Anthony Constantinou CEO CWM FX Describes How to Trade in Forex Market?

Want to commence with Forex Trading, but not sure where to start..??? Prior to know how to do forex trading, it is crucial for you to know what forex trading is and what significances of forex trading are! Forex trading deals with buying and selling of currencies in forex market to make rewards. “You can simply relate the Forex Trading as – the rate at which currencies can be exchanged with another”. These rates are always represented in pairs, for example – JPY/GBP which means Yen against the Pound.

Although, forex trading covers a large area of the financial market, but still it is not appropriate for all investors. Before, entering into the forex trading market, one should consider the investment objectives, experience, and appetite for risk. Remember, forex market is more risky as compared to options market..!! Therefore, it is always advisable to take instruction from an experienced financial adviser before putting any money.

Important Guidelines to Make Booming Trades in Forex market –

Similar as binary options trading, here also investors have the facility of demo accounts. We highly urge beginners to use demo account, as it allows them to test their skills and strategies without wagering real money. Having a proper trading system is a great way to enjoy trading with maximum profits and minimum risks. You can build an efficient trading system under the assistance of broker which also endows a trading platform and guide you throughout the process. You can acquire a reliable brokerage firm from LINK. Following are the some points, which you need to make sure while trading in forex market-

·         Prepare weekly chart – Weekly charts are very useful to the traders, it gives the clear view of market trends and trades. It includes all the big and beneficial trends at the top.

·         Increase the risk for featured trades – Most of the traders avoid this tip, but sometimes it is good to increase the risk appetite for certain trades. To make lucrative gains, you need to take risks..!! This way you can achieve more rewards.

·         Make only one trade at a time – If you have small amount in your account then do not place multiple trades. Just concentrate on one trade – it will give you more opportunity to make money.

·         Set the profit target for each trade – Traders more likely to ponder loss target and overlook the profit target! A smart trader looks at all factors..!! Concentrating on profit will not make the trades to be limited on strategic plans.

·         Employ proper strategies – Trading with precise strategies can lead to earn more outcomes..!! Strategies and tools are the two important elements with which traders can determine the market trend accurately. It is advisable – do not use more than three tools at a time; it may make the process complicated.

·         Adequate leveraging – Leverage is the major advantage of forex trading over binary trading. Using moderate leverage values help you in sustaining in the market at high currency fluctuations. Beginners must start with lowest leverage value that suits their account.

·       Do not trade much – Many traders bared loss in forex trading because they think that they can gain more revenues just by placing trades frequently. But, this is not actually true..! To enjoy an availing trade, you need to decide when to trade and when to not.

What are the differences between Forex Trading and Binary Options Trading..??

While venturing in the trading sector, beginners usually find it a bit difficult to choose what is more beneficial – forex trading or binary options trading. If you are also in dilemma, then read below –

Ø  Margin –

·         Binary Option Trading – Margin is not necessary in binary option trading. Here, traders don’t worry about the margin calls; they can make profits of 65% to 100% even without margin.

·         Forex Trading – Margin is necessary in Forex trading and the maximum value of margin is set by the broker. It’s value usually lies between 1:500 to 1:200. Here, margin lets the traders increase the capital amount, so they can place big trades and earn more.

Ø  Losses/ Payouts –

·         Binary Option Trading – In binary options trading, traders know the how much money they are going to make or lose. The typical return ranges from 65% to 100% because risk and reward potential known to the traders and they can manage risks.

·         Forex Trading – There is no limit of the maximum profit.  Using stop or limit order, trader can set the profits or loss percentages effectively.

Ø  Order Types-

·         Binary Option Trading – Binary options trading offers an array of order types including call or put. Several other types of order types are also available that offered by the brokers. 

·         Forex Trading – It also offers a range of order types among which buy and sell are most popular.

Ø  Trade Size –

·         Binary Option Trading – In binary options trading, the trade size may vary from broker to broker. The minimum size of the trade can be $5 per trade which can goes up to $1000, $5000 or more.

·         Forex Trading – There are only a few forex brokers that offer micro lots which could be 1000 of the base currency. The maximum value is set by the broker.

Ø  Trading Cost-

·         Binary Option Trading – In binary options trading, there is no swap, commission, rollover or spread is needed.

·         Forex Trading – Here, traders must consider spreads, swap, rollover – these are the basic charges that traders must incur. Generally, no commission fee is required here.

What are the Benefits of Forex Trading..??

Forex market proffers numerous trading opportunities to the traders to earn profit by diversifying their portfolio. Forex market is generally considered as the highly liquid – “due to the fact that it offers large amount of currencies to trade”. Leverage is another benefit that traders obtain from forex trading – “it allows traders to generate huge outcomes by keeping risk capital at minimum”. The forex market remains open for twenty-four hours which lets the investor trade anytime regardless of the day and night. This particularly benefits those who trade for part time. Apart from above mentioned benefits, some other benefits are also there like “low cost”, “demo account”, etc. So, we can conclude that – however, the forex market is quite risky, but it gives you equal opportunity to earn profits…