FX is considered to be the best way for beginners to start their trading career. Moreover, most Forex platforms provide free demo accounts allowing newbies to get a taste of market movement and develop a trading strategy. The low capital barriers, as well as no commissions on most accounts, are some of the reasons that Forex is picked by most hobbyist traders.

A small investment can lead to high profits. This can lead to great profits, but also may work conversely with high potential losses. Foreign Exchange has small or no trade commissions. Since Forex has such a big spread and is used by an enormous number of traders, it offers high liquidity in contrast with other markets.

The Forex trading market is constantly operating, and thanks to modern technology, is accessible from anywhere. Thus, anyone can buy or sell with a simple click of a button. Moreover, through sophisticated AI algorithms, investors can automate their moves, making the flexibility of investments even bigger. As a result, there is always a potential retailer waiting to buy or sell. Price volatility is one of the most important factors that help investors to decide on their next trading move.

Moreover, swing traders use this indicator to define when is the proper time to enter or exit the market. For long-term investors, the volatility of the Forex market is also fundamental. Another significant advantage of Forex is hedging.

This is an efficient method that helps investors either eliminate or reduce their losses. When traders refer to the technique of hedging in Forex, they mean the strategical move of opening several positions. The main point of this is to limit the potential losses to an acceptable amount. Most investors hedge Forex by investing in different yet related currency pairs.

This way, when one pair goes long the other goes short, and they can balance the losses with the profits. An important difference between the stock and Forex markets is that the latter works 24 hours a day without closing. The four main trading sessions are divided as followed:. In the hour Forex market, traders can start their moves when the Sydney Session opens until the close of the New York Session. Also, specialists divide Forex trading into four sessions depending on the geographical area:.

Before a new investor enters a Forex trade, he needs to define the strategy to follow. Depending on the time and effort, traders can be divided into categories.

Some of them are the following:. Forex trading can be efficiently applied in any of the strategies above. Forex trading is a new method that was recently introduced to the market. Its decentralized nature demands continuous connectivity and adaptability. This is why a great number of developers are constantly working to improve this technology and make Forex trading platforms more suitable for modern finance demands. Thus, technological innovations help Forex trading to become even more widespread since everyone can trade from anywhere in the world.

In the Forex market, there is no fixed lot size. Thus, traders can start with the trade size of their choice. There are three types:. The micro lot is commonly used by beginners and helps them have more effective risk management.

Traders choose their trading size depending on the number of lots they are interested in either buying or selling. Forex trading is a decentralized technology that functions with no central management.

Thus, Forex regulation was developed to establish an honest and ethical trading attitude. Moreover, foreign brokers must comply with the criteria that are defined by the Forex regulator. Depending on the country where the company is, its base FX has different regulations and applications, which ensure investors that they can withdraw their money anytime, even in the event of bankruptcy.

PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stock markets, you can only make money if shares are rising, but in economic recession and falling 'bear' markets, there is little chance of making big money.

Forex is different. One of the most exciting advantages of FX trading is the ability to generate profits whether a currency pair is 'up' or 'down'. A trader can profit by taking a 'long' position, buying the currency pair at one price and selling it later at a higher price , or a 'short' position, selling the currency pair and buying it back at a lower price.

For example, if you think the US dollar will increase in value vs. the Japanese Yen then you will buy Dollars and sell Yen go long. If you think the Yen will increase in value against the Dollar then you will sell Dollars and buy yen go short.

As long as the trader picks the right direction, a potential for profit always exists. This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.

FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online Forex firms offer free 'Demo' accounts to practice trading, along with breaking Forex news and charting services. These are very valuable resources for traders who would like to practice their trading skills with 'virtual' money before opening a live trading account. The fact is, it doesn't.

This makes Forex much more accessible to the average individual, without large, start-up capital. A wide range of different factors, including political and economic, affect the volatility of currency pairs in the market, especially for non-conventional ones. Therefore, it's very important to monitor any news before opening and closing a trade. To reduce losses, don't forget to use stop-loss orders.

Forex trading can sometimes be highly emotionally exhausting. One bad trade can cause large losses that exhaust traders emotionally. Among the most successful traders, we can emphasize Uche Paragon, Ajidahun Afioluwa, Blessing Ezeako, Sandile Shezi, Patrick Ogagbor, and others. Uche Paragon is one of the most popular traders in this region. He started his career from Binary Forex trading. Ajidahun Afioluwa is another successful trader.

When he started, he faced losses one by one. However, despite many losses, he continued learning Forex and growing through his failures. He investigated diverse strategies and designed his own one. Blessing Ezeako started her career by exploring trading strategies. She learned the Forex trading process while having a full-time job. Sandile Shezi is a South African trader who was born and grew up in a very poor family. Later, Sandile became the most successful trader among the youngest Nigerian traders.

He bought and sold stocks and currency pairs without economic education and necessary background. This bright example demonstrates that everybody can become a successful trader from scratch. Patrick Ogagbor is a trader who gave up his previous job at the bank. While being curious, he was searching for new ways to develop his skills.

Initially, he thought that trading was a get-rich-quick business, but then he understood that it was much more. If you have decided to trade on the Forex market in Nigeria, you don't need any special skills to start. To protect your capital from huge losses, the first and the most important rule is to set stop losses and take profits.

Besides using stop losses, you need to develop your winning formula. Initially, you can follow other more experienced traders. However, later, you can create your strategy to get success. If you start trading with JustMarkets, you can start trading on the Standard Cent account. Let's consider several of them.

A pip means "percentage in point. While a point is the smallest movement in the currency price, the pip is equal to 10 points.

Using margin, you can make a small deposit into your account to increase the value of your trade. It enables a trader to open a larger position size. If you trade with margin, you need to invest only a percentage of the full deposit.

Margin allows increasing the value of your trade. When you win some amount, the margin increases the volume of your win. However, if you lose, the sum of your losses also increases. If you don't know how to do Forex trading in Nigeria, we have prepared a step-by-step guideline for you:. Here are several of the most popular strategies that Forex traders in Nigeria need to know. Among them, there are positional, swing, and day trading. Positional trading is a form of long-term trend trading.

In this strategy, traders are waiting for significant movements in the price. The basis of the fundamental analysis and the knowledge of the currency's structure will help you trade on Forex using this strategy. Swing trading is a strategy focused on reaching smaller gains in short-term trends. If you are a swing trader, traders can bring small but regular profits. Swing trades are open for a few days to a couple of weeks. Day trading is a popular strategy among a huge number of Forex traders.

It focuses on opening and closing trades during one day. Day traders can't last trades open overnight. There are three of the most popular currency pairs to trade in Nigeria. A high level of liquidity makes this pair less volatile than other pairs.

However, under certain conditions, this currency pair can become more volatile. The Japanese yen JPY is now widely held as a reserve currency behind the USD, Euro, and the GBP.

LiteFinance Global LLC does not provide brokerage services in your country. org website, you confirm that access to all programs and services is provided to you for informational purposes only, without the offer of registration. Most investors in the modern market choose Forex to join the global financial world and start trading. It is also known by the initials FX, which stands for Foreign Exchange. This rapidly developing market is considered the most suitable for beginners in the trading world.

Popular banks such as JP Morgan and UBS, as well as various financial institutions and brokers, are the economic entities through which investors can buy and sell currency values such as US Dollars, Euros, etc.

Thanks to the great flexibility in time and market terms, FX offers considerable advantages and opportunities for all investors in comparison with other markets.

In this article, we will outline the main features of Forex, what are the benefits of Forex trading, and its possible drawbacks. Forex trading has gained extreme popularity in the financial world due to its numerous benefits that led to its popularity. Below is a list of FX advantages and a brief analysis of each one that explains why so many investors are choosing this type of market. One of the most significant advantages of the Forex market is its popularity in the trading world.

In the last two decades, FX has spread all over the world, becoming a global financial market that is used by all traders in every corner of the globe. Approximately countries are a part of the Forex market. It is estimated that the daily transactions that take place through Forex platforms exceed 3. That makes it the largest global market with future potential for higher development and vast scalability. The Forex market allows investors to choose the pair of currencies they want to trade with.

Through a wide list of choices, traders can buy and sell assets depending on their investment strategy. Some currency pairs can be more easily traded than others due to their high volatility. It is estimated that there are around pairs that traders can choose to trade with.

Below are some popular currency pairs:. FX is considered to be the best way for beginners to start their trading career.

Moreover, most Forex platforms provide free demo accounts allowing newbies to get a taste of market movement and develop a trading strategy. The low capital barriers, as well as no commissions on most accounts, are some of the reasons that Forex is picked by most hobbyist traders.

A small investment can lead to high profits. This can lead to great profits, but also may work conversely with high potential losses. Foreign Exchange has small or no trade commissions.

Since Forex has such a big spread and is used by an enormous number of traders, it offers high liquidity in contrast with other markets. The Forex trading market is constantly operating, and thanks to modern technology, is accessible from anywhere. Thus, anyone can buy or sell with a simple click of a button.

Moreover, through sophisticated AI algorithms, investors can automate their moves, making the flexibility of investments even bigger. As a result, there is always a potential retailer waiting to buy or sell. Price volatility is one of the most important factors that help investors to decide on their next trading move. Moreover, swing traders use this indicator to define when is the proper time to enter or exit the market.

For long-term investors, the volatility of the Forex market is also fundamental. Another significant advantage of Forex is hedging. This is an efficient method that helps investors either eliminate or reduce their losses. When traders refer to the technique of hedging in Forex, they mean the strategical move of opening several positions.

The main point of this is to limit the potential losses to an acceptable amount. Most investors hedge Forex by investing in different yet related currency pairs. This way, when one pair goes long the other goes short, and they can balance the losses with the profits. An important difference between the stock and Forex markets is that the latter works 24 hours a day without closing. The four main trading sessions are divided as followed:. In the hour Forex market, traders can start their moves when the Sydney Session opens until the close of the New York Session.

Also, specialists divide Forex trading into four sessions depending on the geographical area:. Before a new investor enters a Forex trade, he needs to define the strategy to follow. Depending on the time and effort, traders can be divided into categories. Some of them are the following:. Forex trading can be efficiently applied in any of the strategies above. Forex trading is a new method that was recently introduced to the market. Its decentralized nature demands continuous connectivity and adaptability.

This is why a great number of developers are constantly working to improve this technology and make Forex trading platforms more suitable for modern finance demands. Thus, technological innovations help Forex trading to become even more widespread since everyone can trade from anywhere in the world. In the Forex market, there is no fixed lot size.

Thus, traders can start with the trade size of their choice. There are three types:. The micro lot is commonly used by beginners and helps them have more effective risk management. Traders choose their trading size depending on the number of lots they are interested in either buying or selling. Forex trading is a decentralized technology that functions with no central management. Thus, Forex regulation was developed to establish an honest and ethical trading attitude. Moreover, foreign brokers must comply with the criteria that are defined by the Forex regulator.

Depending on the country where the company is, its base FX has different regulations and applications, which ensure investors that they can withdraw their money anytime, even in the event of bankruptcy.

Traders secure their funds by depositing them in other accounts separate from the brokers, so the latter cannot use foreign money for their own business. Forex does not have a physical entity, which makes it a remarkable example of a decentralized market.

Thus, all the transactions can be made from anywhere, and since it is open 24 hours a day, it can also be done at any time of the day. For example, if an investor is located in Europe, he can trade during North America hours and monitor the moves of the currency he is interested in. Through the internet, FX traders can buy or sell securities as well as check the status of currencies from different dealers around the globe.

In comparison with the stock market, Forex has very low transaction fees. Investors that choose the Forex market can boost their profits by avoiding fees from exchanges, deposits, and other trading activities which have additional costs in the stock market. It gives the option to enter the market with a small budget and trade with high-value currencies.

Often, it is considered a liability. Some traders may not fulfill the demands of high leverage at the end of the transaction. The Forex market is based on decentralized technology. Thus, FX lacks transparency due to significant factors, which are listed below:. Counterparty Risks. Since FX is a global market, it is difficult to comprehend the fast changes and the different regulations of each country. Forex trading may have rules to protect the investors and traders, yet there is the risk that someone may not respect the agreed contract.

Operational Risks. The Forex market works 24 hours without stopping. Traders cannot monitor the changes daily, so they use algorithms to protect their interests and their investments. Thus, they need to be constantly informed on how the technology works, otherwise they may face great losses during the night or on weekends.

Leverage Risks. Forex offers high leverage to traders. New investors may not understand the dangers that this investment tool hides, and lose all their investments in a matter of minutes. A major problem in the Forex market is the difficulty to determine the value of the currency pairs rate, which can be influenced by various factors such as politics, economic changes, central banks, etc.

That is the main issue that should be taken into consideration since the wrong interpretation of a chart can lead to significant losses. When traders refer to volatility in Forex, they mean how big the upswings and downswings of a currency pair are for a specific period. The larger those ups and downs are, the higher the volatility.

Those big changes can evoke a sense of uncertainty, and sometimes traders consider them as a chance for high profits. However, they can be proven wrong, and it may lead to uncontrolled losses. Some of the most volatile currency pairs are considered to be the following:. The Forex market offers a lot of privileges to traders. Once having decided to trade on foreign exchange, both experienced and new investors need to define their financial strategy and get familiar with the terms and conditions.

The Forex market can be a great choice as a career if the investor has a realistic trading plan and can prevent impulsive acts that may lead to huge losses. Moreover, due to the FX market's decentralized nature, it offers great flexibility and mobility in comparison with the stock market. Both Forex and the stock market have their pros and cons depending on the investor's trading strategy and risk tolerance.

For short-term traders, the FX market is considered to be more profitable. Poor risk evaluation may expose Forex traders to potential dangers brought about by high fluctuation or leverage. Risk management is a key factor that should be taken into consideration even for experienced traders. Forex trading is a popular choice for newbies.

Those big changes can evoke a sense of uncertainty, and sometimes traders consider them as a chance for high profits. AMA Press Releases. Price volatility is one of the most important factors that help investors to decide on their next trading move. In addition, the essential benefits of the Forex market in Nigeria are high liquidity and excellent profit potential. LEVERAGE: In Forex trading, a small margin deposit can control a much larger total contract value.

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