How To Learn Forex From Scratch Especially For Beginners
How To Learn Forex From Scratch Especially For Beginners - Learning forex trading is the most important thing for beginners who want to pursue forex trading
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Forex trading can provide lucrative profits, but the risk that you bear is no less big so you need to know the tactics of trading. Therefore you need to know how to learn forex from scratch in order to generate profit coffers.
Introduction to Forex
Forex is an abbreviation of Foreign Exchange. Forex is the activity of selling and buying foreign currencies and exchanging foreign currencies. Forex is also the largest financial market in the world.
According to a report from the Bank for National Settlement reported by Cnbs Indonesia, the number of transactions in the forex market reached 5.1 trillion US dollars in 2016. Forex transactions occur because there is a need to have foreign currency such as for shopping for goods originating from abroad. , travel abroad and so forth. In addition to the things mentioned above, some people make forex transactions as a way to make a profit.
The parties who carry out forex trading will buy a certain amount of currency with the aim of getting the difference in profit. Forex players aka forex traders are usually people who are quite experienced in the forex field and they also always pay attention to what factors can affect the ups and downs of currencies in the world.
You can do forex transactions or trading activities anytime within 24 hours non-stop, from Monday to Friday. This makes you flexible to choose when you will trade.
However, the risk of forex trading is very high but it is proportional to the profit you get. Therefore you need to learn first before trading.
In the forex market, you will not find physical transactions. Transactions are carried out using the internet so that no physical currency moves from one trader to another. Forex trading activities are carried out using software and a trader acts as a seller as well as a buyer.
How does Forex Trading Work?
A forex transaction that is carried out is described like this. A trader buys and sells at the same time, or buys continuously in one currency only while selling in another.
In order to be able to make transactions or forex trading, you must use a service called a broker and make sure the broker you will choose has official permission to make it more secure and accountable.
Before trading, you need to register and open an account through a broker forex and then after that you will get a username and password. This username and password is used to login and trade forex.
For beginners who want to trade, it is highly recommended to do so accompanied by a mentor or experienced person, especially when you want to trade using large funds because the risk of loss can be very high.
For those who are learning forex from scratch, you should pay attention to the following things when you want to make a transaction or trade, including:
- You must choose the right and trustworthy broker. The role of the broker is not only limited to being an intermediary, but the broker also acts as a provider of other important facilities such as security facilities, transaction facilities, separate accounts and so on. In addition, the role of other brokers is as an informant for traders to be able to conduct market analysis.
- In the forex market, forex transactions occur because there are fluctuations or fluctuations in foreign exchange rates caused by several reasons, such as economic ups and downs in large countries and other reasons. This will result in the concept of supply and demand.
- Forex has the principle of simultaneous buying of one currency and selling of another currency. Both currencies are used for transaction facilities or in other words traded simultaneously.