Online Trading is buying and selling of currencies (FOREX), Stocks, Commodities, Indices via Contract For Difference (CFD) through the use of an online retail broker's trading platform.
Forex Trading is a very lucrative business Idea to dive into when you knows the ins outs of forex Trading market. Which is why we are here to explain.
Requirements: A smartphone and internet connection.
To get started easily, get registered to a very reliable Forex broker such as OctaFx(offers 50% discount on deposit, quick deposit and withdrawal, can start with $5 upward) , then open a real account to start with and also a Demo account for practice because Trading Forex has risks.
Foreign Exchange is the most cost effective market for retail market investors. Online Forex Trading has become popular in the past decade because it offers traders several advantages.
When one currency declines (depreciate or fall), there's always another currency with a rising value regardless of the market conditions.
In short you are able to make money regardless of whether the market is trending up or Down.
How to start a Forex trading
Making the first step in foreign exchange market is often the most difficult part as everything is completely new and unknown.
One of the most important step is to choose the right broker ( they are the interface between you and the trillion dollars liquidity Forex market).
Basics
*Pairs - For Beginners start Trading the most common currency pairs. Although there are many traders who trade other types of pairs easily and successfully.
Major pairs
USD/JPY (US Dollar /Japanese Yen)
EUR/USD (Euro / US Dollar)
GBP/USD (Great Britain Pound / US Dollar)
USD/CHF (US Dollar / Swiss Franc)
USD/CAD (US Dollar / Canadian Dollar)
*Pip - price interest point , it's the smallest change in currency pair. Calculated in 4th decimal place. E.g EUR/USD 1207[4] , 4 is the pip.
*Spread - This is the difference between the buying price and selling price. E.g USD/JPY
Selling price (bid) Buying price (ask)
102.400. 102.407
Spread = 7
The smaller the spread, the more liquid the currency, the higher the liquidity of a currency, the lower the spread.
Trading Examples
OPENING A POSITION
EUR/USD - Buy ( 102.3200)
When the trend moves in your favor, close at ( 102.3500)
THE PROFIT
102.3500 - 102.3200 = 300 (30pips)
When the trend moves against you ( 102.3000)
THE LOSS
102.3200 - 102.3500 = -300
BENEFITS OF ONLINE TRADING
* Control Over Your Own Finances
* It's time cost and effective
* Flexibility: Trade anywhere and anytime 24/5
* Trading with more than you have
*Forex Never Sleeps 24/4
*Go long or short (i.e buy or sell)
*Low spread cost
