Forex is the main market in the world. This is because it is the market that moves the most money, the largest and most liquid, but we do not know everything. Today, we tell our readers some of the characteristics of this market that most experts don’t usually talk about.
It is an OTC market (over the counter) because it contracts to the measures of the people who are making the transaction. This means that it is negotiated between parties.
Known as FOREX (Foreign exchange), the forex market is trading currencies at real prices. This means that you buy (or sell) one currency in exchange for a different currency’s sale (or purchase).
Governments can manipulate prices.
Printing banknotes can change the number of money in circulation, but in the right way so as not to break the economy’s status quo.
Certain brokers don’t play fair.
Well, they can see the bottom of the market and go against their clients. Forex has high spreads that do not always make them interesting, and only if the profit is really interesting, and it may be worth paying the toll fee that it supposes in cases such as Dax, where the profit per point is 25 dollars. Currently, brokers who use bad practices against their clients are persecuted and fined.
What Makes A Newbie In Trading Forex?
Generally, a novice starts in Forex because he has little money, and the Forex lots are small. Accounts with $ 1000 are usually opened.
There is only one vital rule: “Do not liquidate your capital.”
In futures, we will need accounts starting at $ 5000. CFDs can be opened from $ 1000 if you are going to take contracts for differences that are $ 1.
Yes, you heard me very well … Can I trade to win or lose $ 1? Yes, in Forex and CFD’s. In some futures like the mini Down, you can trade at $ 5.
What does this mean? That it is not expensive to make a bag and is available to anyone; But then the following question arises, if it is accessible, why don’t more people do it?
Trading is the great unknown of the stock exchanges.
Many people do not believe that you can make a living from trading because they would have already found out if it were so.
They are not trained. They are launched into the market without the knowledge, which leads to losing accounts, abandoning the opportunity to know this profession because if they have not achieved it, it is impossible.
Do not let others tell you what you can and not try. If you think that trading is for you, learn a method that helps you to trade Forex, Futures, and CFDs.
Suppose you can afford a $ 5,000 account. Make futures. Its commissions are low, and it is the first division of the bag. If you can’t, then you will have to go to CFDs or Forex.