiment, and interest rates. These factors can cause exchange rates to fluctuate and create trading opportunities.

Leverage allows traders to control a larger position with a smaller amount of capital. It is a common feature in forex trading and is expressed as a ratio (e.g., 50:1 or 100:1). While leverage can amplify potential profits, it also increases the potential for losses. Traders should use leverage cautiously and employ proper risk management techniques.