Forex-trading is just another name for foreign exchange trading. It is also known as FX trading. Forex trading is the buying and selling of one currency against another.
It is the largest and most liquid of all markets. The market is open 24 hours a day, meaning that trades take place around the clock.
Normally only a few currency pairs are traded (usually the major currencies). However, a few brokers also offer “exotic” currencies. Click here to see the spread of different currency pairs.
In order to understand the forex-trading environment a few terminologies need to be explained.
A PIP refers to the minimum price increase rate of a trade. Usually this is 0.0001. The Ask Price is the price at which a currency can be bought. The Bid Price is the price at which a currency can be sold. The Spread is the difference between the Ask price And the Bid price.