FX trading is too often overly simplified by those new to the practice, with many neglecting the surprisingly costly risks and grossly lucrative opportunities to be had in the market. While many traders boast experience in other markets, forex is wildly different in both its overall constitution and trading fundamentals.

Trading currency differs from stocks, futures and options; in that FX trades are without a regulated central body and are instead conducted amongst traders on a credit agreement basis. An integral distinction between the FX market and comparative markets is that FX firms are dealers not brokers, the market is without a commission and is instead conducted on a principals-only basis. The fundamental differences in the FX market require that traders have a high degree of expertise in understanding the many pitfalls of applying cross-market principles to FX.

The difficulties of the market are perhaps best demonstrated by FXCM, a broker whose recent analysis of 12 million trades revealed those participating in EUR/USD trades to have profited a mere 59 percent of the time. The study proves that FX trading is a difficult proposition for even those experienced in the market, as such, it’s essential – or at least highly recommended – that newcomers seek education and tutoring before entering the market.

The FX market has its own systems and strategies, as well as a vast number of unique trading principles. FX trading success demands that traders have the ability to forecast price directions and with a marked degree of accuracy. The ability to do so is perhaps the most important aspect of FX trading, and one that is to be gained only with a high level of education and experience.

As with any other form of trading, spontaneous and ill-informed strategies lend themselves to failure. For FX traders to formulate their own strategies, expertise is to be gained from those whose many trading experiments have taught them a few precious lessons in the market.

There are a great many sites and companies offering guidance on FX trading, whether it is on a person-to-person basis or through a short online course these platforms are crucial in better understanding the market. Regardless of your experience, the great and many offerings of FX education lend a greater degree of understanding to those wanting to profit from the market.