The internet has paved the way for a lot of developments that changed and influenced our lives and one of these changes is the introduction of Foreign Exchange trading online. Foreign Exchange or simply Forex is the market of trading currencies against each other. Forex trading means conducting trade transactions with currency pairs of currencies of two different countries.
Trading currencies means treating one of the currencies as the commodity while the other as the money. Retail Forex trading is done online via a trading platform provided by most brokers. Brokers are the middlemen of the market helping retail traders out in making profitable transactions. These brokers make money through the commissions that traders pay them.
Brokers allow traders to use platforms such as Metatrader 4. Retail FX traders prefer this platform because of what the package offers. This platform enables the execution of trade transactions with the help of Forex tools like technical analysis. It also has graphic tools like charts for easier analysis.
The lowest trading unit in the Forex market is called pip. It usually is at $100,000. With such a trading unit, the regular Joe wouldn’t afford trading at all. Because of such conditions, brokers came up with leverage marketing in order to give financially lacking traders to have a shot at the market. A retail trader can pay collateral of usually $1000 in order to start trading. The broker guarantees the trader money to trade in the market. Profits are then split between the trader and the broker.
Making money through Forex trading follows a very basic concept. Let’s say you are trading in the Euro/USD currency pair. Buying 1000 Euros will cost us around 1300USD because 1 Euro is equal to 1.3 USD. Patiently waiting for market changes, the trader keeps a watchful eye. Once the value of the USD drops, a trader needs to make a move with the new exchange rate of 1Euro to 1.5 USD. Selling your Euros at this point will give you 1500 USD. Selling money at that rate will allow you to gain upto 200 USD There are a lot of opportunities to make money online. You can do trading right at the comfort of your own home.
You can earn a lot of money as a retail FX trader. All of your transactions are done at the comforts of your own home. Click here to start your own Forex trading business. Forex trading