An unregulated foreign exchange market, commonly known as FOREX (Foreign Exchange), is a place where wholesale currency exchanges are carried out outside an organized trading system, such as the Stock Exchange. It is currently the largest market in terms of average daily turnover, which is counted – trifling – in billions of dollars. How to start investing on it? We suggest.
What is FX trading all about?
To start investing in Forex, we should focus on the basic principles of currency exchange. This is a type of commercial activity that takes place on a daily scale on a global scale. Governments, entrepreneurs, and “ordinary” people invest. It is not a complicated process, but before you start it, it is worth finding out what laws govern it.
The Forex market is an undisputed tycoon on a global scale in terms of accessibility, security and liquidity. No wonder, because trading on FX, i.e. Forex trading, takes place via a computer network. This allows all traders to communicate freely with each other electronically.
As in the case of other currency markets, in Forex, the currency must be valued in a different currency. This is the answer to the question of why we are dealing with currency pairs. If you want to make money, you need to exchange the currency for the other and benefit from the change in the exchange rate. In a nutshell, this can be compared to a normal business transaction. We usually want to buy low and sell at a high profit, or vice versa – sell high and buy back cheap.
Forex: how to start playing?
At the beginning of the game onForexIt is worth knowing that we have practically any time of the day or night at our disposal, 5 days a week. This market operates 24 hours a day from 11:00 p.m. on Sunday to 10:00 p.m. on Friday.
The next step is to realize that the road to real earning of good money is often winding and bumpy, so it is worth changing the way of thinking from “how to earn” to “how to protect your capital” at the beginning. It is also very important to include the “loss” option in the enrichment process. This cannot be avoided and awareness of it makes it much easier to achieve the intended goal. Resistance to stress and emotional stability are equally important. Changes in the currency market often happen in a split second and you need to learn how to react quickly to them.
In the Forex platform, where both real and demo accounts are set up, the facilitation for novice investors has been thought of. We are talking about a demo account. This allows you to gain knowledge about the broker’s trading conditions, as well as familiarize yourself (at no cost) with the principles of the platform’s operation.
