Do you want to learn to trade in the nearly two trillion dollar a day Forex market by doing Forex online currency trading? Are you concerned because you are a beginner and you don’t want to lose all your money? Are you worried that it could just be too tough to make a profit?
This mini-guide to currency Forex online trading gives you an overview of the risks and rewards of Forex online currency trading. Read it and you’ll probably see that if you’re willing to put in a little bit of work, this can be a great market to trade in – even if you’re a newbie.
What Is the Forex and What Is Currency: Forex Online Trading?
The Forex stands for the foreign exchange. The commodity you will be trading online is currency. The Forex market deals with only one activity – buying and selling currencies for the express reason of making a profit.
When you are involved with Forex online currency trading, your money can travel around the world in seconds.
For example, when you buy (go long) a currency you strengthen that country’s economic position and raise the value of their currency. If the value of the currency increases, the pip (percentage in point) goes up. The more the pips increase the more money you can make.
One of the nice things about trading the Forex is that you do not have to be overloaded with information, as you could be if you were trading stocks and bonds.
This does not mean that you should just jump in and start trading. There are still things to learn in order to be a successful trader. However, the learning curve is a not nearly as steep.
When Does the Forex Market Operate?
The Forex is in business twenty-four hours a day, almost five-and-a-half days per week – from Sunday afternoon through Friday. This means you can do currency Forex online trading pretty much according to your schedule – at any time during the day or night.
Keep in mind, though, that there are more advantageous times of the day to trade.
Because you are trading online you can access the foreign exchange from anywhere in the world where there is an Internet connection.
How Much Does It Cost to Get Started?
Most people who learn Forex online currency trading start with a small account, so they do not risk a lot of money. You can start an account with as little as three hundred dollars.
And, unlike trading stocks, most Forex brokers do not charge a commission. This means you can earn more money from your successful trades and lose less on your losing trades. These savings can really add up over the course of a year.
How Can You Learn Forex Online Currency Trading?
Some people try to learn by signing up at an online brokerage account. If you’re new to trading it can even be a bit confusing picking the best broker because although brokers do not charge commissions, they control the spread between the bid and the ask on the currency pairs that are traded. Bottom line is that the spread affects the amount of profits and / or losses in your account.
That’s why a lot of newbies like to find a good source of quality information such as a highly recommended eBook or video course.