What Is the Forex Market?
The forex market (Foreign Exchange) is the largest financial market in the world, with a daily volume exceeding $7 trillion. It is where currencies from different countries are bought and sold, and where traders seek to profit from exchange rate fluctuations.
How Forex Trading Works
In forex, you always trade currency pairs — for example, EUR/USD. If you believe the Euro will appreciate, you buy (go long). If you believe it will fall, you sell (go short). Profit or loss is the difference between entry and exit price multiplied by position size.
Main Currency Pairs
- Majors: EUR/USD, GBP/USD, USD/JPY — most liquid, lowest spread
- Crosses: EUR/GBP, EUR/JPY, GBP/JPY — no direct USD
- Exotics: USD/BRL, USD/TRY — higher spread and volatility
What Is Leverage
Leverage lets you control a position larger than your available capital. At 1:100, a $1,000 deposit controls $100,000. It amplifies both gains and losses — use with extreme caution and strict risk management.
Trading Sessions
- London: 8 AM–5 PM GMT — highest volume
- New York: 1 PM–10 PM GMT — high volatility
- London-NY overlap: highest volume and volatility period of the day
First Steps to Get Started
- Study the basics: pips, lots, spread, swap
- Choose a regulated broker (Exness, XM, IC Markets)
- Practice on demo for at least 3 months
- Create a trading plan before going live
- Log all trades from day one with ForexTracker
Start logging your trades from day one. Access app.forextracker.com.br for free.