Is forex good for beginners?
Forex trading can be complex and may not be suitable for everyone. Whether forex is good for you will depend on your financial condition, your goals, and how much investing experience you already have as a beginner. Overall, beginners must exercise caution, especially as the majority of forex traders lose money.
How does forex trading work?
At its simplest, forex trading is similar to the currency exchange you may do while traveling abroad: A trader buys one currency and sells another, and the exchange rate constantly fluctuates based on supply and demand.
How do forex traders make money?
In return for executing buy or sell orders, the forex broker will charge a commission per trade or a spread. That is how forex brokers make their money. A spread is a difference between the bid price and the ask price for the trade.