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  • This is the first of a ten-part series in which we walk through articles from DailyFX Education[1].
  • The aim of this series is simplicity while traversing some of the more important aspects of the FX market along with traders’ strategies and approaches.
  • If you would like to access the full suite of educational articles offered by DailyFX, you can get started with the beginner section at this link: DailyFX Forex for Beginners[2]
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In many ways, the Forex market is like many other markets: The goal is to buy low, sell high (or for short positions, sell high, cover lower, but we’ll get to that later). Let’s start learning more about the basics of the Forex market.

What is Forex[3]

Speculators similarly come to the Forex market with the goal of producing profit by a market’s movements. And just like stocks or futures, prices move throughout the day and that can allow for profit (or loss), and traders can evaluate numerous opportunities as prices continue to move 24 hours a day, five days a week.

A key point is the fact that currencies are the base of the financial system. So, there’s really no other way to value a currency other than by using other currencies. This may sound paradoxical. It’s not. It’s more relative than anything. If someone asks you what the value of the Euro[4] is – how do you respond? You can’t quote the Euro in terms of the Euro, that’s an actual paradox. But – you can use the US Dollar[5], or the Japanese Yen[6], or the British Pound[7]. And this happens all day, five days a week in currency pairs like

Read more from our friends at Daily FX