How to start forex trading

1. 7 Ultimate Benefits of Forex Trading The forex market is the largest liquidity market in the world that makes over a trillion dollars of revenue every day. The market offers large scope for both retail traders and amateur traders to earn significant profits. Forex trading is carried out in all parts of the world. The major financial centres of forex are located in New York, Tokyo, London, and Hong Kong. Forex trading is centred on the speculation of currency pairs. EUR/USD, GBP/USD, USD/JPY, and USD/CHF are the most popular and widely traded currency pairs. These currency pairs are known for benefiting the traders with good profits. There are also minor and exotic currency pairs, which are less prominent than major currency pairs, but still traded in different market circumstances. Despite the volatility of the forex market, the easy accessibility of the market makes it suitable for beginners and newbies. If you have made up your mind to engage in forex trading, ensure it is the right fit for you. Before you learn how to start forex trading, know the pros and cons of currency trading and analyze the nature of the forex market. To start with, here are the 7 ultimate benefits of trading forex. 1. High liquidity As we mentioned earlier, the high liquidity of the forex market is one of its unique advantages. This advantage is absent in other types of trading. Because of the continuous and large volume of trades carried out by millions of traders across the world, the forex market always has high liquidity. High liquidity means low risks in trading. A trader can easily buy and sell currency pairs without any impact on their values. 2. Accessible 24 hours a day The forex market functions 24 hours a day. Trading takes place throughout the day without any breaks. The market functions all weekdays. The market will not function on weekends. Despite the non-functioning of the market on weekends, the currency pair price will keep moving and changing. A trader has to keep this in mind and plan trade strategies accordingly to manage potential profits and losses. 3. Unpredictability of the market The forex market is highly volatile - meaning ‘unpredictable’. The prices of currency pairs can go up or down anytime based on the market scenario. This invites both unforeseen profits and losses. Therefore, the trader has to be proactive and keep monitoring the price fluctuations regularly to get the best advantage out of it. A little development in the economic world can have a major impact on the market. Traders

2. should come up with wise strategies to manage profits and losses during market volatility. 4. Affordable transaction costs The best part about forex trading is the low transaction costs. This makes forex trading a great option for beginners who start trades with low investments. The trader has to mostly pay only the commission fee to the forex broker. This commission fee is the spread charge the broker asks for each trade. Spread is the difference in amount between the ask and bid price. The spread amount is measured in pips or points in per cent. 5. Leverage from broker Leverage is one of the best advantages in forex trading. If a trader wishes to open a high position, but has only less money, he can utilize the leverage option and borrow money from the broker. He can use this borrowed money to open a high position and earn favorable profits, from which he can repay the borrowed money to the forex broker. The leverage amount is represented by the ratio. Example: If 1:20 is the ratio, then the trader’s leverage is 20 times the amount he invested in the trade. Leverage can be both profitable and risky. Using the leverage profitably can result in high profits, whereas if the trade ends up negatively, it can push the trader into debt. 6. Regulated & no central authority Only external factors like the economy influence the prices of currency pairs. There is no central authority to manage forex trading. The buying, selling, and execution of trades are facilitated by the forex brokers in each country. There is no middleman to meddle with the trading activities. However, forex trading is regulated by independent bodies in all countries. 7. User-friendly technology Forex trading can be carried out via web, desktop or even mobile applications. Most trading platforms are user-friendly and easy to navigate. The beginners will require initial assistance and forex education before starting to trade. Forex education will help the newbies learn how to start trade forex with 100 $. With consistent practice, an individual can easily understand trade mechanisms and techniques. Numerous software and trade apps are there to facilitate trade as per the traders’ preferences. Experience, skills, practice, and consistent learning can help one become a successful trader. There is no denying the fact that risks are going to happen no matter how skilled

3. a trader you are! Learn from the mistakes and do not repeat them. Stay updated on market trends, follow economic news and know the importance of risk and money management tools in forex trading to prevent potential risks.