How to Start Trading Forex Today
If you're a beginner trader, Forex trading is probably a mystery to you. You'll have heard terms such as going long, and talk of leverage, but do you know what they mean? Now that FX trading with ETX is accessible to one and all, you'll want to learn how to trade Forex, fast.
Know your base (and counter)
Forex trading works when two currencies are exchanged. This is referred to as “pairing”. An example is EUR/USD. The currency on the left is always the “base” currency, and the one on the right is the “counter” currency.
This means that if the EUR/USD value is at 1/1.35, one Euro is worth $1.35.
Leveraging vs. owning
When you trade in Forex, you're using what is called “leverage”. This means that you never actually own the currency, but rather place money on the position you expect the markets to take.
You stake money on a trade, and whichever way the market moves, you'll gain profit or loss to the value of your money multiplied by the leveraging amount.
This allows you to gain much bigger profits if the markets go your way. On the other hand, you stand to lose an equal amount of money - far more than you put up in the first place.
Choosing a broker
When you're Forex trading with ETX, you're using ETX as your broker. This means that ETX serves as the safe trading environment, through which you can make your trades.
Trading in financial markets is a regulated activity. Some countries have particularly heavy regulations. Your broker must have a license with the relevant regulatory authorities, so that you know to trust them. ETX is licensed in every country of operation.
Setting up your account
Setting up an account is relatively straightforward. ETX requires you to input your details and provide the necessary documents. Once that is done, you need to deposit a minimum amount. The minimum amount depends on the type of account you choose, as well as your location.
Once this is done, you are able to start trading.
One thing that you need to remember when trading, is that you should not trade with what you use for day-to-day living. You should have “trading capital”, which is specifically set aside for Forex trading, and that you can live without.
Not only does this ensure you're covered in case of losses, it also gives you much more peace of mind. This is important so that you don't make emotional, unwise decisions.
The final aspect we need to mention is the software you use to start trading. Trading software gives you the platform to execute your trades. It provides you with tools and resources to analyse the market, and the ability to open and close trades at the click of a button.
ETX Capital offers MetaTrader 4 (MT4), the most popular trading software around. MT4 is free, and you should never have to pay for similar software. Once you have MT4 installed, you're ready to go.
Now is as good a time as any to trade Forex with ETX. Start an account now, and get ready to trade in one of the most versatile markets in the world.