Are you in search of information about how to trade forex? Then, this is the right platform to be.
Forex, fully known as Foreign Exchange, is the largest market in the World having over $5.3 Trillion transactions in a day.
Many countries and organizations including banks are actively involved in Forex.
What To Know About Forex
Before now, it’s only the big guys like banks, financial institutions etc that participate in Forex. Hence, to trade, you need a huge amount of money
However, with the advent of different brokers, you can now trade with as low as $50.
Some of the known brokers include FXTM, XTB, CMC Market, Dukascopy and many others
Even though there is enough money in Forex, you still have to invest money in it in order to make money.
Also, you need the right information about how to trade the financial market so you don’t just waste youe money.
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How To Trade Forex Market
Trading requires alot of commitment in order to get result.
Forex is about buying and selling of currencies.
Currencies are usually in pairs. So there is USD/JPY, USD/EURO and many others.
The first currency is usually the strongest. However, there are some cases in which the second currency is the strongest.
But when do you buy? And when do you sell?
When To Buy
You buy when you know that the price of the strongest currency will increase against the second currency in your chosen currency pair.
For instance, if you know that USD will increase against JPY(Japanese Yen), you buy.
When To Sell
You sell when you know that the price of the strongest currency will reduce against the second currency in your chosen currency pair.
For instance, if you know that the USD will reduce against JPY, you sell.
How To Know Whether Price Will Increase or Reduce
This is where your deep knowledge of the financial market comes to play.
You need to analyse the market in order to know where it will go.
Types of Analysis
There are three types of Analysis including
- Technical Analysis
This form of analysis requires you to make use of indicators like Stochastic, RSI etc to analyse the market to know whether price will increase or decrease.
- Fundamental Analysis
This the type of analysis in which you put into consideration the economic situation of the countries involved in your chosen currency pairs. A single change in economy of a country is know to produce significant effect on her currency.
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- Judgemental Analysis
This is where you only buy or sell based on what you feel will happen in the market.
Applications To Trade Forex
Some of the well known applications to trade forex in Nigeria include MetaTrader, OlympTrade and a host of others.
Any other things to Know?
Trading forex is not as hard as many people look at it. It only requires one to know the risk to reward ratio before taking any trading decision.
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And above all, to seek knowledge from the best.
Do you know any other applications for trading forex or their brokers?
Comment your idea below for others to see.
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