Many traders start off with retail trading or stock trading, and once they move to Forex trading, they're left with a burning curiosity. Delving into Forex without knowing some basics might prove to be costly. The currency markets are one of the most volatile trade markets in the world, and you will without a doubt need to be knowledgeable if you want to profit as a currency trader. With the internet taking over, many people have started online trading and many more are moving towards the Forex markets.
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| Forex Trading Strategies |
Here are 4 Forex trading questions most inquisitive traders have:
1) What Makes Forex Trading Different?
Forex trading is the most liquid market in the world, and also one of the most risky trading domains. It is decentralized and there's no universal governing body. There are financial authorities like the NFA and CFTC that protect traders and trades, but there is no hierarchy. Trades are made on the basis of mutual trust! Similarly, there are no financial limits to hinder you. If you want to invest a million dollars on EUR/USD, you're free to do so.
2) What Is A Pip?
Pip stands for percentage in point, and it is used to denote the smallest price value increment in Forex. A simple comparison would be - a packet of chips is priced at $2.50, in pips it will be denoted as 2.5000.
3) Are Currencies Physically Bought?
Forex is a speculative trading market. You will have to employ a trading platform and put capital in your trading account, to begin with. Hereon, everything happens online. There is no physical purchase or transfer of currencies. With online trading in the game now, you can trade from anywhere in the world, and anytime - since Forex trading markets are open 24 hours! With a trading account and enough capital, you can get started easily. To make things easier, choose from the list of top Forex Brokers in South Africa to aid you in your quest!
4) What Are The Most-Traded Currencies?
The major pairs are the ones most traded, and all of them have the USD as one currency:
1) EUR/USD
2) USD/JPY
3) GBP/USD
4) USD/CHF
These currency pairs make up for 85% of the overall liquidity seen in Forex markets.
This should get any novice up and running in no time! All that's left is getting a demo platform, learning the essentials and moving to profitable trades. Sign up with one of the best Forex Trading brokers - WesternFX, and take to the skies! Assisted by our veteran traders, you'll be able to catch profitable trends swiftly and ride them to victory. Call us today to know more!
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