Yeab! In my last post on GETTING STARTED WITH FX TRADING, i stopped at amount required to start with. i said $100 for mini account and $1000 for standard account although this depends on the broker. i think majority of the broker are coming down to the level of accepting retail clients.
The amount of leverage using borrowed money varies with accounts. High leverage gives more money to trade for a given investment. However, newbies in forex trading are advised to acquited to Forex by doing paper trades ( demo trading) for a period of time. Demo trading practice transactions that don't involve real capital(money). They allow you to see how the systems works while learning how to use the various software tools that are provided by most Forex brokers
Most online brokers have demo accounts that allow newbie to make free paper trades for up to 30 days. Every new forex investor is advised to use these demo accounts for at least 3 months and they are experiencing consistently steady profits before they try live trading.
Each broker has their own set of softwares tools to help in making transactions, but there are a few tools that are common to all Forex brokers such as real time quotes, news feeds, technical analyses and charts and profit and loss analyses.
Nearly every broker operates on the internet. To have access to their services you should you have a reasonably modern computer, a fast internet connection, and an up-to-date operating system such as window XP and all that.Once your account is set up, you can access it from any computer.
Trades are commission free, meaning that you can make many trades without without worrying about incurring high brokerage fees. Broker make their money on the "SPREAD" (difference between bid and ask price)
Fx trading is all about buying and selling currencies online. As you are buying one currency automatically you are selling the other. Lets take for example, you pair EUR/USD assuming the action taking is to buy EURO, automatically you re selling US DOLLARS. Meaning EUR is the "base currency while USD is the counter currency. If EUR
appreciates after buying, you sell it off to make your money and buy USD vice versa.
I understand that at this junction, it might be getting confusing. Don't worry in my
next post by God grace i will explain better to the extent that i will touch the two
basic approaches to forex trading. Till then enjoy......
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