Here you’ll find everything needed in your Forex Education to become a great and profitable trader!
We have collected information and written long articles explaining what Forex is and how trading Forex works.
If you ever needed to learn to trade Forex or looking for trading signals or Expert Advisors, read our Education section first so you’re more versatile when talking to providers of what you need. We will also explain what different types of brokers exists so you can feel secure and trade safely.

What is Forex?

Forex – is the name of the international interbank foreign exchange market (short for Foreign Exchange Market).

currency-pairs forex tradingIts daily turnover is around $ 5 trillion, making Forex one of the largest segments of the global financial industry and one of the most lucrative markets for private investors.

Forex is an informal
network of trade relations between the parties throughout the world, which include central banks, commercial banks, investment banks, brokers and dealers, pension funds, insurance companies, multinational corporations, and various private investors. All major currencies are traded in this market. The main role of the Foreign Exchange Market is owned by banks, which are called market makers, as they make active trading, offering to buy or sell the currency to its clients and counterparty banks.

What is traded in Forex?

The answer is simple – money. When we speak of money – we mean the world’s major currencies. Here you can a little bit confused, because you are not buying and selling real goods. Buying currency in the forex trading market should be considered as a purchase of shares.

When you buy the US dollar, in fact, you buy a “share” in the American economy. Is like betting with the market that the US economy is doing well, and it will grow. If so, then you will be selling their “share”, they will be much more expensive, and you get the profit. The bottom line is that the exchange rate of the currency against other currencies is a comparison of the economic conditions in a country with the economic conditions in other countries.

The main currencies of the forex trading market are also referred to as “major currencies”. They are characterized by high levels of trading volume in Forex. First place definitely takes the US dollar. In second place in terms of forex trading is the euro. The third place for a long time divided the British pound and the Japanese yen. But recently, the yen has gained the upper hand. Major currencies constitute currency pairs – the main financial instrument in the forex market.Major currencies in forex forex trading

USD = US Dollar, used in the financial slang, buck (buck)
EUR = Euro, the single European currency
GBP = British pound sterling, to finance slang also used the name “pound» sterling, cable
JPY  = Japanese yen.
CHF = Swiss franc, also known as “Suisse» (swissy) used in the financial slang;
CAD = Canadian Dollar, slang – Loonie
AUD = Austraian Dollar, slang Aussie
NZD = New Zeeland Dollar, slang – kiwi

As you can see, currency symbols always have 3 letters, the first two letters represent the name of the country and the third letter is the name of that country’s currency.

For example GBP – GB is Great Britan and P stands for Pound. Very simple.

Advantages of forex trading

Forex Foreign Exchange Market has clear advantages, thanks to which the trader can be anyone, regardless of nationality, ethnicity, income and education:

  • Availability at any time (24h)forex-advantages forex trading
  • High liquidity
  • Low price deals
  • Leverage principle
  • No restrictions
  • No one can influence the market

Best time to trade forex

There are four sessions for forex trading:

New York opens at 8:00 am to 5:00 pm EST (EDT) – Nigeria time – 2pm – 9pm
Tokyo opens at 7:00 pm to 4:00 am EST (EDT)          Nigeria time – 1am – 10am
Sydney opens at 5:00 pm to 2:00 am EST (EDT)        Nigeria time – 11pm – 8am
London opens at 3:00 am to 12:00 noon EST (EDT)  Nigeria time – 9am   – 6pm

There are also hours when two sessions overlap:

New York and London: between 8:00 am — 12:00 noon EST (EDT) Nigeria time 1pm – 5pm
Sydney and Tokyo: between 7:00 pm — 2:00 am EST (EDT)              Nigeria time 12am – 7am
London and Tokyo: between 3:00 am — 4:00am EST (EDT)              Nigeria time 8am  –  9am

Trading EUR/USD, GBP/USD currency pairs will give very good results between 1pm and 5pm Nigeria time, when two largest financial centers (London and New York) are trading like crazy.

Is best to trade during the middle of the week, since this is when the most action happens.

Best Times to Trade:

  • When two sessions are overlapping
  • The European session which is the busiest
  • The middle of the week when is the most movement

Worst Times to Trade:

  • Sundays – is weekend!
  • Fridays – liquidity goes down
  • Holidays – not much movement
  • Major news events – very risky


More articles

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What is a Pip in Forex?

What is the potential profit in Forex and how to calculate it?

What is a Swap and why we pay Swap Rates? 

Types of trading orders in Forex

What is a Forex demo account and why do we need it?

Forex Broker Types: Dealing Desk vs No Dealing Desk – STP, ECN, Market Maker 

7 Criteria for choosing the best Forex Brokers

How to detect forex scammers?

Types of Forex Analysis