Forex or foreign exchange market
Without necessarily being a Forex expert, you may want to increase your savings, for example, by earning money on exchange rate fluctuation. Not a bad idea. Many companies carry out exchange operations on a daily basis (investments in projects abroad, purchase of raw materials, proceeds from sales abroad, etc.), exchange rates are constantly changing. Forex (Foreign exchange or FX) refers to what is also called the foreign exchange market or currency market which is based on foreign currency transactions.
In concrete terms, for example, euros are invested by buying dollars, which will then be resold and pocketed a profit if the value of the dollar has increased compared to that of the euro in the range. The gains or losses are therefore closely linked to the chosen currency pair and the extent of the variation in their values. So let’s not improvise traders on this market reserved for professionals.
However it is can buy and sell using in particular the brokers of an online trading platform.
The trading platform: gateway, partner and advisor for Forex
The more serious ones, like Avatrade, internationally recognized in terms of online trading, allow you to do both you train for free, to use tools to get started without risk and to access the services of a broker. To get started and make your first experiences, you can create your “Demo” account, for example, and virtually trade Forex in a real market context.
This first contact is an opportunity to understand the importance of quality training and good sources of advice.
This type of platform also offers trading tutorial video for beginners, online courses and the ability to test seven platforms with a trading simulator. A precious help for those who intend to start with a solid foundation.
How to get started in Forex in 2022?
As a general rule, it is essential to clearly state the amounts you are willing to invest before starting. You will then have to determine the earning goal to be achieved and the time you want to dedicate to it. Many detailed tips and best practices in this area are accessible on trading platforms online worthy of the name.
It only takes 100 euros and two minutes to open a Forex trading account. However, since the chances of winning do not owe anything to chance, you will need to inform yourself by all possible means to make the right decisions at the right time.
Trading in financial markets such as Forex is done using derivative products which are CFDs (“contracts for difference”). Understanding the mechanics of these speculative financial instruments is essential, as they bet on changes (up or down) in the underlying assets you don’t own.
Measuring high risks is also essential, as losing money can be rapid due to the induced leverage. It is therefore recommended to define the amounts you are willing to invest depending on what you can afford to lose.
To start in 2022, the most common currency pair is the euro / dollar, whose reciprocal variations are continuous and sensitive to the economic environment. If the variations are small, the mechanisms that influence them are clear to well-informed actors such as the trading platforms.
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