First of all, you have to subscribe an agreement with a forex dealer and install the dealer’s trading program on your computer, smartphone or tablet. This program reflects the rates of all currencies for which transactions can be made.
Read the reviews in advance, for example here.
A forex dealer can use the quotes of currencies of international currency exchanges, banks, brokers, news agencies and other reliable sources.
In order to conclude transactions in Forex, you must transfer a deposit to the dealer’s account. This money will guarantee that you will be able to fulfill your obligations in Forex transactions.
The online program displays all your trading operations – conditional “purchases” and “sales” of currency. But real money is credited or debited from your account only after you close the trades. If you correctly predicted the movement of the exchange rate, the dealer credits the money to your account – your deposit increases. If you have not guessed correctly, the deposit decreases.
The deposit can be withdrawn from the dealer’s account only after all transactions have been closed. And you can top up your account at any time. It is important to remember that in a bad scenario, you risk losing the entire amount of the deposit.
How are transactions made in the forex market?
Before a trade, you have to select two different currencies – a currency pair. One of them is basic, the second is quoted. Your task: try to predict how the quoted currency rate will change relative to the base one. If you are sure that the rate of the quoted currency will rise, you can open a deal to “buy” it. If you think that it will fall – for “sale”.
It should be borne in mind that a forex dealer takes a commission for his services. For example, for opening and maintaining an account, connecting to a trading program, conducting transactions, transferring money to a bank account and other services. All tariffs must be specified in the contract.
I decided to try it anyway. How to proceed?
- Choose a forex dealer, you can first get acquainted with the exness review
Find out a few points:
- is it possible to undergo preliminary training before moving on to trading;
- is it easy to install a trading terminal on your computer or smartphone – a program or a mobile application;
- is there a demo version to understand the operation of the terminal and test your strategies;
- is the technical support working well: is there a hotline, online chat, how quickly the consultants respond;
- what is the size of the minimum deposit (the probability of losing this amount is very high, so first choose options with a small minimum deposit).
- Practice on a demo-account
Demo-account will allow you to understand how and by what means you make money on Forex, and will give you the opportunity to try out different trading strategies.
It is very difficult to predict exchange rates only on the basis of open information about what is happening in different countries. Therefore, to help players, there are programs that analyze technical indicators of currency movements and help build trading strategies. But the probability of error is still great.
- Open a real account
Have you practiced on a demo-account? Have you worked out different strategies that you learned during the training, have you chosen several that suit you? You can now open Forex Up
You determine the amount on the account yourself, but a forex dealer may have their own restrictions on the size of the minimum deposit. Better to start with a deposit that you will not be afraid to lose.
It is not a fact that your strategy, tested on a demo-account, will be as successful on a real account. You will have to spend some more time and money to hone it and develop your style. You can use several strategies at once, so you will slightly reduce your risks.