Without necessarily being an expert in Forex, you can grow your savings, for example, by earning money on the fluctuation of exchange rates. It’s not a bad idea. Many companies carrying out foreign exchange transactions every day (investment in projects abroad, purchase of raw materials, collection of income related to sales abroad, etc.), exchange rates are constantly changing.
Forex trading consists of speculating (in English Foreign exchange market or FX) and refers to what is also called the foreign exchange market, or currency market, which is based on foreign exchange transactions.
Concretely, one invests in it, for example, euros by buying dollars, which one will resell thereafter by pocketing a profit if the value of the dollar has increased compared to that of the euro in the interval.
Gains or losses are thus closely linked to the pair of currencies chosen and to theamplitude of the variation of their values. We therefore do not improvise trader on this market reserved for professionals. However, it is possible to buy and sell using the brokers of an online trading platform, in particular.
The trading platform: gateway, partner and advisor for Forex
Choose recognized platforms for online trading, allowing you to train for free, to use tools to get started without risk and to access the services of a reliable broker.
To get started and make your first experiences, you can create your “Demo” account, for example, and trade virtually on Forex in a real market context. This first contact is an opportunity to understand the importance of quality training and good sources of advice.
This type of platform also offers beginner trading video tutorials, online courses and the possibility to test seven platforms with a trading simulator. A precious help for those who intend to start with solid foundations.
How to get started in Forex in 2022?
As a general rule, it is essential to clearly establish the sums that you are ready to invest before you start. You will then need to determine the profit target to be achieved as well as the time you want to devote to it.
Many detailed tips and good practices in this area are available on online trading platforms worthy of the name.
It only takes 100 euros and two minutes of time to open a Forex trading account. However, insofar as the possibilities of winning owe nothing to chance, you will have to inform yourself by all possible means in order to make the right decisions and at the right time.
Trading in financial markets such as Forex is done using derivative products that are CFDs (“contracts for difference”). Understanding the mechanism of these speculative financial instruments is essential, since they bet on changes (up or down) in the underlying assets that you do not own. Measuring the high risks is also essential, as the loss of money can be rapid due to the leverage effect induced. It is therefore advisable to define the sums you are ready to invest according to what you can afford to lose.
To get started in 2022, the most popular currency pair is the euro/dollar, whose reciprocal variations are continuous and sensitive to the economic context. If the variations are small, the mechanisms that influence them are clear to well-informed players such as trading platforms.
You can also read: the good reasons to invest in rental real estate