FOREX or The Foreign exchange market is an international market where various currency exchange transactions take place; this is in the shape of simultaneously buying one currency and selling another. The most commonly traded currencies are referred to as “Majors”; as over 85% of daily transactions on Forex trading involve the Majors. These currencies are the US Currency (Dollar, USD), British Pound (GBP),Japanese Yen (JPY), Euro (EUR), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD).
Forex trading in the simplest terms is the buying of one currency and the selling of another. Forex trading, also referred to, as “FX” is open to private individuals, corporations, small businesses, commercial banks and investment funds. it is the largest financial market in the world having a daily turnover of over $4 trillion dollars.
Forex is a 24-hour market which enables it to accommodate constant changes in the world currency exchange rates . According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am.
The Forex market is unique to any other market in the world; trading 24-hours a day. Somewhere around the world a financial center is open for business and banks and other institutions exchange currencies every hour of the day and night, only stopping briefly on the weekend. Foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day and the ability to take advantage of global economic events.
The spread is the difference between the price that you can sell currency at ( Bid) and the price you can buy currency at ( Ask). The spread on majors is usually 3 pips under normal market conditions eg; EURO/USD
Forex Account Opening
Opening a live trading account or Forex Account through a broker enables private individuals, corporations, small businesses, commercial banks or an investment funds Manager to have full access to the Forex Market which InstaForex does. InstaForex trading conditions has been rated among the best in the world as it enables traders to have access to 107 currency instruments,88 CFDs on US stocks, gold, silver and CFDs on futures.
InstaForex broker account opening is absolutely free – Click here to Open Trading Account
InstaForex Nigeria minimum account deposit is $1 – Click here to fund your account in Naira
InstaForex Broker also offers the following which makes it the best in the world;
High-quality technical and consultancy support
Forex Calendar SMS news notification for clients in Nigeria
Instant automated processing of all deals
Trading leverage from 1:1 to 1:1,000
Unlimited deposit amount
Cent accounts available
Instant account Funding
Access to swap-free accounts
Visit our Website on www.instaforex.com.ng for more enquiries or call 0813 345 0038
If you have no clue about what the Forex market is or you have never heard about it, this article will give you a very brief explanation below.
Forex is the short form for Foreign Exchange Market. This is the biggest and most liquid market of the entire world today. Over three trillion dollars exchange hands at Forex every day.
People blindly gamble their money at Forex without knowing anything about it and they lose their money. Forex market is profitable, but you need to learn the basics well, do your homework well by try trading with as low as $10 or demo trade for some time.
Just remember that 50% of traders lose money, 40% make it and less than 10% become rich at Forex. The nice thing about this market is that you can make money without creating any product or service, selling anything, nor advertising. You just trade some cash and get paid depending on your knowledge and expertise.
This is the market where banks, transnational corporations and individual traders exchange one currency for another. I am talking about the spot Forex market. With InstaForex You can trade at huge leverage as much as 1 to 1000, meaning that for every dollar that you have for trading you can trade $1000. For example if you have $1,000 on your account you can trade as much as $1,000,000.
This is dangerous. Most experienced traders wont use such a high leverage. In the other hand, high leverage can be good if you learn how to use it in your favour.
Looking at the strategies and how some traders make money at Forex; Trading currencies is risky. That’s a fact. But ultimately we discovered a few strategies that could give novice traders a winning edge.
Trading Forex is easy but can be very dangerous if not properly trained. Today you may be earning a lot and tomorrow you are losing 40% of your starting capital.
Novice traders often make the same mistakes over and over again.
Few things to avoid while trading;
1.Do not look for a holly grail of trading.
This is for people who are afraid to lose or are too greedy and want to get rich quick. Even when it seems so, The Forex Market is not the place to get rich quick, though you can make a lot of money over time, you still have to learn a whole lot about what makes the Forex market tick and what moves the price of the currencies plus how to manage your money effectively so you don’t lose your capital/investment.
Many novice traders spend a LOT of time searching a perfect strategy or indicators even robots that will allow them to always win-win and never lose. They want to have guaranteed profits because they can’t stand to lose or they want to make too much (millions) quick so they can retire fast and buy a private jet. It doesn’t work like that, “always know that Forex is a business”.
A trading strategy that allows you to have guaranteed profits does exist but requires patience. Trading is very risky and also highly profitable. Remember: no risk, no reward. So, do not try to always win on every trade. It is simply not possible. There is no way to get rid of the fact of uncertainty. What I mean is that no matter how effective your trading strategy may be, sometimes it will fail and you have to be ready to face this fact.
Trading profitably means understanding the Basics of Forex which professionals at InstaForex Nigeria do. Contact us today for a complete Forex training package!
By Paul Odibeli