Forex Trading Basic

What is online Forex trading? How it works?

Forex Scalping Strategy

We believe you guys are quite familiar with the concept of online Forex Trading. But as you are willing to take part in the free Forex learning course “Forex Trading for Beginners” conducted by Forexing24.com, we would like to provide some crystal clear answers to your very first 3 questions about Forex trading:

  1. What is Forex?
  2. How it works?
  3. What is online Forex trading?

What is Forex?

online Forex tradingForex is nothing but the global currency market. It is not only a world market; but also the largest and most liquid market in the world, where trillions of dollars are traded in each day. This assures us that whenever we want to sell, there will be buyer to buy, and whenever we want to buy, we will have sellers there. Having a fundamental counterpart to carry out a smooth trading is one of its main features of Forex market.

It is also important to note that, trading in markets with larger trading volumes is less likely to be manipulated by price manipulation. Thus, the movements seen in the market are less random, something that certainly appreciate and justify your initial steps towards online Forex trading.

You will learn more on this from the next article: Forex Market Overview

What is online Forex trading?

Retail traders can trade in Forex market using their Forex trading platform provided by the broker. This process is called online Forex trading. You have to deposit in the account with a broker, then you can buy or sell currencies using trading platform and make profit for good trading decisions.

Indeed, you can choose to trade with the euro-dollar pair using its future movement prediction, in which each point represent $ 12.5, or using mini lots of Forex ($1 pip) or even micro lots ($0.10 pip). Earnings will also be much lower in this first phase, but you should remember that it as a learning phase. Here, the main focus should be on learning not on earning! That will allow you to keep doing well in trading, and thus profiting from market once you have a better command over your capital.

You’ve heard it many times that 90% of people who come to the markets lose 90% of their capital in the first 90 days. Well, that is precisely what we must try to avoid. Believe me; it is relatively easy to do in Forex makes.

It is no longer just a matter of easy trading, in Forex, commissions are also relatively low, especially considering the huge supply of brokers available. But the main advantage that we will use as an ally is the existence of mini and micro lots, with which we can limit the risk of loss especially during the learning phase.

You can read the article on Forex trading advantages to learn more.

How it works?

Now the million Dollar question that you might ask: “Who are the Forex Market Participants?” or “How I can participate in online Forex trading?”

I wish I could answer the question in one sentence. But the irony is that even a whole book is not enough to answer it! But, I can show you the simplified process for that-

  1. Learn Forex Trading
  2. Choose a Broker
  3. Practice in Demo account
  4. Start Forex Trading

So, let’s get started!

READ MORE:

Chapter 1Introduction to Forex Trading
Lesson 1Online Forex trading
Lesson 2Forex Market Overview
Lesson 3Forex Market Participants
Lesson 4Forex Trading Hours
Lesson 5Forex trading advantages

Go back to Main Page: Forex Trading for Beginners

About the author

Syed Nazim

Syed Nazim is the Marketing Manager of RedMaroon, a Digital Marketing Agency for Financial Institutions. He is also involved with Forexing24.com as a writer and financial Analyst. He is a brilliant marketing geek with vast experience in every sector of Digital Marketing. He likes sharing strategies, tactics and proven methods to help you build a business and live the life of your dreams.

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