How to Trade Forex for Beginners

Forex trading is a term used to describe individuals that are engaged in the active exchange of foreign currencies, often for the purpose of financial benefit or gain. That can take on the form of speculators, who are looking to buy or sell a currency with the goal of profiting from the currency’s price movement; or it can be a hedger that’s looking to protect their accounts in the event of an adverse move against their own currency positions.

The term ‘forex trader’ may describe an individual trader on a retail platform, a bank trader utilizing their institutional platform, or hedgers who may be either managing their own risk or outsourcing that function to a bank or money manager to manage the risk for them.