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Forex Trading Advice – Learn the Basics of Currency Trading

Forex trading is the foreign exchange market, where currencies are bought and sold based on a trade price. It has high liquidity and a large number of participants. This makes the Forex market one of the most liquid and active markets in the world.

Traders must understand the basics of currency trading. Specifically, they need to know what factors affect currency prices and the various indicators that are used in trading. They also need to learn about risk management and leverage.

The forex market offers traders the opportunity to make money without having to spend much on initial capital. However, the currency market is very volatile, and it’s important to have a solid risk management strategy in place to minimize losses.

Using leverage in the forex market can enlarge your losses. Leverage can allow you to buy more currency than you have to pay for. A lot of new investors don’t realize the risks of using leverage.

Generally speaking, the bigger the leverage, the more risk you are taking. Leverage in the forex market has been shown to cause significant losses for dealers and traders.

In order to understand leverage, you need to understand what the spread is. The spread is the difference between the bid and ask price. The size of the spread is influenced by a variety of factors.

The forex market has four major trading sessions every day. These sessions overlap and sometimes coincide. For example, during normal US business hours, the rate for the AUD is fixed.

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