If you started to learn about this field with the thinking “Forex investment” then congratulations! You have a high likelihood of success. Because forex is an attractive investment field but it is not easy to make money. It requires serious study and hard work.
How to trade forex
First of all, please note: Here I am referring to the forex market connected through the global internet with a trading volume of over 5000 billion usd/day. If you invest in foreign exchange by using Thai currency to buy foreign currencies such as USD, EUR … waiting for price increases and then selling, it is not related to this article. In this market, THB (Thai Baht) is a weak and not traded currency. You can go to BRKV Forex for more information about this. They have a great article on this topic there.
In the forex market, currencies and commodities are in pairs. For example EUR/USD, USD/JPY or XAU/USD (XAU is the symbol of gold).
Note: Because it is an exchange rate, the full symbol must be EUR/USD. But for convenience, people often write EURUSD as well.
Trading on the world forex market is a Contract for Difference (CFDs). This is a type of financial tool that makes trading much simpler.
For example, the exchange rate of EUR/USD = 1.1564. If you anticipate that in the near future (be it a minute or a few tens of minutes, a few hours, a few days, or a few weeks …), this rate will decrease, then you place a sell order. At some point, you think it will not decrease any more then you close a take profit order. The more you reduce, the more profit you will make. So you have earned money by investing forex already. Of course, if your prediction is wrong, you will lose money on that trade. Similarly, if you anticipate an increase in the exchange rate you can place buy orders! Learn more about trading at Topreviewdaily.
Be careful with leverage
In case you do not use leverage (leverage), your account will be very difficult to burn, unless the money you buy is completely lost value. But in forex investment, the brokers always give you very high leverage levels. Leverage from a few dozen to a few hundred times, even up to 2000 times. So just a small move in the price can burn your account. That’s why the leverage is a double-edged sword. It can get you rich quick, but it can also burn your account fast. How many levers you use is up to you. It is a good tool for traders who know how to use it. To know more about leverage, you should check out Mrsbroker site.
Where to trade forex?
In the above part, we talked about forex trading to make a profit. But where is the transaction?
You only need to have a computer with an internet connection to open an account at one of the reputable forex exchanges in the world and then download MT4 from that floor to trade. Of course, you have to add money to your account to trade. The minimum deposit amount with many regulated floors only need 300 usd, even just 5 usd. There are many types of deposits and withdrawals. The easiest way is through Internet Banking, so you only need to have a bank card in other countries with Internet Banking registration. Learn more about this at Brokergara.
Besides the sites I have mentioned above, if you want to learn more about the basics of forex trading, check out Top6forexbrokers. This is the site for those who want to learn everything forex-related. From the most basic knowledge to expert strategies, tactics, and ideas. Go check it out now.
To learn how to invest in forex, you should open a small account of a few dozen or a few hundred dollars to play to feel real. Moreover, in case of loss, there is not much loss, because new forex players often lose money.