Contracts for difference (CFDs) are a way of speculating on the change in value of a foreign exchange rate. CFDs can also speculate on a change in share price or a market index. You’re not buying the underlying asset, just speculating on the price movement. CFD leverage is like trading with borrowed money. The deposit (or…
Foreign exchange trading attempts to make a profit by predicting the value of one currency compared to another. FX trading is normally conducted through ‘margin trading’. A small collateral deposit worth a percentage of a total trade’s value is required to trade. Trading in international currencies requires a huge amount of knowledge, research and monitoring. Before you…
Once you have decided on the currency you want to trade, you also need to decide on how you want to trade currency. There are three different types of Forex markets: Most traders do not plan on taking the delivery of the currency. Instead, they focus on making exchange rate predictions between different currency pairs…
Forex trading involves buying one currency and then simultaneously selling the other one. By speculating and analyzing the direction the currencies are most likely to take in the coming future, traders try to make a profit by buying currencies whose value is expected to increase in the future and selling currencies that might lead to…
Forex, also known as foreign exchange trading or FX trading is defined as the process of changing one currency into another, for various reasons like commerce, tourism, and trading. According to the Bank of International Settlements, the daily Forex trading volume in 2019 was more than $5.1 trillion, and this number is steadily growing with…
As it often happens, when you have a huge inflow of information, you will get a lot of unnecessary data, which will mislead you. If you trade Forex all day, you will be trying to find opportunities in the chart formations and fundamental events that do not have anything important in them. It is not overtrading because you will soon understand that these opportunities do not let you…
If you trade Forex full-time, the chances are that you do not have any other source of income. This means that if you enter a series of losses, you will not be earning money and you might even lose your initial deposit. If you have a daily job and trade Forex only occasionally, you do not depend on Forex earnings too much. So, if you plan to go full-time, you better…
If you trade full-time, you might feel that you have to constantly search for new trading opportunities. Long-term trading opportunities are not that frequent in Forex, and you will have to either take the short-term ones too or be bored with simple monitoring of the market. Both choices are unacceptable for a long-term Forex trader.
Following the market all day is a straight way to overtrading, which in its turn is a bane of many currency traders. Only emotionally strong and experienced traders will be able to avoid constant overtrading when sitting in front of the Forex trading terminal all day.
If you are a successful Forex trader, you probably want to spend more time with family or for yourself personally. You earn enough to do that, but if you trade full-time, you will not have more time than an average non-trader. After all, Forex is good because it can offer financial freedom, which should lead to more free time, and a full-time Forex trading approach just seems to be ruining…
