Start with the right Forex trading platform

Forex is a combination of two words i.e. foreign and exchange. The name sheds light on the significance of Forex. As such, the Forex market is where you exchange foreign currency. The word exchange means you give one currency to get another currency. When it comes to trading, the reason for exchange is to make a profit. In simple terms, you want to get hold of the currency whose value is about to go up.

At the same time, you want to get rid of the currency whose value is about to fall. To simplify it further, you buy a currency when the value of its one unit is $1. Let’s say you buy 100 units of this currency. Your expense at this point is $100. Now, a few days later, the price of its unit doubles to become$2. When you sell back the 100 units you had bought, you will earn a profit of $100 i.e. each unit is $2 now. Therefore, your gross return would be $200. Note: We have simplified this process for your understanding. In the real market, other factors can affect your profits and losses too.

The most important thing to keep in mind here is that the Forex is not a centralized market. It is decentralized, which means no singular entity is able to control it. It is a huge market that dwarfs even the stock exchange. Think about it: on any given day, Forex trading can amount to $5 trillion.

Here are some of the advantages of trading Forex:

• The volatility of Forex is lower than that of the stock markets.
• Leveraging is one of the best things about the Forex market, wherein you are able to go for trades that are bigger than what you possess in your account.
• Due to trades taking place worldwide around the clock and thanks to a stable internet connection, you are able to trade your currencies at any time of day or night.
• With other markets, heavy influencers can often change the direction of the market and increase or decrease the demand of a particular instrument. Forex is so big, however, that no singular entity can influence its liquidity, supply and demand.
• Finally, yet very importantly, you can trade in the Forex market in both directions. By using certain options, you can benefit even from the currencies whose value is going down.

• Trade on-the-go
• 200+ trading instruments
• $5000
  Demo-account
• Cross-platform experience
• Brokerage fee from 0.006%
• Negative balance protection

• Trade on the go, anytime you want and wherever you want.
• Pick your favorite market instruments including currency pairs, commodities, metals, indices, CFDs, etc. Libertex even lets you trade in select cryptocurrencies.
• Manage all your financial instruments in one user-friendly application to avoid the hassle of switching between windows and having to adapt to dozens of different interfaces.
• The minimum trade volume is a small: start today and turn whatever money you have into valuable savings.
• With a leverage of 30, you can execute trades that are much larger than your account balance.
• Start with a demo account so you can get a hang of the market and put your newly acquired skills to use in a simulated environment before entering the serious business.

Based on these numerous advantages, starting with Libertex presents no hassle at all. If you have a bank card, opening up an account takes merely 5 minutes, and then you’ll be on the way to practicing in this exciting trade. Open an account right now and see for yourself.

As mentioned earlier, in Forex trading, you will always be buying and selling a currency at the same time.

Here is what a typical trade in the Forex market looks like:

You go for the most famous currency pair which is EUR/USD. Suppose the EUR/USD is trading at 1.2500/1.3500. What this means is that you can buy a euro by spending USD1.3500 . If you want sell one euro, you will receive USD 1.2500 in exchange. Let’s say you want to trade the dollars you have for euros, 1,000 of them. From the exchange rate, you will have to spend 1.3500x1,000= USD 1350.

Now, in your account you have EUR 1000. You wait for the price of EUR to rise, and in the next 24 hours, it rises from 1.3500 to 1.4500. Without waiting any further, you will sell your EUR in the market to buy back the dollars. Why would you do that? That’s because your EUR has risen in value and now your EUR 1,000 will buy you more dollars than you spent earlier. Therefore, now you sell your EUR 1,000 for 1.4500 each. The total amount you get back is USD 1,450. You just made a profit of $100. However, you have to keep in mind that you would have ended up with a loss had the price of EUR fallen down for some reason.