How To Become a Succesful Forex Trader
What is FOREX?
Also known as foreign exchange or currency trading, forex is the most traded market in the whole world. People who trade currencies on the forex market are called forex traders, their aim is to generate profit by speculating on the value of one currency compared to another and this is why currencies are always traded in pairs. The value of one unit doesn’t change unless it’s compared to another currency. Forex market is an online platform where the big banks exchange currencies, they are fighting for power concerning which currency is strong than the other.
As a forex trader, you can either choose to buy or sell specified units of the base currency provided you believe it is going to gain or lose value against the quote currency with which it is paired with. Let’s take EUR/USD for example, as a forex trader if you believe that Euro against the united states dollar is gaining value or going up, you have to choose to buy and by doing so you will gain profit, the same goes for when you believe the Euro (EUR) against united states dollar (USD) is going down, then you have to sell in order to gain profit. If the market does the opposite of what you applied, you can lose your investment.
What is a Forex Broker?
In order to do Forex, you will need a broker unless you are a Bank, Hedge Fund institutions, or Algos.
Forex brokers are commission agents; they help to bring forex buyers near to the sellers. Like other industry brokers, they sell or buy the forex on behalf of their customers. They are very close to the forex market.