What is Forex Trading? Beginner’s Guide to Trade Forex in Nigeria

If you are still wondering what is Forex trading, you’re not alone because I have received a lot of questions from people trying to understand what Forex trading is.

Many people have been exposed to foreign currency trading and may have read articles or seen the advertisements online, but aren’t sure exactly what it means. Let’s take another step and see if we can explain what Forex trading is in the foreign exchange market.

Forex trading simply refers to foreign exchange trading – the trading of currencies from various countries. Those who trade Forex will exchange one currency for another, hoping that the currency they bought increases in value when compared to the one they exchanged it for.

For an example, when you think the EURO will go up as compared to the US dollar, then you can purchase EURO by exchanging with U.S dollars. If you are right in the calculation, if the EURO goes up in value, then you will make profits from the exchange rate.

People who trade currencies use various Forex techniques to determine which currencies are likely to rise and which are expected to go down.

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You’ll find many strategies available online; in case you’re a beginner in FX trading and wondering what exactly is Forex trading you can use Forex trading software that can point out trading opportunities to suit your needs.

These programs are also called “Forex robots” and analyze the markets by studying price history, movements as well as other indicators. They will then look for a pattern and indicators that have the chances to signal a winning trade.

Anyone, even the beginners can use the Forex software. The good thing about these Forex programs is that they have already been programmed by trading professionals who have many years of experience in the Forex trading market. The trading decisions are made from the many years of expertise as a Forex broker.

By using a program like this, there is an opportunity to make great profits, even though you’re a beginner or a veteran in trading Forex. It’s impressive how well many of the Forex trading software works.

So, if you’re asked what is Forex trading now?  You could say it’s a great way to make money! And since you are not a computer and with online internet connection, you can start trading Forex now. It’s an opportunity that’s available to everyone to make money.

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As stated above earlier, it is defined as the currency exchange rate; this represents the speed from which one currency can be exchanged with another.

Rates are always quoted in pairs, such as JPY/GBP, the Yen trading against the Pound and fluctuation occurs through economic, geopolitical and industrial factors – and it’s these main factors that will influence your final decision on whether you should buy or sell your chosen currency pair.

Why Trade Currency Pairs?

Forex is currently the world’s largest market platform, with approximately 3.4 trillion U.S dollars in daily circulation, twenty-four hours a day, and 5 days a week. It is now considered a “step” across the equities market the location where the Forex beginners and the experienced trader can benefit from some key differences:

  1. It’s a 24 hour trading – you choose and dictate when and how to trade.
  1. A number of Forex trading firms don’t charge commissions, which indicates you will only pay for the bid/ask of spreads.
  2. It is possible to refine and concentrate your trading on picking from your few currencies rather than from some 3000 to 5000 stocks.
  3. You can leverage a trade; though this may well magnify potential gains and losses.
  4. Forex is available to the people with a modest income because you don’t need a lot of money to get started, and some firms offer incentives for the novice traders, such as bonus capital upfront to get the process started.
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Reputable firms make money when you as a trader makes money too; so it’s in their interest of both parties to succeed.

If you’re not completely familiar with Forex trading, you can leave your questions below in the comment section.

 

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