The foreign exchange market – also frequently called Forex – is an open market that trades between world currencies. As an example, an American trader previously bought Japanese yen, but now feels that the yen will become weaker than the dollar. If he turns out to be correct, he makes money.

Especially if you are new to forex trading, it is important that you steer clear of thin markets. A market that is thin is one that not a lot of people are interested in.

Fake it until you make it. As a novice, this will help you get a sense of the market and how it works without the risk of using your hard-earned cash. The internet is full of tutorials to get you started. Equip yourself with the right knowledge before starting a real trade.

When a forex trader wants to minimize their potential risk, they often use …