What is Forex? Forex is an international online currency market where national and regional currencies are traded such as USD, EUR, GBP, JPY, and other. Day by day, exchange rates of various currencies fluctuate on Forex depending on numerous factors. For example, the exchange rate of the EUR/USD pair can be at 1.2345 at a certain moment, but after some time it may slide to 1.2250.
Forex market participants place trade orders at one price (deal opening) and conduct opposite exchange operations at another price (deal closing). This way, they aim to derive profit from the difference in rates.
How to start trading on Forex?
Open a demo account and trade in real conditions with no fear and risks. If you do not want to study theory and read books, then you can accumulate knowledge, experience, and skills in the course of trading on a DEMO account.
No matter how many advantages a demo account has, trading on it does not bring you real money. If you are confident in your trading skills and understand how the market functions, you may be ready to start trading with real funds. Using minimum deposits in your first transactions, you can control risk in real trading.
If you have learned to trade and profit from the difference in rates, the next step in your evolution is professional trading using strategies, advisors, and indicators. Moreover, you can get commissions for providing your deals for copying to other traders within the ForexCopy system.
Should I wait for high and rapid returns? "No!" and "Not rapid" - these are the two only possible answers to both questions. Of course, there were cases when beginners scooped a large profit following the first deals. But these are isolated cases and there is no point in hoping for immediate success. Foreign exchange trading can be fascinating, lively, and even hazardous, but it is also hard work. One needs to exercise patience and endeavour to work hard and learn continuously in order to achieve profits. Patience can ensure that you gain the required experience, while hard work can help you acquire knowledge and test dozens of strategies and trading methods. However, trading Forex is not alchemy but a completely independent mathematically behavioral undertaking that is governed by its own rules, that every patient and industrious trader can take advantage of. Industry and application are rewarded in any job and that of a trader is no different.
Can I trade on Forex without risk and investment? Yes, you can, but only using a DEMO account. Indeed, any participation in a particular financial market involves investment and risk. However, in the foreign exchange market, the amount of investment, the level of risk, and the moment of its occurrence depends only on you. You are able to trade with just one dollar or a few cents.
What are the types of accounts and how do they differ?
Standard is the most popular account offering standard trading conditions without fees but with a fixed spread per deal. Here, it is possible to start trading with any deposit size and request a lower leverage if necessary.
Eurica implies trading without spreads, due to which the BID price is always equal to the ASK price. This account type is suitable for beginning traders. All pending orders are executed exactly when the price reaches the values.