Foreign Exchange Education

The foreign exchange (currency or forex or FX) spot market exists wherever one currency is traded for another. It is the largest financial market in the world, and is made up of Central Banks, International and Commercial Banks, Corporate's, Hedge Funds and other currency speculators. The average daily turnover in the global forex markets is currently around US$ 3.2 trillion. Retail trade is now only a small fraction of this market and speculators have taken over.

FX trading has many advantages over equities as the foreign exchange market is open 24 hours a day and there is greater liquidity.  Unlike companies on the sharemarket, foreign exchange doesn't go bankrupt or lose its value by large percentages in a day.

It is a double edged sword though as forex is generally traded on margin which magnifies both your gains and losses.  It's recommended that you start small and invest some time and energy into educating yourself before you dip your toes into forex trading.

Courtesy of local FX provider, Latitude FX Ltd, we have provided you with some educational articles to explain the basics of FX trading.  The articles in their entirety together with Advanced Forex Strategies and free seminars can be found on the Latitude FX website.  

What is Forex?
How an FX trade Works
Calculating Profit and Loss in Leveraged Trading
Other Key Concepts in Currency trading

Fundamental vs Technical Analysis
Macroeconomic Indicators
Interest rate differentials
Current account balances
Other fundamental issues