The question of what kind of starting capital is needed to trade Forex is very important in this
business. A novice is looking for information about the market, how to trade and how much
money is needed to gain access to Forex transactions.
What is forex and how to make money with it?
Almost every person has heard about money on Forex. At the same time, there is so much
opposite information, that it’s difficult to understand, what is really important. Some say that it is
real to make money, others say that it is impossible to earn money on Forex.
With an independent study of the market, it is important to understand what is forex exchange.
This is a worldwide international market for the exchange of various currencies in real time. The
cost here is free and varies depending on the state of assets, oil and the political situation in the
world. Over time, not only world-renowned banks and companies joined the auction, but also
private individuals who want to earn income from their financial resources.
What is drawdown in forex
What is drawdown and how is it used?
This is the absolute or relative loss of capital from its initial or maximum value to a local
minimum. Estimated drawdown - for the period of time chosen for analysis. Drawdown is
usually measured in percent. Those who track this indicator tend to start from a new high on the
Before the start of trading on the Forex market, you should determine what is Forex, as the world
currency market, to get acquainted with its participants. From the article we will be able to find
out why the market has such an attraction, and what is the difference between the foreign
exchange market and other foreign exchange markets. The financial market of Forex got its
name, as a reduction from Foreign Exchange, which in English means "foreign exchange".
A new model of the foreign exchange market was formed after the abolition of the gold and
dollar standard for the formation of exchange rates in the late 1970s.
What is trading on the Forex currency market?
Currency exchange can be carried out on the Forex exchange in real time. Not tied to one
particular place for bidding, a special platform helps to make transactions for the purchase and
sale of monetary units of different states. What is forex trading is perfectly visible during the
events held. All participants can open orders from anywhere in the world, conduct active trade,
exchange currency pairs.
The virtual market allows you to make a large number of transactions at home at the computer. It
is only necessary to open an account with a broker who is an intermediary. To be engaged in
forex trading it is not necessary to have a large starting capital. Dealing center or broker, from
which you register will necessarily provide you with a loan. With the help of the margin it is
possible to conduct operations for borrowed money and receive a high income. It is worth noting
that the risks are also increasing. For successful trading you need to learn, get experience.
How to trade on the exchange
The basic principles of forex trading are based on an understanding of technical and
fundamental analysis. And also the use of technical tools, indicators, robots on trading terminals.
This all has to be trained to develop its own strategy. Keep in mind that the exchange rate
changes every second, drawing a price chart. For the forecast of the market direction use:
- Technical analysis. It is necessary to study basic data on figures, candle analysis, bars, tics.
Thanks to the statistical indicators, they receive daily, minute opening, closing, reversal,
breakout prices. You can predict the direction of the trend.
- Fundamental analysis. It is based on events and prerequisites. Now there are many tools full of
information from professionals that provide a ready solution for a certain pair. It is not necessary
to be an economist, you can simply go to the reputable sources and become acquainted with the
conclusions on trading.
Do not forget to learn important news, exit time, so as not to get under too much movement. The
economic calendar is an accurate tool for determining the degree of influence on assets: oil,
currencies, indices, stocks, indices, metals. Setting a stop loss will save you from large losses of
money on your balance sheet.
Advantages of forex trading
Many newcomers are asking what is forex trading and why is it worthwhile to trade? Main
- 24-hour trading (except for weekends). Making transactions on the difference in exchange rates
at any time due to different time zones.
- Access via the Internet from any country.
- Stimulates to growth and development of personality. Learning new.
- Achievement of financial independence. High profitability with minimal investments.
- The direction of the trend does not matter. You can open positions to raise and lower prices.
If you are interested in this type of trade, then it can become a good permanent source of income.
It is important to assess your capabilities, the relationship between risk and profit.