Forex Trading Platforms For Beginners
Why is Forex trading so popular?
Because forex trading has high risks and high returns. Seize FX Opportunities With Powerful Platforms , Tight Spreads & Fast Execution. So, forex beginners choose the platform is very important.
The best forex trading platform recommended Forex Club. Top platform, high reputation.
Forrest offers everything you need to succeed!
Forex Club International Limited is a well-known international brand in the online investment trading market with branches all over the world. Since 1997, we have helped our clients earn profits by investing in stocks, stock indexes, foreign exchange, and gold.
Register a MetaTrader4 trading account
How to trade forex
Trading foreign exchange on the money market, also known as trading forex, can be an exciting hobby and a huge source of income. From a correct perspective, the daily trading volume of the securities market is about 24 billion US dollars; the foreign exchange market trades about 5 trillion US dollars every day. You can trade Forex online in a variety of ways.
Learn the basics of forex trading
1. Understand basic forex terminology.
- The type of currency you are consuming or getting rid of is the base currency. The currency you purchase is called the quote currency. In Forex trading, you sell one currency to buy another.
- The exchange rate tells you how much you spend in the quote currency to buy the base currency.
- Long position means you want to buy the base currency and sell the quote currency. In the example above, you want to sell dollars to buy pounds.
- A short position means you want to buy the quote currency and sell the base currency. In other words, you will sell the pound and buy the dollar.
- A bid is the price at which your broker is willing to purchase the base currency in exchange for the quote currency. The bid is the best price for which you are willing to sell the quote currency in the market.
- The asking price or offer price is the price at which your broker sells the base currency in exchange for the quote currency. The asking price is the best price you are willing to buy from the market.
- The spread is the difference between the bid price and the ask price.
2. Read the forex quotes. You will see two numbers on the Forex quote: the buy price on the left and the sell price on the right.
3. Decide which currency you want to buy and sell.
- Forecast the economy. If you think the US economy will continue to be weak, which is not good for the dollar, then you may want to sell dollars in exchange for the currency of a strong economy.
- Look at the trading position of a country. If a country has many commodities in demand, then the country may export many commodities to make money. This trade advantage will promote the country's economic development, thereby increasing the value of its currency.
- Consider politics. If a country is conducting an election, then if the winner of the election has a fiscally responsible agenda, then the country’s currency will appreciate. In addition, if a country's government loosens regulation of economic growth, the value of money may increase.
- Read the economic report. For example, a report on a country’s gross domestic product, or other economic factors such as employment and inflation, will have an impact on the value of the country’s currency.
4. Learn how to calculate profit.
- A point to measure the change in value between two currencies. Usually, a point is equal to a value change of 0.0001. For example, if your EUR/USD trade changes from 1.246 to 1.247, your currency value increases by 10 points.
- Multiply the number of points your account has changed by the exchange rate. This calculation will tell you how much the value of your account has increased or decreased.
1. Analyze the market. You can try several different methods:
- Technical Analysis: Technical analysis involves reviewing charts or historical data to predict changes in currency based on past events. You can usually get charts from brokers or use popular platforms like Metatrader 4.
- Fundamental analysis: This type of analysis involves looking at the economic fundamentals of a country and using that information to influence your trading decisions.
- Sentiment analysis: This analysis is largely subjective. In essence, you try to analyze the mood of the market to determine whether it is “bearish” or “bullish”. Although you can't always put your fingers on market sentiment, you can often make a good guess that can affect your trading.
2. Determine your margin. Depending on your broker's policy, you can invest a little money, but you can still make big deals.
- For example, if you want to trade 100,000 units with a 1% margin, your broker will ask you to deposit $1,000 in cash into your account as a guarantee.
- Your earnings and losses will be added to or deducted from your account. For this reason, a good general rule is to invest only 2% of your cash in a particular currency pair.
3. Place an order. You can place different types of orders:
- Market Order: With a market order, you can instruct your broker to perform a buy/sell at the current market price.
- Limit Orders: These orders prompt your broker to execute trades at a specific price. For example, you can buy a currency when a certain price is reached, or sell a currency if the currency is lowered to a specific price.
- Stop Loss Order: A stop loss order is a purchase that purchases a currency that is higher than the current market price (expected to increase its value) or sells a currency that is lower than the current market price to reduce the loss.
4. Keep an eye on your profits and losses. Most importantly, don't be emotional. The foreign exchange market is very volatile and you will see a lot of ups and downs. It is important to continue your research and stick to your strategy. In the end you will see the profit.