What is forex?
Forex is simply an online currency exchange trade that involves a simultaneous buying and selling of currencies. It is presently the largest financial market worldwide with an average daily turnover of about $2trillion. Forex is traded globally for 24-hours daily and five days in a week with a break on Saturdays and Sundays. Individuals, cooperatives and banks trade forex from various parts of the world.
Nigeria in focus is growing fast in this trade ever since it was reduced to a start up capital of a minimum $100 due to the rise in internet access and usage. This took effect from late 1990’s against the minimum $10m it previously used to be. In forex trade, traders with small trading capital like $100 are called retail traders and most traders from Nigeria fall into this category.
What Is Needed To Start Trading Forex?
All one needs to start trading forex are;
(1) A good forex education from this site
(2) A good and fast computer
(3) A good, fast and reliable internet connection
(4) A mininum trading capital of $100 dollars
Who Is A Broker?
A broker is an individual or a company that buys and sells orders according to trader’s decision. Brokers earn money by charging a fee called the Bid-Ask spread for their services. The main function of brokers are to connect buyers or sellers directly to the forex market for exchange of currencies.
What Are The Risks Involved?
Forex trading is highly profitable if only you can learn and practice well before investing in it. You can also loose when you lack sufficient knowledge and skills in this trade.