Introduction to Forex Trading

Forex trading is the act of exchanging one currency for the other to satisfy a business need. Forex trading involves two currencies and the rate at which you buy or sell is determine by the market forces. So many people exchange one currency for the other for different reasons. some do it because they want to travel to another country and because they can’t spend their country’s currency there they’ll have to go exchange it to the currency of the country they are travelling to. people exchange currencies for a lot of reasons. A company that has vendors offshore may be exchanging currencies to pay their vendors. so every time of the day round the clock the currency market is always active and fluctuating.
Another reasons why a lot of people trade currencies is for speculative reasons to lock in some profits from currency rate fluctuations, this is one of the reasons you are reading this. you are probably looking for an opportunity where you can take advantage of currencies rates changes to rake in some profits.

Who are the major Forex trading participants?

The participants of the currency markets includes the banks and/or the liquidity providers, the central banks, the commercial banks, investments houses, hedge funds, companies, retail traders (you and I), etc.

How do you get involve in Forex trading?

As a retail trader you can decide to do this either offline or online. You do this offline when you anticipate that a particular currency can gain strength over the other. In the next future, you can decide to buy that currency possibly from the bearau de change or from the bank and sell off the one you have on you.. and so if after some time the one you bought gain strength as you had expected then the value of the money you have would increased, and so if you decide to exchange back to the former currency at this time you will be getting a high amount of money when you exchange.

If you want to trade online you will have to trade through a retail Forex broker or through the banks, for you to do this, you must open an account with the broker and send your money to them that you want to be using to trade.

To successfully know how to trade and make money there are two approaches you can adopt which can either be.
I. Fundamental Analysis
II. Technical Analysis

i. Fundamental Analysis:
Is way of trading as a trader base on the following factors; economic, social, political forces that affects the law of demand and supply. Any country that her economy is flourishing her currency will also do fine compare to the currency of an economy that is doing very bad. The US dollar will do great when the unemployment rate is very low, compare to an economy that has high rate of unemployment. The value of US dollar will increase because its economy is doing well. I think you understand that. Then let’s move to the;
ii. Technical Analysis
Is another way of trading by which you as a trader look at chart before you execute a trade. Chart help traders to know the trend and pattern, which helps individual trader to get into a trade and win through the opportunities he/she detects .So we use chart and pattern to monitor the strength and weakness of a trade or currency.
It is always good to consider both analysis before you go into any trade.

To learn more on how to trade the spot currencies or the OTC market, you can visit our blog here frequently as you will find useful information that can help you gain the right insight to trading. If you want to take our courses you can subscribe for our basic lessons here

14 Comments on "Introduction to Forex Trading"

  1. Having read this I believed it was very enlightening. I appreciate you taking the
    time and energy to put this article together. I once again find myself personally
    spending way too much time both reading and commenting.
    But so what, it was still worthwhile!

  2. Hi there! Someone in my Facebook group shared this website with us so I came to look it
    over. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers!
    Excellent blog and brilliant design and style.

  3. Hi there I am so happy I found your webpage, I really
    found you by mistake, while I was browsing on Yahoo for something else, Anyways I
    am here now and would just like to say cheers for a fantastic post and a all round exciting blog (I
    also love the theme/design), I don’t have time to read through it all at the
    moment but I have book-marked it and also added
    your RSS feeds, so when I have time I will be back to read much more,
    Please do keep up the awesome jo.

  4. Hello, I desire to subscribe for this weblog to obtain most
    up-to-date updates, so where can i do it please help out.

  5. Hey there, You have done a great job. I will definitely
    digg it and personally recommend to my friends. I am sure they’ll be benefited from this website.

  6. Hey there, You’ve done an incredible job. I will certainly
    digg it and personally recommend to my friends. I am confident they will be benefited from this site.

  7. I just couldn’t go away your web site before suggesting that I actually
    enjoyed the standard information an individual supply on your visitors?
    Is gonna be back regularly in order to check out
    new posts

  8. Hey There. I discovered your weblog the usage of msn. That is an extremely smartly written article.
    I will make sure to bookmark it and return to read more of your helpful information. Thank you for the post.
    I will definitely return.

  9. This website was… how do you say it? Relevant!!
    Finally I’ve found something which helped me.
    Thanks a lot!

  10. This website certainly has all the information I wanted about this subject and didn’t know who to

  11. hey there and thank you for your info – I have definitely picked
    up something new from right here. I did however expertise several technical
    issues using this site, as I experienced to reload the website many times previous to I
    could get it to load correctly. I had been wondering if your hosting is OK?
    Not that I am complaining, but slow loading instances times will very
    frequently affect your placement in google and can damage your high-quality score if advertising and marketing with Adwords.

    Well I am adding this RSS to my email and can look out for
    a lot more of your respective fascinating content.

    Make sure you update this again very soon.

  12. I believe everything said made a great deal of sense.
    However, what about this? suppose you typed a catchier title?
    I am not suggesting your information is not solid., however what if you added a title that grabbed a person’s attention? I mean Introduction to
    Forex Trading – Pipful Forex Signals is kinda boring.
    You might look at Yahoo’s front page and see how they create article headlines to grab people to open the links.
    You might add a related video or a pic or two to grab readers excited about everything’ve got to say.
    In my opinion, it could bring your posts a little livelier.

  13. I do not know whether it’s just me or if everybody else encountering issues with
    your website. It appears as if some of the text on your posts are running off the screen. Can somebody else please comment and let me know if this is happening
    to them as well? This could be a issue with my web browser
    because I’ve had this happen before. Kudos

  14. I’ve been surfing online more than 4 hours today, yet
    I never found any interesting article like yours.
    It is pretty worth enough for me. Personally, if all website owners
    and bloggers made good content as you did, the internet will be a lot
    more useful than ever before.

Leave a comment

Your email address will not be published.