Forex trading is another form of trading that you can make money on. Instead of stocks, options, ETF, the things on the stock market, you are trading currency instead. Like the stock market, there are various types of markets you can trade FOREX with. There are more of an increased risk of losing more than you are gaining with FOREX. While you do stand to lose more, it’s much easier to trade using FOREX currencies.
- All of the currencies available for trading are assigned a three letter code.
- There are various markets that are used for trading FOREX currencies.
- There are additional risks with forex than other trading options like EFT
“At its simplest, forex trading is similar to the currency exchange you may do while traveling abroad: A trader buys one currency and sells another, and the exchange rate constantly fluctuates based on supply and demand.”