How to Start Forex Trading
Though forex trading is different from stock trading still it is not as difficult to start as it seems to be. You can start forex trading within a few hours by opening a new account with a reputable broker.
Understand the language used in the forex market
You can easily enter the market of foreign exchange by learning the language used in this market perfectly. Some of the phrases and words commonly used in this market may include:
The currency you have to trade in the market.
The currency you want to buy
the price of the base currency on which your broker will buy it
The price asked by your broker to buy the quote currency you want
It is the difference between the ask price and bid price. It is also known as a commission of the broker
Percentage in Point or PIP is the smallest movement value of the currency.
You can start forex trading by learning forex language and joining some of the online courses in forex trading or joining the community of forex traders.
Selection of the right broker
You will have to choose an individual broker or a brokerage firm before starting trading. Along with helping you in trading, your broker can also finance your trades. By finding a reputable broker you can increase your chances to earn profits and stop losses.
But before opening an account with a broker you should ensure that he deals in the forex market as all brokers do not offer services in forex trading. Most of the reputed brokers, individuals and firms, use Metatrader 4 or MT4as trading platform to ensure the highest returns from this market. You can reduce the cost of forex trading by signing up with a reputed broker
Analysis of the world forex market
In the forex market, one can make money by predicting the movement of the price of the currencies you are trading-in in the global market. You can earn profit in the forex market by converting the base currency into a quote currency and wait for an increase in its market value. When its price is highest then you should convert it into your base currency.
In order to find the right quote currency to trade you will have to analyze forex signals on the basis of GDPs, political climates and trading positions of the related country. It will help you in finding a growing currency in which you can invest.
Once you have found out the right quote currency you want to buy then you can place your first trade to start forex trading. You can place your order to sell or buy currency online with your broker through the application provided by him.
Your broker will use Metatrader, a popular forex trading platform, to place your order. The rest of the work will be handled by your broker, once you have placed your order.
Written By : YOUSSEF J A ALMEER
Image rights @ welforex . com