Forex, or the foreign exchange market (also called FX for short) is the marketplace where currencies are traded. At its simplest, a foreign exchange transaction might be, for example, when you transfer your local currency to a new one for an upcoming holiday. Across the market as a whole, an estimated 5.3 billion USD is traded every day between governments, banks, corporations, and speculators.
Managing your money in Forex trading comes down to the specific measures you use to increase your profits, whilst also minimising potential losses. Successful Forex trading has far more to do with effective money management than having a handful of good trades, and is one of the secrets that separates those who successfully trade FX over the long term, from those who give up after a couple of trades.
Automated Forex trades could enhance your returns if you have developed a consistently effective strategy. This is because instead of manually entering a trade, an algorithm or bot will automatically enter and exit positions once pre-determined criteria have been met. In addition, there is often no minimum account balance required to set up an automated system.
The Forex martingale strategy: The martingale strategy is a trading strategy whereby, for every losing trade, you double the investment made in future trades in order to recover your losses, as soon as you make a successful trade. For instance, if you invest 1 EUR on your first trade and lose, on the next trade you would invest 2 EUR, then 4 EUR , then 8 EUR and so on. Please note that this strategy is extremely risky by nature and not suitable for beginners!
One has to adopt one or many strategies in order to minimise losses and maximise profits. As market conditions vary from day to day, so should a day trader's strategy. A successful day trader has to come up with a new strategy almost every other day, or at least adjust their existing strategy to the new market conditions. In order to day trade Forex successfully, a creative mind is needed.

The benefit of choosing a regulated broker is that this will ensure that you, as a trader, are protected to the full extent of the law in your country. For instance, in 2018 the European Securities and Markets Authority (ESMA) introduced a range of legislation protecting retail trading clients, which all European Forex brokers must abide by. This legislation includes limits on available leverage, volatility protection, negative balance protection and more.
Forex trading is governed by the National Futures Association, and they routinely check brokerages for financial irregularities, hidden or overly high fees, and scams. A key point of comparison between forex brokerages is their regulatory approval status with the NFA. Because the forex market and its major players move rapidly, it’s wise to regularly check on that status via the NFA’s Status Information Center. Increased regulation (coupled with higher capital requirements) continue to force forex brokers to leave the playing field, and one side effect is that it’s increasingly easy to find the best out of a constrained number of options.
Finally, consider whether the Forex broker offers education and support. Ongoing education is essential to a Forex trader's development and achieving the best results. This is why Admiral Markets offers a range of free articles and tutorials, webinars and online courses, including Forex 101 and Zero to Hero. In addition to educational content and materials, it's also important to consider the availability of support, so you can get your questions answered, and any potential issues dealt with.
Many people question what a trader’s salary is. However, the truth is it varies hugely. The majority of people will struggle to turn a profit and eventually give up. On the other hand, a small minority prove not only that it is possible to turn a profit, but that you can also make huge returns. So it is possible to make money trading forex, but there are no guarantees. 75-80% of retail traders lose money.
Many people question what a trader’s salary is. However, the truth is it varies hugely. The majority of people will struggle to turn a profit and eventually give up. On the other hand, a small minority prove not only that it is possible to turn a profit, but that you can also make huge returns. So it is possible to make money trading forex, but there are no guarantees. 75-80% of retail traders lose money.
Major Currency — currencies from the world’s most developed economies including Europe, Japan, Canada, and Australia — represent the most heavily traded and liquid currency markets for any forex trader. A major currency pair is created when one of these currencies is traded against the U.S. dollar. Examples include Euro vs. the U.S. Dollar (EUR/USD) and the U.S. Dollar vs. the Canadian Dollar (USD/CAD). Their availability on a forex brokerage is essential.
Automated trading functionality: One of the benefits of Forex trading is the ability to open a position and set automatic stop loss and take profit levels, at which the trade will close. More sophisticated platforms should have the functionality to carry out trading strategies on your behalf, once you have defined the parameters for these strategies. A good trading platform will allow this level of flexibility, rather than requiring a trader to constantly be monitoring any trades.

While the forex market is clearly a great market to trade, I would note to all beginners that trading carries both the potential for reward and risk. Many people come into the markets thinking only about the reward and ignoring the risks involved, this is the fastest way to lose all of your trading account money. If you want to get started trading the Fx market on the right track, it’s critical that you are aware of and accept the fact that you could lose on any given trade you take.


When trading Forex, you'll see that both 'Bid' and 'Ask' prices are quoted. The bid price is the price at which you can buy the currency, while the ask price is the price at which you can sell it. If you are purchasing a currency in a trade, this is known as a long trade, and the hope is that the currency pair will increase in value, so that you can sell it at a higher price and make a profit on the difference.
Spread: The spread is the difference between a currency pair's bid and ask price. For the most popular currency pairs, the spread is often low - sometimes even less than a pip! For pairs that aren't traded as frequently, the spread tends to be much higher. Before a Forex trade becomes profitable, the value of the currency pair must cross the spread.

Imagine a trader who expects interest rates to rise in the U.S. compared to Australia while the exchange rate between the two currencies (AUD/USD) is .71 (it takes $.71 USD to buy $1.00 AUD). The trader believes higher interest rates in the U.S. will increase demand for USD, and therefore the AUD/USD exchange rate will fall because it will require fewer, stronger USD to buy an AUD.

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