I just skimmed through some discussions about Forex on investment forums and saw that many Vietnamese people still feel confused about this market. Today, I want to share some things I’ve learned that might help you understand Forex better and analyze the forex market more objectively.

Actually, Forex is nothing new – it has existed for a long time, closely linked to international trade. But in Vietnam, it’s still quite unfamiliar to many people. The essence of the Forex market is a global foreign exchange trading platform, not concentrated in a specific location like stocks. It is the market with the highest liquidity in the world – according to 2020 statistics, the average daily trading volume reached 6.6 trillion USD. With such a huge scale, the market cannot be manipulated, which is a major strength.

But the big question many Vietnamese ask is: is it illegal? In fact, in Vietnam, the government has not licensed the establishment of domestic Forex trading platforms. However, this does not mean Forex trading is illegal. Individuals can completely trade Forex through reputable international brokers that are legally licensed in other countries. The key is to choose brokers licensed by authorized organizations, not those “licensed by Vietnam” – those are definitely scams.

Regarding the most traded currency pairs, according to the Bank for International Settlements’ forex market analysis, EUR/USD leads with over 24% of the trading volume, followed by USD/JPY (13.2%) and GBP/USD (9.6%). These pairs tend to be highly volatile because they are influenced by the interest rate decisions of major central banks. Additionally, GDP, inflation, and unemployment rates also greatly impact currency prices.

I realize that economic news is the “blood” of the Forex market. Whenever the US Federal Reserve (FED) or the European Central Bank (ECB) announces interest rate decisions, the market can fluctuate strongly within minutes. For example, on March 18, 2015, the EURUSD pair surged 400 pips just because of negative comments about the USD after a meeting. This shows the power of economic news in Forex market analysis.

Another interesting point is that Forex operates 24/5 – you can trade from Sydney (4 am–1 pm), Tokyo (6 am–3 pm), London (3 pm–12 am), to New York (8 pm–5 am+1). Each trading session has its own currency pairs with different volatility. Thanks to that, traders can look for opportunities throughout the day.

But before entering this market, you need to prepare thoroughly. Choose a reputable broker, check their licensing information, consider trading costs, order execution speed, and customer service. Don’t rush to deposit large amounts – start small, learn, and understand the risks first.

Should you trade Forex? If you have knowledge, discipline, and good risk management skills, it’s a market full of potential. But if you’re not ready, learn more before stepping in. Forex is not a game of luck – it’s a professional financial market that requires skills and experience.