Forex Trading Questions asked by All New Traders
When forex traders start out, they all have questions that they wonder about. This isn’t surprising – when you first become a forex trader, it’s a steep learning curve. However, the good news is that most of these forex trading questions are the same from trader to trader, and they’re relatively easy to answer. easy-forex takes a look at some of the most common forex trading questions.
What am I really buying or selling when I trade currencies?
Here’s the surprising answer – you’re not really buying or selling anything. The forex market is mostly speculative, and currencies never actually change hands for retail traders. The only traders who typically exchange currencies – aside from central banks – are corporations. They need foreign currency to buy and sell goods and services, pay overseas employees, and sometimes buy companies in other countries. However, this is only around 20% of the total forex trading market. For everyone else, forex trades are really just data on computer systems.
What is the top indicator that I should use?
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