Forex trading, or foreign exchange trading, has become an important financial activity among investors worldwide.
To American beginners, it can be both a source of fear and fascination. Understanding the Forex landscape and its potential rewards is quite helpful to make informed decisions in such a dynamic field by aspiring traders. What is forex trading? Forex trading is the buying and selling of currencies with the view to reaping a profit through exchange rate fluctuations. Unlike stock markets, in which you would invest in company shares, Forex trading builds on currency pairs like EUR/USD or GBP/JPY.
Besides, with low barriers to entry, the Forex market is very attractive for young investors who may have limited capital. Several brokers offer micro and mini accounts, which allow traders to get started with lower amounts in order to build on experience and confidence progressively.
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