Learn Forex Trading for Beginners – With many advantages such as 24-hour trading, high liquidity and low trading costs, the foreign exchange market, or what is known as the forex market, attracts both experienced and novice traders.
Learn forex trading for beginners
The currency market has experienced huge growth with many inexperienced traders getting in before taking insufficient time to learn trading in the forex market is one of the most common mistakes. If you want a quick and comprehensive understanding of what the forex market is, how it works and why it is important to open a demo account, then you should read our comprehensive guide on how to trade forex.
Forex trading for beginners
Like most niche industries, forex trading comes with its own jargon and set of jargon. There are certain forex trading concepts that you must be familiar with in order to understand the dynamics of this unique market, identify opportunities and trade successfully.
Currency exchange rates: bid, ask and spreads
To understand what forex is, you may first need to open a demo account and understand the concept of currency exchange rates. The price of one currency is always determined according to another currency. For example, EUR/USD would be the price of the euro expressed in US dollars.
Learn forex trading for beginners In other words, it represents the number of US dollars that you can exchange for 1 euro. For example, if EUR/USD is 1.1749, this means that 1 EUR can be exchanged for 1.1749 USD.
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What is a forex trading platform?
As a beginner in forex trading, one of your first decisions is to choose a forex trading platform. A trading platform is the software that gives you access to the forex market and seamless trade execution. A powerful forex trading platform facilitates fast and secure trading, while providing various options for market analysis, customization and automated trading.
The award-winning Orbex MT4 platform features a very user-friendly interface with very powerful software running in the background. The platform offers advanced real-time charting options, free forex trading signals, high flexibility, security and stability.
Learn forex trading for beginners Orbex MT4 users benefit greatly from dedicated customer support, fast response time, resources to learn forex trading, automated trading options, multiple funding methods, easy money withdrawal and more.
Learn forex trading for beginners, using the Windows or Mac version of the Orbex MT4 platform, or trade on the go by downloading the Android or iOS version. The cloud-based Orbex Web Trader App provides free, instant and secure access to your account from anywhere on any device.
Leverage in forex trading
Leverage is basically a loan that brokers give to traders, so that they can place trades of a higher value than the money they currently have in their trading account. As a beginner in forex trading, it is important to understand the benefits and risks of leverage.
Learn forex trading for beginners Leverage, also known as margin trading, gives you the opportunity to multiply potential profits, saving market movements in your favor. Remember that there is no guarantee that the market will, in fact, move in your favor.
If the market moves in the opposite direction, the leverage will double the losses you incur. Thus, forex leverage is a powerful tool, but it should be used with caution.
Risk management in forex trading
Learn forex trading for beginners provides ample opportunities to make profits. However, every opportunity comes with a degree of risk. While risk cannot be completely avoided, there are some risk management techniques that traders can use to hedge risk. These techniques are especially important when using leverage in forex trading.