Yes, it is true that one can make a lot of money online with Forex Trading, anyhow, all you need is a computer and an internet connection. Things have gotten even better now, all you need is an internet connection and a cell phone – I do recommend a computer. – use a cellphone as a backup when one’s in bed and or miles away.
You can do all this in the comfort of your own home, no need to quit your daily job. If you don’t have a job, you can make this your full-time job, and learn the depth of Forex trading.
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Recommendations are: start Trading with a minimal sum – and or rather – start a demo account – and never take the trading platform for granted (Even when it’s just a demo account, it isn’t just a demo account – it’s your learning portal and need to treat it as a real account with real money). Study it thoroughly before you embark on this journey. This is what I am doing currently, learning every aspect of Forex Trading, and so every move I make – I should know what I am doing and why I am doing it.
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Forex Trading isn’t a game – it’s a very high-risk investment (Maybe through seconds and or within hours – Clarity on this to follow) When you finally decide to embark in Trading’s pathway – Get yourself a reliable broker (There are tons and tons of brokers in the world) – I would suggest a local reliable broker, remember that the most important, most critical aspect of becoming a successful trader is to find a reliable broker.
Start off with some reading – give it a couple of months, then use a demo account, then once you feel you are confident, comfortable with the platform, start trading with real money, even then, use a minimal sum.
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Yes, you can make money by simultaneously purchasing one foreign currency while selling another, all this for speculation purposes. Factors such as economics and geopolitics will determine the appreciation and/or depreciation of a Foreign Currency.
What’s the number one goal of an FX Trader? – To make money, that’s the number one objective of a Trader by actively speculating on FX rates which are most likely to turn in the future (turn in their favor).
FX Financial Market has no physical Place, but trades 24-hours every day via a worldwide system of companies, financial institutions, and individuals. This affects the Foreign Currency rates.
Did you know that Forex is a leveraged system – You are required to put in a small percentage of the full value of your position to set a foreign exchange rate and this makes a chance of profit or loss greater unlike in conventional trading.
The most commonly traded currencies include EUR (Euro), USD (United States Dollar), CAD (Canadian Dollar), GBP (British Pound), JPY (Japanese Yen), AUD (Australian Dollar), CHF (Swiss Franc).
FX transaction is always quoted in pairs (Simultaneously buying a Foreign one currency whilst selling another) e.g USD/ZAR, in this example (USD is the base) and ZAR is the quote currency.
Example if USD/ZAR has an ask price of 1.5678 you can buy one USD for 1.5678 ZAR (South African Rands)
There are a number of so-called Majors (Any pair that contains the US Dollar Currency is considered a major currency pair) EUR/USD, GBP/USD, USD/CHF, USD/JPY, etc., and those without US Dollar Currency are considered cross currency pairs, or cross rates.
If your broker allows leverage, which is simply access to use borrowed capital, where a trader gets access to and/or allowing you to gain access to larger sums of capital. This method is to be used carefully and wisely as it brings higher risk and a higher profitable possibility.
Here’s an example: Currency USD
TRADER 1 = $5000 with leverage 10:1 and decides to use $1000 on one trade as a margin, this Gets the trade 1 exposure of $10000 in base currency ($1000) x 10 = $10000 trade value.
TRADER 2 = $5000 with the leverage of 100:1 , and decides to use $1000 on one trade as a margin, this gets trader 2 an :exposure of $100000 in base currency $1000 = 100 x $1000 = $100000 trade value.
More examples and clarity to follow.