Forex trading: Wanna make tons of money?

Foreign exchange trading involves buying and selling currencies. The purpose is to create profits. One can invest in long-term value, or engage in traditional daytrading.

Make money in FX trading

Get ready for Forex trading: Is it gambling, or is it just another fantastic opportunity to make money? In fact, it can be both. Eliminate the gambling-part by preparing and this article will send you in the right direction.

Currency trading is an exciting way to make money and you can do it from home via the internet.

You can learn a lot about currency trading by taking them with small amounts in a currency broker.

Here are some good foreign exchange brokers:

easyMarkets has good tools for technical analysis and is popular with experienced traders.

AvaTrade is one of the most popular British mediate clean in foreign exchange trading.

Forex glossary

Before we proceed, we explain some key words and phrases:

  • Forex stands for "Foreign Exchange".
  • Currency always consists of a simultaneous purchase and sale of two currencies.
  • A Currency is the two currencies that are traded, for example if you buy USD, so the seller can simultaneously. Currency pair in this case can be described as the USD / NOK or GBPUSD (without slash).
  • Exchange market is vast and has its own exchanges (such as the stock market). It sold for more value in the foreign exchange market than in all the world's stock markets combined! Currency trading is, in other words big business.
  • Currency Broker is an operator that stands between you and the market. The only practical possibility one has to invest or daytrade in value is via a broker.
    Shifting and Leverage all about mortgage investment. It makes it possible to make a lot of money even if you invest small amounts, but at the same time raises the risk of loss. If you know what you are doing you can earn huge sums of money to gear up investment in foreign exchange trading.
  • Spread is the difference between the buying price and the selling price. Instead of making money on commissions and fees, currency brokers earn money on the spread. The advantage of this model is that it is reasonable to trade currency, and you need not worry about hidden fees or extra costs in addition to trade.

Buy and sell currency in the foreign exchange market

Engaged in forex trading must act in the foreign exchange market. The foreign exchange market is the largest financial market, bigger than any stock market.

Unlike the stock market where it can sometimes be difficult to dispose of shares you own, you get sold (or bought) the currency of the second (in technical terms this is called a Liquid market).

You must have a currency broker

Currency Brokeris a service that allows you to trade in the foreign exchange market.

You must be affiliated with a broker to be allowed to speculate in foreign currency. A good overview of popular Forex brokers can be found at the web portal foreign exchange broker.

Social trading & investment networks

eToro is probably the best and most popular service for social trading. eToro offers unique services in social trading, and is the largest investment network in the world. The best way to find out what eToro has to offer is to register as a customer (free and non-binding). You can then also access an online course where you can learn everything you need to know about currency trading.