Forex Trading Tutorials for Beginners – The development of technology and information makes us have to be ready to adapt, one of which is about the world of trading. Where some people are curious about the world of trading that can generate profits or losses. In this article, we will discuss one of the trades that many people use, namely Forex.
For those of you who are new or beginners, of course, you are still confused. What is Forex Trading? How to Trade Forex? What are the Advantages of Forex Trading?. Of course you are curious about Forex Trading. So, in this article, we will discuss and explain a little about Forex Trading, so for those of you who are beginners, you don’t need to worry about Forex Trading.
What is Forex Trading?
Forex itself is an abbreviation of Foreign Exchange, which means Transactions or trades in the exchange of currencies from one country to the currencies of other countries. Without realizing it, you have done Forex trading yourself, for example, you go abroad or a country, call it America and you come from Indonesia, you must need the currency of that country by exchanging it to a Money Charger with the parable of $1 US Dollar Equivalent to Rp. 14,000. but one time there was news that caused the currency to change its nominal amount with the parable of $1 US dollar to Rp. 15,000, well that’s where the Forex transaction happened.
However, with the passage of time and the development of technology, now Forex trading can be done online. So you can trade Forex online with several applications that are already available.
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How does Forex Trading Work?
Here is a simulation of how Forex Trading works
Forex trading is basically the simultaneous buying of one currency and selling of another. The currency pairs are then traded simultaneously. For example, EUR/USD = 1.23700.
The currency on the left (in this case the Euro) is the base currency, and the currency on the other side is called the quote currency. The notation above shows that 1 unit of the base currency is equal to 1.23700 of the quote currency (1 euro = 1.23700 USD).
That way, you have to pay 1.23700 USD if you want to buy 1 Euro. On the other hand, if you want to sell 1 euro you have, you will get 1.23700 USD.
Forex trading is a foreign currency transaction that is increasingly being chosen as a way to invest. This forex trading involves certain currency pairs as chosen and can be traded according to certain conditions to achieve maximum results.
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Forex Trading Tips For Beginners
The purpose of Forex Trading is to predict or predict the direction of price changes, so that you can profit from the difference between buying and selling values. However, learning Forex Trading is not as easy as imagined, many people who experience losses due to lack of knowledge in terms of Forex Trading. So for beginners in the world of Forex Trading, pay attention to the following tips:
- Beware of Forex under the guise of a Trading Robot
- Understand How Forex Trading Works
- Choose the Right Forex Trading Broker
- Understand Forex Trading Risk Management
- Use Leverage If Trading with Small Capital
- Understand Common Terms Used for Forex Trading
Advantages of Forex Trading
The following will explain the advantages of investing in foreign exchange trading.
- Currency trading transactions tend to be flexible – In fact, currency trading can be done anywhere because of its very flexible nature. Transactions in forex trading can be done through applications provided by online forex brokers.
- Benefit from the difference in exchange rates – The name of investing, definitely want profit. Now, the entry of “salaries” or foreign exchange traders for those of you who plan to trade forex is profit in the form of the difference between the exchange rate at the time of purchase and the current exchange rate. The trick is to buy a dollar when its value is still low and sell it at a higher price or buy it at a high price and sell it at a higher price.
- Liquid currency trading – For information that not all actions are liquid. That is, not a few stocks that are difficult to buy and sell stocks quickly.
- The results of business benefits from foreign exchange can be felt directly – Another advantage that the operator can get is that he can profit from the price increase that comes from the difference between the purchase price and the sell price in the purchase order. When selling, the income from the difference in selling prices will be earned at the purchase or closing price.
- No extra fare – Keep in mind that transaction fees in the online currency market do not actually exist, they are simply subject to a very diverse set of fees. An example is the cost of withdrawing funds from a forex account.
- Currency Trading has a margin system – The final advantage is that there are trades using a margin system, which can make the purchasing power of investors higher than the capital held.
Disadvantages of Forex Trading
- There is a government interference with the currency – Note If every investment must have a shortage, including currency. One of them is the intervention of the home government whose currency is being negotiated in the currency market. The intervention in question is intervention by the country’s Central Bank by increasing interest rates, releasing government bonds and buying currency.
- Forschenge rises and falls very fast – Another risk is the effect of fluctuating exchange rates. As it is known whether the rupee can be so weak that it can be risky to buy the dollar because, of course, it is expensive. Waiting for the Indonesian currency to strengthen can take time, so you can trade foreign exchange in Indonesia at risk of losing.
Closing
After knowing what Forex Trading is all about? How does Forex Trading Work? As well as the advantages and disadvantages of Forex trading, hopefully you will be wiser in investing. So as to minimize losses and maximize profits. So this article was made, hopefully it can be useful for those of you who want to trade Forex.
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