Foreign exchange on currency market is also known as the market, and it is worth to mention that it is one of the biggest financial markets across the world. It is also true that more than $5.3 trillion US dollars are the total transaction volume of the market.
This business is also considered as the most profitable business if the decisions are taken wisely and adequately. Here in this post readers will get a guide to forex trading and hope it will help them to understand foreign exchange business in a proper manner.
Before starting with the guide, it is important to mention that the article has been divided into three sections for the convenience of the readers.
Learn the fundamentals of forex trading
There are different measures in this section, and they are mentioned below, but before that it is important to note that without proper knowledge of market one would be able to trade.
First of all, before initiating trading one has to be competent with the technical terminology used in market like:
- Exchange rate
- Quote currency
- Long position
- Short position
- Ask price
- Bid price
- Lot size
- Percentage in point
After that, one has to be proficient in reading FX quote in which a trader will get ask price on the right side and bid price on the left side.
Then it is important for the traders to resolve that with which currency he/she will buy and sell.
Before making decision one has to be very clear and concise because there are lots of things to be considered before choosing the currency. They are like the value of the purchased, position of the country from which the currency belong, political scenarios of that country (whether it is favourable for trading or not), etc.
Then traders new to forex trading guide have to learn about how to compute profits.
Open online forex account
- Before opening new account guide to forex trading suggests that one must conduct a market research for different brokerages.
- To open FX account, one has to request information from professional who is trading since long in the market.
- Finally, fulfil all the documentation part and activate the account to start.
One must now start trading
After having subsequent knowledge about the market and opening a live account, the trader must start. Now in this section there are some few steps to follow:
The trader must analyse the market in which one has to analysis fundamental, technical and sentimental analysis.
Then comes the most important thing and it is that one has to fix or set the margin for trading.
After determining margin is now required to place the order in which there are different order like:
- Limit orders
- Market order
- Stop orders
Last but not the least the trader has to look after his/her profit and loss part which is earned after the trading.
“Always focus on learning as it will help you to touch the seventh sky.”