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CHAPTER 1 - LESSON 1
In this first chapter, we will go over the basics of what forex trading is, why it’s important, its key participants, and the structure of the market itself.
If you are completely new to forex trading, this chapter will provide you with a solid foundation to build upon. Even if you have some experience with forex trading, it’s helpful to review the basics and refresh your understanding of the market.
By the end of chapter one, you will have a clear understanding of what forex trading is and why it’s important. You will also be familiar with the key participants in the forex market and the structure of the market itself.
So, let’s dive in and get started with our introduction to forex trading.
Forex is a shorthand for the term foreign exchange. Foreign exchange trading is the buying and selling of currencies on the global currency market. This is in fact the largest and most liquid financial market in the world, with an estimated daily turnover of over $6.6 trillion.
Even more interesting, the forex market operates 24 hours a day, five days a week and is decentralized, meaning no central exchange or clearinghouses control it. Instead, interconnected banks, financial institutions, and individual traders connect to make up the marketplace by using computer networks where they electronically exchange currencies with each other.
Forex trading allows individuals, corporations, and institutions to all participate in the global economy where they can exchange one currency for another. For example, a person may exchange US dollars for Euros to purchase goods or services in Europe, or a corporation may exchange Japanese yen for US dollars to pay for imports from the US.
Forex trading offers numerous advantages over other financial markets, including its high liquidity, low transaction costs, and the ability to trade on margin with leverage. Yet, forex trading also involves significant risks and requires a thorough understanding of market dynamics and risk management techniques.
In the next section, we will explore more about the reasons why traders choose to trade forex, and discuss the various market participants that take part in this dynamic and exciting market.
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Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Baxia Markets, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing the entirety of your initial investment). You must assess and consider them carefully before making any decision about using our products or services.
Baxia Global Limited is a company registered in Seychelles with registration number: 8426970-1, and is regulated by the Financial Services Authority of Seychelles with License number: SD104.
Baxia Limited is a company registered in The Bahamas with registration number: 177330 B, and is licensed and regulated by The Securities Commission of The Bahamas (SCB), (SIA-F234).
The information on this website is general in nature and doesn’t take into account your personal objectives, financial circumstances, or needs. It is not targeted at the general public of any specific country and is not intended for distribution to residents in any jurisdiction where that distribution would be unlawful or contravene regulatory requirements. Baxia Markets does not offer its services to residents of certain jurisdictions such as USA, Cuba, Sudan/Republic of Sudan, Syria, Iran, Iraq, South Sudan, Venezuela, Libya, Belarus, Afghanistan, Myanmar, Russia, Crimea, Donetsk, Luhansk, Palestine, Yemen and North Korea.