So How does forex trading work?
The Institutional forex trading takes place directly between two parties in an over-the-counter (OTC) market. Meaning there are no centralized exchanges (like the stock market), and the institutional forex market is instead run by a global network of banks and other organizations.
In GBP/ USD, GBP is the base currency and USD is the quote currency. If GBP/USD is trading at 1.35361, then one pound is worth 1.35361 dollars.
If the pound rises against the dollar, then a single pound will be worth more dollars and the pair’s price will increase. If it drops, the pair’s price will decrease. So, if you think that the base currency in a pair is likely to strengthen against the quote currency, you can buy the pair (going long). If you think it will weaken, you can sell the pair (going short).
What is Leverage in Forex Trading?
With leverage of 1:1000 means you can increase purchasing power by 1000 times example if you have 20$ in your account with leverage of 1000 you can have 20 x 1000 = 20000$ for you to trading and even if you earn 3% in a day means 20000 x 3/100 = 600$ profit in one day. This is called leverage trading.
What is Lot in Forex Trading?
You can trade with 1 standard lot , 0.1 as mini lot and 0.01 as micro lot, as lot represent the amount as,
For, 1 lot = 100,000 units of currency (e.g. in $ as one hundred thousand dollars)
0.1 lot = 10,000 units of currency (e.g. in $ as ten thousand dollars)
0.01 lot = 1000 units of currency (e.g. in $ as one thousand dollars)
If you place order of 1 lot for bitcoin current price 50,000 USD in BTC/USD pair means you buy bitcoin with 1 Lot =100,000 dollars means you get 2 bitcoins as you have leverage of 1000x means if you have 100$ in your account you can buy 2 bitcoins as 100*1000=100,000 dollars.
Remember with Forex Trading you can Make Profit as well as if you don’t know how to trade you will Make a Loss. To avoid loss You need to understand how forex trading works. Here I Have Provided a Step by Step Guide you can use to Make Profit by Forex Trading.
Which is Best Forex Trading site offer good leverage and has good reputation in market?
You can start forex trading with Exness as You can trade Forex Currencies, Bitcoin, Metals, Energies, Stocks and Indices with 1:1000 Leverage, Here I have Provided a Step by Step guide about How you can Create an Exness Account.
1. Click and Open the Link in New Tab : Exness.com
2.Select the Country and Put your Email address and password for your account and click on Continue, Then This window will open, Click on create a Real Account, Enter password and Click on save, then Click on Become a Real Trader.
3. Verify your Email with Verification Code then, For Verify Phone, You will Receive Verification Code on Your Phone number, Submit the code and click on Continue.
4. Then fill the personal information in order to start the trade. (Fill the correct information as this information will be verified against Full KYC document submission).
5. After submitting the personal information you can now able to deposit 2000$ (as pre verification limit is 2000$ you can increase your limit by clicking on Full verification, submit ID and Address proof as it is mandatory for every licensed broker), then Click on Deposit Now.
6. You can now deposit with bank cards means Visa/MasterCard or online wallets like Skrill, Neteller, perfect money or Bitcoin Deposit. The Minimum Deposit is 10$ or equal local currency.
How to Start Trading on Exness?
1. After Depositing Money Click on My Accounts>Real Account>Trade to start trading.
2. Click on Exness Terminal as it is beginner friendly and easy to trade platform compared to complicated platform such as Meta Trader 5.
3. Then you can select the Lot Order Amount as 1, 0.1 or 0.01 and Click on Buy if graph is Going up or Click on Sell if graph is Going down then you can see my profit in green as I placed 2 sell order with 1 lot when graph is going down and made profit 87.12$ and 53.42$ respectively, now I want to close my order and take the profit I made so I will Click on X icon to close order and take profit.
Now, You can Withdraw your profit Instantly.
This is it, Now you learn How to Create Account and How to make Profit. So If you want to make daily Profit, You can Visit the link right here,