Complete guide for those starting trading
Forex is not a game or a means of earning money easily, as we unfortunately read on some famous forums, but a financial investment that can create constant income over time. It is a financial market where the main world currencies are traded 24 hours a day. The main characteristics of the Forex market are the following:
- abundant liquidity
- low volatility
- possibility to use financial leverage
- link with monetary and economic policy events
- open H24
- easy to access thanks to forex and cfd brokers [see list of the best forex brokers here]
These characteristics make the Forex market unique in the world, due to the large number of investments and volumes traded every day from all sides of the planet.
Trading Room for spread trading
There are 2 dedicated telegram channels for spread trading updates:
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What is Forex?
To start investing in the markets, every investor almost always starts with currency trading, or foreign exchange trading, also called Forex.
The forex trading market is one of the most interesting and busiest in the world. Forex actors were exclusively institutional actors with huge capital to invest. Following the spread of the internet since the 90s, it has revolutionized many aspects of trading and it is now possible for private investors to buy and sell currencies through online trading accounts.
Forex positions can be opened and closed in minutes or can be held for months. The price of currencies are based on objective considerations of supply of demand and cannot be easily manipulated due to the size of the market, which does not allow even the largest players in the market, such as central banks, to make prices evolve. will.
The trading market offers numerous opportunities to investors. Meanwhile, to be successful, a trader must understand the main fundamentals of currency movements and their cause and effect relationship.
How does Forex work?
Macroeconomic factors refer to the currencies most affected by interest rates and the monetary policies of central banks. You must therefore always be up to date on financial news and constantly look at the economic calendar to know the possible future movements of the Forex market.
Go to the economic calendar HERE
Currencies fluctuate, indices and stocks obviously follow trends.
The indices and shares reflect the economic performance of companies, which by showing profits or losses influence their listing prices.
Currencies must represent the economy, import and export of a country, and are therefore more likely to fluctuate on economic policy news.
There are some tricks such as Copy Trading, which allows you to automatically replicate the operations of the best professional and experienced Traders: an excellent way to succeed immediately on Forex.
In fact, the presence of a financial leverage allows you to trade with little capital.
Obviously, we must be careful to limit any losses, with tools such as the stop loss.
Best Forex brokers
In this market, it is very important to work with trustworthy and honest forex brokers.
You can choose a Forex broker starting from these considerations:
- check licenses and compliance with laws and regulations
- platform test on demo and real
- quality of customer service available
- cost analysis such as swaps, commissions and spreads applied
These are three fundamental steps to understand if we are dealing with a serious and reliable operator.
Try Demo FOREX account now [read more here]
After that, it will be time to open our Forex account by following these three steps:
- registration on the forex broker
- verification of documents
- deposit to be made by credit card, bank transfer and electronic wallets
For this, you can choose between a bank transfer, prepaid card or Paypal in complete safety.
