First InterStellar Group
What is Forex Trading?
How Does it Work?
What is Forex Trading?
Forex trading, also known as foreign exchange trading or FX trading, refers to the act of buying and selling currencies with the goal of making a profit from changes in exchange rates. It is the largest and most liquid financial market in the world, with a daily trading volume exceeding $6 trillion USD.
Unlike stock markets, the forex market has no central exchange and operates 24 hours a day, five days a week, spanning major financial centers including London, New York, Tokyo, and Sydney.
How Does Forex Trading Work?
Currencies Are Traded in Pairs
In forex trading, currencies are always traded in pairs – for example, EUR/USD or USD/JPY. The first currency in the pair is called the base currency, and the second is the quote currency. The exchange rate tells you how much of the quote currency you need to buy one unit of the base currency.
Example: If EUR/USD = 1.1000, it means 1 euro = 1.10 US dollars.
Types of Currency Pairs
*Only some forex currency pairs are shown in the image; more options are available.
Why Do Currency Prices Move?
Currency prices fluctuate due to a variety of economic and geopolitical factors, including:
How Can You Trade Forex?
There are several ways to trade forex, including:
At FISG Vietnam, most retail clients trade through CFDs, which allow for:
*Note: Leverage amplifies both profits and losses. Risk management is essential.
Key Benefits of Forex Trading
High liquidity:
Easy to enter or exit trades at almost any time
24/5 market:
Trade day or night, based on your preferred schedule
Low entry costs:
Micro lots and low initial deposits available
Diverse strategies:
Scalping, swing trading, long-term positioning
Ready to Start Trading?
Whether you’re just beginning or looking to refine your strategy, FISG Vietnam provides:
Free demo accounts
Educational resources & market analysis
Competitive spreads & fast execution
Local support with global access
FAQs
A: Forex trading involves the exchange of currencies with the aim of profiting from fluctuations in exchange rates. It is the largest financial market globally.
Yes. With proper education and risk management, forex can be accessible to beginners. Start with a demo account to gain confidence.
Minimum deposit requirements vary, but some accounts allow you to start with as little as $100.
No. You can set pending orders, use stop-loss/take-profit tools, or automate your strategy with expert advisors.
A: Forex trading carries risks such as market volatility, leverage-induced losses, and the potential for significant financial loss without proper risk management.
A: Leverage allows traders to control larger positions with a smaller amount of capital. At FISG, we offer leverage of 1:____ (e.g., 1:100).
A: High liquidity, 24/5 market access, low entry costs, and diverse trading strategies.
A: Yes, FISG’s trading platform is mobile-friendly, allowing you to trade on the go. You can access your account, monitor the markets, and execute trades from your smartphone or tablet.