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From the financial point of view, the Forex market is the same as any other market, like commodity or stock ones. The only difference is in goods, assets, and products traded there and methods of making deals.
Forex is a market where they trade national currencies of different countries from all over the world. The key idea of trading is to buy some currency as cheap as possible and then sell it at a more expensive rate. You can also do it in reverse: assuming that the price of some currency may go down, you sell it at as expensive as possible and buy it back later at a cheaper rate. The difference in price would be your profit.
To start trading on the Forex market, you need to register at RoboMarkets, open an appropriate trading account type, and choose a trading terminal where you plan to perform your trading operations. We offer our clients different account types, so that any trader could find the best option to match all their requirements and needs regardless of their trading experience. For those who are just starting to learn "How to trade Forex", we recommend to open a demo account to train and test their skills first. Only after that, it might be appropriate to switch to trading with real money. A good choice for beginner traders would be to open a Demo Pro account or a real Pro-Cent one.
For many people, who paid their first visit to the currency market, it's rather difficult to understand what Forex trading is and how it is done. We'll try to explain the procedure with the following example.
For example, you open a trading account with 500 USD and want to trade EURUSD. After that, you have to decide on selling or buying the chosen instrument. You assume that starting October 3rd the quotes of this currency pair will fall, so you sell 2,000 EUR at the current price of 1.1480 USD for 1,000 EUR, making a deal of 2,000 * 1.1480 = 2,850 USD. This transaction will be possible due to the leverage value that allows you to make transactions worth many times more money than you have on your trading account.
On October 29th, the rate reaches 1.1360 and you buy the same 2,000 EUR at the lower price, paying 2,000 * 1.1360 = 2,821 USD. As a result, you spend less money on buying 2 000 EUR than selling it and the difference (2,296 - 2,272 = 24 USD) is your profit. Costs of execution are not included in calculations, but should be taken into account. Position holds during the day and is not a subject to rollover fees (swap).
Please note that the situation described above is used as an example. Real trading may result in you losing your money.
In many cases, complicated information is better perceived when it is visual, therefore we offer you to learn how to trade Forex using our video tutorials that will surely be useful to beginner traders.
MetaTrader4 is one of the most popular programs chosen by traders for making trading operations. You can download the terminal to your computer from our Download Center or run the web version and start trading right now.
To understand how to trade on Forex efficiently, you need to know how to analyze financial markets. We offer you analytical reviews from the industry experts, thanks to which you will gain experience and learn to make accurate forecasts.