Learn How To Start Forex Trading

What Is Forex?

The largest financial market in the world, also known as the foreign exchange market and the Foreign Exchange Market, is the place where currencies are traded. These are traded in currency pairs thus creating a price of one currency against another (eg EURUSD, USDJPY, USDGBP).

It is a market with the largest daily traded volumes, over 5 trillion US dollars. If we add up all the financial markets in the world, it would not reach the volumes traded on the foreign exchange market. This is not just about traders, but about all market participants, such as governments, central banks, import-export companies, investment funds, traders, and so on.

A trader on the foreign exchange market can be anyone who has access to the internet and a laptop or computer. With the floating price of currencies, trading also appeared in 1972, but starting with the '90s, margin trading appeared that we all know and became so popular.

The fact that currencies are traded in pairs makes the price even more volatile because it is enough to change the price to a single currency and already the price moves either up or down depending on which currency gains or loses value. Ex. if we see a rise in price on the EUR USD chart, it means one of 2 things, either EUR has risen (against the US dollar) or USD has fallen against EUR. When the price of both currencies fluctuates, which is always the case, the price moves even more aggressively in one direction or another. So every move in the market represents an opportunity to open a transaction and to collect a profit without a correct prediction or to record a loss if the chosen direction of the price is an incorrect one.

In trading the trader has a lot of tools:

1) Choosing the trading volume - You choose to invest $ 1 per point or any other amount (the EURUSD price moves on average by 30 points per day)

2) Determining when to trade. The trader decides if the trading moment is the right one or if he wants to stay out of the activity. There is no cost for inactivity.

3) He can close the transaction at any time if he considers that he no longer wants to invest in that direction.

4) The trader can add volume if he considers that the direction is one that brings him to profit or closes the transaction partially if he considers that it is too risky.

5) There are technical and economic tools that will get you out of the guessing position and you will be able to determine the direction in which the market is more likely to move.

Okay, let’s get to the theoretical part, in which I hope I managed to answer the question “ What is Forex? “. If you do not yet have a virtual trading account, I invite you to register and trade by clicking the button below.

FOREX DEMO ACCOUNT

Free Forex Demo Account is a tool used for mastering trading when we are just starting to trade as well as a useful tool for experienced traders. That's right, experienced traders have also opened at least one forex demo account to test their trading strategy and to track quotes from different brokers.

It is good to know that virtual account trading is not only done to determine the price direction strategy itself, but we must also define the risk management that we are going to implement. Here I can add that it is good to practice on demo with the amount we want to invest in trading. Beginner traders often start/learn to trade with $10,000, and the real account starts with $100.

There are also psychological factors that influence the outcome of trading. Trading is a continuous activity and not the place where you get rich from a single transaction, so we must accept from the beginning that there will be closed transactions minus / loss, but they must be limited and fewer in number than the profitable ones as in finally to make a profit on the trading account. Ok, I think a few transactions on a virtual account will be more than a thousand words.

So, let's Begin with Free Demo Account