By lun neh 
You may not notice it but the Forex market has been around for so many years. It was only popularized recently thanks to online trading and retail traders. If you are interested to trade currency, you should first know the basics and slowly gain experience as you join the live market.
What is Forex Trading?
Currencies are being traded in the FX market. It is a continuous and nonstop market, open for 24 hours/5 days a week. It is the largest financial market and the most liquid market in the world. Before, currency trading was only for banks and financial institutions that have an unlimited source of funds. But nowadays, it is being penetrated by retail traders or small-time traders who are trying to take advantage of the movement in the market.
What are the Uses of Forex Markets?
Hedging
The buying and selling of goods by companies are always subject to the risk of fluctuations. Hedging has a way to elevate this risk as it fixes the rate at which the transaction gets completed. To do this transaction, the trader can either buy or sell the currency into the swap or forward markets ahead of time. It locks in a certain exchange rate.
Speculation
Some of the factors that affect the supply and demand of currencies are interest rates, economic strength, trade flows, geopolitical risk, and tourism. It creates volatility throughout the FX market daily. Meanwhile, the opportunity to profit comes in with the changes in the market, either an increase or decrease in the value of the currency.
How To Trade Forex?
Trading currencies is similar to trading equity. Follow these steps to get started the right way in FX trading.
Learning About Forex
It may appear less complicated than other markets, but it would be wise if you join the market with full armor. Knowledge is your best armor that cannot be taken away from you. Words like leverage, margin, and other commonly used terms in FX cannot be used properly if you don’t have knowledge about it. Fortunately, there are currently a lot of online courses available nowadays. They are either free of charge or require you to pay a small amount of cash.
The Brokerage Account
Forex brokers paved the way for retail traders to join the market. Thanks to them, small-time traders were able to participate in the market and take advantage of the price movements. Before you can trade in the FX market, you have to set up a trading account at your preferred broker. Brokers in the currency market don’t charge you with commissions. They make money when traders pay their spreads.
The Trading Strategy
It is impossible to regularly predict the movement of the market. But if you have a trading strategy, you have a set of guidelines that you can follow as you trade. A comprehensive trading platform doesn’t need to be complicated but it should depict your current situation and financial status. Take into consideration the amount that you are willing to lose.
Emotions in Trading
Because money is involved, your emotions are always at their peak. After all, no one wants to lose money when you join the market because you want to earn. However, getting distracted with emotions will only lead you to your doom.