Basics of Forex Trading

Forex Trading – Introduction

Forex Market is an exciting place. The one good thing about entering into the forex market is that you can trade anytime as per your convenience.

The global Foreign exchange market (‘FX’, ‘Forex’ or ‘FOREX’) is the largest market in the world as measured by the daily turnover with more than US$5 trillion a day eclipsing the combined turnover of the world’s stock and bond markets. The forex market measuring a propelling turnover is one of the many reasons why so many private investors and individual traders have entered the market. The investors have discovered several advantages many of which are not available in the other markets. As a beginner trading in the Forex market you don’t have to know and understand every single strategy and system, but you do have to understand some core fundamentals. In this trading guide we go through exactly what you need to know as a beginner in the Forex market to start trading and how you can get started step by step.

What is Forex?

Forex (in simple terms, currency) is also called the foreign exchange, FX or currency trading. It is a decentralized global market where all the world’s currencies trade with each other. It is the largest liquid market in the world. The liquidity (more buyers and sellers) and competitive pricing (the spread is very small between bid and ask price) available in this marked are great. With the irregularity in the performance in other markets, the growth of forex trading, investing and management is in upward trajectory. 

When Forex trading you have the ability to make a profit when price both rises and falls. Not only can you make profit by buying and going long, but you can also make money from going short and selling.

This is just one of the reasons that the Forex markets are so attractive to traders who want to trade from their homes. 

As a Forex trader you will have the ability to; 

• Trade a market that is open 24 hours a day and 5 days a week. 
• Use leverage to trade large positions with a small investment.
• Find and trade many different setups as there are many different Forex pairs.
• Use the most advanced charts and best trading platforms in the world.
• Trade a market that is making large moves and offering a lot of potential to make profits.
• Trade with many different strategies and systems. 

The Forex markets are open 24 hours a day and 5 days a week. This gives you a lot of trading opportunities. You have the ability to use many different strategies and you can access some of the most advanced charting equipment in the world for free. 

The Foreign exchange market is traded by many different participants. A lot of these traders are just like you who are looking to make profits when price makes smaller moves higher and lower. Others trading the markets are trading companies, banks, professional traders and even world governments. 

How to Learn Forex Trading Step by Step 

The three main steps to start Forex trading are as follows: 

•  Open a trading account. 
•  Learn the basics and fundamentals. 
•  Learn a strategy to find trades.

Open a Trading Account

Opening a trading account with a reputable Forex broker who will offer you the best trading charts is very straightforward. 

You can open a free trading account here with Best Forex Broker in India.

Learn the Basics and Fundamentals 

This step is crucial and you want to make sure you know all the basics of how to place and manage your trades before ever risking any of your real money. 

Learn a Strategy to Find Trades 

If you are going to be a profitable Forex trader who makes serious money from the markets, then just understanding the basics will not be enough. You will need to have a trading strategy and system that you can use to find and manage your trades.