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Forex Trading for Beginners: Everything You Need to Know

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Introduction   Forex (foreign exchange) trading is one of the largest financial markets in the world, with a daily trading volume exceeding $7 trillion. Unlike stock trading, forex involves buying and selling currency pairs, aiming to profit from price fluctuations. If you're new to forex trading, this guide will give you a solid foundation to get started . 1. What is Forex Trading? Forex trading is the act of exchanging one currency for another. Traders speculate on the price movements of currency pairs, such as EUR/USD or GBP/JPY, to make a profit. The forex market operates 24 hours a day, five days a week, making it highly accessible for traders worldwide. 2. Key Forex Trading Terminologies Currency Pair: A combination of two currencies (e.g., USD/JPY) where one is bought, and the other is sold. Pip: The smallest price movement in forex, usually the fourth decimal place (e.g., 1.1250 → 1.1251 = 1 pip). Spread: The difference between the bid (buy) price and ask (sell...