Learn Trading From The Basics

Forex or 'foreign exchange' is the trading of foreign currencies with the aim of making a profit. Learning forex aims to know the ins and outs of foreign exchange or what is popularly known as foreign exchange alias foreign exchange. The forex market has two characteristics that distinguish it from the stock market. Here's the explanation:

  • Over the come (OTC) is a transaction that is only carried out by two parties, namely the investor or trader with the broker. In the stock exchange, transactions are carried out by three parties, namely investors, brokers and stock exchanges.
  • There is no exchange of goods where forex traders only see the price difference. This is different from a stock exchange, which buys shares to be deposited in a custodial bank.

HOW TRADING WORKS

Here's what traders know about how forex trading works:

Pair or Currency Pair

In the world of forex, the price that becomes the benchmark is the exchange rate of a pair of currencies. The term is called a pair. So, there must be a currency exchange rate pair that is a trading reference. Currently, there are 47 currency pairs from various countries around the world in the forex market.

Open Buy and Open Sell

Open buy and open sell positions are actually when the trader expects one of the currency pairs to strengthen and the other to weaken. Of course, this aims to predict the benefits that will be obtained.

Pips for Trader's Reference

In the world of forex, price movements are called PIPs. This PIP is an important reference that traders must understand. PIP is one of the main things in calculating profits and losses in trading. PIP refers to four decimal places behind the comma of the exchange rate.

BENEFITS AND RISK

Trading Advantage

  • Here are the potential advantages of trading:
  • Can start with limited capital because there is leverage
  • Can be done from anywhere and anytime (online from the market 24 hours x 5 days open)
  • Practical with auto trading features
  • Relatively low cost
  • Provide additional income

Trading Risk

Here are some things that are forex risks and traders need to be aware of:

  • Tempted by leverage or the facilities provided by the broker
  • Choose the wrong broker, it could be unregistered and illegal
  • Currency volatility



More info:
Free soft copy material by contacting 081 258 066 174 Whatsapp/call
Private info / paid premium class (guided forever until get consistent profit and independent). Whatsapp/call 081 233 593 672 or direct access to our Website www.wijayatrading.com

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