Forex trading is when foreign currencies are being Traded against each other, when one strengthens and the others weakens.
The main purpose for every forex trader is to maximize profit by selling high and buying low.
NEED TO KNOW ABOUT FOREX
In forex Trading, you are purchasing a currency and trading it against another.
For example, if you are to purchase the Chinese Yuan and sell the US dollars, you'll be going long CNY/USD.
Overtime, the Yuan compared to the dollar exchange rate will change, and by the time you close out the trade you would either have made profit or face a loss when you later sell Yuan to purchase Dollars.
When the trade is open, and let's say 100,000 yuan cost $13,500, if the price of dollar weakens, when you close the trade, you would have sold the 100,000 Yuan for more than you bought it, let's say you now sell it for $14,000 that means you made a profit of $500 on the trade.
BROKERAGE
The Place where Forex trade are conducted are called brokers.
A lot of brokerages have online platforms where they allow trades to be conducted.
When you place an order with your account through your broker, the trading house sends the order to the interbank market to fill. The interbank market is a network of traders and banks that deal in currencies.
Some forex brokers offers trading tips after you've open an account with them while some leaves you to trade on your own.
The cost and fee to maintain your account and conduct trades vary from broker to broker.
Click and sign up here to open a trading account, apart from You being able to Trade in your own native tongue, you have your own personal manager that tells you what to do. They don't leave you hanging to trade on your own.
TRADE ON VOLATILITY
With the United States and other European countries facing political issues and Natural disaster. All this will have effect on the currency and relationship they have with each other.
DANGERS YOU MUST AVOID
To maximize profit on forex Trade is the reason why investors wants to get into the business. But we can't avoid the fact to say losses are also possible.
Unpredictable major events leads to susceptible swing of currencies.
Like the death of a National leader, Negative job reports, natural disasters, e.tc. Losses can mount in minutes if you are not on the right side of the trade.
The best way to avoid loss is to put a STOP LOSS to your forex portfolio on every trade you make. A stop loss is a point at which your broker will automatically unravel your trade.
It reduce your losses and protects your capital investment when there are sudden change in the currency.( Also read: Best forex Strategies)
Trading forex can be exciting, whether you day trade or stay for the long haul.
What you just need is dealing with a reputable broker, which can make difference between you making gains or counting losses. With the volatility the world is giving us now, it is expected to make a lot of money from the forex market.
To start trading forex today I'll offer three brokerages for this Article which are the best to get going with your forex trading experience.
Sign up and Enjoy being a forex Trader.
TheBinaryWay
Tradefred
Avatrade
Kindly subscribe to my website to get the latest insight on the forex market.
The main purpose for every forex trader is to maximize profit by selling high and buying low.
NEED TO KNOW ABOUT FOREX
In forex Trading, you are purchasing a currency and trading it against another.
For example, if you are to purchase the Chinese Yuan and sell the US dollars, you'll be going long CNY/USD.
Overtime, the Yuan compared to the dollar exchange rate will change, and by the time you close out the trade you would either have made profit or face a loss when you later sell Yuan to purchase Dollars.
When the trade is open, and let's say 100,000 yuan cost $13,500, if the price of dollar weakens, when you close the trade, you would have sold the 100,000 Yuan for more than you bought it, let's say you now sell it for $14,000 that means you made a profit of $500 on the trade.
BROKERAGE
The Place where Forex trade are conducted are called brokers.
A lot of brokerages have online platforms where they allow trades to be conducted.
When you place an order with your account through your broker, the trading house sends the order to the interbank market to fill. The interbank market is a network of traders and banks that deal in currencies.
Some forex brokers offers trading tips after you've open an account with them while some leaves you to trade on your own.
The cost and fee to maintain your account and conduct trades vary from broker to broker.
Click and sign up here to open a trading account, apart from You being able to Trade in your own native tongue, you have your own personal manager that tells you what to do. They don't leave you hanging to trade on your own.
TRADE ON VOLATILITY
With the United States and other European countries facing political issues and Natural disaster. All this will have effect on the currency and relationship they have with each other.
DANGERS YOU MUST AVOID
To maximize profit on forex Trade is the reason why investors wants to get into the business. But we can't avoid the fact to say losses are also possible.
Unpredictable major events leads to susceptible swing of currencies.
Like the death of a National leader, Negative job reports, natural disasters, e.tc. Losses can mount in minutes if you are not on the right side of the trade.
The best way to avoid loss is to put a STOP LOSS to your forex portfolio on every trade you make. A stop loss is a point at which your broker will automatically unravel your trade.
It reduce your losses and protects your capital investment when there are sudden change in the currency.( Also read: Best forex Strategies)
Trading forex can be exciting, whether you day trade or stay for the long haul.
What you just need is dealing with a reputable broker, which can make difference between you making gains or counting losses. With the volatility the world is giving us now, it is expected to make a lot of money from the forex market.
To start trading forex today I'll offer three brokerages for this Article which are the best to get going with your forex trading experience.
Sign up and Enjoy being a forex Trader.
TheBinaryWay
Tradefred
Avatrade
Kindly subscribe to my website to get the latest insight on the forex market.
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