‘Forex’ or ‘Foreign Exchange’ is a source of income which provides a platform for traders to invest and trade foreign currencies of the world. Forex started in 1875 and now it has become the largest and most liquid market in the world.
Foreign exchange is becoming widely popular and trusted among the people of Pakistan, given its successful functioning across the world. Apart from the real currencies such as Dollars and Pounds etc., people can also choose to exchange cryptocurrencies such as Bitcoin through Forex. However, Pakistan only allows trade in real currency as cryptocurrency has been declared illegal in the country.
IQ Option is a licensed Global service which provides all the favorable conditions to its users under which they can efficiently make forex trade. It offers a high-quality platform for forex trade which is easy to use and comes with a 24-hour support system. IQ Option provides a Demo account for the beginners to let them get the gist of rules and test their trading skills without risking anything at all. Making an account on the IQ Option app is also very easy and can be done within a few minutes.
However, you should learn the general basics of forex before you decide to make an account. Here we will cover all those basics that you need to learn before starting your own forex trade.
Forex trading is done in currency pairs which means that the traders need to select and invest in a pair of two different currencies (e.g. GBP USD) as buying or selling cannot be done in an individual currency.
The pairs have been categorized into following three groups: majors, minors and exotic, based on their liquidity which is related to their trading volumes. Traders are free to choose any pair from the given three groups. This also means that the traders don’t necessarily need to trade their national currency.
The IQ Option FX platform offers one of the most favorable conditions for forex trade. It provides with the highest 1:500 leverage and the least amount of deposit which is only $10.
However, one must keep it in mind that a single mistake by him can lead to a total wipe out of his whole balance.
H3 Forex trading week
The Foreign Exchange market is open five days a week starting from 5 p.m. EST on Sunday to 5 p.m. EST on Friday.
After setting up a trading account, you must keep it in mind that it’s easy to earn big with high leverage and it’s even easier to lose everything due to the same reason. For this reason, one should set stop-loss orders.
You should consider that if the chosen currency pair will rise in the market, what will be the best possible price to sell it. Analysing previous trends of the given currency can help in predicting the highest it could go.
The volume of Foreign Exchange reaches up to trillions of dollars every day as it is the largest and most liquid market in the world.
Profits from small investments
The major benefit of foreign exchange is that huge profit can be made out of a small amount of investment. You can also start trading by depositing just $10 in your IQ Option account.
Profits from Rise or Fall in Prices
This market has no directional trading restrictions. If you think a currency pair is going to increase in value, you can buy it and if you think it could decrease, you can sell it anytime.
Using the Best Forex Brokers in Pakistan
It is also very beneficial to work with reliable Forex brokers as they cover all the other risks which do not depend on you.
The global news on economics and politics directly contributes to the fluctuations in currency rates. These currency rates are rapidly changing and fluctuations are potentially volatile.
Like all other industries, foreign exchange has its own jargon which can be hard to grasp for the beginners. An online guide on basics can also be helpful in learning such terms.
Lack of attention or wrong decisions
Foreign Exchange is a high risk market. Lack of attention, pressing a wrong button, entering a wrong amount, making wrong predictions or impulsive decisions can turn in to a huge loss.
The Foreign Currency Exchange is all about profit and loss Ratio. Every trader needs to be mentally prepared for a loss and invest as much as it is okay for him to lose.
Scalping and Price Action strategies are strongly recommended for the beginners as these can help them in having a better trading experience.
Most commonly a candlestick chart is used to analyze the trends of currency rates over a specific period of time, which helps a trader to predict its future behavior.
The ability to stay calm is also very important. The investor should focus on his psychology and learn to avoid any impulsiveness by keeping a stable emotional state.
Study and research in forex trading and learning from real-life stories are the real keys to any trader’s success. It is also recommended to start small by depositing minimum amounts first. It is absolutely not necessary to start with big deposits and putting everything at stake while you are inexperienced.
Now that you have a got the basics down, it’s time to get started on this journey which will lead you to a life of freedom and financial independence. Happy trading!