This is a iconic analogy in the Forex as it represents rising and falling markets. A bull market is a market that is rising in value. A bullish trader is one who believes the market will rise, thus goes long. This is the basic and most important unit of measurement in forex.

Pips are used to measure gains and losses. The cash figure that a pip actually represents will vary depending on the pip value. The pip value varies depending on the pair being traded. Luckily, all best forex brokers will calculate the pips automatically for you. The spread is the fee that you incur when trading currency. The broker executes your trade at a slightly higher Buy or lower Sell price than the market rate, and takes the difference between the two as its fee.

The concept of a lot is the same as any grocery item that is sold in a multiple pack like a six-pack for beer. Currencies are bought and sold in minimum size packs that are called lots. This is so that tiny amounts cannot be traded, because this would be inefficient and unprofitable for market participants. Leverage allows you to earn large profits without having to raise huge amounts of cash. maximum leverage is In Europe, normally it is up to due to ESMA restrictions.

Skip to content Top Traders Top Social Trading platform traders that we are following. If you think a currency will rise, you would buy it. This is also known as going what? Over 15 million people take part in online trading, and their ranks are growing fast.

The COVID pandemic has revealed drawbacks of conventional employment. Financially savvy individuals are turning to alternative ways of earning. The foreign exchange offers viable opportunities. Hefty profits on the foreign exchange require experience, but it is no rocket science. Traders buy and sell currencies, profiting from changes in their values. As every tourist knows, exchange rates are always changing. They may rise or fall due to political or economic events, from domestic to global.

Currencies are bought and sold on an over-the-counter market, which means there is no physical exchange. Buyers connect to sellers through intermediaries known as brokers. These companies provide software for trading, register accounts and process financial flows. All currencies are valued against one another, and pairs are split into major, minor, and exotic.

There are two prices simultaneously: Ask for the buyer and Bid for the seller. Traders base their decisions on technical and fundamental analysis of the market. They aim to foresee value changes and capitalize on preemptive actions. For instance, if you expect the British pound to gain value appreciate , you can buy more lots today. This requires opening a long position.

On the other hand, those who anticipate depreciation decrease , may sell their pounds and buy back more after the drop. This is a short position.

Top choices are MetaTrader 4 and MetaTrader 5, two versions of a comprehensive trading terminal. Now, it works on both desktop and mobile devices. It has everything you need:. Players may use the simulated mode until they are ready for real-money action. A demo account is easy to set up — the broker will only need your basic contact details.

Fill in a simple form, and check your inbox for login and password. Traders with sufficient training switch to a live account. After identity verification is successful, you may start trading with your own funds. This is a vital step that must receive your utmost attention. Brokerage services may be offered by global and home-grown brands.

A person once said that if you want to make one million from Forex, invest ten million. It goes without saying that the statement is meant to discourage any person from investing in the Forex market. Tycoons like Sandile Shenzi, the multi-millionaire Forex guru who is only 23 years old, would beg to differ.

So what makes other people better at trading Forex than others? Seeing that you are reading this article, it is evident that you are one of the people looking to benefit from Forex.

Obviously, you want to make as much profit in the process as possible. Read on to get the best tips for Forex trading you will ever come across. The first thing you need to know is that to make money you have to use money. You probably understand that you have to buy and sell things in Forex.

However, more importantly, you have to invest in yourself. Get a professional Forex trader to train you on how to best go about the process. There are very many trainers who advertise their services online. If you are a bit picky, get a trainer from an economics school that can show you the ropes. It goes without saying that, for you to make profits, you have to buy currencies.

Arguably, the more money you use to purchase currency, the more money you can make. For those who have traded with stock, you probably know the importance of a broker. Many might argue that there are no brokers in Forex trading, but there are. As a beginner, ensure that you have identified a good broker you can work with.

Ensure that your goals align and that the both of you have an almost similar vision. By doing so, you will be backing on a winning horse as the broker will understand that your success in the market will automatically also lead to their success.

Nothing puts caution into a man investing money than the realization that he can lose his money. Use this tip to be cautious about your Forex trading activities. Every tycoon in the industry has lost money at one point or another.

Thus, many beginners are usually advised to have this in mind. However, even if you are ready to lose some money, be cautious about it. Always do your research before investing in any Forex trend. Weigh up the pros and cons and, if you have friends who also invest, ask them what they are doing, and why they are doing that.

Be sure to make informed choices at all times. Do not think you will start hitting it big immediately. I have come to realize that many beginners believe that the gurus in the industry made it big overnight. At times, there is that one person who will indeed get it right the first time.

However, going in with this mentality will not only leave you broke, but also heartbroken. Focus on learning as much as possible and, at the same time, minimize your losses. Truth be told, a very lucky few will make good profits the first time round on their own.

If you are not one of the lucky few, you will realize that minimizing loss is your best bet. So how do you do this?

By research, asking for advice and always weighing up your options. Forex is highly affected by current events. The biggest concern is that the current event can be happening in China, not in your home country. Thus, you are advised to always keep tabs on current events in the currency you are interested in.

The current events in one country can also affect Forex trading based on a different currency. Take the issue of China slightly devaluing their currency early this year. The ripple effects were felt in other countries through the destabilizing of their currencies. Thus, despite knowing and keeping tabs of the countries that use the specific currencies you are interested in, also keep tabs on world major currencies whose shift can cause a ripple to any currency being traded. A new exciting website with services that better suit your location has recently launched!

Home page Getting started Articles about Forex Trading strategies The A-B-C of Forex trading. To make money, use money The first thing you need to know is that to make money you have to use money. You can lose money Nothing puts caution into a man investing money than the realization that he can lose his money.

The expert was a beginner once Do not think you will start hitting it big immediately. Current events are your best friend Forex is highly affected by current events. More useful articles How much money do you need to start trading Forex? What is a Forex arbitrage strategy? Top 10 Forex money management tips 24 January, Alpari. Latest analytical reviews Cryptocurrencies. Crypto contagion: Genesis may be next after FTX bankruptcy 22 November, This Week: Can US dollar hold firm?

Oil gripped by gloomy demand outlook 18 November, All reviews. Trading strategies. Trader psychology. Financial market analysis.

Traders buy and sell currencies, profiting from changes in their values. Please enter your name here. In other words, some traders can teach you something, and some traders can learn from you. The COVID pandemic has revealed drawbacks of conventional employment. It goes without saying that the statement is meant to discourage any person from investing in the Forex market. On the other hand, those who anticipate depreciation decrease , may sell their pounds and buy back more after the drop.

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