Forex (or FX) stands for Foreign Exchange, which is the “place” where currencies are traded. In this market, exchanging one currency for another is called currency trading, which is always done in pairs. For example, if a trader wanted to exchange euro (EUR) for US dollar (USD), they would trade the EURUSD currency pair. Trading currencies implies that a trader simultaneously buys one currency while selling the other. Various economic, political, and environmental factors contribute to the changing values of currencies, and forex traders buy and sell currencies to take advantage of these swings in value. The forex market is a global, decentralised market. The forex market is by far the largest and most liquid financial market in the world, with an estimated average global daily turnover of more than US$6.5 trillion — which has risen from $5 trillion just a few years ago. In addition, it has no physical location or central exchange, and trades 24 hours a day, 5 days a week. How can I make money from forex trading? The idea is to predict how a currency pair's price will move, and open a position based on that prediction. You could profit from either a rise in price by going long, or a fall in price by going short. How much will it cost to trade forex? There’s usually no commission or fees to pay. Brokers are paid through the ‘spread’, which is the difference between the bid and ask prices. What about trading capital? You can start trading with us for as little as $100. You don’t need a huge deposit, as trading with leverage reduces the initial amount you need to open a position. Please note: leverage is dependent on your knowledge and experience, and can increase your losses as well as your profits. Which currency pairs are traded most in forex? The most popular currency pair is EUR/USD, followed by USD/JPY, GBP/USD, AUD/USD, USD/CHF, USD/CAD and NZD/USD. These pairs are known as the 'majors.' How is the exchange rate for a currency pair measured in forex? The standard unit of measurement for change in value between currencies is the pip. It stands for “point in price” or “percentage in point”. What are the main benefits of trading forex? In the forex market you can: Trade 24 hours a day, 5 days a week. Make your money go further with leverage Capitalise on high liquidity and volatility Trade at low cost Back to Videos Articles Ebooks Glossary Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

Discipline is an integral part of any forex trading strategy. Without discipline, a solid trading system and proper risk management rules lose all of their value. The good news is that – with some willpower on the trader’s part – discipline can be mastered.  This involves carefully studying the forex markets – especially the ones you are trading – and mastering your self-control. In order to maintain discipline, you must practise patience and be able to control common emotional impulses like greed and fear. In more technical terms, proper discipline involves having and sticking to a trading plan. Create a schedule for your trading and know what signals will help to decide to enter or exit a trade. Ensure that you apply proper risk management by sticking to your stop loss and take profit orders.  If you follow the rules without trying to “outsmart” the market, you will discover that discipline is a prerequisite for success. These rules will enable you to have some control over your trading. Defined guildelines like the time of day and which session to trade will also give you distinct boundaries It is always important to know why you are entering into a trade - does the trade meet your strategy rules? If you are correct and the trade goes into profit - what is your price target? If you are wrong and the trade is losing money - what is your stop-loss level? Understanding and managing your risk on every trade is essential. This is especially important when markets are volatile. Don't let wishful thinking - known as confirmation bias - skew your thinking. You must have the control to accept the evidence and execute your rules. How can I improve my forex trading skills? Analysis is a key part of a trader's day. Firstly, that means self-analysis about your own performance and results. Many traders keep a trading journal to help with this. Secondly, regularly monitor the markets you trade. This includes looking at both technical and fundamental factors that might affect your trades, throughout the day. How can I improve my forex trading discipline? Keeping and maintaining short-term and long-term goals can help you on your journey to becoming more disciplined. Trading at a time of day when you are most alert is important. Being confident and calm will also help. Studies have even shown that being well-fed and comfortable helps traders maintain their discipline. Back to Videos Articles Ebooks Glossary Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.