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What is Forex trading and How does it works for beginners.


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Hi,

If you are a new Forex trader, then first you need to know what is real Forex trading and how does it works? and what is Forex brokers? Because Forex brokers is also important in Forex trading and gain success in Forex trading. So, Lets start.

What is a Forex and How does it work?
Foreign exchange market, Forex or FX is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world. The main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market works through financial institutions and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as dealers, who are involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the interbank market. Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Trading from 22:00 GMT on Sunday (Sydney) until 22:00 GMT Friday (New York).
According to the Bank for International Settlements, the preliminary global results from the 2019 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $6.6 trillion per day in April 2019. This is up from $5.1 trillion in April 2016. Measured by value, foreign exchange swaps were traded more than any other instrument in April 2019, at $3.2 trillion per day, followed by spot trading at $2 trillion.

What is a Forex Broker and How does it work?
There are 3 types of forex brokers:
ECN Broker
MM broker
STP broker
ECN means Electronic Communications Network (it is a network) Within this network the broker collects the prices of several liquidity providers such as banks, or financial institutions and always selects the best prices to offer them to its customers. Broker ECN offers real market conditions offering its customers the possibility of operating under the same conditions as banks and other large companies. Spread are lower offering Market Makers or STP brokers. There are no conflicts of interest with its customers. Transactions in ECN are performed as instant execution, that is, without any delay.
Market Maker are the brokers that create their own markets and conditions, which means that prices do not enter directly from banks etc. Virtually every 1 of 3 brokers is Market Maker. They offer spreads a little higher than ECN or STP.
STP is by Straight Trough Processing. They work more or less like ECN, sending all transactions directly to the market. STP brokers always increase the spreads offered by liquidity providers and this is their benefit. There are no conflicts of interest with its customers. STP brokers offer to carry out transactions as Instant execution, without any delay. Operations always go to the foreign exchange market, liquidity providers, banks or financial institutions. More about Forex trading for beginners.

I hope it's will little help you for understanding about Forex trading and Brokers.

thank you.

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For some people trading is easy, for some people it is very tough. It is fully depend on the knowledge and techniques trader has. If he can do all the trade very sharply it will be very easy to make profit. But those who can't deal the trade simply with their mind they may face difficulties in forex market. Sometimes some trader feels the trade tough just because of their broker. Broker plays an important role in trading. In my trading career, my broker TP Global FX helps me to make the trade easy. They give all kind of facilities I want to make my trade.
 

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Forex or 'FX', is the trading of one currency for another at a concurred trade cost on the over-the-counter (OTC) market. Forex is the world's most traded market, with a normal turnover in overabundance of US$5.3 trillion every day. You require a PC or laptop and web association with begin this business. Yet, learning is the most required thing. I am trading with Eurotrader broker which has amazing educational resources that help me in my trading.

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On 8/21/2020 at 11:14 PM, Ross Edwards said:

For some people trading is easy, for some people it is very tough. It is fully depend on the knowledge and techniques trader has. If he can do all the trade very sharply it will be very easy to make profit. But those who can't deal the trade simply with their mind they may face difficulties in forex market. Sometimes some trader feels the trade tough just because of their broker. Broker plays an important role in trading. In my trading career, my broker TP Global FX helps me to make the trade easy. They give all kind of facilities I want to make my trade.
 

Yeah, I agree with you. Of course if you are a newbie in this field, you should spend time for education. There are a lot of information which you should learn. When you will be ready, I can recommend to choose good trading tools https://www.forextime.com/trading-tools/forex-vps-trading, it can really help in work!

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  • 4 weeks later...
  • 2 weeks later...


Forex trading is a very difficult subject. Many traders trade Forex overnight to change fortunes but I think their idea is completely wrong. Trading is not a money-making machine that you became rich overnight. Trading requires a lot of patience. You have to learn trading by working hard. There is a lot to keep information about. If there is a deficit during the analysis, it is not possible to make a profit on that trade. Eurotrader brokers give me a lot of information on trading. Information that is very useful for my analysis.

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Forex is one of the most popular investment markets in the world. It has also high risk and potential to make profit from it. Trader can easily make investment in forex market with a broker. As for me, I trade with Eurotrader. They are regulated and licensed broker in the market. They also give me best trading platform and trading condition in the market. 

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I think that in first time of trading you have the feeling that you know the market and you can make the money like you can do nothing, so it is big mistake - because if you want to trade good you have to have a lot og knowledges about forex which come only after time with your experience!
 
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Forex is the most famous and profitable business in the world. Anyone can start trading and earn a lot of money from the forex market. Forex us absolutely good than other businesses. If you have strong knowledge and a reliable broker then you can earn a lot of money from the forex market. I trade with Forex4you. I am earning a very good number of profits. My broker helps me a lot. They are very helpful and supportive. They never make disappointment to their client.
 

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choosing a broker must be able to pay attention properly, this is needed and necessary so that traders can be maximized in carrying out trading activities that are in line with expectations while on a real Tickmill account.

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  • 2 weeks later...

It is possible to earn a lot of money by investing less time in Forex trading. If a trader spends 5-6 hours in regular Forex trading, it is possible to do a very good analysis. I spend 3 hours every day on forex trading.

I can do a lot of good analysis with the help of my broker Forex4you. If you do business, you have to spend a lot of time behind that business. But Forex is such a business where you can earn a lot of money by spending a little time.
 

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If you’re new in the world of trading, there is a lot you have to go learn and experience before trying your hand at live trading. I mean anyone can start trading with just basic knowledge, but if you want to make calculated and informed trading decisions then you should be ready to go beyond the surface. There are several educational sources available for forex trading such as https://www.facebook.com/TrustCapitalTCltd/posts/3025153084277918

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I traded with Hotofrex on their demo account for sometimes, but after learning how to draw S/R lines correctly I moved immediately to live account to test my ideas. With right risk management and patience it is still possible even for a newbie to make 5-10% monthly with quite low risk. 

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