For traders, as well as for developers of trading strategies, it is important to understand the subject of research and its purpose. The financial profit included in the principle of earning on Forex can be obtained only on the basis of fundamental knowledge. Understanding market probability and skill in reading candlestick patterns is not enough. In the analysis of financial quotes and its mechanism, it is necessary to understand the subject of research and its purpose. In this case, the subject is Forex trading, and the goal is to predict the exchange rate.

If you understand how Forex works, your price prediction for currency pairs will be more convincing. The market may slow down or move impulsively, but it is in constant motion. The growth or fall of the currency is an irritant to which the market reacts instantly. The behavior of the currency pairs themselves is directly dependent on the following factors:

Technical- this is the balance of power in the tandem "buyer / seller". In addition, it is important what is dominant over a certain period of time - supply or demand in Forex.
Economic is the economy of countries and the currency they issue.

Novice traders do not even suspect how significantly the main market participants influence the behavior of trading instruments. Tracking the activities of large commercial and state banks, financial funds and other structures, in their opinion, is difficult. Due to technical analysis in this matter, they do not believe and completely in vain. A major market participant acts in its own interests and according to special rules. Practical trading experience shows that all tips are "on the surface". A trader needs to be able to find them, analyze them and include the received tips in his own analysis system.

What do Forex traders trade?

No professional trader can successfully trade if they do not know what the words “swap”, “margin”, “leverage”, “currency arbitrage”, etc. mean. This is stock terminology that every novice player should know. The financial markets do not trade currencies as such. The subject of trade is financial instruments with the conditional name "currency pairs" or "Forex pairs".

Buying, for example, a euro-dollar pair (EUR/USD) at a rate of 1.0600, a trader buys euros worth $1.06 per unit. He rightly expects that the currency quote will change soon, because his profit is based on the difference between buying and selling them. Whether the euro rises or the dollar falls, the price of the euro in both cases will be higher than the dollar, and the trader will earn money on this.

In the case of the sale of the same currency pair, nothing is actually sold, but bought. If a trader made a Sell transaction on the EUR/USD pair, he did not sell anything, but actually bought the dollar. If the price of this pair falls, the price of the dollar will become higher, and the euro will decrease in price against the dollar.

Based on the foregoing, the principle of operation of Forex does not allow you to really buy this or that currency. Buying for a trader is just profit taking. In other words, if your forecast came true, and the price of your pair rose, closing it, you take profit. After that, you need to sell it at a new price. Considering that almost $2 trillion is circulating in the daily turnover of the foreign exchange market, you will have a buyer for this pair. For any order to sell or buy, there is a counterparty - one who wants and is ready to buy or sell. When there is a demand or supply, they must be satisfied - this is the principle of stable operation of the Forex market.

A trader can also increase his profit on a swap on a medium- or long-term trade. This Forex trading strategy is called "Carry Trade". When opening a position, a trader must:

Find out the difference in the rates of the currencies that you intend to trade. The quality of the swap depends on this – will it be negative or positive? At Forex on the night from Wednesday to Thursday, the swap is triple.
Choose a small leverage (be aware of the risks!).
Decide on the type of transaction - sell or buy? The movement of the selected currency pair should go in the direction the trader needs.

In fact, this Forex strategy allows you to earn "doing nothing". You can simply open a long-term position, for example, for a year and close it with a swap profit. This is a good method to increase the underlying profit. If the currency instrument moves in the wrong direction, a small leverage will reduce the loss. Swap, in any case, should work on the side of the trader.

Carry trade on EUR/JPY.

Real professionals of exchange trading work at the Forex Academy. We know all the intricacies of making money on the currency exchange and will share this valuable information with you. Sign up for an individual lesson with our trader-teacher to learn more and improve your skill level.

Main Participants of Forex

You can not consider the Forex market as some kind of financial platform for exchanging money. In any state, the value of its own currency affects all the economic processes taking place in it. It is also the most important indicator of its economic condition.

Small Traders are in the minority in the financial market. In comparison with the strong positions of its major participants, they are clearly losing. The most active Forex players are state banks. There is another category of participants that influence the market price movement. it large private investors investing their financial resources in the implementation of various economic projects. They directly affect the exchange rate of the national currency of the state in whose economy they invest their money.

In investing today, different tools, methods and schemes are used. The most popular and well-known methods include the aforementioned “Carry Trade” strategy. Initially, it was used only by large players. This is understandable, they are the owners of powerful investment portfolios. This is the principle of trading, providing income due to the difference in lending rates.

Familiarization with this strategy will also be useful for the player for several reasons:

First, in the Forex market he can earn using this strategy. If he chooses the currency instrument correctly, then the swap will help him increase the main profit or reduce the loss. Given the risk, the leverage should be low.
Secondly, he will better understand the actions of big players- banks, investors, various funds, during the increase in interest rates by the Central Bank.

The Carry Trade strategy allows you to significantly increase profits, but the risk of remaining at a loss is also great. On a large amount, you should not take a large leverage. It is important to understand the monetary policy of the chosen foreign exchange instrument and take into account the risk of changes in its value. The strategy does not use any indicators. And why are they needed? Forex indicators are mathematical formulas dressed in a certain form. They do not work in the market, because the market does not obey mathematical functions.

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Principles of work of Forex professionals

Professional traders know that it is impossible to open profitable positions without analyzing and forecasting the market situation. They use technical analysis of currency quotes to look behind the scenes of a market chart. They learn Forex principles to enter the market in the same direction as the big players.

The behavior of a large investor best reflects important economic news. To study the behavior of a major state or commercial player, the study of pricing factors should be approached comprehensively.

In Forex, a major participant, the so-called market maker, carefully prepares the ground for himself before his own deal. His task is to provoke the market crowd, which, according to its currency instruments, must choose supply or demand. About 90% of traders today work with indicator strategies incorrectly, so it is not difficult for him to mislead the crowd.

An increase or decrease in the exchange rate by a market maker in the range of 20-50 points is enough for the market crowd to make a decision. As soon as a supply or demand is created for the order, the price turns around and goes to where a large participant has been patiently waiting for it for a long time. Opening trades against the crowd is a sure profit and the art of real traders.

Opening deals against the crowd.

Summing up

Exchange applications of large market participants always leave traces - these are price levels on the chart in relation to the volume of transactions. Candlestick analysis setups used in various trading strategies (VSA, Price Action, etc.) help the trader find the right points. The amplitude of the imbalance between supply and demand is so obvious that it is impossible to make a mistake with the point of profitable entry into the market. This is a way to earn real profit by taking its "lion's share" from a private trader. The movement and direction of large volumes is what should be of interest to a trader so that he can enter the market on time with a favorable position for him.

Hello, dear Readers of the site "site"! This article reveals the essence and principle of Forex, how currencies are exchanged and other interactions between participants on.

In order to understand the essence and principle of Forex, you must first understand who are the main participants in the currency exchange and what they mean for Forex. More details about each of the participants will be given below in the form of sections.

What is the Forex currency market?

Forex is an international currency exchange where the currencies available on it and other trading assets are exchanged between its participants (sellers and buyers). The essence of the Forex currency market is to bring together buyers and sellers of currency in one place. Where they can make a currency exchange, satisfying their needs.

What is currency market liquidity?

Liquidity in Forex refers to the demand for certain trading assets of the currency exchange. If there is no or low liquidity for trading assets, they will be weakly involved in the exchange and trading activities of traders, which will lead to a decrease in their value and even to their exclusion from the exchange.

Who are traders?

Participants performing trading and exchange operations with currency are called traders. It is they who create liquidity on the currency exchange by generating supply and demand for Forex with their needs.

Based on the demand or supply of traders, active trading in certain currencies and trading assets begins, which will lead to an increase in liquidity and the appearance of high volatility in the financial market.

Who are brokerage companies

Forex participants who bring sellers and buyers together to carry out a currency exchange between them are called or brokers.

In order for a trader to be able to make Forex trading operations, he needs to have his own trading account opened with a licensed brokerage company on the stock exchange. Trading in the financial markets without a broker is too complicated for traders. Since they need to independently issue licenses in authorized instances to carry out currency exchange operations.

When trading through brokerage companies, traders only need to open a trading account with a broker. He doesn't need to do anything else. Since the brokerage company already has all the necessary documents to enable its clients to conduct trading activities on the currency exchange.

Who are stock market regulators?

When brokerage companies and traders cooperate, conflicts and disputes often arise between them. These disputes are resolved by the authorized bodies of financial markets - regulators.

They are the caretakers of the brokers, so that they conduct honest and decent activities on the exchange. If a broker is found to be inconsistent or violated, regulators may impose fines and other types of sanctions on it.

Traders most often turn to regulators with their claims. If a broker has questions to his client, they already have enough leverage. Therefore, there are practically no brokerage appeals to regulators.

Claims that arise from traders to brokers:

- non-payment of funds;
— not triggering stop-losses or take-profits;
- the occurrence of non-market quotes in the broker's trading platform, which led to the trader's losses;
- other types of deception of traders by brokerage companies.

A trader, before submitting his claim to the regulator, should try to resolve the conflict situation that has arisen together with his brokerage company. If the dispute is not resolved mutually with the broker, the trader can apply to the regulator with his claim. And if the dispute is not resolved by the regulator, the trader should already go to court or leave the dispute with the broker.

How is the exchange of currencies on Forex?

Currency exchange on Forex is as follows:

- demand/supply appears on the foreign exchange market;
- from supply or demand, buyers and sellers appear;
- they buy or sell currency at favorable prices for them;
- how volatility and liquidity occur in Forex.

How can an ordinary person start trading on Forex?

In order for an ordinary person to start making currency exchanges and other activities in the Forex currency market, he should register a personal account and open a trading account with a broker. After that, replenish the trading account and start opening deals through the trading terminal provided by the brokerage company.

Instructions on how to start trading on Forex:

Open a trading account, having previously selected the conditions for it.
Top up an open account with cash.
Download and install .
Open trades in the trading platform.
Withdraw profit.

Before you start trading Forex with real money, you should get training in trading and practice trading on demo accounts.

Only with stable and conscious positive results from, you should switch to trading on real trading accounts with your money invested in them.

When the dollar-pegged monetary system proved its insolvency and inability to fully cover all volumes of currency emission, the first prerequisites appeared for the creation of the Forex exchange - the international financial market.

Initially, only a few advanced countries switched to the free formation of currency markets at a floating rate, but over time, their number increased many times over. Many private investors and the popularization of the Internet have done their job - the number of transactions and their total volumes have increased significantly.

If you are a beginner who wants to make money on currency speculation using Forex, it is highly recommended that you first get at least a basic understanding of how the foreign exchange market works.

Formation and principles of operation of the Forex currency exchange

Forex combines currency and stock exchanges, currencies, futures, raw materials, precious metals are among the assets. The most diverse contingent is active in the market - private investors with small and large capital, brokers and traders, financial institutions.

The list can be continued for a long time, but in any case, the work of Forex is based on a number of principles:

The price of any traded asset is formed spontaneously - supply and demand matters, the economic situation, trends that have arisen among traders, etc. Even global cataclysms like earthquakes and hurricanes.
Forex is a highly liquid market. Selling assets at certain prices, you can always be sure that for some buyers such a price will be profitable.
The impressive money supply from players from all over the world, who move in different directions every day, has made Forex a flexible and agile market. Opening and closing orders here is virtually instantaneous.
The market operates during a five-day working week, but due to the difference between time zones, it is possible to engage in transactions on weekends.
The main driving factors of Forex are mutual payments, inflation and the discount rate, economic and political events, and psychological factors.
Traders are provided, which allows them to receive multiple financial returns with a small deposit amount (the reverse side of the coin is no less large losses in the event of a losing trade).

The size of the annual Forex turnover is measured in trillions of dollars, which characterizes it as a highly active and constantly changing market. Private investors and traders find it extremely attractive, as you can start your business here with minimal investment, thanks to intermediary brokerage companies.

If a person wanted to work with the market directly, he would need an impressive amount with a large number of zeros, and so he trades on his own behalf, allowing small traders “under his wing” to manage their deposits and conclude transactions that they consider profitable.

Of course, in order to avoid possible problems and not run into scammers, each trader must approach the choice of a broker with all seriousness, since not every working organization is able to offer clients favorable conditions. Some, in general, prefer to drain deposits or refuse payments.

In the United States, for example, specialized services monitor the work of brokers, but in our country there is no such thing at the moment, and therefore the risks are increased. The only way to somehow protect yourself from deception is to cooperate only with those about whom a positive opinion has formed on the Internet. Such companies have been operating for years and pay their users on time.

The principle of operation (device) of the Forex exchange on a specific example

Buying and selling assets in the foreign exchange market are specific monetary units. The rates of some currencies are easy to express in a certain amount of others. For example, now 1 dollar equals 0.85 euros. But not everything is so simple, because there are two directions of movement of each currency - sale and purchase.

The first is usually carried out at a higher price, and the second at a lower price. And this is natural, because market participants tend to sell more expensive, while buying cheaper.

Even a seemingly insignificant fluctuation (about 1%) can bring a tangible benefit to the trader, taking into account all the advantages of the leverage provided by the broker.

A deal for $100 with a leverage of 1:100 with a difference in the price of currencies of only 10 points often allows you to double this amount.

But the difference can reach hundreds of points, which also occurs (Of course, money is not taken out of thin air - everyone should understand that the funds received when concluding a winning trade represent a mirror image of someone else's loss. Another trader made a reverse forecast, and he turned out to be losing).

The best option for novice traders would be to stop using leverage - at least for the first time, when they are just starting to understand all the intricacies of currency trading. Yes, the profit will not be so tangible, but the risk of losing the deposit will be significantly less.

Also, do not forget about the possibility of using demo accounts on Forex.

Many brokers allow traders to practice on virtual money in an environment that is absolutely identical to the real market. Even some professionals often use a demo account to test new strategies, let alone beginners who simply need it.

A few more words about the structure of the Forex market

Forex is a spontaneous market based on currency transactions. Its participants make money on speculation in certain assets, submitting them at prices that exceed the purchase price. Forex is characterized by free pricing, but especially large players (for example, some international bank) are quite capable of exerting a significant influence on the domestic climate.

Also, the situation with exchange rates is influenced by political, economic, psychological, and a number of other factors that each trader must be able to analyze and correctly use for their own purposes.

Only large participants operating with solid sums of money can work directly with the market, while the rest have to work through intermediaries. Each broker offers its own individual conditions for cooperation, so each trader or investor should choose wisely.

How does Forex work? Important patterns of the currency exchange

For forex, neither market probabilities and repetitions of various candlestick patterns should come first. To understand how to correctly analyze financial quotes, you need to understand what exactly you are researching in the course forecasting process. It is rather difficult to say with certainty that the price of a forex pair will rise or fall if by this you do not understand the basic principles of the forex exchange. After all, before you start depreciating the currency must be subject to any economic or technical factors. To the first we will refer the economy of the countries issuing the currency, to the second - the balance of power between buyers and sellers, the presence of supply and demand for a financial instrument. It seems to many beginners that it is impossible from the point of view of technical analysis to see the behavior of the main market participants: large state and commercial banks, financial funds, and so on. In fact, and in real trading practice, this is not at all the case, you can see what is happening and use it to the benefit of your analysis system.

To begin with, you should understand that forex is not traded in currencies, as such. And financial instruments, conditionally called - forex pairs. A currency trader buying euro-dollar (EUR USD) at 1.0800 is actually buying each euro for 1 dollar 8 cents in the hope that after some time either the euro will rise in price or the dollar will fall in price. Any of these options will lead to an increase in the value of the euro against the dollar, which will allow it to earn on the difference in the cost of buying and selling a financial instrument. In a situation with the sale of this currency pair, real forex traders in fact, they don’t sell anything, they again buy, but in the case of a sell transaction, they simply buy a dollar. Since when the pair eur usd falls, the dollar will rise in price, or the European currency will fall against the dollar.

That's why, real forex- these are only purchases, forex sales are carried out to fix profits. That is, you have received the price increase you need and want to take profits. To do this, of course, you need to sell someone at an increased rate. Due to the fact that the daily turnover of funds in the foreign exchange market is about 2 trillion dollars, this is not difficult to do. For any of your orders to buy or sell, there will be a counterparty (that is, one who is ready to buy from you or sell to you).

Real forex and major currency pairs

The real (real) Forex market is not always a logical financial platform where millions of people exchange money. The value of the currency is the most important economic indicator that affects almost all spheres of the economy of states. A deliberate depreciation of the national currency usually leads to an increase in exports of its own products abroad. Since it becomes much more profitable for importing countries to buy products from a state with a weaker currency. Conversely, it is beneficial for importers if their exchange rate is sufficiently high relative to the exporters' exchange rate. There is no need to look far for examples - the European Union, the most active importer and the highest value of the national currency; China and Russia are the most active exporters - as a result, the low exchange rates of the national currency.

Therefore, you will be greatly mistaken if you think that only small traders trade in the market. State-owned banks are the most active in forex. By the way, it was on the basis of this that the author's I-FSR strategy was created, the trading algorithm of which we have been successfully conducting video training for the second year already.

An equally important role in the financial markets is played by large investors, people who earn by investing their money in various economic projects that directly affect the value of the national currency. Again, the simplest example: an investor invests heavily in the economy of a country (apple company), buying its shares for the money of that very country, he gives rise to an increase in demand for the currency. Thus, as we know, the growth of the USD exchange rate is provoked. How will this affect the same forex pair EUR USD? Within a few hours, the rate will fall quite strongly (subject to large investments). It is the same with the USD RUB pair - with an increase in the value of the economy (buying apple shares), an increase in the value of the dollar will lead to an increase in this financial instrument. As you can see, changes in the economy of one country are strongly reflected in other economies.

And after that, how can state financial institutions not be the most active market players? Such a concept as intervention was born precisely by the attempts of countries on their own to raise or lower the exchange rate, buying or selling it in huge volumes. Of course, for these purposes, major forex pairs- AUD USD, USD CHF, EUR USD, GBP USD, USD CAD, USD JPY. What gives them increased volatility in relation to any other financial instruments presented in your trading terminal.

How the principle of Forex is used by professionals

It would be very strange if professional participants in exchange trading did not use it to predict the market situation and open their own positions in the direction of large market participants (banks, funds, investors, etc.). At the same time, the technical analysis of forex quotes makes it possible to navigate what is happening "behind the scenes" of market charts. In the process of learning the I-FSR methodology, we pay great attention to the behavior of the market before the release of important economic news, most often these publications reflect the behavior of large investors. As for the participation in currency trading of large state and commercial "players", here a comprehensive study of pricing factors comes to the rescue.

Before buying or selling a currency, large Forex participants (market makers) need to prepare the "ground". That is, to provoke the market crowd to demand or supply for the currency. It is not difficult enough to do this, since more than 90% of today's traders incorrectly use indicator strategies, without paying due attention to the correct forex analysis techniques. For a large market maker, it is enough to lower or raise the rate of a currency instrument by 30-50 points for the crowd indicators to indicate an increase or decrease. Usually, as soon as the market crowd creates enough demand or supply for the orders of a large participant, the price instantly shoots in the opposite direction. And experienced traders always use such actions of a market maker to their advantage by opening their trades against the crowd (read how to do this).

The price always leaves traces of exchange orders of a major market participant, you can track the price levels created by analyzing the price behavior when the volume indicator rises. Candlestick setups of strategies such as price action, vsa and i-fsr allow, with a competent analysis of volumes and levels, to find points at which the balance of supply and demand differs so much that you can open a profitable position with maximum accuracy and earn money together with large exchange participants by taking money from a huge mass of private traders. Real Forex trading is not following indicators, as 9 out of 10 speculators do, it is the ability to follow the movement of large volumes, find out their direction and open a position at the right time.

If you are interested in speculation in the foreign exchange market, then we will teach you all the tricks. Forex trading for beginners. Big earning success. Basic concepts of the financial market, terminology, the essence of the work. How can a beginner with minimal capital start making money within 2 weeks after starting to learn how to trade on the market? What are quotes, stop losses and patterns? The article “Forex Trading for Beginners” will tell you how to become a trader.

How to make your first money on Forex in a week

If you have never dealt with the financial exchange and do not know what a “bullish downtrend pattern” is, this article is designed to help you figure it out as quickly as possible.

The main question is: can a person whose knowledge is limited to the concept of "financial exchange" make money on Forex? This is of interest to tens of millions of people and we will try to answer this question in detail. We will try in simple words to answer questions regarding terms, elementary methods of analysis and other nuances that concern you.

A financial exchange is a specific type of market in the economy where money or financial assets are traded, without the use of direct-purpose goods and services. It should also be noted that the speculation on the Internet is significantly different from the real one. It is much easier to do business here, there are many tools to increase the profitability of your activities, so you will earn many times more online.

What is Forex

It is an online currency exchange where traders can enter the market. Forex is part of the global financial system. This is where money trading takes place - the exchange of one currency for another. The task is to earn on the difference in rates and receive income on the rise in price or reduction in price of quotes of world and digital currencies. Forex has its own laws and rules, according to which both beginners and professionals work.

By deciding to receive income by betting on the increase or decrease of currencies, you take on a certain responsibility. For their actions, for decisions made, for income and losses. But sometimes, a mistake costs a lot of money. Trades are unpredictable. Suffice it to recall the story of the legendary financier George Soros. How he made a fortune by crashing the pound, and subsequently drained the money he earned. Avoid such mistakes.

Do not neglect the psychological factors. Often the thirst for profit destroys many young "fighters". Remember. Only tactics, forecast and cold calculation.

“The key to trading success is emotional discipline. If intelligence were the key, then many people would make money trading… It will sound like a cliché, but the only reason people make money in the financial markets is because they don’t cut their losses.” (Victor Sperandeo)

There is a myth among beginners that in order to make money, you need to monitor charts around the clock. This is not true. It is enough to develop an action plan and set up a program. You are even able to set the settings so that the program will make transactions for you.

Basic concepts

Before proceeding with the operation, it is necessary to understand the terminology. This is the base, like the alphabet, which must be mastered before you start “reading”.

Forex - from the English FOReign EXchange Market. Translated, this phrase means foreign exchange. They exchange money on Forex. The main principle is the free conversion of money, without any interference from the state.

The main participants in the process are traders. These are those who are engaged in speculative transactions and earn on exchange rate differences. Trading processes between the financial exchange and the trader are carried out by an intermediary - a broker. Choosing a good and reliable broker is the most important stage in the work of any bidder. Despite the fact that modern brokers offer almost identical conditions, some of them are not good partners who do not delay payments and ensure the safety of funds for their investors. Before deciding on an intermediary organization, check out the ratings that are easy to find on the net.

To make transactions, you need a special program - a terminal. This is software that is installed on the user's PC, thanks to which you will explore charts, analyze information and make deals. The most popular trading terminal model is MetaTrader4. Previously, before there was no TT, traders had to call their broker and ask for prices. With the advent of MetaTrader4 or other similar software, this has become much easier. You trade directly in the program.

Forex is a system, discipline and hard work. If you are ready to invest in education and comprehend this interesting science, then pleasant bonuses await you.

Terminology

Timeframe is a graphical scale that determines the minimum steps of quotes displayed in the terminal. For example, an hourly timeframe implies the presence of hourly candles on it, and a daily timeframe implies daily ones. It turns out that the larger the timeframe, the more time it can cover, but then the accuracy of the analysis decreases. Those who have been trading for a long time and make good money are accustomed to using several timeframes simultaneously to adequately assess the situation.

Leverage- this is a proportional ratio of the amount deposited as a deposit to the funds for which a transaction can be opened. It allows you to make money. Choose the leverage based on your preferences, while you do not need to pay anything for it. For example, the deposit is $100, but you want to make a deal for $10,000. In this situation, the leverage is 1:100.

Order is a position in Forex. It is the order that allows you to buy or sell currency quotes.

Lot - this is the usual order volume, that is, positions on the currency exchange. As a rule, one lot is equal to one hundred thousand dollars, but experienced traders trade only certain fractions of this lot. By the way, if it were not for the leverage, it would be simply impossible to open accounts with small deposits.

Indicators are computer programs that are built into the platform and analyze the situation on the market. It is on these trading indicators that the lion's share of strategies is built.

Candles- These are the main components of the candlestick chart. Candlesticks show the movement of quotes over a certain period of time. Thus, a minute candle gives data on the price level at the time of opening, at the time of closing, the maximum and minimum price values at that time.

“Markets are constantly in a state of uncertainty and fluctuation, and money is made by calculating the obvious and betting on the unexpected.” (George Soros)

In order to master the intricacies of working on FOREX, it is necessary to become more familiar with the general principles of speculative trading. They are not so complicated and do not require deep knowledge, but they consist in simple rules and calculations, which for the most part are carried out by automated systems and the terminal itself.

Before you proudly call a trader, master the terminology and study such concepts as: trend, consolidation area, swap, margin, pattern, support and resistance level, StopLoss and TakeProfit.

Quotes

Or currency pairs, this is a proportional ratio of the price of 2 currencies. They display the ratio of the price of one to the other. The first standing in a pair is considered the main one. Its value is always equal to one.

EUR - euro,
GBP - British pound sterling,
JPY - Japanese yen,
CHF - Swiss franc,
CAD - Canadian dollar,
AUD - Australian dollar,
NZD - New Zealand dollar.

These currencies form pairs for which the largest number of transactions take place, since they are more liquid on the world market.

The most common and important pairs: USD/EUR, USD/JPY, USD/GBP, USD/CHF

Step by step instructions to start trading

1. Carefully study the basic information related to the category "for a teapot". A beginner is a person who has nothing to do with finance, so for a start it’s a good idea to master the entire trading base, which is what you are actually doing at the moment.

2. Learn the rules of the chosen trading strategy like “our father”, because this is the future income, because. it depends on it whether you will earn and how well. It is necessary to follow certain laws of currency trading, and not to deviate from them under any circumstances. The chosen approach must be reliable and verified before you by other market participants.

3. Master the basic terms.

4. Choose a quality and proven intermediary. The safety of investments and the quick withdrawal of earned money are determined precisely by the choice of a broker. Unreliable trading partners may provide “hanging” sites, not provide up-to-date currency quotes, and so on.

By following these four simple conditions, you will quickly learn how to profit from your trades without fear of the blunders that most beginners make. Of course, mistakes will still occur, but they will not bring you those colossal losses that are quite real if you trade without tactics or work with a fraudulent broker.

How does speculation happen?

If you have ever been to an ordinary grocery market, then be sure that you have an understanding of how the whole process takes place. Let's say you need to buy a product. Before you buy, you need to look around and find a seller. Next, you ask for the cost, for what amount he is ready to give his product - it will be ASK, The bid price at which the seller is willing to sell his product. Considering that it is expensive, you start bargaining. And name the amount acceptable to you - this is BID, or the asking price.

Let's translate the described process into forex terminology. You buy a currency and open a position byu by price ASK. Or sell the asset at cost BID and open a deal sell. The difference between these two values is called SPREAD.

Market analysis

What determines the value of a particular currency? Similarly with the classical market, the price is determined by supply and demand. The more people want to buy the currency, the more it becomes more expensive. And vice versa. The least attractive assets are not in demand and fall in value. The main task is to determine the trend and the possible direction of the price.

Looking at the graphs, you can see a certain pattern. The value does not move spontaneously. She has her own rules. Technical and fundamental analysis will help you understand these nuances.

In contrast to the fundamental, technical analysis is based on statistical and mathematical calculations. It includes charts, figures, indicators and more. Forecasting is based on the history of trends and the price path of a particular currency.

Fundamental analysis is a kind of market analysis when you analyze not the chart, but the factors that influence it: news, politics, speeches of country presidents and other global and local events. It can also be various economic news, which include data on the gross domestic product, interest rates, unemployment, and so on. Economic news can determine the trend of quotes with a high degree of probability. And it helps professional financiers to use this information for successful trading.

Most popular newbie questions

Can I make good money with absolutely no understanding of economic matters?

This question is the most relevant among those that we have heard. How to succeed in Forex for those who have never had anything to do with finance in their lives? Yes, you need to know a lot, but why don't you acquire this knowledge? You can complete the course as soon as possible. Learn the basics, and in the process of trading at minimal risk, learn what real professionals know.

How to start?

For profitable trading, you need to be well prepared, choose a strategy, find a suitable intermediary in the form of a broker, and master some of the nuances of trading. The lion's share of beginners perform operations without any preparation at all, which is their main mistake. Despite this, getting a stable profit is very real, the main thing is not to be lazy and invest time in gaining knowledge.

How to choose the right trading strategy?

A trading strategy is a list of certain laws for beginners and professionals. Speculation without any tactics is just irresponsible stupidity that will not lead to favorable consequences. Remember this! It remains only to choose the right system. How to do it? Before choosing, answer the following questions for yourself:

1. How often do you want to trade? There are approaches that require daily sitting at the computer for 3-4 hours to open a large number of positions within a day. There are, on the contrary, those that do not require a daily visit to the trading platform. They are called scalping and long-term trading. There are also medium-term trades that allow you to open positions up to 1 week.

2. What kind of analysis do you plan to use? You already know that there are technical and fundamental analyzes. Each trader must determine the method of analysis according to their skills, talents and preferences.

To get acquainted with the tools of technical analysis and study the fundamental one in more detail is the key to success. Start doing it right now. You will find all comprehensive information on our portal.

“Neither the book, nor the guru, nor the strategy will answer the question of how to trade profitably. Success comes with time, if you put enough effort into it.” (Bret Steenbarger)

How much money to replenish the account?

In general, you can start trading even if you only have one dollar in your trading account. Of course, this is in theory. Please note that a small deposit will bring a small income. In order to consistently earn on Forex, you need to have a deposit of at least $250 if you plan to become a professional in the future. This is not such a large amount and any citizen can afford it.

How to choose the parameters of your account?

During registration, you will set up your trading account: leverage, variety, swaps - the profitability of the whole undertaking as a whole will depend on the choice. Carefully study all parameters for accurate and efficient tuning.

When is the best time to trade?

A big mistake for beginners is to work at the wrong time. There are times of the day when the schedule is very easy to predict. For each pair - this is its own interval. If you trade only at this time, you can minimize risks and increase profitability.

What quote to choose?

Most beginners ask which pair to choose. Start with the standard ones, but over time, learn the features of 4-5 currency pairs in order to be able to open the most profitable and convenient deals for you and increase your income.

Deal example

The deposit is $500. You have decided to open a trade on the EUR/USD pair. After analyzing the trend, bet on an increase in the rate. You open a position of 0.1 lot at the quote 1.5455 offered by the broker. To increase profitability, you decide to work with a larger amount and take leverage.

Now you have + 10 000 EUR for which you paid 15 455 USD.

After some time, you decide to close the deal. You are offered a sell price of 1.5655.

Previously purchased 10 000 EUR sell for 16 155 .

And count your profit: 15 655 - 15 455 = 200$

The more you trade, the more you will earn. But be careful. The risk of significant losses in case of an incorrect forecast is similarly high.

parting word

This article was supposed to dispel the fog around such a complex and incomprehensible Forex market for beginners. If you work hard and absorb knowledge like a sponge, you can really start getting money after 2-3 weeks of training. Having thoroughly dealt with this issue, you open excellent prospects for the future.