Forex Trading For Beginners
Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. According to a recent triennial report from the Bank for International Settlements (a global bank for national central banks), the average was more than $5.1 trillion in daily forex trading volume.
Trading currency in the foreign exchange market (forex) is fairly easy today with three types of accounts designed for retail investors: standard lot, mini lots and micro lots. Beginners can get started with a micro account for as little as $50.
- The foreign exchange (also known as FX or forex) market is a global marketplace for exchanging national currencies against one another.
- Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world.
- Currencies trade against each other as exchange rate pairs. For example, EUR/USD.
- Forex markets exist as spot (cash) markets as well as derivatives markets offering forwards, futures, options, and currency swaps.
- Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons.
What Is the Forex Market?
The foreign exchange market is where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can’t pay in euros to see the pyramids because it’s not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.
What you’ll learn
- Have a full understanding of how the Forex Market operates
- Tell the difference between Base & Quoted currencies
- Select a Forex Broker for your account
- Understand what short selling is and the mechanics behind it
- Understand what leverage is and how it affects your trading
- Know Forex terminology like Ask, Bid, Spread, Equity, etc.
- Tell the difference between a Pip and a Point
- Use all types of orders: Buy / Sell / Buystop / Sellstop / Buylimit / Selllimit
- You will learn the three types of Forex Analysis: Fundamental, Technical and Sentiment
- Be able to read the calendar of economic events
- By the end of this course you will have a substantial arsenal of technical analysis techniques
- You will learn how to install and use the MetaTrader 4 trading platform
- You will know the basics of calculating and managing risks when trading Forex
- You will get an insanely discounted Bonus coupon for my next course
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