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Forex Trading Trading
Forex trading trading — while it may sound repetitive, this phrasing often arises in the context of search engine optimisation and highlights the dual nature of trading currencies. At its core, forex trading is the act of exchanging one currency for another, speculating on price movements to generate profit. It is a 24-hour market that offers traders across the globe the opportunity to participate in the world’s most liquid financial market.
What Is Forex Trading Trading?
Forex trading trading refers to the process of buying and selling currencies in pairs such as EUR/USD or GBP/JPY. Every forex transaction involves two currencies — one being bought, the other sold. The aim is to anticipate which direction the currency pair will move and profit from that movement.
Key Takeaways
- Forex trading trading focuses on speculating on exchange rate fluctuations.
- Traders buy one currency and simultaneously sell another.
- Market operates 24 hours a day across global sessions.
- Includes major, minor, and exotic currency pairs.
- Strategies range from short-term scalping to long-term macro trades.
How It Works
Currency Pairs
Forex is traded in pairs:
- Base currency: the first in the pair (e.g., EUR in EUR/USD)
- Quote currency: the second (e.g., USD in EUR/USD)
Lot Sizes and Pips
- 1 standard lot = 100,000 units
- A pip is the smallest price movement, typically 0.0001 for most pairs
- If EUR/USD moves from 1.1000 to 1.1010, that’s a 10-pip change
Profit Calculation
With 1 standard lot on a 10-pip gain:
- Profit = 10 pips × $10 = $100
Why Forex Trading Trading Is Popular
- High Liquidity: Over $7 trillion traded daily
- Low Barriers to Entry: Start with just £100
- Leverage: Amplify gains (and losses) with smaller capital
- Accessibility: Trade anytime, from anywhere
- Variety of Strategies: From automated trading to manual analysis
Fundamental vs Technical Analysis
Criteria | Fundamental Analysis | Technical Analysis |
---|---|---|
Focus | News, economic reports, interest rates | Price charts, indicators, price action |
Horizon | Medium to long term | Short to medium term |
Example Tools | Economic calendar, central bank statements | MACD, RSI, trendlines, Ichimoku Cloud |
Use Case | Forecast macro trends | Refine trade entries and exits |
Real-Life Case Study
Priya, a university student in Leeds, discovered forex trading while researching side income ideas. After taking a CPD Accredited course with Traders MBA, she began demo trading EUR/GBP. She combined Ichimoku Cloud technical analysis with Bank of England monetary policy reports. Within six months, she transitioned to a small live account and now trades part-time with consistent risk-managed strategies.
Frequently Asked Questions
Why do people say forex trading trading?
It’s often used for SEO and emphasis, but refers to the act of trading currencies in the forex market.
Can forex trading be done from the UK?
Yes, the UK has a well-regulated environment under the FCA. Many UK brokers offer access to global forex markets.
How much can I earn from forex trading?
It depends on capital, strategy, discipline, and market conditions. There is no guaranteed income.
What platforms are used for forex trading?
Popular platforms include MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader.
Is forex trading suitable for beginners?
Yes, with proper education, practice on demo accounts, and mentorship, beginners can succeed.
Conclusion
Forex trading trading serves as a reminder that every trade is a transaction — two currencies involved, two directions to choose from. Success lies in mastering the tools, strategy, and psychology of the market. If you’re ready to begin or improve your trading journey, explore our CPD Accredited Trading Courses to build real-world skills that deliver results.