Internet has opened an infinite field of new possibilities. Among them is Forex trading or commonly know as online trading or confused with stock market.
For many years, investing in the financial markets or Forex trading was mainly done by banks and financial institutions. This means that trading in financial markets was not accessible or available to people outside these institutions. With the rapid growth of Internet, this activity has become accessible to everyone!
Internet has opened a new world of opportunity to people who had never invested in online trading before.
What is Forex Trading?
The term “Trading” simply means to make an exchange of one thing for another. As this transaction is supposed to generate a profit, it can also be defined as “an exchange of thing for another which leads to a profit”. Normally this term is used to mean the exchange of goods against money.
This same principle applies when talking about Online Forex Trading.
For example, when you trade stocks, we are simply trying to buy shares for a corporation.
If the value of the shares goes up, then we can make money (profit) by selling them at a higher price.
That’s the Trading!
You buy something at a set price and you sell it at a higher price. This is how you make a profit.
|You buy 10.000 Euros at the EUR/USD exchange rate of 1.1500||+10.000||-11.500|
|A week later you decide to exchange your 10.000 Euros to the original U.S dollar at the exchange rate of 13.000||-10.000||+13.000|
|You just earn a profit of 1.500||0||1.500|
What are the advantages of Forex Trading?
Being open 24 hours, 5 days out of 7, online trading markets offer a wide variety of opportunities for Traders (investors) to trade at any time.
Developed strongly with a high rates, the Online Forex Trading is the most liquid market in the world with more than 4 trillion dollars trades a day.
This market is constantly changing. Prices are constantly going up and down and thus providing traders with potential opportunities to make profits. Whether you choose to Trader currencies, stocks or commodities, there is always a potential profit to be made.
Low barrier to start trading. You might think that Forex trading requires 100.000 dollars to get started with. In fact it doesn’t. Online Forex Brokers offers mini trading account, with some starting with a minimum deposit of $€100 or even $€50.
This is due to the fact that trading online is usually done with leverage. The leverage is a simple multiplier in Forex trading which allows you, with a small deposit amount to control and trade with larger value. The leverage indeed give traders the ability to generate nice profits while at the same time keeping the risk of their capital to a minimum.
Free demo trading account. Most if not all Forex brokers provide newbies or even experienced traders with a completely free “demo account”. These accounts enable traders to learn and build their knowledge as well as trading strategies before taking on the real market.
Can I make money in Forex trading without any experience or knowledge?
Although it is an investment, online trading does not require any experience or special training. Some Forex brokers enable traders to copy the experienced and professional traders. This way they can develop their investments and make money by simply copying those who have more knowledge, experienced and show a positive revenue percentage.
Some of these brokers are: eToro.com and Markets.com
However we always recommend newbies to get as much knowledge of the market before deciding to invest in Forex trading. Most Brokers provide their clients with a wide variety of free tools and trading courses by Online Trading experts. It’s easy for anyone to learn to trade on the global financial markets.
Guests can have access to a limitless range of tutorial videos or pdf format books to learn step by step.
How do I start trading online?
Once you decide to pick the opportunity to become a Trader online, you can start anytime, in three simple steps:
Step 1: Registration
Open an account with one of the best Brokers online and receive everything you need to start trading. Free training courses if you need, a demo account to practice, a personal account manager, bonuses and trading tools to help you in your decision making.
Step 2: Start learning
Once enrolled in a Broker, it will provide you a free training program for beginners. This includes an individual preparation with an expert and a wide variety of video tutorials as well as eBook Free Trading.
Step 3: Start Trading
Start Trading Currencies, Stocks or Commodities at any time and anywhere. You will be able to trade on your PC, Tablet or Smartphone and increase you chances of earning profits.
Why are people so interested in Forex Trading? | Netnewstimes