I am very confused about Forex

#1
When I searched on google about what is forex I got information that "trading in currency pairs forex"
But my questions is that if trade in US stocks/indices then what is it? Is it also forex?
Is trading in only currency pairs is forex trading?
 

stoch

Active Member
#2
When I searched on google about what is forex I got information that "trading in currency pairs forex"
But my questions is that if trade in US stocks/indices then what is it? Is it also forex?
Is trading in only currency pairs is forex trading?
Forex means foreign exchange and mostly involves exchange rates of currency rates. Stocks are traded on stock exchange indices are traded as ETF shares also on the stock market (since buying ETF means you buy share of a company which built portfolio of shares included in the index).

Retail forex is based on CFD contracts - i.e. contract where parties doesn't exchange notional amount only cash equal to difference between 'spot price end' - 'spot price start' multiplied by lot size. Also you can trade currency futures or options these are exchange traded products while CFD are OTC market contract.
 
#3
There are plenty of websites, books, and other resources you can take advantage of to learn more about Forex trading. You may learn over time that nothing is more important than experience, and experience is the best teacher if you want to learn Forex trading.
 
#4
Forex means foreign exchange and mostly involves exchange rates of currency rates. Stocks are traded on stock exchange indices are traded as ETF shares also on the stock market (since buying ETF means you buy share of a company which built portfolio of shares included in the index).

Retail forex is based on CFD contracts - i.e. contract where parties doesn't exchange notional amount only cash equal to difference between 'spot price end' - 'spot price start' multiplied by lot size. Also you can trade currency futures or options these are exchange traded products while CFD are OTC market contract.
Thanks. this is helpful for me.
 
#5
There are plenty of websites, books, and other resources you can take advantage of to learn more about Forex trading. You may learn over time that nothing is more important than experience, and experience is the best teacher if you want to learn Forex trading.
Agreed and here these forums can also be helpful in learning about forex trading.
 
#6
There are plenty of websites, books, and other resources you can take advantage of to learn more about Forex trading. You may learn over time that nothing is more important than experience, and experience is the best teacher if you want to learn Forex trading.
You can also prefer taking some trading courses.
 
#9
Forex means foreign exchange and mostly involves exchange rates of currency rates. Stocks are traded on stock exchange indices are traded as ETF shares also on the stock market (since buying ETF means you buy share of a company which built portfolio of shares included in the index).

Retail forex is based on CFD contracts - i.e. contract where parties doesn't exchange notional amount only cash equal to difference between 'spot price end' - 'spot price start' multiplied by lot size. Also you can trade currency futures or options these are exchange traded products while CFD are OTC market contract.
Really good explanation. Because so many hear about forex trading other assets that are traded are often lumped in which can be very confusing for beginners.