What Is Forex Trading: Definition, Market and Forex Basics

Many people say that they can get rich quick when trading forex. However, the tempting lure is not necessarily accompanied by an understanding of what forex trading is, both its characteristics, advantages, and risks. In this review, we will discuss a number of basic forex trading that everyone must know.

What is Forex Trading?

Forex trading is trading currencies from different countries with the aim of making a profit. In this case, forex stands for Foreign Exchange. An example of forex trading is buying Euros (major European currencies), while simultaneously selling USD (American currency), which can be abbreviated as EUR / USD.

In the shadow of a layman, the notion of forex trading is the activity of exchanging money in a Money Changer, which is buying and selling foreign currency manually through a money changer. In fact, forex trading is different from manual transactions such as in Money Changer.

Generally, a person's goal to buy and sell money at a Money Changer is because of the need to exchange currencies for transactions in different countries, so that there is a physical exchange of money. Whereas forex trading is done online with the aim of gaining profit. It needs to be understood, forex trading is a business activity, investment, and even a profession.