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The best answer to this question is given in the article on our website, which you can read by clicking the link. After reading it, you can get an objective and comprehensive view of the Forex market and how a common man can earn with its help.
First you need to choose the right intermediary. Having defined the basic selection criteria, it will be easy for you to select a company from our Forex broker rating; then you can register your first demo or real account and download the trading platform; it takes less than 5 minutes.
Forex has no owners; it is an international interbank market where all trade transactions are carried out by special intermediaries (brokers) that connect buyers and sellers all over the world at any time of day. Forex is not directly dependent on any government or state, so it will exist without disruptions as long as global banking system lasts.
Since Forex has no geographical references, trading takes place 5 days a week, starting from the Pacific at 22:00 (GMT) on Sunday until 22:00 (GMT) on Friday up to the time of closure of the US trading session.
Margin is a level of hypothecary that the trader is required to have on his or her account to ensure the possibility of performing transactions using leverage. All brokers may have different requirements for the minimum amount of margin funds, so this point deserves special attention when choosing a broker.
There is a theory that in the long term all currency instruments grow, therefore traders call purchase transactions long. In contrast, sell transactions cannot be profitable in the long run, allowing you to make money only in the short term. Hence the name for sale positions – short.
Unfortunately, such strategies do not exist. Each strategy allows for damages, so one needs to aim for a positive outcome in the long term, assuming the risk of loss at a certain percentage of all completed trade deals. Because of this, every trading strategy should be first checked using a training demo account; once you are convinced of its efficiency, you may start working with real funds.
Today, brokers let you start trading on Forex with $ 1; however, for serious work you will need $ 100 on your cent account, $ 1000 on your dollar account and $ 100,000 for work in the so-called interbank market. Smaller amounts do not allow efficiently using the risk management to obtain significant income.
In some cases, the installation of software (SW) can be associated with certain technical problems or PC user’s unwillingness to download additional software. Specifically for this, there are web-platforms developed by individual brokers; with their help traders can make transactions from any place that has Internet connection.
It must be remembered that price of each currency pair being traded is affected by a variety of factors. In addition to the release of important macroeconomic indicators, the so-called crowd psychology, comments on the news release by key figures on the macroeconomic scene and so on may be very important points. All these can amortize the momentum of the released indicator, so you cannot always be sure of the possibility of obtaining profit at the publication of important news.
Interaction scheme between the broker and the trader completely rules out the possibility of trader owing to the broker due to a failure. Under any circumstances trader only risks his or her own capital, although the broker entrusts the most of his or her own money to the trader at a high leverage.