What is forex trading?
Forex trading is the practice of trading different currency pairs in order to profit from the difference in the value of the currency pair as a result of market movements. The Forex market is the most liquid market in the world, with the highest daily traded volume of any market or exchange. According to BIS research, the daily volume of the Foreign Exchange Market was around $6.6 trillion in 2019.
Example of foreign exchange trading
Assume you have $20 in US dollars but prefer Euros. Then, using a regulated exchanger or bank, convert your US dollars to Euros. They will convert your US dollars into Euros using the most recent exchange rates.
In the preceding example, the exchange or bank will charge a markup fee to process your forex transaction. This fee is typically charged by offering you a sell rate that is higher than the buy rate.
Say economic news/report/speech are released and the value of the Euro goes up, if you convert your Euros back to US dollars then you get more dollars than you originally had.
How to make money trading forex online
You need to start by choosing a regulated broker & open account with that broker. If you have prior knowledge of trading, you can begin trading and you’ll be on your merry way to making profits. But what if you have no knowledge or experience in trading? Worry not, there’s still a way you can get a piece of the pie through copy trading.
Copy trading is the practice of copying an expert’s trades to your own account. An expert trader analyses the markets and then takes trades, the trades are then copied to your account. If they make a profit you make a profit too and the beauty of it is you did no work.
Where do you find the master traders to copy their trades you may ask? We at The Trading Hut match you with a master trader and we manage your account for a small fee. That way you are sure your investment is safe and you are consistently making profits. We make sure the trader doesn’t over leverage and ‘blow’ your account by adhering to strict risk management rules while at the same time securing the bag for you. In addition, we take on the responsibility of diversifying/adjusting your investment portfolio to make sure it is at per with the market as the market conditions change through out the financial year. Get in touch with us and get yourself a copy account and start earning today.