AN INTRODUCTION TO
THE FOREX MARKET
Largely due to size and longstanding history, the Forex market is the most common starting point for new traders looking to profit from fluctuating exchange rates.
HOW FOREX TRADING WORKS
Forex trading is the exchange global currencies in pairs with the intention of benefiting from ever-changing exchange rates. Trading the Capital Markets.
Forex trades take place over the counter (OTC), which means that they go through a financial institution, such as One Financial Markets. You do not physically touch the currencies themselves.
GETTING STARTED WITH YOUR FOREX TRADING ONLINE ACCOUNT
In order to get started with Forex trading, you will need your own trading Account. This allows you to trade with peace of mind knowing that your funds are secure, while meeting all safety and security regulations.
There are a number of trading platforms available worldwide, and it is important to do thorough research before signing up with one of them. While almost all trading platforms look professional and welcoming, they are not all legally compliant. Many difficult situations can be entirely avoided by reading user reviews and confirming the legitimacy of a brokerage in advance.
You can sign up for your free demo account here, and trade with $11,000 worth of virtual funds risk-free. No deposits or cash investments are necessary.
LEVERAGE AND MARGIN TRADING
Many trading platforms offer leverage, or access to margin when opening positions. Forex margins are typically in the form of a ratio, such as 30:1.
LEVERAGE VS. RISK
In Fx trading, risk and leverage are not the same thing, although the terms are often confused. Risk describes the percentage of your capital that you are willing to lose on a bad trade, and leverage should be selected accordingly.
WHEN TO USE LEVERAGE ON FOREX TRADES
Novice traders often make the mistake of selecting the highest possible leverage with the thinking that it will reap far greater profits.
The best option for new traders is to avoid leverage altogether – at least until they understand the market well and have developed their unique trading strategies.
WHEN TO USE A STOP-LOSS ORDER ON FOREX TRADES
A stop-loss is an order made to the broker or online Forex trading platform to close (sell) a position once it drops to a certain point, in order to shorten the loss carried by the trader.
If you intend to monitor open positions, however, stop-loss orders are not strictly necessary, as you have the option to close positions manually at any point within the trading window.
A stop-loss, however, does not have this discretion.
HOW TO OPEN A FOREX TRADING ACCOUNT
If you need a Forex trading account, opening one is a quick and simple process. It usually involves answering a few short questions about yourself and/or providing your personal details such as your name and surname, country of residence and email address. This is most often followed by uploading your identifying documentation in line with KYC requirements.
AN ONLINE FOREX TRADING PLATFORM
One Financial Markets offers a free forex trading account with no initiation fees or monthly account fees.
Kindly check the FAQ section on the right of the application page, where you will find a complete list of required documents per country to open an account.
FOREX TRADING
An important message to remember is that successful traders are careful traders. Never allow sentiment or emotion to control your actions.
Profitable Forex trading requires the diligence of thorough research and the discipline to stay up to date with events, political or otherwise, that may impact exchange rates. Traders who act with clarity of mind on logical decisions are far more likely to be successful than those who take extreme risks or act without information.
Read More on Forex Signals Learning
The post Trading the Capital Markets appeared first on Best Forex Account.
