How To Earn $1000 From Forex And Trading | Internet earnings 2023
Forex is the largest market in the world, both in terms of trading volume and daily trading volume. It is estimated that more than 5 trillion dollars are traded in Forex every day. Forex trading is available 24 hours a day, 5 days a week.
What is forex?
Forex , also known as the foreign exchange rate (or currency market), is the decentralized process of exchanging one currency for another at an agreed rate.
Forex does not stop
Forex trading is the process of speculating on changes in exchange rates by buying one currency and selling another at the same time, as the value of one currency rises or falls relative to another due to economic, geopolitical and technical factors.
Forex is a global trading market that is open 24 hours a day, 5 days a week. Follow the action of the sunrise around the world as markets open in Wellington, New Zealand on Monday morning, before moving on to Asian markets in Tokyo and Singapore before moving to London on Friday night before New York closes.
Even if the market is closed for the weekend, nothing that happens when the market opens has no effect on the price of the currency
There is no greater market for forex
The foreign exchange market is the most traded market in the world, with a daily turnover of more than $5 trillion. This means that currency prices fluctuate constantly compared to other currencies, which creates trading opportunities for investors to take advantage of.
It is rare for two currencies to be equal in value to each other, and it is rare for any two currencies to maintain the same relative value for a short period of time.
You may not realize that you have participated in the foreign exchange market at least once in your life. Let's say you are planning a vacation in the United States and need to convert money from British Pounds ( GBP ) to US Dollars ( USD ).
On Monday, you go to a currency exchange center and find out that the exchange rate of pounds to dollars is $1.45 ($1.45 / £100 = $145), which means that for every pound you exchange, you will get $1.45 (spending £100 for each pound). get $145)
But after a few weeks, the exchange rate between the pound and the dollar changed to $1.60, if you spend £100 now you get $160, an increase of $15 if you know the exchange rate has increased against the dollar
Basics of forex trading
- Currency exchange rates fluctuate all the time due to a number of factors such as the strength of a country's economy, and what forex traders seek to achieve is to take advantage of these fluctuations by speculating whether the rates will go up or down.
- Currency pairs are priced by comparing one currency to another. Each pair has a base currency, the first currency, and a counter currency, the second currency.
- Every currency can strengthen and rise, as well as weaken and depreciate, since there are two currencies in every currency pair, there are four variables you can imagine in forex trading.
- If you believe that one currency will rise in value against another, you place a buy order; If you think one currency will fall against another, you place a short order
- If you feel that the USD/JPY is going up or the yen is going down against the US dollar, you can choose to go long; Conversely, if you think both currencies will go up or down, you can buy or sell these pairs
- The foreign exchange market offers you endless possibilities every day and every moment
- The process of currency trading is called foreign exchange and it is the largest financial market in the world with a volume of 5 trillion dollars a day and there are many currencies and people involved in it, because you are buying one currency with another currency and selling it, you are trading a pair (currency pair)
How can you benefit from exchange rate changes?
Exchange rates are constantly changing and traders seek to take advantage of these changes. Here is an example:
Let's say you go abroad to an exchange and buy Euros for $500, and after a week you go home (without spending any Euros) and again commit to converting Euros into dollars, but in return you get $505 because the exchange rate happened during that time. The change this week is called $5 coin trading profit
Long gone are the days when you needed to go out and invest in currencies. Thanks to online forex trading , everyone can invest in different currencies and take advantage of price changes from home or even from their smartphone.
Which currencies can you trade?
You can invest in multiple currency pairs through iFOREX . In fact, there are over 80 currency pairs to choose from.Let's take a look at some of the options available to you.
- major currencies
- cross currencies
- remote currencies
The most traded currencies are the majors, which account for nearly 85% of all currency trading markets , including the US dollar, the euro, the Japanese yen, the pound sterling, the Canadian dollar and the Australian dollar
Currency pairs that do not include the US dollar are often called cross currency pairs, for example: EUR/XAU, USD/XAG, GBP/AUD
Forex pairs consist of major currencies and minor currencies from emerging economies
- EUR/USD
- USD/JPY
- GBP/USD
- AUD/USD
- USD/CHF
- NZD/USD
- USD/CAD
- GBP/JPY
- CAD/JPY
- USD/ZAR
- USD/HKD
iFOREX offers a wide range of currency pairs that you can trade on the site
Understanding the term "pips"
In most currency pairs, the pip is to the fourth decimal place. change one unit. The point is the fourth decimal place. There are exceptions, such as the Japanese yen pair, where the pip is the fourth decimal place. The number changes by one unit and the second digit after the decimal point
Confused Here is a simple example: The value of one pip of the EUR/USD pair moves from 1.1050 to 1.1051, which is an increment of 0.0001 points.
When can you trade forex?
The foreign exchange market operates 24 hours a day and can be divided into four sessions: Sydney (Australia), Tokyo (Japan), London (UK) and New York (USA).
Currency trading with leverage (CFD)
In the past, only large investors were involved in currency trading , but now anyone can buy and sell currencies from backyard CFDs (Contracts for Difference), which are derivatives (financial instruments that gain value by reference to some underlying asset).
This is thanks to a unique tool called leverage. This is due to a method called margin: it allows you to trade relatively small investments using borrowed money, which you can then recover if your position loses money. With the required margin contract investment of €100 for each of these trades, you can open a position of €40,000 using leverage of 400:1. If you invest only €100 and try to trade with 100:1 leverage at the beginning of a downtrend, we will give you up to €400 of your investment. Leverage trades per euro invested.
It will reduce your account by 70%! With iFOREX Negative Balance Protection, your account will never lose money despite your mistakes - we protect your money by automatically buying positions when they become undervalued
How to start your first currency pair trade
You are ready to start your forex trading! You can do this in three easy steps
- Choose the currency pair
Suppose you want to trade EUR/USD or EUR/USD, for example 1 EUR at 1.1200 USD, with an investment of 100 EUR you can buy 112 USD without leverage.
- Choose your deal size
Leverage allows you to make trades worth up to 400 times your initial investment, for example, 100 EUR can buy 40,000 EUR worth of US Dollars with leverage of 400: 1.40,000 EUR = 400 x 100 EUR
Suppose the price of EUR/USD goes up - this means that the value of the EUR increases by 0.01 - and you decide to close your position
For a €40,000 position, this change of 0.01 means a profit of $400 on an investment of €100
There are many advantages to trading foreign exchange in the form of CFDs at iFOREX
- Participate in the largest financial market in the world
- Open big deals with a small initial investment
- Invest in different currencies
- Free access to sources of useful information
- Get free trading training
- Use when you have to trade or use your phone or computer