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What Is Forex Trading? Introduction and Definition

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This is a free mini-course in foreign exchange trading, meant to expose you to the basics of forex trading and the forex market in an interesting way. While it is true that the information here can be found elsewhere, you are likely to be subjected to piecemeal segments in a rather boring and not engaging fashion. The difference this course provides is that I will try to make it as much fun as possible. The intention is to add the much-needed spark and make it a fun-filled experience.

Nevertheless, note that there is no central trading location for forex trading. The business is said to happen over the counter. Forex trading is not like stock trading which is centrally located. Forex is quoted by all the main banks and they often differ in their prices. Brokers collect such data from the various banks and post quotes for us. The broker-posted quotes are a calculated average of the prices offered by the banks. Therefore, trading is facilitated by the broker as he keeps a bit of the proceeds. Effectively, when you decide to go with a given currency pair, you are buying it from the broker such as tradefxasia.com or trade111.com, and not from other traders.