Monday, 22 February 2021

What does Forex Trading mean

Once you start forex trading sa you will come across several terminologies whose meanings are crucial for every broker. These include:

§  Base and Counter Currencies- base currency is the price unit of the first currency one is willing to pay. Counter currency is the price unit of the second currency being paid for.

§  Long and Short Positions- long position refers to you buying units of the base currency and selling those of counter currency. Short position means selling units of base currency and buying those of counter currency.

§  Bid- price at which traders are willing to buy

§  Ask- price at which that traders are willing to sell

§  Spread- difference between bid and ask

§  Lots- the fixed sizes of contracts

§  Pip- minimum rate of currency

§  Value date- dates when parties agree to settle their accounts

§  Rollover- when parties agree to settle their accounts on a later date

What is the Initial Step in Forex Trading?

For you to get started on either cfd trading south Africaor any other nation, signing up is the initial step.

You howeverneed to have a good forex trading platform from which you will get membership registration. It is this platform that you will use to trade.

There are such traders as forex brokers in south Africa, America, Europe and all other countries that are ready and willing to help you. Getting the services or guidance of such will make the whole process much easier for you.

Additionally, ensure that forex trading or gambling has been allowed in your state to avoid incurring losses.

In conclusion, having a second source of income is a whole freedom by itself and forex trading is the real deal.

Click here to know more about #forextrading

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