The basics of day trading and forex

Forex day trading combines the fast-pace worlds of intraday speculating and foreign exchange trading – in the hopes of profiting from a currency pair’s daily price fluctuations.

Forex day traders take advantage of small market movements by speculating on the price of different currency pairs at least once within a day. An FX day trader will identify a trend in the price, look for an opportunity to open a position, and exit before markets close in a day.

This kind of trading focuses on small movements, often likened to similar short-term trading strategies such as scalping, but often with fewer positions opened and longer timeframes of exposure.

Learn all about day trading

The forex market is very liquid, with trillions changing hands each day at a moment’s notice. This makes forex a popular market for traders that want to get exposure because of its volatility, without holding on to their positions overnight.

Day traders employ a wide variety of techniques and strategies to take advantage of the perceived market inefficiencies. And, as a result, typically need to react quickly to small movements in the market using technical and fundamental analysis.