If you are just starting in the world of trading the first thing you need to know is that it is the Forex. Forex refers to the words english foreign exchange, which in Spanish would be the type of currency exchange. Forex Trading The first thing you have to do is open an account with a broker. If you want to go on the fast track and start today with the trading, you can open a real account for free by clicking here.
If you want to go with more calm, in this post we will learn little by little on the mercdado world exchange. The Forex market is the largest in the world with over 2.5 trillion dollars traded each day. The participants in this market are central banks, commercial banks, companies, institutional investors, hedge funds, and private investors. Therefore, in spite of being a huge market, in which the world's largest institutions can also operate small investors and savers. To learn forex we will see: 1. That happens in the market, 2. How to choose a broker. 3. The leverage and the advantages of forex 4. How can you make money with Forex and 5. Strategies
Table of Contents [close]
1 What happens in the market
2 How to choose a broker
3 Leverage: One of the benefits and risks of the forex
4 How can you earn money in forex?
5 Strategies
5.0.1 Conclusion:
That happens in the market
a market is a place where you negotiate and exchange goods and services, and the same thing happens in a normal market as you do the purchase of products for your daily vine, happens in the forex market. In the forex market, goods that are exchanged are the currencies of different countries (dollar, euro, yen, pound…). For example, an investor or a trader could buy british pounds with euros, or sell US dollars for Japanese yen. What is done is to exchange or negotiate a currency with another.
Of course, in this market you don't have to buy or sell physical coins or notes. What is done is trading with the own currency as the basis and negotiate with any other currency pair.
How to choose a broker to
choose a good broker is one of the most important things to operate in forex. There are a number of factors that we must always look to try to make sure that we are before a reliable broker, and that is what we are going to see at this point:
1. Supervisory Entity
It is imperative that the broker has a supervisory entity of a serious country. In Spain is the CNMV, but each country has its own. For example, in the United Kingdom is the FCA, and is very pretigiosa.
2. Guarantee of the funds
we must find a broker that has the customer funds separate from their own. In this way, the broker cannot access the money of the traders for their expenses. In addition, it is also recommended that this registered in a guarantee fund. In this way, if the broker's bankruptcy or have problems to make the money back to their customers, the fund covers a portion. In Spain takes care of this for the fogain.
3. Commissions and Spreads
If we want to win money in forex it is very important that we learn to minimize costs and losses. In the case of the costs, we can do so with brokers don't charge commissions and whose spreads are small.
Among the brokers that meet these conditions we have that for me is the number 1 Plus500, and others that are not bad as Xm or Avatrade.
Leverage: One of the advantages and risks of forex
leverage is one of the advantages of FOREX Trading. What is the leverage? Is the ratio that relates the money invested and the money is actually "post" in the operation. For example, we may use only 100 euros to buy a contract forez with a value of 10,000 euros. In this case, the leverage ratio would be 1:100.
Therefore, leverage can be a great advantage in forex in operations with benefits, however, the risk is much greater than in a stock exchange transaction in which you buy shares without leverage.
How can you make money in forex?
The answer to the hour of forex trading, and to invest in any market or asset is the same, buy low and sell high. Therefore, the trader can take advantage of fluctuations in the exchange rate. However, unlike in stock market investment, where you buy and sell shares in this market are not required to buy the foreign currency as such, but you can buy contracts on the exchange rate between a currency pair.
Therefore, strategies to win money by trading with foreign exchange we have to have a strategy to be able to buy a currency at the right time. Create a strategy is not something easy, but sometimes we can seek help in the broker that offers guides and tutorials to operate. For example, Plus 500 has free videos in which you can learn the basic things to invest in foreign exchange. In this way, you can take the first steps to set your own trading strategies.
Conclusion:
I personally don't like forex trading, there are a number of reasons. On the one hand, I prefer to invest in the shares of companies listed on the Stock Exchange and with good fundamental, that will help me get a return more or less constant, but well above inflation in the long term. By investing in companies, the analysis is more easy. In what refers to the type of change, trends depend very much on the macroenconomia. In addition, they can also intervene the banks doing that, despite having made a correct analysis, everything will go to the truncheon in the blink of an eye.
Having said that, there is no doubt that forex trading has good things, how is that you can earn a lot of money investing a very small amount. However, you can also lose, what constitutes a significant risk.
If you want to start forex trading, you can take advantage of the welcome bonuses of the following brokers:
1. Plus 500 and take you
2 bonus of €25. Avatrade
If you want to know more about Forex, Forex Factoy websites are very good to learn.
In this moment I am a member of at least one of the brokers mentioned, so that I could benefit economically if you register in one.
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