The exchange is a financial and investment platform where various assets are bought and sold. All world exchanges are divided into three main categories – commodity, stock (futures, bonds) and currency. Separately, the precious metals exchange is distinguished, on which gold, silver and platinum are traded.
The most famous currency exchange, which today no longer needs to be introduced, is the Forex trading platform. In all cases, trading on exchange platforms is carried out by traders who work on brokerage platforms. Earnings of the trader is formed due to the difference in the price (quotes) of the purchased and sold assets. It should be noted that today not only the currencies of leading powers are traded on the Forex exchange, but also other assets – shares of large companies, precious metals, cryptocurrencies.
The brokerage platform is a multifunctional system that provides the trader (trader, player) with all the necessary tools for concluding transactions. Such projects charge a commission for their services, which is offset by security guarantees for contracts and deposits. At the same time, brokerage companies offer their customers a wide range of benefits and opportunities.
To start trading on the Forex exchange, you must have the following three factors:
- The desire to constantly learn, improving in the profession of a trader;
- The presence of start-up capital, which can be a relatively small amount (for example, $200-300);
- Serious attitude to study all the nuances of exchange trading with bitcoin signals at the initial stage, complemented by intensive training with conditional (demo) accounts
Today on the Internet you can find an impressive number of training lessons to help you learn the basics of stock trading. It should be understood that only prolonged practice when working with conditional and real money can bring a participant in transactions to the optimal level of profitability.
Speaking of illegal exchange operations, such schemes include, first of all, contracts concluded on the basis of insider information, that is, information obtained “behind the scenes” or through economic or financial espionage.
At the end of the introduction, it is worth noting that the money earned on the currency exchange cannot be attributed to easy income. Therefore, if you expect to find the mythical “Get rich in a minute” button in this area, you better stop reading at this place and forget about this form of earnings forever.
How to make money on the Forex exchange?
This will be the smallest paragraph. Buy cheaper and sell more. They wait for the “peak” or “bottom” of the quote, close the deal depending on the strategy and the current situation. In simpler words, they resell assets with a profit for themselves, the price of which is constantly changing.
10 step-by-step rules for beginners
- To get started, select and study the financial service with which you will work with your trading deposit. It can be popular electronic money – Googlepay, Webmoney, or with registered bank cards VIZA and MASTERCARD.
- The second stage is the development of exchange terminology. A very important point on which the understanding of all future lessons, tips and forecasts will depend. It is worth noting that the modern dictionary of the trader includes at least 100 specific terms, the meaning of which you must fully understand. The basic “ten” of symbolic definitions and concepts must be memorized.
- Compare the learned terms with practical examples. Read articles on the general specifics of Forex contracts. Find out how you can about currency pairs and their characteristics. Recognize the difference between major and exotic currency pairs.
- Make a list of the main trading instruments with common characteristics, options and features. The following concepts and functionalities should be included in such a registry:
buy swap, sell swap;
spread, margin, swap and lot;
MTF Stochastic indicator;
currency pair correlation chart
- Choose the broker with whom you are going to cooperate in the process of trading on the currency exchange. The main selection criteria are the company’s reputation with the feedback of traders, the size of the commission, the list of exchanges that this broker works with, the offered benefits, the availability of free training programs. The key point is the size of the spread and swap. A serious plus can also be the presence of a mobile application. Before making a decision, check the “black lists” of irresponsible brokers, which are constantly updated on the Internet.
- Carefully study the functionality of the brokerage platform. It is very important to examine in detail all the proposed features. Often, an unobtrusive option can significantly increase the likelihood of successful contracts.
- Complete the entire training program offered by your chosen broker. Such lessons can be provided free of charge and for a fee. At this stage, one significant point should be taken into account. Some short-term lessons with rich informative content are many times more useful than long stupid confused lectures. The quality of training programs depends on the competence of a brokerage company and the talent of a teacher. Unfortunately, there is no unambiguous criterion for the right choice of quality teaching lessons.
- In any case, intensively study on your own – since there are a lot of opportunities on the Internet for this. The main disadvantage of such training is the need to spend a significant amount of time on screening of repetitive and low-value materials. Make a plan with the points you would like to explore. This may include basic terms and their practical meaning, basic Forex trading strategies, how to make money on specific schemes (for example, CFD contracts). If possible, read the literature – “Forex for Beginners”, “Trading – Your Way to Financial Freedom.”
- After completing the above steps, start trading on demo accounts. Take this moment as seriously as possible, as if you are risking real money. Such training should use all your knowledge. Hone all actions in long and short positions to perfection. Practice trading signals. Run through the automatic and manual options of the brokerage platform functionality to perfection.
- Determine the amount of the initial contribution that you are willing to spend on a real stock exchange game. At the same time, remember about the leverage that allows you to conclude transactions for amounts that are several times the size of your deposit. Choose currency pairs for contracts, determine your strategy, replenish your trading account and start making your game.