Basic forex trading courses are meant to help beginners understand what forex trading is all about in a very simple way. These courses are designed to get the interest of a beginner, even one that does not know what the forex market is all about. In this article, the focus would be on a basic guide of what to expect from a beginner forex trading course.
WHAT IS FOREX TRADING?
Forex trading is the exchange of foreign currencies. When a person changes the currency of her nationality into the currency of another country, the person is said to have carried out a forex trade.
As you may rightly think, a trade is meant to yield profit; how does changing one currency to another yield profit? How is it even a trade? Picture this, Martha is a forex trader, and she lives in the US, therefore her country’s currency is USD (US dollar). After a bit of research and careful considerations, Martha decides to purchase the JPY (Japanese yen). In this case, you can look at the JPY as a commodity, and the USD as the money with which to buy the JPY. Martha may want to buy the JPY for the following reasons
- If the JPY is suspected to increase in value in the future
- If the USD is suspected to decrease in value in future
After Martha bought the JPY, and its value eventually increased in the future as suspected, then Martha would sell of the JPY to make some profit. The same applies to the USD. If it is suspected to decrease in value, the wise thing for Martha to do is to sell it of so that she would not lose money.
WHAT TO EXPECT FROM A FOREX TRADING COURSE
After a vivid description of what forex is all about, other basics of forex follows suit. Things like
- Definition of forex terms
- Forex trading tools
- Forex as a hedge
- Forex as a speculation
- Risks involved in forex trading
- Currency pairs in forex trading
- Forex trading strategies
In some cases, forex trading courses may have a lot more that what has been listed above, but not less than that. In a forex trading course, a trader is expected to really understand all the basics of forex trading in depth, after which she can move on the next level as a new forex trader.