HOW TO TRADE FOREX ONLINE?
We are going to elaborate the cons and pros of how to trade Forex online, most people confuse trading online as an investment form, trading online is not investment and it is a leverage product that carries a substantial risk of loss up to the money you have deposited or transferred. Trading Forex online may make you great and also it may break you repeatedly, so it is not always suitable for every trader or everyone. However most registered Forex brokers always warn people not to trade with what they cannot afford to lose.
What is online Forex trading?
Online Forex trading is an online foreign exchange of currencies where there is no physical contact but everything is done through the networking of computers. What is exactly meant by this statement? You open a Forex trading account with the registered Forex broker that you have met online, not in town or in any office. Your objective means that you are going to trade currencies using the following devices:
- Smart phones
Online Forex trading is very flexible and is the most exciting market where people enjoy the exchange of currencies; they can buy and sell any currency they like over time.
What is the reason for online Forex trading?
Most people engage themselves in an online Forex trading with one reason which is trading currencies to make profit; with this action they will be trading one currency against the other, they are always being exposed on trading both the majors and minor currencies and other different markets. Currencies are always traded in pairs, there are four currencies that dominate the market and are called majors , they are traded against the USD, they always say Dollar is king and it controls the whole world, the major currencies are ( EUR/USD ) , (GPB/USD) , (CHF/USD) , (JPY/USD) . The major currencies are very liquid and that’s why traders prefer trading them to make profit.
How to open an online Forex trading account?
It is very easy to open an online Forex trading account; it can only take you few minutes. There are companies that are willing to formulate all transactions for you and are known as Forex brokers, they are the middle man whom you will use, they will give you permission to use their Forex online program, and they benefit from the spreads every time you open a trade in your account. On your registration process they will ask you to complete a form, the form will be having questions like your personal details including your banking details as the method of funding your online account, on completing the form you will then be given your user name and password. Every time you want to access your account you will use these credentials to login.
How to fund your online Forex trading account?
In most cases you are the one who will be directing your Forex broker to put your money in your trading account, in fact as soon as you give the command to debit your bank account then your Forex trading account will be credited with immediate effect, you will be able to trade any currencies you may like to trade including trading the cross currencies. You will always manage all this transaction online or via the phone, and all funding will reflect to your online Forex trading account.
How to withdraw money from your online Forex trading account?
The very same method you used to deposit or fund your online account is the same method you will use to withdraw funds, you will always be given these options to your trading account and you will have a complete control of your funds movements.
Can I make money with online trading?
Forex trading needs a great patient if you want to make money, with lot of patient you can build your account very slow until you accumulate the amount you need, but this has to be done with caution especial if you will be using leverages. Leverages may help you make huge amounts with small deposited funds and also it may finish your deposited funds very quick.
When can I trade?
The Forex market is open 24 hours, it does not sleep, meaning you can take advantage trading day and night, however on weekends is closed.
Online Forex trading may be a quick way to create your fortune and also it may be a quick way to take what you have in your pocket. It is advisable to get more knowledge before you start trading, lot of study will bring perfection to your trading’s, you will have a lot of understand especially since there is money involved,