Apart from being the largest monetary market in the world, Forex is also the most liquid market in the world where trades are done 24 hours a day.
Before entering the Forex market, it is essential to have the necessary knowledge and skills. Even with proper training and knowledge you are not guaranteed success in the high risk market. You may want to obtain books about the foreign exchange market and trading or participate in online training courses or mentoring(one on one coaching). All of these options are readily available.
In a Forex trading course, you’ll find out about when it’s the correct time to buy or sell, chart the movements, commodities exchange trends and also know how to use the various trading platforms available in the Forex market. You’ll even be oriented with the terminologies used in the Forex market. Forex training is readily available online and you may want to check into a few of the courses to see which best suits your needs. A forex training course should supply you with the fundamental skills necessary to conduct transactionsAt the very least the forex trading course should help you understand Margins, Leveraging, Types of Orders and Major Currencies. Look for courses that explain the basic and technical analysis of charts. As a trader,understanding technical analysis and how charts work is important.
A forex mentor acts as a personal guide to the forex market. They can provide you with the information they have learned over the years.
You can find Forex brokers in every part of the world just as you will find currencies traded in almost every corner of the globe. However, you should consider a few points when you go out shopping for the right broker to help you with your trades.
- Qualifications. Probably the most important thing of all is ensuring the Forex broker you use has the correct qualifications. Therefore, choose a broker registered with the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM).
- Is the broker regulated?
- What business model does the broker use? Some brokers are market makers while others are ECN brokers, providing dealing desks for many traders.
- Look at the types of spreads they offer. The spread is the difference between the bid and ask prices of the currencies you trade. Brokers do not make a commission on your trade;instead they take the spread as compensation. Your broker may also offer fixed or variable spreads, and they can be different for large accounts and miniaccounts.
- Slippage. Can they provide you with details of just what slippage they would expect to occur during normal and fast moving markets?
- Margin requirements. What is their margin requirement? That is, what percentage of the investment in your trades do they expect you to pay to open a trade. You also want to know about their margin calls, and the time you need to respond to such calls.
- What is their Rollover Policy? Do they have any minimum margin requirements which they use to earn interest on any overnight positions? Plus, do they have any other requirements or conditions about you earning interest on any rollovers.