After analyzing the trading market, I assure you that Forex or Foreign Exchange is the largest trading platform in the world.
Judging by the daily transaction volume, Forex is the highest traded platform, with approximately $6.6 trillion of the net trading volume.
Forex or Foreign Exchange (expanded form) is a trading platform where currencies are traded. This market sustains at the top among all digital trading platforms.
Here currencies are transferred between buyers at a consent price. But this currency transfer maintains a pairing process (one currency buy and another one sell occurred combinedly).
Forex is the world's largest trading platform. Here one currency is converted with another one. It's a simple process. When you go on a foreign trip and convert currency, it makes you a participant of Forex.
Forex trading motive is earning profit. Transactions made here for gaining its aim. The currency conversion rate moves the market, which attracts the Forex trader most.
At first, Banks and financial institutions control the Forex market that acts on behalf of investors. Lately, it's become retail-oriented. As a result, Forex traders or investors are rising too fast.
How can you Start Forex Trading?
Forex trading is indeed a great experience. It is similar to money exchange but not exact money exchange. Introducing you to some steps to start your Forex trading journey:
Learn about Forex trading:
Forex trading isn't complicated. Its all process is straightforward. But when you are just about to start your forex journey, you have to learn about forex and its trading protocol properly. Here you also need to apply your specialized knowledge or strategies. Leverage, equities, currency movements are primary necessities to trade forex.
If you don't have any idea, you can choose a course. There are several courses available both online and offline.
Brokerage account set up:
For starting the forex journey, you need to create a brokerage account. Forex brokers are commission-free. They allow you to make profits through spreads on selling and buying prices.
For newbie forex traders, opening a micro forex trading account is a helpful idea. This account offers minimum capital requirements, which minimize trading risk. It enables you to be comfortable with forex trading and demarking your trading style.
A trading strategy makes your trading experience smooth. It is tough to be aware of all market movements and forex news. But it is necessary for all trading. If you are strategic, you will be free from all these hassles.
A good trading strategy includes reality as well as your financial situation. The trading strategy makes a limit for your investment according to your tolerance rate of losing.
Forex trading contains high leverage, but it also gives you many opportunities for making a profit if you can take risks.
Be on top of your numbers:
After the beginning of your trade, check your position every day. It helps further trading. Always make sure that you have sufficient money in your account. Most forex trading software provides daily accounting of tread.
Balance your emotions:
The beginning of your forex journey will give you an emotional roller coaster ride of ups and downs. So control your emotions. There you have to go through so many unanswered questions.
Hard work will give you a pleaser and profitable trading. So sit tight and push yourself harder.
Basic Terminology of Forex Trading
When you start your forex trading, some knowledge about its terminology is a must. Here we go with some of them:
FX account: After opening an account, anyone can trade forex. There are three types of FX or Forex accounts. They are Micro forex, Mini forex, and Standard forex.
Ask: An ask is the lowest price where you want to buy.
Bid: A bid is your willing price of sell.
Bear market: It signifies the downtrend of the trading market. It occurred because of the financial crisis or any kind of disaster.
Bull market: It's an up-going market that brings good news for the global economy.
CFD: It stands for Contract for Difference. It's a contract between traders.
Leverage: It's a process of borrowing currency. But when you pay back, you have to pay it multiple times.
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Lot size: Currencies' standard size is known as Lot. When the currency is traded in the forex market it maintains a Lot. Standard, Micro, Mini, Nano are the type of Lot.
Margin: It's an account where money is set aside to trade currency. It works with leverage.
Pip: It's a price point. Small price movements count as pip.
Spread: It's the difference between bid and ask. Forex traders earn profit via the spread.
Sniping and Hunting: It maximizes the profit by buying and selling currencies at near predetermined points.
Here, I have to stop because it's already a long article. But there are many more to discuss. Anyway, for further query follow my upcoming articles.
But don't ever forget, forex trading is all about winning and losing. If you stick with your strategy and plan, I guess you will be on the winner list. All you have to do is keep your patient alive.
Good Luck to all Forex Traders.