1.1 What is Forex? Video Lecture | Forex: Learn and Master Trading (English) - Business Basics

Ans. Forex trading, also known as foreign exchange trading, is the process of buying and selling currencies on the foreign exchange market. It involves speculating on the price movements of different currency pairs in order to make a profit.

Ans. Forex trading works by exchanging one currency for another at an agreed-upon price. Traders can profit from the fluctuations in currency rates by buying a currency pair when they believe its value will rise and selling it when they expect it to fall. The difference between the buying and selling price is the profit or loss.

Ans. The major currency pairs in Forex trading include EUR/USD (euro/dollar), USD/JPY (dollar/yen), GBP/USD (pound/dollar), and USD/CHF (dollar/Swiss franc). These pairs are the most actively traded and have high liquidity and tight spreads.

Ans. Forex trading involves several risks, including market volatility, leverage risk, counterparty risk, and country-specific risks. Market volatility can lead to rapid price fluctuations, which can result in significant gains or losses. Leverage magnifies both profits and losses, exposing traders to higher risks. Counterparty risk refers to the risk of the other party in a trade defaulting. Country-specific risks include changes in government policies, economic instability, and geopolitical events.

Ans. To start Forex trading, you need to follow these steps: 1. Educate yourself about Forex trading by learning the basics, understanding technical and fundamental analysis, and familiarizing yourself with trading strategies. 2. Choose a reputable Forex broker that suits your trading needs, ensuring they are regulated and offer a user-friendly trading platform. 3. Open a trading account with the chosen broker and complete the necessary verification process. 4. Deposit funds into your trading account. 5. Develop a trading plan and strategy based on your risk tolerance and trading goals. 6. Start practicing trading using a demo account to gain experience and test your strategy. 7. Once you are confident, start trading with real money, starting with small position sizes and gradually increasing as you gain more experience.