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How to earn money in Forex online?
how to make money in forex, best ways to profit from forex trading, there is no doubt that all people around the world now know forex trading, as those who trade forex achieve many profits in a short period of time, forex trading such as petroleum trading, gold trading, metal trading, trade Gold bars are Bitcoin trading, all these types of trading bring in many profits in a short period of time.
What is Forex Trading?
The Forex market is like any other market, but people here trade currencies instead of goods and services.
What is a Forex Broker?
Anyone can trade Forex, but this is available exclusively through private parties called brokers. In practice, the broker is your "door" to Forex, which enables you to enter the market.
What is a currency pair?
Currencies are traded on the market in pairs - for example, EUR and USD. Do you want to buy euros against the US dollar? Open the EUR / USD position and hit "Buy". Do you want to buy US dollars against the euro? Do the same and choose "Sell". It's simple - just remember that what you do is applied to the first currency of the pair.
How to earn money in Forex?
A person buys a currency pair at a lower price and sells it at a higher price, so income is the difference between the purchase and sale prices. The broker gets a simple commission from your trades, and it is called: spread.
For example:
Suppose you have $ 100 in your trading account, and you want to trade the EUR / USD pair. The exchange rate of the pair: 1.25, and this means that you get 1.25 USD for every 1 euro. The exchange rate is the same as the price tag you find in all stores - the only difference is that the price in Forex changes all the time.
Then, you expect. For example, you think that the euro will rise against the US dollar.
Thus, you buy 80 euros for the $ 100 that you have, and you are waiting for the exchange rate to change.
Suppose it rises from 1.25 to 1.35 - this means that you are in a winning position, and therefore you can close the trade at this point. Now you can spend the 80 euros that you own for $ 108, and thus get a profit of $ 8.
If you think this amount is not worth it, here's the great news: your broker can help you earn a lot of money with a special tool called leverage. Leverage is the amount you borrow from your broker to double your deposit.
For example, if you use 1: 3000 leverage with FBS - it is a deal similar to the one mentioned in our previous example, you will get $ 2,400 from only one deal. That is, you invest $ 100 and trade $ 300,000! Not bad, right?
Just remember: Greater profits involve greater risk, and therefore risk management is an important component of trading!
How do you make expectations?
The last question: How do traders determine the currency pairs they will trade, and when do they buy or sell them?
The exchange rate depends on the supply and demand, which change according to the economic situation of the country (GDP, level of inflation, current status of the labor market, etc.). Therefore, the political, economic and social factors that affect the local economy also affect exchange rates. Knowing how these factors affect profitability is the key to Forex trading.
There are two main tools that help determine the best buying and selling moments.
Fundamental analyzes
It is focused on following economic news in different countries.
For example: If the unemployment rate in Canada decreases, this means that the Canadian dollar will rise. Sell your USD / CAD pair and wait!
January 5, 2018 - Canada's unemployment rate fell, with the US dollar falling against the Canadian dollar from 1.250 to 1.236. Thus, by trading $ 100 with a leverage of 1: 3000, the trader was able to make profits of $ 3398.
Graphical analyzes (technical)
You can use price charts to make predictions - the pattern helps you figure out what to do. Let's examine the simpler and more widespread pattern - the "head and shoulders" pattern.
What are the advantages of the Forex market?
There are many reasons for choosing to trade Forex as a source of making money:
1- High liquidity and mobility. Liquidity means there is a lot of mobile money in this market - over $ 5.3 trillion a day.
As a result, within a split of a second, trades can be opened and closed. Mobility means that exchange rates are usually very mobile, and you can profit by price movement at any time.
2- All trading takes place online. There is no need for a physical website where investors go to trade currencies.
All trading takes place online. You just have to download a special program from the broker's website or use the web trading platform. The trading platform connects you to the current real prices of many currencies.
3- The Forex market is open 24 hours a day, 5 days a week - from Monday morning to Friday evening. You do not have to wait for private trading sessions as in stock trading - trade when you have time!
The main participants in the trading are the local banks, and for this reason the exchange rates are determined from within the market. You can trade within this market or use a Forex broker.
4- The possibility of using the leverage, which allows you to trade in amounts of money that exceed the deposit amount.
For example, if the leverage is 1:50, this means that for every $ 1 you have in your account, you can control $ 50 in the Forex market. Thus, leverage doubles your potential profit. However, you should beware of possible large losses if the price moves in your favor, and this is due to leverage as well.
