One of the many ways to earn profit from trading is trading forex. It is a simpler option compared to other more complex financial option. Hence, it is easier to understand for those with little or no prior experience in asset or currency trading. One can get started with trading in forex by simply purchasing a foreign currency and then selling it when the price of the currency increases. Most currencies are fiat currencies, that is, their value is independent and is determined by market forces.
In order to start forex trading, you typically need to register with a brokerage service. Traditional brokerages are physical markets, though most offer online services due to the explosive growth of online forex trading. You can open a personal account or a managed account. You perform your own trades from your personal brokerage account, while in case of a managed account, a broker performs your trades for you. Make sure that the brokerage is a reputed one and is registered with a government oversight body. You must also take some time to research if there are any reports of fraudulent activities or active investigations into the brokerage firm. You are likely to find this information in financial news services with the help of a few Google searches.
One of the most popular online trading platforms is IQ Option. Besides forex trading, IQ Option also offers derivatives such as CFD and digital options and cryptocurrency trading services. IQ Option offers an intuitive interface for trading forex.
Once you register an account with IQ Option, you can deposit your money using various means and begin trading. Please note that you may be required to perform additional verification before withdrawal depending on your preferred payment system and national regulations. Once you log in to your IQ Option account, you will first be prompted to deposit funds. It is not necessary to do so. You can try it in demo mode using practice cash.
Then you can select Forex option from the Trading menu option on top. You will then be taking to the trading interface and presented with the various currency pairs you can buy. Sometimes the market may be closed, such as during Sundays or global holidays. The exchange rate for the transaction is clearly displayed. You can see the price history in the real-time moving graph, which occupies most of the interface.
You can use the controls around the graph to navigate around and examine trends. If the market is open, you can select a particular currency and press the Buy button on the right side of the interface. Similarly, if you have one currency of the selected pair, you can sell it. You also have the option of leverage or margin trading, which allows you to borrow money to trade. This allows you to trade with more than what you have at the cost of higher risk.