How to trade Forex

posted in: Education, Forex Articles | 0

shutterstock_97988738If you want to learn how to trade, then you have come to the right place. What a difference a traditional forex (foreign exchange) market and online modern forex market? For traditional forex market, the currency level used is 1:1, or means to trade worth $ 100 you will need the money of $ 100 , or to perform traditional market which requires huge capital. Traditional trade is generally done offline in  forex market. While in the modern market and the level of trade using margin, the trading also using online media. Therefore it is also known as online forex trading

 

What is the level and margin? Level here in the forex market as an example of his modern 1:100, or means to trade $ 100 of capital that needs to be used only 1:100 only, or $ 1 only,
$ 1 it was also mentioned by a margin which is also called a deposit for the purchase quantity of $ 100. How could $ 1 could buy $ 100? Well, because it actually can be a broker who issued the $ 100 amount of money for you, so you only need to spend money to bear the losses and gains from the transaction was $ 100 . So $ 1 as collateral $ 100, and the rest of the account as insurer losses and gains from the transaction. What currency is the most attractive people in the trade?

 

Well, most of the world’s major trading currencies because the currencies are relatively stable and its movement is not wild, and again the currencies of these countries will influence the  movement of the world economy. Forex trading is the most popular alternative because the ROI(Return On Investment, or the value of the investments we have invested) and the profit will get is more than the average trade in general. Usually the average return is about 5% -20% per month, though it can reach more than 100% per month for professional traders. Due to the rapid movement, then Forex trading also has higher risk if you do not have sufficient knowledge and good risk management arrangements. Have you choose the appropriate forex broker to trade then?