Forex trading refers to foreign exchange trading – the trading of currencies from various countries. People who trade forex will exchange one currency for another in the hopes that the currency that they bought goes up in value in comparison to the one they exchanged it for.
As an example, if I think the EURO is going to go up versus the US dollar, then I can buy EURO by exchanging US dollars. If I’m right and the EURO goes up in value, then I make a profit.
People who trade currencies will use various techniques to try to determine which currencies are going to go up and which are going to go down. There are certainly many different strategies available, but if you’re a beginner wondering what is forex trading you can actually use a forex trading program that will point out trading opportunities for you.
These programs are also called “forex robots” and anaylze the markets by looking at price history, movements and other indicators. They then look for patterns and indicators that have the potential to signal a winning trade.
Anyone, beginners included, can use a forex robot. The nice thing about these programs is that they have been programmed by trading professionals that have years of experience in the markets. The trading decisions are made from these years of expertise.
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