Forex Trading | Which is? Learn how to trade Forex
Knew all about forex trading and how to carry out trading operations in that market. The financial movements of the forex represent 5 trillion dollars a day, this is the largest market in the world for traders.
As a result, it is one of the markets that has the most daily liquidity, so it is perfect for operations such as day trade (buying and selling on the same day). You will know everything about forex now, good reading!
Forex Trading step-by-step summary:
To start investing in Forex Trading, just follow these simple steps:
- Step 1: Open your eToro account
- Step 2: Check your account
- Step 3: Make your first deposit
- Step 4: Start trading in the forex market
index
What is forex trading?
Forex means Foreign Exchange, is just like the foreign exchange market in Portuguese, this is a market that trades international currency pairs.
The forex is estimated to be almost 10 times larger than the international stock market. With a financial volume equivalent to 5 trillion dollars a day in forex trading, it surprises most traders for its size.
Forex market trading (Forex market trading)
One of the main forex brokers is eToro. The spread of the eToro brokerage is low when compared to the others. The first step to start trading is to choose a good broker, like this one and open an account.
You can trade on Metatrader 5 or Metatrader 4, usually brokers are synchronized with this platform.
O Metatrader it is ideal for the foreign exchange market, it is stable and most professional traders trade on this platform. After opening a trading account in the forex market, download MT4 or MT5 and start trading.
The best way to understand the forex market is to open a demo account. EToro also trades other options such as: cryptocurrencies, stocks, indices, currency pairs and commodities. You can register on the platform and test other asset options.
Complete forex trader course
Do you know what the best forex trader course is? This answer is very easy, a complete course does not only teach you how to trade in the forex and know the market, after all this information is available for free on the internet.
The best forex course is one that teaches you how to be trader, control the emotional and manage risk. These are the pillars for good forex trading, it is not enough just to understand the market.
What has happened in the financial market in recent years is that we are bombarded with “Course salespeople who promise profitability” and teach superficially what is forex, this is not interesting for you.
Most courses leave traders unprepared for the market and attached to a tool. The trader must have autonomy in his operation and choose the necessary technique for the moment, there is no method, the trader's ability to choose the best time to enter the market. This is a fact!
How to choose a good forex course?
Look for a course of trust and excellence in the market, there are several specialists who make good online courses.
However, there is also free content on YouTube, so first study all YouTube content and download ebooks on forex, before buying your course.
Comparing what you have learned for free is the best way to choose your forex course !!!
day trading vs forex
Day trading can happen in several markets, it does not necessarily need to happen outside the forex. But, there is the modality forex day trading which is trading on currency pairs on the same day.
The day trade is a common mode of trading in the foreign exchange market, however the forex trader can hold the position in the market for weeks. It all depends on your investment profile. There are different ways to trade in forex using day trading, it can be with:
- EA robot
- Signal
- Indicators
- Graphical analysis
All are interesting techniques and tools for trade in forex!! However, you need to understand how the market works before buying any tools. Read on to understand how to trade in forex.
Forex trading brokers: choose the best one for you
The main forex brokers are:
- eToro
- FBS
- IQ Option
- IC markets
- forex.com
- XM
Forex trading how does it work?
Forex trading works 24 hours a day, making it possible for people to trade from wherever they want and at any time they want.
The forex trades currency pairs, for example: EUR / USD is the most traded pair and belongs to the OTC (over-the-counter) or over-the-counter market. There is a characteristic forex language, some important Forex Trading terms for you to learn are.
Forex Trading Glossary
pips
comes from the word Percentage in point or point by percentage, each currency pair in the forex has one decimal place, the pips are called "points", this is the way that the forex uses to measure the price based on the unit.
As we said, each pair has 1 different pip, see our table, for you to learn the pip value for each pair:
| Currency pair | Value of 1 Pip | Contract value per lot | Pip per 1 batch |
| EUR/USD | 0.0001 | 100 000 EUR | 10 USD |
| GBP TO USD | 0.0001 | 100 000 GBP | 10 USD |
| USD/JPY | 0,01 | 100 000 USD | 1000 JPY |
| USD/CAD | 0.0001 | 100 000 USD | 10 CAD |
| USD/CHF | 0.0001 | 100 000 USD | 10 CHF |
| AUD/USD | 0.0001 | 100 AUD | 10 USD |
| NZD/USD | 0.0001 | NZD 100 | 10 USD |
spread
It is the difference between the purchase and sale price of the currency pair, however this difference is measured in pips and some brokers place fixed or variable spreads for trades.
For example, the most common spread to use in EUR / USD is 0.8 pips, the broker discounts the spread when opening a position, so when you open a position in the forex market it will be negative.
This is an interesting factor for you to research before choosing your broker, research on the spread value, the lower the better for you !!
Leverage
leverage is very confusing for novice traders, but we will try to explain it in an easy and exemplary way. Imagine that you can open an order a thousand times greater than the capital you have in banking, that is to leverage.
This is a way to trade larger amounts without having money in your account, say forex trying to be accessible to everyone. We have separated a video for you to understand better:
Understanding, these 3 basic concepts: leverage, spread and pips, you can understand the dynamics of forex operations.
The most interesting way for you to learn about forex trading is by studying and trading in the forex trading simulator, so open a DEMO account and train.
Walkthrough: How to open an eToro account
The first step in getting started in forex trading is opening an account. We separate one step by step to facilitate your registration with eToro.
After all, making a wrong registration can prevent you from drawing your profit later.
Step 1: enter the eToro website
Enter the eToro open an account by filling in the form with your details or using your Google / Facebook account credentials. You register in less than 5 minutes, it is very fast.
Step 2: Validate your data
After creating your account, fill in all the correct information for you to verify your identity. Send the photo of a photo document.
Step 3: Make your first deposit
In order to get started in forex trading, you need to add funds to eToro. You can start with the minimum deposit. Deposit with eToro through wallets: Skrill, Paypal, Neteller, Webmoney, Wire Transfer, Promotion or Credit Card. You select the currency, quantity and fill in the email. Then click next and proceed.
Step 4: Start your trades
After the money has dropped into your account, you can open the platform and start trading.
Visit eToro
mobile forex trading
After creating your account it is possible to operate on the computer like the MT5 or operate on the cell phone. The mobile version of MT5 will be available to you on the Play Store. We separated a video to teach you how to download correctly, see:
Forex trading Portugal
There are brokers in Portugal, this can make life easier for Brazilians who want to enter the forex market. However, some brokers are in Portuguese, some examples:
- eToro
- XM
- AvaTrade
Forex trading simulator
Did you know that there are trader simulators in the forex, such as: social forex, on this website you can design your operations and calculate your financial objectives based on:
- Reward / Risk Ratio
- Operation Risk
- Opening balance (bank amount)
- Total operations
We did a quick simulation for you to understand how much you would earn in forex a week doing 3% a day with a starting bankroll of $ 1.000 USD.
See how the forex can be a compound interest yield, 3% per year is more than savings are valued in 1 year.
Forex trading vs Bitcoin trading: which market is better?
There is a difference between trading in bitcoin and forex. THE bitcoin it is a cryptocurrency so it cannot be regulated by any bank or institution, since the forex trades international currency pairs that are regulated by banks and institutions, therefore it suffers from the political and economic factors of the countries.
However, the trader you can test and take advantage of the opportunities of these two markets, it depends on the economic scenario and the most interesting opportunities to profit.
Final considerations
Always remember to study forex, it may seem confusing at first, but after creating an account with the broker you start to understand in practice how it works. Use the tools available on the market to assist you in operations and remember our tip for choosing one forex trading course.
FAQ
What is forex trading?
Forex is short for foreign exchange and refers to trading in the foreign exchange market through international currency pairs.
Can I make money doing forex trading?
Yes, many traders make money from forex transactions. The great advantage of forex trading is that this market is open 24 hours a day. That is, you can trade whenever you want and wherever you want, making your purchases and sales of foreign currency pairs at any time, taking advantage of the opportunities of the moment.
What is the difference between bitcoin trading and forex trading?
The difference between bitcoin trading and forex trading is the asset that is the target of trading. In the case of bitcoin trading, cryptocurrency trades are carried out. In the case of forex trading, currency pairs are traded on the foreign exchange market, such as EUR / USD.