5 Ways to Start Trading in the Forex Market - Ratinah

Ways to Start Trading in the Forex Market - What is forex? Understanding forex is a transaction that exchanges foreign currencies. Forex stands for foreign exchange.

5 Ways to Start Trading in the Forex Market - Ratinah

What is FOREX MARKET or FOREX ? And how do I get started?

The Foreign Exchange Market, also often referred to as the Forex or FX market, is the largest financial market in the world, with more than $1.5 trillion changing hands every day.

That's bigger than all of the US equity and Treasury markets combined!

Unlike other financial markets, which operate in a centralized location (i.e. a stock exchange), the worldwide Forex market does not have a central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in buying and selling national currencies. Another key feature of the Forex market is that it operates 24 hours a day, according to the opening and closing of financial centers in countries around the world, starting daily in Sydney, then Tokyo, London and New York. Whenever, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.

Traditionally, access to the Forex market was only available to banks and other large financial institutions. With the advancement of technology over the years, however, the Forex market is now available to everyone, from banks to money managers to individual traders trading retail accounts. The time to engage in this exciting global marketplace has never been better than now. Open an account and become an active player in the largest market on the planet.

The Forex market is very different from trading currencies in the futures market, and much easier, than trading stocks or commodities.

Whether you realize it or not, you have already played a role in the Forex market. The simple fact that you have money in your pocket makes you an investor in currencies, especially in US Dollars. By holding US Dollars, you have chosen not to hold another country's currency. Your purchase of stocks, bonds or other investments, together with the money held in your bank account, is an investment that is highly dependent on the integrity of the currency value of the US Dollar. Due to changes in the value of the US Dollar and the resulting fluctuations in exchange rates, your investments may change in value, which affects your overall financial status. With this in mind, it is not surprising that many investors take advantage of fluctuations in Exchange Rates, using the volatility of the Foreign Exchange market as a way to increase their capital.

Example: suppose you have $1000 and buy Euros when the exchange rate is 1.50 Euros to the dollar. You will then have 1500 Euros. If the value of the Euro against the US dollar increases then you will sell (exchange) your Euros for dollars and have more dollars than you started with.

Example:

You may see the following:

The last trade of EUR/USD 1.5000 means

One Euro is worth $1.50 US dollars.

The first currency (in this example, EURO) is referred to as the base currency and the second currency (/USD) as the counter or quote currency.

FOREX plays an important role in the world economy and there will always be a tremendous need for currency exchange. International trade is increasing along with the increase in technology and communication. As long as there is international trade, there will be a FOREX market. The FX market must exist so that a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollars.

Ways to start forex trading business

The following 5 steps are very easy to follow how you can participate in online forex investments.

1. Open a trading account with the best forex broker

The first step you have to do is open an account with the forex brokerage company of your choice. Then how to register this forex? All you have to do is access the company's official website and then follow the steps. It is very important to choose the best forex broker as your investment partner because your success in obtaining profits is also to some extent determined by the excellent facilities provided by the brokerage company of your choice.

2. Download the trading platform

Before starting trading, you must download the trading platform on your PC or laptop, namely the MetaTrader 4 trading terminal as a means of trading or monitoring the real market or other trading platforms from the broker's site or in the form of software. This way you will be able to see a display for a graph of fluctuating currency rate fluctuations.

3. Trial trading

After that try to do trial trading using a demo account. Here traders will be able to access the real forex market but without spending real funds. This facility can be a learning platform for you to practice the theories that you have learned from the module. It is very important to experience real time trading even if using virtual funds. But of course you also cannot make profit withdrawals or withdrawals if your transaction is successful.

4. Make real trades

After trying a demo account or forex trading without a deposit for about 1 to 2 months, you can start trading on a real account when you are confident enough. Remember that here involves real money so you have to be really careful in making transactions.

5. Fund investment

After applying the forex trading method above, you must invest funds by making a deposit at the brokerage company that is your partner and trading wisely. Currently, there are many companies that offer bonuses or trading promos without capital. After you successfully make a profit on your trade, the borrowed capital will be withdrawn while the profit can be yours.

RISK WARNING:

Currency trading risks

Trading currencies on margin is a very risky form of investment and is only suitable for individuals and institutions capable of dealing with the potential losses it entails. An account with a broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). Funds in accounts traded with maximum leverage can be lost completely if positions held on the account experience even a one percent swing in value. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be carried out with risk capital funds which, if lost, would not significantly affect the investor's financial well-being.

That's 5 Ways to Start Trading in the Forex Market - Ratinah

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