Trading in the forex currency market

Abstract

This paper focuses mainly on the practical approach to the foreign exchange (FOREX) currency trading and could be used as comprehensive guide for individual or corporate investors to start their speculations in the FOREX market, which is actually considered to be one of the most fast-growing, easily accessible, liquid and profitable financial markets with a reasonable level of risk. However, the theoretical side of the currency trading is also described in the paper, as well as detailed statistical data about the FOREX market is presented. Main features and benefits, principles of trading, basics of fundamental and technical financial analysis and execution of trades using electronic trading platforms in the FOREX market are the primary topics discussed. Also, some decision making problems while trading in the FOREX market are revealed. Finally, at the end of the paper, results of the practical research (22-day on-line trading with the free demonstrational FOREX account) are presented.