Forex trading as a way to earn money.

With the rapid development of telecommunications, computer technology and the Internet, anyone has the opportunity, to varying degrees, to feel like a trader.

Financial topics and analytics are very relevant now.If you are interested in the topic of trading,you can also find out more information from delta market, which have proven themselves to be good reviews.

It is to feel, to try, without incurring material problems — almost all the dealing centers (MMCIS, ForexTrend, Mill Trade, and others), today provide the opportunity to work on demo accounts. But before you try your hand at even a demo account, you need to understand the basics of forex trading, the principles of the existence of this market.

Basically, the forex market is based on the concept of “margin trading”. This means that the market participant wins if he guesses the change in the currency exchange rate and takes the margin between the values of the rates at the opening of the transaction and at its closing. At the same time, trading is carried out in large volumes — one lot on Forex is equal to 100 000 US dollars.

If, for example, you buy one such lot and then sell it after a slight increase in the exchange rate, the difference will be noticeable (for a trader — not for a bank!) the amount. In order for everyone to be able to operate with such volumes, the dilling center provides the trader with leverage — for example, 1 to 500. Thus, a market participant can make transactions worth 500 times more than his personal funds.

In order to insure themselves against possible risks, the dilling center will automatically close the deal if it is currently so unprofitable that the amount of losses is comparable to the amount of the trader’s deposit, but not with the amount of the lot!

It should be noted that at one time in the market there are two prices for the same currency. Naturally, the dealing center buys the currency from the trader at one price (BID) — less, and sells it to the trader at another (ASK), higher. This should always be taken into account when making a transaction: earnings on forex are possible only if the current value of the BID price is much higher than the ASK price when making a transaction.

In principle, today in the Network you can find enough material on the topic of working in the foreign exchange market-starting from the definition of elementary concepts and ending with a detailed description of strategies. But what most sources will be silent about is the possible risks and constant, we can say, round-the-clock work.

In fact, the profession of a trader, if we are talking about a successful trader, is very stressful work. Based on many factors, it is necessary to make a correct forecast about the trend movement, possible “drawdowns” of the course and specify the correct values in the terminal. If you manage to do all this correctly, then working in the Forex currency market can become your additional, or even the main source of income.