Forex education during the fiscal year 2020
The foreign exchange market also known as Forex is a virtual marketplace for trading global currencies and with a trade surplus of $4.9
trillion per day, it is the world’s largest fiscal marketplace. The implication of this is that more people around the world are engaging in Forex trading.
Forex trading, however, can be a little overwhelming, and a high percentage of traders lose money in the process. Hence either as a beginner or an experienced forex trader, you must know the fundamentals and be conversant with the trends of forex trading.
If you’re wondering where you can get such, we have got you covered. Here are the tips to point you in the right direction and give you the necessary forex education you need. First off, what are the basics? What do you need to know before you begin, read on!
Currency Trading
This simply refers to the exchange of foreign currencies, which is the rate at which one currency will be exchanged for another. Some of the major countries that make up the trade in the currency market include:
- Australia
- Canada
- Switzerland
- United States
- Japan
- New Zealand
- Eurozone
- United Kingdom
A Trader
A forex trader is someone who manages currencies either as an independent trader, trading on a personal account, or a professional on behalf of a client.
The independent trader trades on a personal account, funded with personal funds, with trades mostly done through online trading platforms. While a professional trader known as brokers, mostly brokerage firms make trades on the client’s behalf, and also offer a variety of additional financial services. Some U.S.-regulated forex brokers include:
TD Ameritrade
FOREX.com
IG
Terms
used in Forex trading
The following are common terms used in forex trading:
Exchange Rate: The rate at which you trade one currency for another.
Base currency: This is the currency with you.
Quote currency: The quote currency is what you will need to buy
Bid price: The price that your broker would want to “bid” or “buy.”
Ask price: The asking price is the price your broker will request for in exchange for purchasing your preferred quote currency.
Spread: The difference between the ask price and bid price. It is also known as the broker’s commission.
You need to know the rules and evaluate the market before going deeper. To help you, here are some forex tips to assist you through your trading journey.
Check reviews and testimonials before choosing a broker
Create an action plan
To yield good results, you need to practice consistently
learn to take risks
Study recent tricks and strategies of trading. Don’t forget to take breaks too.
Always plan ahead
Understand the charts
Dont over trade. Choose the maximum amount of trades to do each day or week.
Don’t be greedy
Employ Stop-Losses
Experiment with new things to improve your trading
Forex regulations
In the US, the Commodity Futures
Trading Commission (CFTC) and theNational
Futures Association (NFA) are bodies that regulate the forex market. Governed by the Dodd-Frank Act of 2010. They guide
and enforce forex trading laws in America, as all Forex broker operational in America are registered with them.
Closing Thoughts
A great way to launch into the world of Forex is to take a course in Forex
trading. There are tons of courses available online today. These courses come with great packages, and they can help you become a successful forex trader.
