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

Even if you don’t trade forex yourself, the international currencies market often plays a significant role in your daily life. While the effects of a drop in the stock market aren’t always so obvious, a change in your currency’s value may affect the price of goods and services. If you’ve been abroad, you’ve also likely had to exchange your currency and pay a rate that depends on current forex quotes and rates.

Forex is a unique asset class that differs from stocks, commodities, and bonds. When we dive into what makes it different, it’s plain to see why there is such a large market and need for the truly global forex market. 

Exercise Files
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