introduction to forex trading in Kenya

Topic 1: Introduction to Forex Trading Course

Last updated on January 27th, 2023 at 06:37 pm

What Is Forex Trading

Foreign Exchange, also known as Forex Trading or FX trading, is the buying and selling of national currencies. The marketplace is traded worldwide, thanks to technology. People started trading Forex more than 500 years ago before the introduction of the modern Forex market in the 1970s. Throughout this topic, introduction to forex trading, you will learn the basic things you need to know about Forex.

Watch the Video Version of Introduction to Forex Trading Course | Opwell Forex TV YouTube Channel

What Is Traded in Forex?

Money or currency is what is traded in the forex market. First-moving consumer goods such as cooking oil are the items traded in the grocery market. In Forex, we trade currencies only. These currencies are bought and sold in pairs. For example, if you open a forex chart, you will find Euro against a US dollar(EURUSD). This combination forms a currency pair.

How Big or Small Is Forex Market?

Forex Market is the largest financial market compared to other markets such as Stock Market. Statistics have it that about $6 trillion is traded daily. That’s huge, huh? Forex Market is huge enough to accommodate everybody. That’s why we say there is high liquidity in Forex (Liquidity refers to the number of traders actively engaging in selling and buying currency pairs).

Is Forex Trading Considered a Real Job?

Forex is a business where the income you get relies on your efforts. In a traditional job, you earn your salary even if you are an underperformer. The amount of money you earn in trading depends on what you do to ensure you maximize profits. That being said, if you can reduce losses in your trades to ensure you get a reliable monthly income, then we can say Forex is a real job.

What Are the Different Ways of Trading Forex?

Forex trading can be performed in two ways:Shorter TermandLonger-Term. If you are a shorter-term trader, you do not hold your open trades for long. While if you are a longer-term trader, you may let your trades run as long as you wish. The two categories are further subdivided into smaller sub-categories:

ScalpingShort TermSeconds or Minutes
Day TradingShort TermTrades are not held overnight.
Swing TradingLongTerm-Trades are held for several days
-Sometimes weeks
Position TradingLong TermTrades are held for weeks, months, and even years
Different ways of Trading Forex

Is Trading Better Than a 9 to 5 Job?

If you can take time to learn and master trading skills and then start trading with a good amount of capital, then you can say Forex is better than a 9 to 5 job. But if you think Forex business is an easy way to make a fortune from a little capital without having the right skills, then this business will be the worst thing you have ever invested in because you will lose a lot of money.

On that note, successful traders believe that trading is better than a 9 to 5 job, while unsuccessful traders believe that trading is just another scam.

Can I Really Make Money in Forex?

You can make a residual income in Forex. In the same way, you can lose a lot of money in Forex. What you need to do when you are getting started is to make an effort to learn and gain skills before you start trading.

Now that you know the basic information about forex trading, we will cover how to make money by trading forex in the next topic. If you have any questions about the introduction to forex trading, or if you have any compliments, please let us know in the comment box below.


  • Editorial Staff

    Editorial Staff at OpWell Forex is a team of Forex experts led by Brian Bill Opiyo. We have been creating forex trading tutorials and other forex related articles since Feb 2021, and OpWell Forex has become the largest free Forex Trading resource site in the industry.

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