Saturday, April 29, 2017

What is Online Forex trading and how you can make money trading from Nigeria

Forex Market also known as Foreign Exchange Market, FX Market, International Stock Market etc. is by far the biggest market of the world as per business volume and transactions are concerned. As BIS (Bank for International Settlements) revealed in a study, the average volume of trade is around $5 trillion per day.
Another interesting aspect of this wonderful market is it operates without a centralized marketplace. Trading is conducted through its unique OTC which connects all the traders around the world via computer networks.
It remains open for 24 hours a day and five and a half days a week.
As for trading is concerned, Forex allows you to trade in all major currencies, precious metals, commodities and on the shares of blue chips companies to book your profit. You can earn big by investing small money in Forex.
As we all know it is a digital market so you have the luxury to make money right from your drawing room with the help of an internet connection and a computer or smartphone.
Because of its huge volume and volatility, it can make you a billionaire overnight if you are sensible and fortunate enough but on the other flip of a coin, You can be on the roads in no time.
There are three basic types of trading on offer. I don’t mean the different terminologies used in the trading language like scalping, day trading, swing trading, position trading and swap trading blah blah. Instead, we will discuss the basic types of trading on offer.
  • Spot trading
  • Forward trading
  • Futures trading
A Spot Trade is a sale or purchase of a currency, a precious metal, security or a commodity on immediate payment and delivery basis.
A Forward trading is a contract in which Forex market locks in the exchange rates for a sale or purchase of a currency on a future date, is called Forward Trading. It works through OTC (over the counter) as it can’t be traded through centralized Forex Market.
A Future trade means a central financial exchange where people can buy or sell a specific quantity of a security or a currency at a specified price with delivery set at a specified date in the future.
How does the market work?
Like any physical market, Forex Online Trading is also based on simple supply and demand principle. Forex Trading is all about selling or buying one currency to another (in the case of commodities, securities, precious metals or stocks, buying or selling against USD).
Common Terminologies Used in Forex Online Trading

Pairs

Like any physical market, Forex Online Trading is also based on simple supply and demand principle. Forex Trading is all about selling or buying one currency to another (in the case of commodities, securities, precious metals or stocks, buying or selling against USD).
Common Terminologies Used in Forex Online Trading
You have to trade in the shape of a pair. For Example, JPY/USD is a pair where you are buying Japanese Yen against the US dollar.

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