What is Forex Trading? Detailed discussion about Forex. What is Forex Treading?
Let's discuss in detail about Forex trading. What is Forex Trading? How to do forex trading? What is Forex? Where to do. All this we will know today.
What is Forex Trading?
picture: Forex Training and Market analysis. Picture Credit: Pexels
Forex Trading Concepts:
Have you ever traveled abroad? If so, he must have bought the country's currency. Or have you turned any foreign currency into money? If you have. Then in this case you have done forex trading. The word Forex or Forex comes from Foreign Exchange or Foreign Exchange. Forex trading is the exchange of currencies. And buying and selling this currency is called Forex trading. In a word, foreign currency exchange or forex or FX refers to buying and selling currency as forex trading or buying the currency of one country for the currency of another country.
Why do forex trading? How is forex trading done?
Surely you cannot buy any product or service of other country with Bangladesh money. 7 will be needed in other countries' currencies What you will do then is buy money from a bank or currency exchanger in exchange for money from that country. This is the buying and selling of necessities.
It is possible to earn income by trading.
How To Make Money With Forex Trading?
Suppose you go to the US. Then you buy 100 dollars US currency (USD) - at 60 rupees per dollar. But it turned out that for some reason you could not go. Now you sell that (USD). When you go to the bank or broker, you see that it is being sold at 75 rupees per dollar. You sold. In this case your profit is 5 rupees per dollar (USD) and by selling 100 dollars you get 100 * 5 = 500 profit. And this is how you can earn money by trading Forex.
It's just normal. After all, forex trading is something bigger and more profitable. Let's try to find out.
First we will know why the price of currency rises and falls?
This issue is actually very complex and happens for various reasons. But we will try to find out through simple means.
Every day thousands of people in a country invest in different countries, buy and sell goods. In this way they need a large amount of foreign currency Suppose a Bangladeshi company exports goods abroad. In this way the buyer of that country
Forex Market
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Bangladeshi money will be needed. This means that the demand for money will increase in that country. In this way, Bangladeshi money will continue to be stronger than the money of that country, that is, the price will increase. When more people buy money with dollars, the price of money will increase. And this price is always changing, that is, it changes every second. Interest rates, inflation, etc. also affect foreign exchange.
What is the Foreign Exchange Market?
Now you understand what forex trading is. Where do you go to trade? For this there is a Foreign Exchange Market. The Foreign Exchange Market is a decentralized or over-the-counter (OTC) market worldwide. There is no central authority like the stock market. The place where foreign currency is bought and sold is called the Foreign Exchange Market. For example: bank, broker or any institution. It can be offline or online. The Foreign Exchange Market is the largest liquid market in the world
Foreign Exchange Market
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Trillions of dollars are traded every day. Thanks to the advancement of technology, it is now possible to trade at home. Forex traders usually use online brokers. Because it allows you to trade through the internet anytime, anywhere. With the help of various online brokers, traders will be able to gain profit by taking advantage of currency fluctuations. The stock market makes a profit only if the share price rises, but in forex trading it is possible to make a profit by using both price increases and decreases.
Forex trading for whom? How to do forex trading?
Anyone can do forex trading. You do not have to hold a degree for this. You will need some money and a lot more knowledge to trade Forex. ড 100 is enough to start trading. It can be reduced, but it will not be more frfit. However, you need to be much more expert to trade Forex. It can bring you profits as well as losses. In order to avoid that loss, one must have expert level knowledge about Forex.
What is the risk in forex trading?
Currency market is the largest liquid market in the world. You will need a specific investment to trade here Which is called margin. You lose money when you invest 100 or more
Forex Loss
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There will be possibilities. Not every trade will give you a profit. Most forex traders cannot make a profit. This is because of not having enough idea about the market, adopting wrong strategy, rushing, trading emotionally etc.
How Much Money Can You Make From Forex?
It depends on your margin and number of trades. How much money are you investing and how much are you trading per month? However, you must manage the risk and trade on your capital. Even a discipline beginner can earn ড 1000 or more per month.
How do I do forex trading?
Trading you first
You have to have a good idea about 7 You have to learn forex trading. You have to master a good strategy. If you want you can do free course or paid course online When you can master trading fairly. You can trade demos through different websites or apps. There are various applications in which you can practice trading without any money. These are just demo trades for beginners to master trading. If you see that you are doing well then you can start trading with a good broker with some money. Otherwise Forex trading is not for you.
Some Misconceptions About Forex Trading:
Many people think forex trading is a scam. In fact, it is not a scam. Many people trade wrong, fail to make the right decision, fall prey to fraud, etc. etc. And when they face loss due to these reasons, they turn away and say it is a scam. In other words, it is not possible to make money from Forex. Again many say it is like gambling or gambling or interest, it is haram in the eyes of Islam. In my opinion this is definitely not gambling. Here you are buying and selling money. You are not taking interest or profit from anything or gambling. You are using your skills and earning money. There is a lot of talk about whether Forex is legal or illegal in Bangladesh. Many people are trading in Forex from Bangladesh. Although it was not recognized by the central bank. All persons other than licensed dealers, money changers and institutions licensed by the Central Bank of Bangladesh to transact in foreign currency cannot sell foreign currency through these institutions. According to the Foreign Exchange Regulation of 1947, it is illegal to buy and sell money through these channels. The main reason for this is that some dishonest people in the country are showing various kinds of greed and encouraging to train and invest in Forex.
Forex Trading Tips:
- Learn about Forex trading risk management
- Put less than 1% risk on each trade.
- Take the help of experts
- Of course, trade in currency pairs that are more likely to be more profitable than Riksak
- Must have a very good internet connection
- Stay slow and steady
- Choose a good trading partner
- Of course analyze the market well.
- Use good quality UI.
- Don't fall prey to the lure of lucrative brokers advertising in different places.
- Know Forex well, understand and then start.
Above all, Forex can bring you huge profits You can also lose all your money So don't just fall into this flirtatious form of emotion. Forex is an international market and it has survived for many years. So if you want to work in Forex, you must be careful of dishonest people or organizations.
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