Forex Trading Guide : List of Best Forex trading sites
If want to trade forex but have no clue from where to begin then here is your starting guide. After reading this session you’ll be able to –
- Open and Operate a forex trading account
- Distinguish all trading terminologies from one another.
- Trade Forex
Regional Forex Brokers
Setting up a forex account is simply being not as simple as setting up a Pinterest or Twitter account where you just need to fill the form and add the profile picture. This is why –
- You ought to evaluate the reliability of the website where you are about to sign up.
- The broker should be regulated by major legitimate governing bodies that keep a sight over the activities of the online forex website.
- When you visit the website make sure you check all the welcome bonus and sign up offers that the former serves to its new customers. Your cost of transaction may vary from broker to broker so always stay posted about the spreads.
- Your research should also cover other services besides trading that website has to offer. There should be no compromises with support services, multiple pay-out options, honesty of the broker.
Opening a forex trading account – You can fill out the credentials on the appropriate paperwork depending on the type of account you want (personal or managed). After you fill up the details you’ll get an activation email. You may follow up and go through the instructions to have, what we call a complete forex trading account.
Various Trading Terminologies –
- The type of currency you are spending, or getting rid of, is the base currency. The currency that you are purchasing is called quote currency.In forex trading, you sell one currency to purchase another.
- The exchange ratetells you how much you have to spend in quote currency to purchase base currency.
- A longposition means that you want to buy the base currency and sell the quote currency. In our example above, you would want to sell U.S. dollars to purchase British pounds.
- A shortposition means that you want to buy quote currency and sell base currency. In other words, you would sell British pounds and purchase U.S. dollars.
- The bidprice is the price at which your broker is willing to buy base currency in exchange for quote currency. The bid is the best price at which you are willing to sell your quote currency on the market.
- The askprice, or the offer price, is the price at which your broker will sell base currency in exchange for quote currency. The ask price is the best available price at which you are willing to buy from the market.
- A spread is the difference between the bid price and the ask price