Forex is short for foreign currency and exchange. Foreign exchange is conducted when the currency of one country is changed into the currency of another, especially for trading and commercial purposes and even tourism.
According to the 2019 report of the Bank of International Settlements, the daily forex trading amount was $6.6 trillion.
Investors can earn profits from the difference between the two interest rates in the two different currencies by buying the currency that has a higher rate of interest and shorting the currency with the one that has a low interest rate.
Because trade is carried all over the world, forex markets are one of the largest markets in the world. It is also one of the most liquid asset markets. One of the most unique aspects of a forex market is that even though it’s one of the largest and most traded in the world, it has no physical existence.
If you are interested to learn forex trading, consider taking up an online course to increase your knowledge and confidence.
What are the Steps to learn Forex Trading?
Follow the next steps to prepare yourself to trade forex:
Device and internet connection: Have a device with stable internet connection and minimal interruptions of service to trade forex via an online booker. Loss of internet connection in the middle of trading can lead to unnecessary losses as forex markets move and change very fast. It is also advisable to stay connected to a trading platform in more than one device to prevent losses from disconnection.
Find yourself a good online forex broker: Open a forex trading account online through the help of a forex broker. Be mindful of the requirements you want your trader to fulfill and vice versa. The most basic criteria are that your broker must have your money separated from its own. They must be operating in any regulated jurisdiction under the overview of a reputable regulator. Some examples of regulators include the U.S. Commodity Futures Trading Commission, CFTC or the UK’s FCA or the Financial Conduct Authority.
Open a trading account and fund it: Once you decide on a broker, deposit funds into your trading account through wire transfers, electronic payment providers such as PayPal, or via debit card payments.
Access a trading platform: Obtain an online forex trading platform that your broker supports. Most brokers support popular third-party platforms like NinjaTrader, MT4/5 etc or offer some proprietary trading platform.
Start trading: Once you’ve completed the above steps, fund a forex account and start trading. In most cases, you can use a demo account with virtually funded money for testing the broker’s suggested forex platform and their services before you go live. Demo accounts are excellent for testing some trading strategies, and practice trading without funds put to risk.
By trading forex, you can make considerable profits from investment through performance and knowledge of forex markets and its nature. Enrol on a program today to start investing and earning.