Tuesday, July 13, 2021

Forex Trading for Beginners An Actionable Guide

July 13, 2021 0 Comments

Forex Trading for Beginners An Actionable Guide



Forex Trading is also known as FX, is a global forex marketplace for exchanging a multitude of national currencies with one another, for a variety of purposes such as commerce, tourism, or trading.

Today we will explain, teach and guide you as a 

beginner trader into the wonderful world of trading forex successfully online.

This article is based on the South African forex market.

Broker

FX, also known as foreign exchange currency trading, is a decentralized global marketplace where all the world’s currencies trade with one another.

What makes Forex so appealing is that it is one of the most liquid markets in the world with average daily trading amounts exceeding $5 trillion.

In South Africa, more than 80 Billion US Dollars ( approximately R120 Billion Rand ) gets traded daily.

What do we mean by liquid market you may ask?

A liquid market is where a lot of buying and selling taking place, for very low transaction fees, making the fx market a very attractive one that has a low barrier to entry.

Keen to learn how to trade? Let’s dive into your tutorial and training and Start Trading!!

Here’s a simple analogy. Think of it like a wholesale retail store where you buy low-priced items because the brand buys in bulk! So, the store turns over a large number of items that people want, essentially a “liquid market” – the store makes a profit and you score a low price, making you want to return over and over again. Which of course you do.

Previously Forex was conducted by wealthier investors and larger firms, however, after online trading platforms emerged, making money in the Forex global market was made accessible to other retail investors and individual money traders.

Usually commercial and investment banks conduct the majority of trading in the Forex marketplaces on behalf of their clients, however, there are many investors who trade individually or for professional reasons – they are known as retail investors.

If you are going to become a Forex trader individually you would be a retail Forex trader, smaller investment firms who trade on behalf of clients can also be considered retail Forex traders. The 1st step for new or beginner traders is to learn the basics of forex trading which we will explain later in this article.How are currencies traded?Currencies usually trade against each other as forex pairs, which are known as exchange rate pairs, for example, USD and EUR. Most of the currency trading is facilitated by global and central banks. Central banks are the core element for forex markets.As a Forex trader you buy and sell currencies with the main aim of making a profit, your profit (or loss) is the difference between the buy and sell rates of the currency pairs you traded. More on pairs later so keep reading…These marketplaces exist as spot cash markets as well as other assists, known as derivatives markets, that offer futures, options, forwards, and of course currency swaps. This may seem confusing right now, but all will be explained later…Usually, traders who participate in the market use Forex to assist in hedging against international currency and changes in interest rate risks, as well as other factors such as geopolitical events. Foreign Exchange rates make the cornerstone of forex.3 Things to grasp in currency trading:Currency PricesCurrency TradesTypes of currency traders
By pada tanggal

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