At first glance, trading might seem very easy as almost everyone is doing it. The question is, do you have enough knowledge to start your Forex trading endeavors?
Trading Forex without sufficient knowledge is like jumping into a deep pool without knowing how to swim. So we listed out a few basic questions you might have in your head (yes, we know) and answer them to scratch your itch.
Forex stands for Foreign Exchange. It requires speculation on the changes of currencies strengths over time, allowing traders to buy or sell one currency against the others. For example, by buying EUR/USD, you speculate that Euro currency will strengthen over US Dollar.
You would require a trading account to start trading. Different Forex brokers offer different minimum deposit amount to open an account. With TriumphFX, only a minimum deposit of 100USD is needed to open an account and start trading Forex!
Yes, although trading Forex might be overwhelmed at first, you do not have to be a mathematics expert or economic professor to trade. As long as you are dedicated to learn all the basics, study market analysis and participate in Forex forums, you can be a proficient trader in no time.
First, you will need to be mentally and physically prepared to learn all the Forex basics such as bid/ask, spread, and leverage etc. Once you understand the underlying concepts of Forex trading, you are recommended to start trading on a Demo Account. Demo Account allows you to trade in virtual without exposing your actual money to any risk.
To open a demo account:
Only then, you can open a trading account to trade in the live Forex market and earn some bucks.
As currencies strengthen and weaken over time, Forex traders speculate and seek to profit from the fluctuations in the exchange rates between currencies. For example in EUR/USD, if traders expect the Euro to strengthen against the US dollar, they will sell US dollar to buy Euro. If the market moves and Euro did strengthen, traders will then sell Euro for US dollar and thus increased the initial sum they have in US dollar.
Forex trading is ideal for people who enjoy the opportunity to trade in a high liquidity market. As Forex market is participated by traders worldwide, it is available to trade 24 hours a day, except on weekends. Thus, night traders can be benefited from trading Forex as other markets such as the stock market is closed.
As we know, Forex market is the highest liquidity market with a trading volume of more than 5 Trillion USD daily. You can choose to trade big or small, depending on your capital instead of investing a fix and large capital to start trading in the stock market. Besides, trading Forex only requires minimal trading costs and could potentially be profiting from currencies that are both rising AND falling.
Forex market is open 24 hours and 5 days a week, except on weekends. You can trade Forex whenever you want, depending on your own time.
Trading Forex does not require any special device. All you need is just a laptop or a phone that is compatible with the trading application such as MetaTrader4. This gives a huge convenience to traders who travel around often.
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