What is Forex Trading? Detailed discussion about forex trading
Let’s discuss forex trading in detail. What is Forex Trading? How to trade forex? What is Forex? Where to do. All this we will know today.
Picture: Forex Training and Market Analysis. Picture Credits: Pixels
Forex Trading Concepts:
Have you ever traveled abroad? If he did, he must have bought the country’s currency. Or have you broken any foreign currency into money? If you have. Then in this case you have done forex trading.
The word Forex or Forex comes from Foreign Exchange or Foreign Exchange. Forex trading is the exchange or exchange of currencies. And buying and selling this currency is called Forex trading.
In a word, foreign currency exchange or forex or FX refers to buying and selling currency as forex trading or buying the currency of one country for the currency of another country.
Why do forex trading? How is forex trading?
You certainly cannot buy any product or service from another country with Bangladesh money. 7 will be needed in other countries’ currencies What you will do then is buy money from a bank or currency exchanger in exchange for money from that country. This is just buying and selling out of necessity.
It is possible to earn income by trading.
How To Make Money With Forex Trading?
Suppose you go to the US. Then you buy 100 dollars US currency (USD) – at 60 rupees per dollar. But it turned out that for some reason you could not go. Now you sell that (USD).
When you go to a bank or broker, you see that it is being sold at 75 rupees per dollar. You sold. In this case, your profit is 5 rupees per dollar (USD) and by selling 100 dollars you get 100 * 5 = 500 profit. And this is how you can earn money by trading Forex.
This is just normal. After something bigger than forex trading and a big source of profit. Let’s try to find out.
First, we will know why the price of the currency rises and falls?
This issue is actually very complex and happens for many reasons. But we will try to find out through simple means.
Every day thousands of people in a country invest in different countries, buy and sell goods. In this way they need a large amount of foreign currency ৷ Suppose a company in Bangladesh exports goods abroad. In this way the buyer of that country
Bangladeshi money will be needed. This means that the demand for money will increase in that country. In this way, Bangladeshi money will continue to be stronger than the money of that country, that is, the price will increase. When more people
Market. There is no central authority like the stock market. The place where foreign currency is bought and sold is called the foreign exchange market. For example: bank, broker, or any institution.
It can be offline or online. The Foreign Exchange Market is the largest liquid market in the world where the Foreign Exchange Market
Trillions of dollars are traded every day. With the advancement of technology, it has become possible to trade at home. Forex traders usually use online brokers. Because it allows you to trade through the internet anytime, anywhere.
With the help of various online brokers, traders can gain profit by using the price fluctuations of the currency. The stock market makes a profit only if the share price rises, but in forex trading, it is possible to make a profit by using both price increases and losses.
Forex trading for whom? How to do forex trading?
Anyone can do forex trading. You do not have to hold a degree for this. To trade Forex, you will need some money and a lot more knowledge.100 is enough to start trading.
Less can be done but it will not be more profitable. However, you need to be much more expert to trade Forex. As much as it can bring you profits, it can also put you at a disadvantage. In order to avoid that loss, one must have expert-level knowledge about Forex.
What is the risk in forex trading?
The currency market is the largest liquid market in the world. You will need a specific investment to trade here Which is called margin. When you invest 100 or more, you are more likely to lose this money.
Not every trade will give you a profit. Most forex traders cannot make a profit. This is because of not having enough idea about the market, taking the wrong strategy, rushing, trading emotionally, etc.
How much money can be made from Forex?
It depends on your margin and the number of trades. How much money are you investing and how much are you trading per month. However, you must manage the risk and trade on your capital. Even a discipline beginner can earn 1000 or more per month.
How do I do forex trading?
First, you need to have a good idea about trading You have to learn forex trading. A good strategy must be mastered. If you want you can do the free course or paid courses online When you can master trading fairly.
You can trade demos through different websites or apps. There are various applications in which you can practice trading without any money. Those are just demo trades for beginners to master trading.
If you see that you are doing well then you can start trading with a good broker with some money. Otherwise, Forex trading is not for you.
Some Misconceptions About Forex Trading:
Many people think forex trading is a scam. In fact, it is not a scam. Many people trade wrong, fail to make the right decision, fall prey to fraud, and so on. And for all these reasons, when they face loss, they turn away and say it is a scam. Or to say that it is not possible to make money from Forex.
Again many say it is like gambling or gambling or interest, it is haram in the eyes of Islam. In my opinion, it is definitely not gambling. Here you are buying and selling money. You are not taking interest or profit from anything or gambling.
You are using your skills and making money. There is a lot of talk about whether Forex is legal or illegal in Bangladesh. Many people are trading in Forex from Bangladesh.
Although it was not recognized by the central bank. All persons other than licensed dealers, money changers, and institutions licensed by the Central Bank of Bangladesh to transact in foreign currency cannot sell foreign currency through them.
According to the Foreign Exchange Regulation of 1947, it is illegal to buy and sell currency through these channels. The main reason for all this is that some dishonest people in the country are showing various kinds of greed and are encouraging to train and invest in Forex.
Forex Trading Tips:
– Learn about Forex trading risk management
– Put less than 1% risk on each trade.
– Take the help of experts
– Of course, trade-in currency pairs that are more likely to be freer than Riksak
– Must have a very good internet connection
– Stay slow and steady
– Choose a good trading partner
– Of course, analyze the market well.
– Use good quality UI.
– Do not fall prey to the temptation of advertising brokers in different places.
– Know Forex well, understand then start.
Above all, Forex can bring you huge profits You can also lose all your money
So don’t just get emotional and fall into this flirtatious form. Of course, it does not fall into anyone’s temptation. Forex is an international market and it has survived for years. So if you want to work in Forex, you must be careful of dishonest people or organizations.
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