HOW TO TRADE FOREX

Trading Forex

       START TRADING

Foreign exchange market has no physical location or central exchange and trades 24-hours a day

through a global network of businesses, banks, and individuals. This means that currency prices

are constantly fluctuating in value against each other, offering multiple trading opportunities.

      OPEN LIVE ACCOUNT

FX TRADING STEPS

Choose a currency pair

Decide which currency pair you wish to trade. With over 65 currency pairs to choose from, picking a trading opportunity

that’s right for you is important. City Index’s technical and fundamental research tools can help you spot currency trading

opportunities to suit your trading style.

Decide on the type of FX trade

There are three ways to trade forex with Invest Moment Spread Betting, CFD or Forex Trading. Each has its particular

stake size:

  • In spread betting, you trade pounds per point movement
  • In CFD trading you trade a number of CFDs in the unit of the base currency
  • In Forex trading you buy lots, in the unit of the base currency

Decide to buy or sell

Once you have picked a market, you need to know the current price it is trading at, which you can do by bringing up an

order ticket on the platform. All forex is quoted in terms of one currency versus another. Each currency pair has a ‘base’

currency and a ‘quote’ currency. The base currency is the currency on the left of the currency pair and the quote

currency is on the right. Put simply, when trading foreign currencies, you would:

Buy a currency pair if you believed that the base currency will strengthen against the quote currency, or the quote

currency will weaken against the base currency. Your profits will rise in line with every increase in the exchange price.

Sell a currency pair if you believed that the base currency will weaken in value against the quote currency, or the quote

currency will strengthen against the base currency.

Adding orders

An order is an instruction to automatically trade at a point in the future when prices reach a specific level predetermined

by you. You can utilize stop and limit orders to help ensure that you lock in any profits and minimize your risk when your

respective profit or loss risk targets are reached. While not compulsory, given the volatility in FX markets using and

understanding risk management tools such as stop-loss orders is essential.

Monitor and close your trade

Once open, your trade’s profit and loss will now fluctuate with each move in the market price.

Close your trade

When you are ready to close your trade, you simply need to do the opposite of the opening process. By closing

the trade, your net open profit and loss will be realized and immediately reflected in your account cash balance.

Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an

individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in

profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of

investing they choose to do. Hypothetical or simulated performance is not indicative of future results.

 

RISK WARNING - TRADE RESPONSIBLY: Derivatives are leveraged products that incur a high level of risk and can result in the loss of all your capital and may therefore not be suitable for all investors. You should not risk more than you are prepared to lose and before deciding to trade, please ensure you understand the risks involved, take the level of your experience into consideration and seek independent advice if necessary. We strictly do not provide trading advice. To read our full risk disclosure statement, please click here

 

 

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