Forex trading entails buying and selling currencies. It is all about speculating on world currencies and optimising on price fluctuations to make again. The fluctuation in a currency may be triggered by holiday spenders who are eager to convert money from one currency to another to pay for expenses. Thus, there are plenty of reasons why forex is important. It could be for hedging against international currencies and speculating against geopolitical events. Also, it could be for diversification reasons. Therefore a forex market provides traders with an opportunity to react and respond to news.
Naga is one of the platforms which has made forex trading easy. The platform has a great range of trading instruments and is reliable. Naga provides traders with education on how to trade using a range of research tools. Also, it guarantees traders 24/7 support.
Thus, if you are starting as a new trader, you’ll need to learn how to trade forex. But first, you must identify a broker, open an account and learn how currencies are traded. You will also need to learn about trends and how to trade using trends. Continue reading this article to learn more about trading forex and how to trade Forex on NAGA.
Choosing an online platform
Before you start trading, you must choose an appropriate trading platform. Check and ensure that the platform you choose is registered with the regulatory authority. Those with funds in segregated accounts are safer. Naga is one of the platforms you can choose. It charges low fees and commissions. Besides, it does not charge inactivity fees.
Also, the minimum deposit you need to make before you can trade on the platform is small. Furthermore, the platform is compatible with trading platforms and allows you to choose any of its 950 financial instruments. It has a mobile trading interface and leverage on the featured assets. What is more is that the platform offers tutorials on how to get started and features educational materials to help you plan and execute trades successfully.
Learn the three ways of trading forex
If you decide to trade forex on Naga, you must learn the three basic ways through which you can trade forex. Some of the methods you will need to master include:
Spot market
It allows you to evaluate currency pairs and swap them in real-time. The swapping is dependent on the demand and supply of the currency.
Forward market
It allows forex traders to get into binding contracts- where they lock into an exchange rate for a particular currency in the future.
Future market
A trader takes out a standard agreement allowing them to buy and sell a stated amount of a currency at an agreed exchange rate in the future.
Trends that novice can capitalise on
As said earlier, the forex market is influenced by global events and government policies. Thus some trends cause disruptions and impact on foreign exchange trading.
The Covid-19
The pandemic has disrupted world economies, including foreign exchange trading. It has disrupted trades, caused uncertainty and heightened isolation. How each country responds to the crisis influences its economy including causing ripples in the financial world? So as a new trader, analysing the impact of the pandemic on a country can help you predict the direction in which the currency will move.
Individual investment
It is another trend that is likely to impact the foreign exchange market. Note that the ripple effect of the pandemic has reduced jobs and brought in a place remote working. The younger people have seized the opportunity and are making millions of dollars from online ventures. Some of them have invested in the crypto market, while many more are investing in stocks and forex. Therefore, theiractions are affecting the prices of cryptos, stocks and world currencies. The fact that they share their actions on social media gives newbie traders a chance to get wind of developing trends to optimise their trades.
Copy trading
This is a new trend that allows newbies to use software to copy what the expert traders are doing. It can get you started faster and will help you learn how to trade forex.
Although there are many platforms on which to trade forex, some of them are complex and charge exorbitant fees. Luckily, Naga is a simple and reliable platform that allows newbie traders to get started easily. They can do this by learning how to trade or copying their experienced counterparts
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.
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