Forex or Foreign Exchange is the largest financial market in the world with around 3 trillion dollars exchanging hands per day. In the last decade this market has opened up to retail (small) traders, before 2000 it was mainly large banks and corporations that utilized the currency market. One of the biggest advantages of trading forex is that you do not have to pay commissions on each trade. You are charged a few points as you enter the trade, so if for example you enter on a long trade for the Japanese Yen at 87.00 and the spread is 2 pips (points) then you would really be entering at 86.98. So in this case you would need the trade to move 2 extra points then where you planned to take your profit.
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