Forex trading

Forex trading 2019-03-28T17:18:59+04:00

What is Forex:

Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. All the world’s combined stock markets don’t even come close to this.

OPPORTUNITIES IN FOREX

Just like stocks, you can trade currency based on what you think its value is (or where it’s headed). But the big difference with forex is that you can trade up or down just as easily. If you think a currency will increase in value, you can buy it. If you think it will decrease, you can sell it. With a market this large, finding a buyer when you’re selling and a seller when you’re buying is much easier than in in other markets. Maybe you hear on the news that China is devaluing its currency to draw more foreign business into its country. If you think that trend will continue, you could make a forex trade by selling the Chinese currency against another currency, say, the US dollar. The more the Chinese currency devalues against the US dollar, the higher your profits. If the Chinese currency increases in value while you have your sell position open, then your losses increase and you want to get out of the trade.

HOW TO BUY AND SELL CURRENCY

Open your free forex demo platform and trade your opinion.

All forex trades involve two currencies because you’re betting on the value of a currency against another. Think of EUR/USD, the most-traded currency pair in the world. EUR, the first currency in the pair, is the base, and USD, the second, is the counter. When you see a price quoted on your platform, that price is how much one euro is worth in US dollars. You always see two prices because one is the buy price and one is the sell. The difference between the two is the spread. When you click buy or sell, you are buying or selling the first currency in the pair.

Let’s say you think the euro will increase in value against the US dollar. Your pair is EUR/USD. Since the euro is first, and you think it will go up, you buy EUR/USD. If you think the euro will drop in value against the US dollar, you sell EUR/USD.

If the EUR/USD buy price is 0.70644 and the sell price is 0.70640, then the spread is 0.4 pips. If the trade moves in your favor (or against you), then, once you cover the spread, you could make a profit (or loss) on your trade.

TRADING ON MARGIN

If prices are quoted to the hundredths of cents, how can you see any significant return on your investment when you trade forex? The answer is leverage.

When you trade forex, you’re effectively borrowing the first currency in the pair to buy or sell the second currency. With a US$5-trillion-a-day market, the liquidity is so deep that liquidity providers—the big banks, basically—allow you to trade with leverage. To trade with leverage, you simply set aside the required margin for your trade size. If you’re trading 200:1 leverage, for example, you can trade £2,000 in the market while only setting aside £10 in margin in your trading account. For 50:1 leverage, the same trade size would still only require about £40 in margin. This gives you much more exposure, while keeping your capital investment down.

But leverage doesn’t just increase your profit potential. It can also increase your losses, which can exceed deposited funds. When you’re new to forex, you should always start trading small with lower leverage ratios, until you feel comfortable in the market.

Learn how to trade Forex, tips and tutorials by apsilon.biz

If you decide to become an online Forex trader that is going to be very easy to achieve as long as you follow our step by step guides and take our advice.

No matter where you live in the world you are going to be able to sign up to and start placing Forex trades at several different Forex Brokers, however you need to know just what each Broker will be offering you as a new trader.

We are aware that many of our website visitors are based in many different countries of the world, and because of this we have a range of trading guides and articles.

No matter which one of Forex Trading Sites you choose for the future trading, with us you are able to open up a demo trading account.

By trading in a no risk environment that will allow you to play around with the option settings and you will be able to trade but without the risk of making any expensive trading mistakes!

Then when you are good and ready in trading you can choose one of the Forex Trading platforms and instantly switch over to the real money Forex trading environment where any and all profits you make will be yours to keep.