24/5 Support: +44 203 318 2176

 Login  Open Account

What is Forex

The 101 Guide to Forex

CM Trading guides you through this finance essential

Here at CM trading, we're well aware of how intimidating it can to break into the Forex world. Before even considering the intricacies of Forex trading signals and the right Forex platform, it’s critical to properly understand the market and what the investment arena means when it discusses ‘Forex’. Most of us are, of course, well aware it stands for ‘Foreign Exchange’- but how well are you acquainted with what the term really means? Do you know the Forex restrictions for your country? How sure are you about why Forex trading would be beneficial for you? We’re here to answer all these questions and more.

What is Forex Trading?

In its simple form, Forex means ‘Foreign Exchange’. When used in investment arenas, it refers to the process of trading in the currencies of different countries in a decentralized market. It resembles a lot to the stock market- but don’t be mistaken as it isn’t, and the rules are a little different. This is why independent Forex platforms exist to help you navigate this unique market easily.

Having said that, there is also a similarity between stocks and currencies in how profits are made. In the stock market, you buy stock x, believing its value will be higher in the future so you can sell at a profit. Forex is similar. Say you compare USD to the GBP. You could buy UK pounds, in the belief the same pound will soon strengthen against the dollar, and if proven right, later sell them at a profit, as their purchasing price strengthened.

Who can trade Forex?

We at CM trading believe the correct answer is ‘anyone who wants to, and is legally able to’. The Forex arena was, at one stage, very hampered by the lack of a connecting influential factor on the internet. You were forced to conduct Forex transactions through the bank, if you could afford to do so at all. As the digital space has increased our connectivity, Forex trading platforms have sprung up, and access to the Forex markets was made considerably simpler. There are even guides and helpful tools like Forex trading signals to help you make the most of your investing strategies.

How would Forex trading benefit me?

You may be wondering why you should choose this market- often portrayed as more ‘risky’ than others. If you’re prone to faulty, hasty decisions, none of the markets are for you, not just Forex. If not, this platform offers an immense opportunity to access a highly liquid market. Daily activity is immense, and never slows- the Forex market operates at all hours. While volatility can sometimes be a little risky, remember it can also equal major profits. With the growth of Forex trading signals and other resources to help you stay safe in the markets, you may well find that this is the right trading platform for you.

CM trading believes everyone can leverage the power of Forex to help grow their personal wealth. With Forex trading signals, Forex platforms and other tools proliferating daily, you can thrive in the trading world.

Join Us Now!
I have read, understood and accept the: Customer Agreement (T&Cs), Risk Disclosure Statement and Anti Money Laundering policy

 

What is Forex

Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) on margin carries a high level of risk. CLICK HERE to read the full risk warning.

OPEN A LIVE ACCOUNTDOWNLOAD MT4