Course Content
What Is Forex Trading?
Forex is the world's largest market by trading volume and liquidity. Brokers, businesses, governments, and other economic agents trade currencies and forex derivatives to enable international commerce. Traders also use the market for speculative reasons. There are various arbitrage opportunities to be found with exchange rates and interest rates, making the market a popular one to trade in large volume or on leverage. The forex market consists of fiat currency pairs and their relative market prices. These pairs are typically bought and sold by the lot. A standard lot contains 100,000 units of the pair's base currency, but other smaller sizes are available, ranging down to 100 units. Traders commonly use leverage to increase the amounts they can invest with their capital. You can also offset risk by using forwards and swaps to trade a currency pair for a specific price in the future. Combining these two instruments with other trading strategies and products creates a variety of investment opportunities for forex traders.
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What Is Forex Trading?
About Lesson

With any floating currency, there is always the chance that the exchange rate will move. While speculators try to make profits from volatility, others value stability. For example, a company planning to expand internationally may want to lock in an exchange rate to better plan its expenses. They can do this quite easily with a process called hedging.

Even speculators might want to lock in a specific exchange rate to protect against an economic shock or financial crisis. You can start hedging your FX rates with various financial instruments. The most common methods are using futures or options contracts. With a futures contract, an investor or trader is obliged to trade at a specific rate and amount at a future date. 
Exercise Files
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