The foreign exchange market, also called Forex or Forex trading, is a market on which it is really interesting to invest as an individual and which is addressed to all. But especially to people who have the experience or knowledge of real traders.
So how does Forex really work for Dummies? This is what we propose to discover through this article thanks to some basic explanations about Forex trading. And some tips to get the help you need using the right tools.
The functioning of Forex trading for Dummies:
When trading on the Forex, we play on the evolution of the exchange rate of a currency pair. For example, when speculating on the Euro/USD, it amounts to bet on the rise or fall in the value of the Euro compared to the value of the Dollar.
Thanks to the online forex trading platforms offered by Forex brokers. It is sufficient, to speculate on these price developments, to buy a certain amount of a currency pair. At a given price and wait for the price to rise or fall. to resell your position. And thus cash the difference between the course of departure and the course of arrival.
Of course, this operation has a cost called “spread” and that corresponds to a slight difference between the purchase price and the selling price of your currency pairs with their real price.
Can we start forex trading when we are nil in Forex:
If you are not particularly gifted with the logic of the markets and realize that graphical analysis does not delight you. We obviously do not advise you to start forex trading. Indeed, with the development of online trading platforms. The Forex speculation offer is aimed at experienced traders or benefiting from solid knowledge. And brokers make every effort to offer simple but really effective solutions to enable them to carry out their analyzes in a relevant way.
These are for example managed accounts for which professional traders trade for you, automatic trading software that takes the best positions without any human intervention, for traders do not have the necessary time or tools pushed to use at home. better the stock market charts with particular their personalization by specific indicators.
As you can see, Forex solutions to help experienced traders are many and varied are many and varied. All you have to do is choose the broker with which you will make these investments and make your deposit.
Some tips before you start forex trading:
Here are some tips before you start trading Forex when you have acquired the necessary knowledge:
- Trade only the most popular and therefore the most volatile currencies.
- Remember to place stop and limit orders to take your winnings and limit the risk of loss.
- Trade only on the current trend.
- Use free trading signals usually provided by brokers.
- Take advantage of all the tools and help offered by your online
How to learn Forex trading when you are zero?
As we have just seen, the Forex market is only for hedged investors and does not correspond to novice traders even curious who wish to learn easily. Also, even if you are bad at finance, you need to learn Forex trading before you start using online trading platforms. Here are the different solutions available to you:
Online training materials: All brokers provide their traders with documents to learn Forex trading and suitable for beginners. In the form of videos or webinars, these media are both fun and practical.
Customized training: By paying a counterparty or opening an account with a larger deposit, you can also benefit from personalized training and support from a real investment professional in the foreign exchange market.
Demo accounts: In parallel with your theoretical learning, you can use a free demo account to train in real conditions before finally getting into real trading with your money when you are sufficiently seasoned.
We try to explain through this article how to start forex trading in your career beginning. If you follow all the basic rules and start very carefully you must reach your goal. You have any ideas about forex, please share with us your valuable tips.