Are you deciding whether trading forex makes sense for your portfolio? We’re here to help.
We at Benzinga believe it’s important to be pragmatic when it comes to finding ways to make your money work for you.
Forex, or foreign exchange, is the marketplace for the world’s currencies. Before deciding if trading forex in 2020 is right for your portfolio, let Benzinga be your guide in navigating the complex world of currency exchange.
Our forex team of experts has also assembled a beginner-level quiz to test out your knowledge of how forex trading works in 2020.
Afterward, our research team has provided guidance on indicators and timing involved with trading foreign exchange.
Forex Quiz For Beginners True or False: Foreign exchange trading hours are the same as the New York Stock Exchange.
False: Domestic markets, such as the New York Stock Exchange, open at 9:30 a.m. ET and close at 4:00 p.m. ET every day, Monday through Friday.
Forex on the other hand opens at 5 p.m. ET on Sunday and remains open until 4 p.m. ET Friday.
Just because currencies may be traded 24 hours a day doesn’t mean all trading hours offer equal opportunities.
True or False: Similar to stocks, news releases can shape how investors feel about the long-term prospect of any given currency.
True: Markets, including forex, move for two reasons: investor sentiment about the future and news that breaks during the present.
Our Benzinga forex experts also note that regular news releases can be useful to determine which currencies may be strengthened or weakened against another currency.
True or False: The number one way to avoid burnout while maintaining consistency in your trades is to set a schedule.
Building a schedule is key to preserving your decision-making abilities when trading forex.
For example, your most optimal trading time may take into account any of the following:
- What time each market is open
- When markets overlap for the currency or currencies you trade
- When important news announcements are made
Best Forex Guide 2020
Interested in making the most of your forex trading experience?
Our guides can help forex traders learn more about the best time to trade forex, the best forex indicators as well as the best free forex charts.
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