The first thing to understand is that you aren’t really trading anything when you are involved with currencies on the FX market. While the language is couched in trading terms, the reality is that you are instead “betting” to some degree on whether or not one currency will rise or fall against another. Understanding that you’re not trading anything, you don’t actually own a currency, and you aren’t exchanging it it for another, is the first step to understanding what you’re getting into.
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