Forex trading is a lucrative trade if you get the knack for it. If you understand the different dynamics that come into play when exchanging major world currencies and predicting their shifts correctly, then you should get into this business. With such knowledge, you are in a position to make a fortune in a short time. However, this knowledge does not come as easily. It requires months if not years of endless reading, research, and practice. When you finally understand the Forex markets, you will also know the best Forex trading sites to use since only a few are genuine.

For a beginner, here is what you need to know before you invest in this volatile but lucrative industry. There is a lot more to the Forex market than just exchanging currencies and making money. The main activity, however, is to exchange world currencies based on their values and strengths against one another. This exchange is important to facilitate world trade. There are also other options including futures, derivatives, options, and recently cryptocurrency.

As a beginner trader, you need to take your time to understand how all of these functions work, and how they relate to one another before thinking of investing.

There are a lot of tutorials and books online that you can read to get an idea of what happens. There are a lot of terms concerning Forex that you need to understand as a beginner. These terms will appear now and then when you are trading. Some of the most important include spot Forex, pip, CFDs, spread, margin, and leverage among others. Understanding most of these terms with the mentioned ones being some of the most important will play a significant role in understanding what you need to do when you get to the actual trading.

Brokers provide all online traders with a platform from which to carry out their trades. There are so many brokers online, but a majority of them are fraudsters. You need to do your due diligence to ensure that you get the right and genuine broker. The best way of determining a legitimate broker is by checking their licenses, and whether they are regulated.

Find out also how long that broker has been in operation and their reviews. If they pass all these tests, then you can consider trading with them. There are other factors that you should consider too when you finally have a few selected brokers. These factors include among others their minimum deposit and withdrawal balance as well as their payment methods. After familiarising yourself with the basics of Forex trading, you are still not ripe enough to put your money at risk.

Forex traders tend to pair a strong currency with a weak one in order to see a lot of movement in price action. If you are predicting or seeing strong activity for a particular economy, then you should buy that currency against another one whose economy is weaker. To learn more about these, visit the section on Economic Indicators.

Monetary policy changes and central bank biases also come into the picture, but let's save that for a more in-depth lesson on fundamental analysis which you can find here. Forex, or Foreign Exchange is a market on which a person trades currency pairs. Based on our example of Euro and U. Dollar: What happens when you buy a Forex Pair You are buying EUR and Selling USD What happens when you sell a Forex Pair You sell EUR while buying USD You will also usually see a whole number and a decimal close to the currency pair; this is known as the rate.

In our example this number expresses how much USD a single EUR is worth. There are some considerations when trading on the forex market: Volatility This is something that to their detriment many beginners overlook, currency markets move frequently and rapidly.

Knowing what affects these markets and what times volatility is higher can help you avoid these movements or even take advantage of them. This can be either a positive or negative correlation.

Monetary Policy Announcements, political and economic events can affect the entire Forex market or just a few currencies. This can overlap with the previous point correlation especially when USD is involved, as many currencies are pegged tied to it.

Much like any other investment vehicle you will come across terminology that you may be unfamiliar with. You can find a list of the most common Forex Trading terms for beginners in easyMarkets glossary.

Forex is favored by multiple types of traders from professional to complete beginners. It is a diverse market; most brokers offer an extensive list of currencies and each currency is affected differently, allowing you to skirt risk when things get volatile or seize opportunity from multiple instruments.

Another reason people favor the Forex markets is because of its volatility; although this increases risk, it also increases opportunity. This is especially true if the strategy you are using depends on making trades throughout the trading day.

The high volume of transactions in the forex market allows traders to buy and sell without any delays caused by a lack of buyers or sellers.

Forex is also a purely global market. It is wide reaching and diverse, meaning when certain currencies are volatile, others are not. Time is also a benefit; the forex market is open 24 hours a day, 5 days a week.

The forex market opens in sessions:. To see specific instrument trading hours please refer to: easyMarkets trading hours. Volatility increases during session overlap and during the first hour of sessions opening.

Of course, volatility is also affected by political and policy changes which can either exaggerate or mitigate opening and overlap times. In certain cases opening and closing of markets can be marked by significant price movements, running on the momentum created by the announcement, event or report. For example, if the market is generally cautious due to certain geopolitical changes or threats like in the case of the China-U. trade war, currencies might not be as mobile.

Another factor that may boost volatility is market-affecting news released on the weekend, causing a currency to jump upwards or substantially drop. There are numerous ways to trade Forex CFDs but most traders prefer day trading for a few reasons: as mentioned previously current events and news can significantly move markets. This increases volatility, and because CFDs give you the ability to trade both upwards and downwards movements, some traders actually use this as opportunity.

Of course, volatility causes prices to move rapidly and in some cases unpredictably, increasing risk. Another reason FX trading is so popular is its low barrier of entry. easyTrade - exclusive to easyMarkets - is also a good way to control your initial cost, as it allows you to set and lock your maximum risk which is the amount you could potentially lose if your trade goes against you.

Want to give it a try? Click on the button below. CFDs are unique financial instruments favored by investment professionals and institutions, due to their flexibility.

CFD Shares, Forex, Commodities and Cryptocurrency allow you to trade both upwards and downwards trends. Another benefit of CFD trading compared to other types of trading is the availability of trading tools and conditions such as negative balance protection , guaranteed free stop loss , take profit and leverage which increases the size of your trade but can also increase your risk. These tools and conditions are available at no additional cost to the client on easyMarkets proprietary platform and app.

Many institutional and professional level traders use leverage because it allows for fewer funds to be used to open a bigger trade. This means that they can open multiple positions with the same amount that would potentially be needed for an unleveraged position.

Stop loss is another reason Forex CFDs are popular amongst serious traders. When the market moves against a trade and margin limit is reached, open trades start closing until the margin necessary is covered. With stop loss you set a price level that you choose, and your trade will close at that point if you have adequate margin, but only when trading on easyMarkets platform and app is this guaranteed because of no slippage.

easyMarkets offers trading without slippage on its proprietary platforms. This means that the rate you open the trade is the rate your trade is executed. This is important because in non-CFD trading, your trade may execute at a higher or lower price. if you are selling, a buyer or buyers need to match your trade. Some CFD brokers do not offer zero slippage guarantee, so this is another distinct benefit you have access to when you trade on easyMarkets platform and app. Trading with slippage can cause unforeseen costs or smaller profits because the trade opens or closes at a different rate than you wanted it to be executed.

This effect becomes especially amplified during high volatility. Another reason the forex market is popular is due to the availability of leverage. Leverage is a trading condition that allows the trader to increase the size of their trade. Of course, as the size of your trade increases so do your margin requirements and risk.

Because of the increased margin requirements, a smaller negative move will cause your trade to close. In forex trading currencies are usually expressed in pairs sometimes referred to as crosses. They are usually displayed as:.

In the pair above EUR is called the base currency and the USD is the quote currency. Currency pairs are usually separated into major, minor and exotic currency pairs. Major currencies always involve the USD and one of the following:. Major currency pairs are favored by new traders because of their high liquidity and large amount of available data. News outlets frequently cover events which affect these currencies.

Also, many commodities including Oil, Corn, Cotton to mention a few and most commercial and precious metals are bought and sold in USD. Minor currency pairs include the currencies in the list above, but not the USD. These pairs can have less liquidity, depending on which currencies are involved, and are usually considered to be significantly more volatile than major pairs or crosses.

As such, exotic pairs are preferred by more experienced traders to round off their portfolio with higher risk trades. Ask and bid, also called offer and bid, is a way prices are quoted in Forex and certain other types of CFD trading.

When trading two parties are involved, the seller and the buyer. When those two rates match, a trade is made. The difference between these two rates or values is known as the spread.

Floating spread brokers usually change this amount depending on market liquidity, which can make calculating your profits and losses challenging and can increase costs. easyMarkets offers fixed spread trading with CFDs, making pricing transparent and easy to calculate. When you sell a pair the broker is the buyer of the base currency and when you buy they are the seller of the base currency.

The spread is usually calculated in pips and for most pairs it is 0. expected the pair to increase in price then anything above that is profit. Spreads are important because it is what you pay when trading — and you need to make sure if the spreads you are trading with are floating or fixed. Floating means that spreads will increase during market volatility, before and after news events or during geopolitical turmoil which cases volatility. Fixed spreads on the other hand, when offered by a creditable broker, never change.

As mentioned above, this makes calculating costs much easier. Most currencies are quoted with four decimal points whereas JPY pairs are quoted with just two. This is why a pip is different when calculating currency pairs involving JPY. A one pip movement upwards would be This can seem daunting when you start trading.

Here are few things that you should look for when choosing your first forex broker:. Finding a credible broker is one of the first considerations when you decide to start trading. Check to see what kind of licenses and what regulatory body your prospective broker reports to. This ensures that no matter what happens, you and your funds are protected. easyMarkets is regulated in both the EU and APAC, so we can accept clients from across the globe!

Trading conditions and execution can affect your costs, raise your bottom line and cut into your profits. Here are few items to look for to avoid unnecessary costs:. Fixed spreads — this ensures that your spreads never change unexpectedly, increasing your costs. No slippage — this means that your trade will be executed at the price you wanted it to. Price transparency is important when trading forex. easyMarkets offers no slippage, fixed spreads, and never charges hidden fees.

Having multiple markets to choose from when trading can help you avoid risk or better seize opportunity. Many professional traders also use different markets or instruments that move inversely or approximately inversely.

For example, when volatility and risk increases in the currency market, usually due to policy announcements or geopolitical events, many traders turn towards Gold, which tends to increase in value due to demand. This allows you to trade shares around the clock, five days a week. easyMarkets offers multiple trading and risk management tools including guaranteed free stop loss, and negative balance protection.

easyMarkets also offers unique and exclusive trading tools:. This lets you protect yourself against rapid and unexpected reversal of price, an unforeseen geopolitical event or even a mistake.

Undo a trade and recover your investment. You can open an easyTrade in just three steps. Choose your trade size which is also your maximum risk amount , the duration of your easyTrade, and decide whether the rate will go up or down. Expand your trading knowledge with easyMarkets Academy, which features easy to understand video lessons and knowledge tests that give new and experienced traders a great way to find out if they understood what they learned or if they would like to revisit a lesson.

easyMarkets website also features an exhaustive Forex Trading education library with videos, articles and free downloadable e-Books. Choose your favorite device and easyMarkets is very likely to support it, with its App which is available on Android and iOS. Traders can also use our web-based platform that integrates Market News, Analytics, an Economic Calendar, Inside Viewer which shows you if other easyMarkets traders are buying or selling , Trading Signals and Trading all in one window for ease of use.

easyMarkets also offers forex trading on the popular MT4 platform. Since our founding in client satisfaction has been one of our main objectives and priorities. Our multilingual international team of customer service specialists support Japanese, German, Spanish, Polish, Arabic and English-speaking clients.

Another important consideration when choosing a broker is how fast their funding is and what types of funding is available. It also allows online banking such as WebMoney and eWallets such as Neteller and many more:. Depending on your needs and level of experience, you may choose to trade through easyMarkets fully featured App, intuitive and robust Web Platform or Metatrader 4. MT4 is usually preferred by people that have access to a computer, either desktop or laptop.

It has many features but also a steep learning curve. easyMarkets platform on the other hand is both intuitive and powerful, and online. This means you can trade everywhere you have an internet connection. If you want to be optimally mobile, then you can also use easyMarkets App available on Android and iOS; download it on your phone and you can trade forex on the go.

easyMarkets has been serving its customers since From the very beginning we have strived to offer our clients the most innovative products, tools and services. easyMarkets innovative and intuitive app allows you to trade on any iOS or Android device, giving you access to markets anywhere, anytime.

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Forex trading is a prominent investment destination as it fits all traders with different experience levels. However, trading in the forex market is still controversial to many due to the promising yet risky nature of the market. Some people actually think forex trading is a shortcut for being rich, but this is not how it really works.

To be a successful long-term trader you will need proper market education, practice, application, and persistence. The foreign exchange market, or forex market, is the most traded financial market in the world. The forex market is a global marketplace where financial institutions, banks, and investors can speculate on currencies. The forex is a decentralized market as all trading is done online, known as over-the-counter OTC trading. Foreign exchange is the process of exchanging one currency with another.

This is a common financial process that can be performed for commercial or trading purposes. Forex trading is the speculation on currency prices for potential profits. Since forex trading is primarily exchanging one currency for another, currencies in the forex market are traded in pairs. The currency pair is a quotation for one currency against the other; known as quote currency and base currency.

Currency pairs are affected by different fundamental and technical factors that affect the exchange rate. These factors include economic policies, political stability, trade flows, and of course the changes in supply and demand.

Currency pairs use the abbreviation of currency and country names. Understanding the pricing and quotation for currency pairs is very essential in forex trading. Currencies are defined as the base currency and secondary quote currency. The base currency is the first currency in a currency pair. Also known as the transaction currency. The quote currency is the currency being used to pay for the transaction, and it is also known as the counter currency or secondary currency.

This explains why currencies are traded in pairs. If the price of the pair is 1. The eight most traded currencies in the forex market are the US dollar USD , the euro EUR , the British pound GBP , the Japanese yen JPY , the Canadian dollar CAD , the Australian dollar AUD , the Swiss franc CHF , and the Chinese Yuan CNY , according to the BIS survey in Forex trading is based essentially on the idea of anticipating the future price of the currencies.

To predict future market directions, traders use two main types of analysis to predict market movements. These are technical analysis and fundamental analysis. As a forex trader, you can rely on one or both of them to predict the market. Technical analysis is based on the study of historical price action in order to identify price patterns and predict the future movements in the forex market through the use of technical indicators and historic price patterns.

The main tool for technical analysis is the price chart through which traders interpret price patterns. That is why it is widely seen by novice traders as an easier approach to analyze the market. Learning the basics of forex technical analysis and tools can be sufficient to start trading. Once you understand the main concepts of technical analysis, you can apply them to any market, which makes it a flexible analytical tool.

Check more about Forex Charts and how to read them. Fundamental analysis , on the other hand, is evaluating the price of a currency and assessing the factors that could influence its value in the future, including external influences, as well as financial statements and economic trends. While fundamental analysis analyzes the fundamental and economic factors, technical analysis tends to identify price trends, which conveniently can be caused by the underlying fundamentals.

The Forex broker is an intermediary entity between retail traders and the forex market or the interbank system, in which major banks trade with each other.

The broker provides financial services to facilitate the process of buying and selling foreign currencies for retail traders. Clients of a forex broker may also include large financial institutions that trade on behalf of retail customers and investment banks. Take your time searching for a reliable forex broker so your money and trades will be handled appropriately. The main features of a reliable broker include efficient customer support, real-time market execution, suitable trading conditions, a wide selection of account types that suits different traders depending on their financial capabilities, providing advanced software for successful trading, secure and fast money depositing and withdrawal, competitive spreads and finally but not least is offering multiple trading options with various currency pairs.

You have to choose a regulated forex broker, which keeps you safe from scams and frauds. AximTrade Regulation guarantees accountability and transparency that protects the interests of our traders. Nowadays, advanced trading platforms have transformed the overall trading process, making it easier and more accessible. AximTrade, recognized as the best broker, offers its award-winning Metatrader 4 MT4 trading platform for an outstanding trading experience.

MetaTrader 4 has a very user-friendly interface, which enables new and experienced traders to trade with ease and comfort. Traders of all levels find this Forex platform easy to use. You can download the MT4 platform for your home computer, tablet, and phone. The MetaTrader 4 platform offers real-time access to market prices and liquidity. Traders are able to view all details including spread, contract size, margin currency, and margin percentage.

MT4 provides extensive tools for price analysis with a set of in-built technical indicators and charting tools. Know how to Download AximTrade MetaTrader 4. There are many ways to learn forex trading, they can either be free or paid. Forex trading is based on the ability to understand trends and spotting opportunities in the market. Therefore, the main step to learn forex trading is to believe in self-education and to be patient with your progress.

Staying up to date with the key forex terms and what they really mean is very helpful. By educating yourself, you can better manage your risk, trade profitably, and set yourself up for success in your new investment. Check our detailed guide for beginners on how to learn forex trading. A forex account is used to trade foreign currencies.

Typically, you open a forex account , deposit money and then buy and sell currency pairs. Opening a forex trading account is a quite simple process these days given the growth of online forex trading. It requires some paperwork and few security steps, such as identity verification, and all can be done online. AximTrade offers a variety of options when it comes to forex accounts. Traders can choose the best account type based on their trading strategy, experience, and capital designed for investment.

Choices include Standard, Cent, or ECN trading account. All AximTrade accounts offer negative balance protection with a low spread from zero to 1 pip on all majors. Any trader can hold up to 14 active trading accounts.

You are allowed up to 7 Standard Accounts, 2 Cent accounts, and 5 ECN accounts per Active Member Area. The key to establishing your investment journey in the markets of foreign currency exchange is to choose the forex broker wisely and define the trading conditions that match your investment portfolio. Make sure to choose a reliable broker which is trustworthy, offers tools, forex leverage, and account requirements that match your trading style. AximTrade is the Title Partner of Porsche and Carrera Cup Asia PCCA and the winner of the best trading platform in Asia from the Global Forex Awards in Discover more about forex investing and trading opportunities of over 49 financial instruments at the official website.

Inflation has become the leading concern for global citizens in , and it is no surprise that investors, and asset owners, also share this concern. CNBC reports that the consumer price index, a key inflation FTX bankruptcy took over the headlines adding to the crypto turmoil since the beginning of the year. Centralized crypto exchanges have recently become a hot talking point among mainstream crypto advocates for various reasons. Hence, it is no wonder that so much attention is paid to the advent of new financial technologies, aka Facebook Twitter Reddit Email LinkedIn WhatsApp.

Contents hide. JOIN AXIMTRADE. Learn Forex Online Learn Forex Trading For Beginners. What is Forex Welcome Bonus and How to Benefit from Forex Bonus? Hawkish and Dovish: Stances of Central Banks that Affect your Trading. You may also like. November 22, November 18, November 17, AximDaily is considered a marketing publication and does not constitute investment advice or research.

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You aknowledge the full scope of risks entailed in trading as per our full Risk Disclaimer You acknowledge and agree that the financial information provided to easyMarkets, is for AML and CTF Compliance purposes only and that easyMarkets will not take into consideration this information in respect to any personal financial advice that may be offered during the business relationship. Thank you We will look over your message and get back to you soon. If they pass all these tests, then you can consider trading with them. No downloads are necessary, just login and check the condition of the forex market. From the very beginning we have strived to offer our clients the most innovative products, tools and services. easyMarkets offers trading without slippage on its proprietary platforms. Chat now!

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