Courses > Forex > Beginner Forex Tutorial
How Do You Trade Forex?
Trading forex involves the exchange of currencies in pairs, aiming to profit from fluctuations in their relative values.
To start trading, you need to open an account with a forex broker who provides access to the forex market through a trading platform. These platforms, such as MetaTrader 4 (MT4) or MetaTrader 5 (MT5), cTrader, and TradingView allow you to execute trades, analyze market data, and manage your account.
In forex trading, each currency pair is quoted with two prices: the bid price (the price at which you can sell the base currency) and the ask price (the price at which you can buy it). The difference between these two prices is known as the spread.
Traders speculate on whether the base currency will appreciate or depreciate against the quote currency. For example, if you believe that the EUR will strengthen against the USD, you would buy the EUR/USD pair.