Foreign Exchange (forex or FX) is the trading of one currency for another. For example, exchanging Australian Dollar to US Dollar.

The Forex market is the largest, most liquid market in the world, with trillions of dollars traded every day.

Retail trading represents only 5.5% of the whole foreign exchange market, with the majority of currency traded by financial institutions such as: commercial and central banks; investment managers and hedge funds; and multinational corporations.

BT Trading will provide you the knowledge to understand how these institutions trade and other factors affecting the market.

Pip is an acronym for “percentage in point” or “price interest point.” A pip is the smallest price move that an exchange rate can make on the forex market. Most currency pairs are priced out to five decimal places and the pip change is the fourth decimal point. 

For Example, if the EUR/USD moves from 1.0717 to 1.0718, the .0001 USD rise in value is equal to one pip.

Forex is commonly traded in specific amounts called lots, or basically the number of currency units you will buy or sell.

A “lot” is a unit measuring a transaction amount.

When you place orders on your trading platform, orders are placed in sizes quoted in lots.

In general, investors seek to grow their capital over an extended period through buying and holding. Traders, by contrast, take advantage of both rising and falling markets to enter and exit positions over a shorter time frame, taking smaller, more frequent profits.

When trading in the forex market you’re basically taking a position in a specific currency, with the hope that there will be some strength in the currency, relative to the other currency, that you’re buying (or weakness if they’re selling) in order to make a profit. 

Yes absolutely! The sky is the limit when it comes to potential profits in FX trading. But you need to be disciplined, have a trading plan in place and rules to follow, if you are not disciplined you will have troubles having consistent profit in FX trading.