Forex trading, also known as currency trading or the foreign exchange market, refers to the financial transactions involving the buying and selling of different countries' currencies on a global scale. Traders engage in this activity by purchasing one currency while simultaneously selling another, aiming to profit from fluctuations in exchange rates.

Forex market operates around the clock, five and a half days a week, commencing in Australia and concluding in New York each day. This extensive time frame and global coverage offer traders the flexibility to capitalise on profit opportunities or manage losses. Key financial hubs in the foreign exchange market include Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo, and Zurich.

Forex trading is known for its high liquidity, making it less volatile compared to certain markets like real estate. However, the volatility of a specific currency is influenced by various factors, including the political and economic conditions of its respective country. Events such as economic instability, payment defaults, or imbalances in trading relationships can lead to significant fluctuations in currency values. Therefore, while forex markets generally offer liquidity, they are not immune to volatility, particularly in the face of impactful economic and geopolitical events.

Indeed, you can trade a variety of currencies such as the US Dollar, Australian Dollar, Euro, Canadian Dollar, Japanese Yen, and more. Highly liquid currencies, like the U.S. dollar, offer smooth and predictable price movements. The U.S. dollar is the most traded globally, featured in six of the market's eight most liquid currency pairs. Keep in mind that lower liquidity in some currencies may result in significant market movement when trading in large lot sizes. Consider liquidity levels when making trading decisions for a more informed approach.

The eight major currencies in the world are the US Dollar (USD), Great British Pound (GBP), Euro (EUR), Japanese Yen (JPY), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD), and New Zealand Dollar (NZD). Trade Forex CFD with NIYAFA, a compliance, security, speed, and transparent platform.

Forex trading, renowned for its high liquidity and 24/5 availability, presents opportunities and challenges. The market's decentralised nature allows global participation, and leverage options can rapidly multiply capital. However, excessive leverage poses risks, demanding cautious use. Successful trading requires a deep understanding of economic fundamentals, and the less regulated nature of forex markets varies by jurisdiction. While lacking regular income instruments, forex's accessibility and potential for quick gains make it appealing, emphasising the need for careful risk management and comprehensive market understanding.

Forex trading is executed through online trading platforms, such as NIYAFA. The trader initiates a trade by creating an opening transaction, either a buy (long) or sell (short) order. Typically, a trade position is held open until one of the following occurs: achieving sufficient profit; triggering the specified stop-loss; or the trader opting to close and settle a position in favour of initiating another position with better profit potential