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What is forex trading?

Forex trading involves the purchase and/or sale of currencies. Just like with stocks, you buy a currency and then sell it when its value has increased or vice versa. It sometimes might seem a little more difficult because currencies are traded in pairs, which means you will be using one currency to purchase another. So, if you are trading EUR/USD, for example, you will buy EUR for USD.

Conversely, in forex trading, you can still make a profit even if you are partially right. So, with binary trading, if you bet on the fact that the EUR/USD will rise over 1.3250 over the next three days, even if it rises continuously but experiences a momentary drop to below 1.3250 precisely at the moment when your trade closes, you’ve lost. With forex trading, you can exit the market the moment you see the trade starting to go in the opposite direction and still make a profit.

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