If you have always fancied becoming a Forex trader but have been put off as you may be under the impression that it is an unknown quantity and an environment you may feel completely out of touch with, then please do keep on reading.
Below we are going to enlighten you on the way Forex trading operates and as such by having along read through of this guide whilst also referring to the other sections of our website you will soon get a much better understanding of trading Forex online and will soon be able to do so without any fears.
Forex is also know an referred to as FX and it simply means a Foreign Exchange, when you visit such a place you are going to be changing one currency into another at the displayed currency exchange rate.
However when you trade Forex online as a Forex trader you are not actually purchasing any currency what so ever, instead you are for all intents and purposes placing a wager on whether you think one of two currencies that have been linked together, are going o increase or decrease in value over a given time period.
How to Trade Forex? Trading Forex Online – The Basics
To start trading Forex online you first need to find yourself a Broker, listed around our website are a large number of Forex Brokers, and by visiting their respective websites you will instantly be able to sign up and create an account.
You can opt to open up a demo account or a real money Trading account, obviously as a first time trader you are best advised to open up a demo account to get used to the trading platform that you will be accessing as soon as you log into your newly created account.
When you log in and gain access to the online Forex trading platform you will see a range of currency abbreviations, you will find they are all listed in pairs. If you come across for example USA/GBP as a Forex Pairing then if you opt to place a wager on those to currencies you need to be aware that the currency on the left if referred to as the Base currency and the currency on the right is the Counter Currency.
You are given two options when trading any Forex Pairing, you can opt to Buy a currency which means you will be placing a wager n the Base currency USD in our example above is going to increase in currency against the Counter currency which is our example above is GBP.
You will also be able to place this wager over one of many different time periods which will be displayed on the trading platform, so chose whichever time period on offer you are attracted to!
However, if you think that the Counter currency which in our example above is going o gain in value against the Base currency you “Sell” that option and as such if GBP increases in value against the USD over the time period you have chosen then you have placed a winning trade!