How to Trade Forex?

What Exactly Is Forex?

Well, Forex can be defined as the foreign exchange, current trading, or FX. It is basically a decentralized market that is spread all over the world and includes all the currencies trade that happens in the world. There is no doubt about the fact that the market of Forex trading and exchange is one of the most liquid and largest markets in the world. The volume of daily trading when it comes to Forex is about $5 trillion. With the help of my piece of writing, you will be able to take a very closer look at the different aspects of Forex buying and selling.

Steps to Begin A Forex Trader

1. Understand the Lingo

A firm grasp of the most commonly-used forex lingo will make your entry into the market much simpler. Some words and phrases you’ll hear over and over again include:

• Base currency: The currency you are holding. If you’re from the United States, your base currency is most likely the U.S. dollar.
• Quote currency: The currency you are going to purchase.
• Bid price: The price that your broker would be willing to “bid” or “buy” the base currency you are holding.
• Ask price: The price that your broker will “ask” you for in exchange for buying your quote currency of choice. The ask price is always higher than the bid price.
• Spread: The difference between the bid price and the ask price. This is just the broker’s commission.
• Pip: The smallest measurable value of currency movement. The word “pip” is an acronym standing for “percentage in point,” and a single pip is equal to 1/100th of 1% of your currency. For example, if the value of the USD rises by a single pip, that means it increased in value by $0.0001.

2. Find a good broker

You can do Google searches to find Forex brokers, but this method might not tell you much about the brokers themselves. Make sure to read all the reviews and try demo accounts to make sure you’re comfortable with a broker before committing a large sum of money to an account.
Recommended Forex Broker for Beginners: LiveTrade — One of the reputable forex brokers in the U.S where you can trade forex with crypto.

3. Analyze the world economy

Making money trading currencies is all about accurately predicting the movement of the global economy. To be a profitable trader, you must convert your base currency into a quote currency set to rise in value, then convert your quote currency back to your base currency when the value peaks.
Research the trading positions, GDPs and political climates of countries you are interested in purchasing currency from, and you’ll get a great “lead” on which quote currency is worth your investment and which countries have economies projected for growth. This customizable widget from TradingView is a great starting point.

4. Make your first trade

Once you’ve decided which quote currency you’re going to buy, it’s time to place an order for your first trade. Your brokerage firm probably provides an online trading software that allows you to place an order to buy or sell a currency. Using your trading platform, place a market order with your broker. The specifics of your platform may vary.
After you’ve finished placing your order, sit back and let your broker handle the rest.

Conclusion
Before getting started, you should do research to get to know risks associated with forex trading. Choose the right broker to gain more benefits!