- May 2014
- Posted By Ninoslav
- 0 Comments
There are a few things you need to do before Online Forex Trading. Start reading online about all available Forex terminology as bid, pip, closing price, entire signal etc. know how to read and understand quotes and how to read signals sent to you by forex trading companies. After you have achieved all this, you need to follow the following process.
Choose currency you want to use
Always select the currency where the economy is under recession for selling.
Buy back currency from an economy which is robust. You will also sometimes have to understand the trading position i.e. the number of goods imported or exported by a major economy. It’s important to understand the connection between trading volumes and economic growth if you are into online Forex trading.
Calculating your profits
1 pip in currency change is 0.0001 % of total value. The total numbers of pips have to be multiplied by the exchange rate. The final figure will let you know how much your trading account balance has increased.
Opening an online brokerage account
Choose an online trading partner who will give you proper access to the market fluctuations in foreign stock. This trading agency should hopefully be under govt. supervision and must give 24*7 supports to its partners.
Some oversight bodies in international financial markets are Financial Service Authority or FSA and Swiss Bank Federal commission (SBFC) etc.
Personal or managed account?
If you are new to online Forex trading and do not understand the signal transmission mechanism and the profit transmission system well then it’s better to opt for a managed account. The advantage of a personal account is that you will have 100% freedom over your trading decisions. Only open a personal account if you have undergone training for Forex trading and are confident about your abilities. You need to know “How to understand technical language used by honest trading signals”?