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Course overview
1. What is forex?2. Major and minor forex pairs3. How do you trade forex?4. Key features of the forex market5. How do leverage and margin work?6. Using risk management in forex7. Conclusion4. Key features of the forex market
The forex market is the largest financial market globally, with an estimated daily trading volume of $6 trillion. Its popularity is due to the following features:
1. High Liquidity: Due to the massive volume of trades, the forex market offers high liquidity, meaning you can buy and sell large amounts of currency without significantly affecting the exchange rate.
2. Market Volatility: High liquidity also contributes to greater volatility, providing more opportunities for profit (though also increasing risk).
3. 24-Hour Market: Unlike stock markets, the forex market operates 24 hours a day during the week, accommodating various schedules and time zones.
4. Concentration of Major Currencies: A relatively small number of currencies make up the bulk of trading, simplifying market analysis.
5. Leveraged Trading: Forex trading allows for leverage, meaning you can control large trades with a relatively small amount of capital (though this also increases potential losses).
Platforms like Axi offer access to global forex markets, along with shares, indices, commodities, and cryptocurrencies, providing a comprehensive trading experience.
Quiz
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What is the main advantage of high liquidity in the forex market?
It allows traders to buy and sell large amounts of currency without significantly impacting the price.