Forex Trading And The Currency Markets

More money is traded in forex and the global currency markets each day then on any other financial market. The daily value of trades is staggering and amounts to about 4 trillion dollars. Forex trading is the exchange of one currency for another rather than purchase or sale of a single currency. Because high leverage can be used the large fortunes can me made as huge amounts can be lost. Small amounts can also be traded and because forex platforms such as MT4 can be used by traders in their homes then currency trading is accessible to all with home trading on a PC.

A forex signals provider is often used to obtain signals from experienced professionals and to reduce the risk of losses, for example UniteFX.com

[youtube]http://www.youtube.com/watch?v=bhYVsQYfhuY[/youtube] Most trading is on the five major currency pairs and many traders focus on the euro dollar. For many this can be more attractive than researching the hundreds of shares traded on the stock market. Additionally with stocks and shares the broker will charge commissions whereas forex brokers normally do not charge commissions but take their income from the bid/ask spread.

Experience combined with a forex trading signals service can help to optimise profits and reduce drawdown losses.