If you are a beginner who is just trying to get into Forex trading, the world of finance may seem a little bit confusing overwhelming. Key questions you may be asking are "What is Forex?" and "How to trade this instrument?". Forex trading differs significantly from the rest of the trading instruments and also requires a different approach. This article will explain key concepts of Forex trading.
Forex (from foreign exchange) is a decentralized international currency market, where national currencies are traded like goods. It is the world’s biggest financial market with an average daily turnover of over $5 trillion.
The point of Forex trading is to capitalize on the exchange rate differences. Here currencies are traded in pairs. Say, the EURO and the USD (the pair will then be abbreviated as EUR/USD). When the Euro goes up and the dollar goes down, the trader would want to buy the pair, selling it later at a higher price and thus making profit. Should the opposite hold true (the US dollar is getting stronger against the EURO), it is wise to sell the currency pair.
The potential profitability of Forex deals is unlimited. At the same time, the trader will only risk money he invested in a particular deal (unless stated otherwise). In order to open the deal, the trader has to estimate the direction of the prevailing trend click either BUY or SELL. You can then close the deal when the moment is right. Trend strength can be as important as trend direction.
To start trading with IQ Option, you will need to set up your trading account first. Opening an account with IQ Option is easy and pretty straightforward. After filling the simple registration form on the broker’s website and submitting the required identity documents, you’ll be up and running.
The broker offers several secure and comfortable ways of depositing you can use to replenish your account, including credit cards, bank transfers, Bitcoin, WebMoney, Skrill and Neteller.
Better still, if you are not comfortable trading with real money just yet, you can open a demo account, and sharpen your trading skills before engaging in real trading. The demo account will also let you familiarize yourself with the platform and master your trading skills without risking any of your money.
Should you have any questions, be it on the nature of Forex trading or the platform itself, you can always contact the support department where you will instantly get comprehensive answers from qualified representatives.
To make money trading, be it Forex or any other instrument, you will need to make correct decisions. The latter include proper risk management, trend prediction and emotional stability. You will also need to know when to enter and when to exit a deal. One of the best ways of earning profits consistently from Forex trading is to develop a robust trading strategy, which will universally guide all your trading decisions.
Luckily, IQ Option has an extensive range of educational materials you can use to master the art of successful trading, including videos, articles, webinars, and eBooks. To trade Forex with IQ Option, you will start by selecting an asset you intend to invest in, say EUR/USD. Look at the price action during the previous periods and predict future price movements. Also, do not forget to choose a multiplier that fits your trading style. Your deal is now set and ready.
Still wondering about Forex? Open an account right away and receive first-hand experience while trading with IQ Option.