Currency trading

Forex & currency trading explained

Important Forex: Trading foreign exchange involves both risks and opportunities to make money. You earn money to speculate on movements in exchange rates.

Income Potential in Forex:A good Forex trader can earn multiple millions a year, even with limited capital.

Currency trading is the fluctuation in exchange rates to make money. A foreign exchange transaction always consists of a simultaneous purchase and sale. While you buy a currency, you sell another.

How much can you earn in forex?

This depends on a number of factors, but primarily these: How much are you willing to invest (risk), and what is your skill level?

Currency trading is easy to learn

A beginners without special knowledge must first learn the basics of foreign exchange trading. The easiest way to learn forex trading is to actually practice the market: Begin shopping, try different strategies and observe the results.

Risk and potential returns from currency trading

There is usually a correlation between potential return and risk. Currency trading allows you to earn huge amount of money, but also be aware that all investment entails risk, and currency trading is no exception.

Risk is, however, very variable, the greatest risk is that if you are trading on margin (also called leverage, this will come back to).

Fortunately it to you in foreign exchange trading can greatly customize your risk profile, whether you prefer low to moderate risk, or high risk.

Risk adjustment is something you will understand better as you level up in the foreign exchange market. To try out and find their own strategy is the key to success in foreign exchange trading.

How much money should you invest in foreign exchange to make something substantial?

You can start with as little or as much as you want. It is possible to earn millions even with quite modest deposits, but do not expect to get rich just by investing a few hundred Euro.

If you expect to live off the income from foreign exchange, you should probably have at least 200,000 to 500,000 million in initial capital, in addition to having a profitable strategy. However, you can start with much smaller amounts than this if you just want to run a hobby.

A good rule of thumb: Do not risk more than you can afford to lose.

How to earn money in currency trading

How can you make money in forex? You make money if the value of the currency you buy goes up in proportion to the value you sell.

Example: You buy Euros with US dollars. If the euro goes up in value against the dollar, you can switch back the euro against the dollar, and you will make money. Note also that you can not just buy Euros but you sell dollars simultaneously. In any currency trading takes place a simultaneous purchase and sale.

Difficult it is to make money in forex. Next we need to have clear is how this gjrøes in practice: What services should you use, and how currency trading is carried out in practice?

Online Forex trading brokers

Currency trading takes place via an online broker. There is a large selection online brokers. We recommend that you use an online broker specializing in Forex.

Of the online brokers we have tried, there are two, at most three, online brokers that meet our requirements for currency trading online.

It is especially a couple of candidates who stand out and who specializes just on currency trading. These we even exclusively positive experiences, and discussed below.