What is Forex?
Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion.
All the world’s combined stock markets don’t even come close to this. But what does that mean to you? Take a closer look at forex trading and you may find some exciting trading opportunities unavailable with other investments. If you’ve ever traveled overseas, you’ve made a forex transaction. Take a trip to United States and you convert your Naira into Dollar.
When you do this, the exchange rate between the two currencies—based on supply and demand—determines how many Dollars you get for your Naira. And the exchange rate fluctuates continuously.
OPPORTUNITIES IN FOREX: WHAT’S YOUR OPINION?
Just like stocks, you can trade currency based on what you think its value is (or where it’s headed). But the big difference with forex is that you can trade up or down just as easily. If you think a currency will increase in value, you can buy it. If you think it will decrease, you can sell it. With a market this large, finding a buyer when you’re selling and a seller when you’re buying is much easier than in other markets.
Maybe you hear on the news that China is devaluing its currency to draw more foreign business into its country.
If you think that trend will continue, you could make a forex trade by selling the Chinese currency against another currency, say, the US dollar. The more the Chinese currency devalues against the US dollar, the higher your profits.
If the Chinese currency increases in value while you have your sell position open, then your losses increase and you want to get out of the trade.
How To Effectively Trade Forex Market In Nigeria
To successfully trad the market requires expertise, and goals to maximize profit and minimize loss.
How To Get Started With Your Forex Trade Before you proceed to open an account with any Forex Broker, you must understand that not all Forex Brokers are genuine.
Make a thorough research before settling with any trading platform with real time investment. I will advice you use the big and established Forex trading platforms only.
Open Account With Forex Brokers
Go to the website of your desired Forex Brokers and open account. Forex Broker or the Forex trading platforms is the medium through which currency is traded online.
Fund Your Forex Account Before you start live Forex trade, you must fund your account. Funding can be done through direct deposit or by using your credit/debit cards.
Have A Domiciliary Account
This is very important for effective transaction and to enable you make a withdrawal of your profit when there is any. Some use other currency medium like the eCurrencies but at the end, it will still get to Domiciliary accounts. The Dom account is used for cashing or depositing funds into your Forex trading account.
Fast Internet Connection
You need a very fast and reliable internet connection to be able to trade Forex in Nigeria or elsewhere. Without this, it will be difficult for you to make profit because your internet has to be fast and reliable to enable you take quick actions.
High Performing Laptop
This is very necessary for efficiency and accurate performance in live market. Do not make the mistake of using a wacky laptop for Forex trading. Most times, the losses people make is as a result of inefficient trading devices. The profit you make depends on your trading skills. Yes, people are still making profit in Forex trading in Nigeria and will continue to make profit as long as currency remain in use. In fact, nothing has changed and will probably change forever.
Start a Forex Trade with little capital is never a good idea. You need to invest something substantial to make reasonable profit. A serious trader trades with thousands of dollars. I have seen people make hundreds of thousands of dollars with Forex trade and you too can.