How to Start a Forex Trading Business Beginners Guide.
Are you interested ? Let me introduce you some important features about forex market, which will help you in studying this interesting area and obtaining profit from it.
What is Forex Trading.
The term Forex stands for the Foreign Exchange and can be defined as an international currency market. Forex is very unique in its essence because it is everywhere neglecting the factor of time zone and geography. In contrast to other physical markets, where monopoly can exist, in Forex market despite the very different market participants, there is no any dominance and the market remains out of any control.
When trading in the forex market there is one simple philosophy; When you trade one currency for another you buy the currency that is predicted to rise in value [long position] and sell the currency that is predicted to decline in value [short position]. You can make such predictions using popular trading tools, but there is always an element of risk in trading. If the currency you bought does rise in value as you predicted, you can sell it and make a profit, but if it falls in value, you will suffer losses.
The one important thing to remember when trading “Contracts for Difference” (CFD) is that you are not buying anything physically. When you purchase a currency pairs you are purchasing a share in the value of that economy in exchange to the other. So you are simply speculating on 2 different currencies and aiming to make a profit in the difference of those 2 currencies.
Simple Forex Calculation:
If you buy EUR/USD at 1.42000 you are buying Euro’s and selling US Dollars. You are speculating that the Euro will go up against the dollar. If the price then rises to 1.42500 and you decide to close your trade at this price, you would have made a profit of 500 points. If you bought 1standard lot of currency, your profit would be $5000.
5 Steps to take into consideration before Starting your Forx Business
1. Start Forex trading with forex educations, webinars or seminars.
2. Choosing a reliable broker.
3. Trading on demo accounts/practice account.
4.Opening a trading account.
5. Installing the platform.
If you’re reading this article, we recommend you choosing a reliable broker like FXTM
FXTM is an award winning forex broker that offers a reliable and secure trading platform. The platform covers more than 300 instruments including forex pairs, stock indices, company shares and so on. FXTM is Regulated by:CySEC, IFSC, whose headquarters is in cyprus, and ranking:5.
FXTM is one of the most prominent forex brokers in the industry that frequently appears in media and is proud sponsor of Formula One Racing Team.
You can sign up here with FXTM and open a real account with them with a minimum of $10 which is 3,600 naira for Nigeria clients.
Below is a video on how to sign up and register an account with FXTM
Finally, my advice for you guys, before entering into the forex market business is, “You should not invest more than you can afford to lose and should ensure that you fully understand the risk involved.
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