The Forex market is based on the difference in exchange rates. Forex rates for each of them are constantly changing, which gives traders the opportunity to make a profit.
Currencies represent states’ economies. States’ economies’ relations have certain dynamics of relationships between them: when one economy get stronger than another one, their respective currencies change their relationship in a similar manner. Good news is announced for the British economy – and the British pound rises against other currencies. Dire outlook for the Euro – and the European currency loses value against the other ones. These movements up and down make what any trader would see all the time in the charts, and this is what allows to trade and potentially get profit from – currency fluctuation.
Currency Trading
Generally, there as many currencies as there are states or commonwealth economies. With FBS, you can trade all of them, or, at least, most of those which have importance on the global scale. It’s not only the US dollar, the euro, or, the British pound.
Here is a exhaustless list of currencies you can trade with FBS:
- The US dollar
- The euro
- The British pound
- The Japanese yen
- The Chinese yuan
- The Australian dollar
- The New Zealand dollar
- The Swiss franc
- The Canadian dollar
- The Mexican peso
- The Russian ruble
- The Brazilian real
- The South-African rand
As you can see, there are numerous currencies, including the exotic ones that have their particularities that allow traders to choose very specific trading strategies. There are many more over there, and for most of them, you’ll have cross-pairs with the primary currencies such as the US dollar or the euro.
Trading currencies is not difficult if you apply discipline and a structured approach to trading. Use fundamentals such as an economic calendar to know what large-scale events affect respective currencies. Also, use technical indicators such as the Moving Averages that suggest what the immediate future of a stock price may be. Also, keep in mind there are different types of accounts where you can practice trading with literally zero funds or extract benefits from certain contract specifications.