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Tech Analysis : USD/CHF
Tech Analysis : USD/CAD
Tutorial : What is Cross Currency?
Tutorial : What is PIP?
Tutorial : What is Forex Trading?
Tutorial : What are Currency Values?
Tutorial : What is Bid price and Ask price?
Tutorial : What is Spread?
Tutorial : How to get started?
Tutorial : What are the types of Orders?
Tutorial : What is Lot size?
Tutorial : What is Long and Short trade?
Tutorial : What is Leverage?
Tutorial : What is Margin Balance?
Tutorial : What is Rollover?
Tutorial : When do the deals liquidate?
Tutorial : How to analyze forex market?
Tutorial : What are Forex Signal Services?
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Getting Started with Forex
To start trading in foreign exchange market, you need to have an online trading account. There are many websites available online which provide you practice as well as live trading accounts. To get a hang of the trading market, you can start with a practice trading account. It is free. After that you can have a live trading account and transfer funds.
After having made your account you need to buy and sell currencies. These are known as deals. Buying a currency pair means buying the base currency of that pair in exchange for some amount of quote currency. Similarly, selling a currency pair means selling the base currency in exchange for some amount of quote currency. The objective of a forex trader is to maximise his profit buy buying at a lower price and selling higher.
You need to place orders for the deals to take place. The forex orders should be placed properly. An order when executed cannot be undone under any circumstances. When you place an order, you need to close it at some time. The trick lies in closing it at the right time so that you earn maximum profit. We take two instances below:
- Suppose, you buy (long) a currency pair. That is the mean point point for you. Now, you will have to sell (short) it at a higher value than the mean value, else you will incur loss.
- Suppose, you sell (short) a currency pair. The value at which you sell a the base currency is the mean point for you. Now, you will have to buy (long) it at a lower value to make profit. Failing to do so will incurr you loss.
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