You might have heard the term ‘Forex’ and that one of your friends is making a lot of money through it while wondering what actually Forex is and how does it really works. In reality, many people are introduced with this term without having a clear idea about it. Forex, which stands for foreign exchange, is the business of making money by trading foreign currencies. Many people are making money through Forex for long time. Moreover, courtesy to rapid growth of computer and internet, now it has become easier to make money through Forex without giving much effort.
People are inclining towards trading Forex because there are plenty of opportunities. But this task is quite challenging and involves moderate risks. One might end up with loosing money. But, again, there are these strategies which can help you to avoid loss.
Initially, you will need-
People are inclining towards trading Forex because there are plenty of opportunities. But this task is quite challenging and involves moderate risks. One might end up with loosing money. But, again, there are these strategies which can help you to avoid loss.
Initially, you will need-
- Personal Computer
- Trading Account
- Charting Tools
You can buy and sell foreign currencies through the brokerage companies by using the internet and some simple software. You have to pay a small percentage to them as a commission for any profit you make. So, find a reputed brokerage company and sign up an account with them. Then put some money there. You will use that money to trade. Profits will be added to your account and losses will be deducted. Finally, you can withdraw the money you made.
How does it work? The answer is simple. You buy low and sell high. For example, if you choose Euro/USD as ‘currency pair’, you will buy Euro against USD and you will sell Euro against USD. If you buy Euro against USD when 1 Euro = 1.226 USD and then sell them when 1 Euro = 1.239, you have made a profit. It does not matter what currency you have on your account. This will be taken care of the software.
The crucial part is to know when to buy and when to sell. That is where you need charting tools. This will help you to guess the market trends and plot your trading position. Some websites provide free charting tools. When you understand those, you will be able to find the one that suits you.
Finally, to do good business, you have to know the ins and outs of it. So, get educated first. Learn what the market is all about, where the risks lay, what strategies you will take in different situations etc. Open a free practice account and have some practical training. Learn as you go.
How does it work? The answer is simple. You buy low and sell high. For example, if you choose Euro/USD as ‘currency pair’, you will buy Euro against USD and you will sell Euro against USD. If you buy Euro against USD when 1 Euro = 1.226 USD and then sell them when 1 Euro = 1.239, you have made a profit. It does not matter what currency you have on your account. This will be taken care of the software.
The crucial part is to know when to buy and when to sell. That is where you need charting tools. This will help you to guess the market trends and plot your trading position. Some websites provide free charting tools. When you understand those, you will be able to find the one that suits you.
Finally, to do good business, you have to know the ins and outs of it. So, get educated first. Learn what the market is all about, where the risks lay, what strategies you will take in different situations etc. Open a free practice account and have some practical training. Learn as you go.
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