Forex: what is the Forex currency market. What is Forex? What is Forex and

Forex trading is attracting more and more private traders from all over the world. This is explained by several factors, including wide opportunities, great liquidity, and low entry threshold.

Unfortunately, not everyone understands what Forex trading is.

Some people think that this is like playing roulette or some kind of casino. Moreover, many people associate the Forex market itself with some kind of fraud or fraudulent scheme, although this is far from the case.

In fact, Forex market is international over-the-counter currency exchange system for maintaining economic activity. Its foundations were laid after the Second World War. Today in this market there are both banks and various investment organizations, brokers and private traders.

Forex trading for $100 and in reality

There is information that if you open an account for $100 on the Forex market, then the trader’s positions will be directly covered. These conversations are conducted at the level gossip, and it is clear that people absolutely do not understand the workings of this market.

In fact, whether a broker matches a client with someone or not - for a trader this plays absolutely no role in the size of a particular deposit.

Because the market principle is constructed in a slightly different way than it appears in the minds of ordinary people.

You open an account with some company, for example “ N", and start trading, and exactly the same with the company " N"Accounts can be opened with a dozen other brokers" U».

You can make a comparison between the two terminals in order to understand how applications are displayed in different programs. In this case, it will be a terminal that is provided by the broker " X» and terminal forex insight, from broker " U" This is the terminal that the company developed Integral. This is a large company that was one of the first to organize joint work between banks, forming the so-called interbank market.

If previously all exchanges had a physical location ( for example, New York stock Exchange geographically located in the USA), then at a certain point the question arose about howorganize all players from completely different parts of the globe, so that they do not need to physically come anywhere, and they can trade and communicate with each other without problems.

This is actually a very revolutionary move forward, and the Integral company participated in the implementation of this idea.

It is this company, like many others, that continues to support the interbank market. Their terminal is available to employees of brokerage companies that buy and sell " real", which begin from 100,000 USD.

• At the same time, the broker has ordinary clients who simply want to trade currency with their $100.

These are the so-called " foot soldiers» foreign exchange market. They generate primary demand, but cannot really influence turnover. Several applications from large companies Just " chewed» all transactions of private investors of one of the brokers.

Let's imagine a factory selling beer.

He sells beer not to the end consumer, but to a wholesale buyer, who then sells it to a small wholesaler, and the small entrepreneur, in turn, sells it to retail. The trader, in this case, is the buyer " retail", which uses MetaTrader 4 for its work.

Those who work in the sector " buy-to-buy" are brokers who do not work for " retail”, and for other brokers - they already have other trading terminals with their own extensions and capabilities, which have their own specifics.

• Forex insight is a terminal created specifically for brokers.

Let's return to our brokers " X" And " U».

Let’s say broker “X” opens an account with another large broker ( Sberbank, Bank of America, J.P. Morgan, etc.). In this situation, everything depends on volume. If it is large enough, then the above-mentioned banks will agree to provide their services.

For example, if you, as a broker, want to open an account with J.P. Morgan, then the subscription fee will cost $50,000 per month regardless of the volume of lots. If the volume of lots is also large, then a certain amount will be added to this 50,000 percentage of trade.

Therefore, not every company can afford to open an account in such a bank and simply give the specified amount as a subscription fee. U big companies no such problems arise.

• There are also several intermediaries who do not provide the most Better conditions, but with a lower subscription fee of $1,000.

And so, at the broker's X"opened an account with a broker company" U" All transactions that a trader enters into with a broker " X", are duplicated. It turns out the following: You decide in your MetaTrader 4 to make a purchase with leverage of $100,000, but the deposit is open for only $1,000. At the same time, the broker has 100 clients and each has $1,000 in their accounts. The chance that each of a hundred clients will simultaneously submit a withdrawal order is zero. Therefore, a broker can place an order on the interbank market with a hundredth leverage, but only with the first or second, temporarily using money “ Molchunov" It sounds like some kind of pyramid scheme, but that's exactly how it works.

Another question that interests private investors in the Forex market is spreads. They can expand and contract. Beginners first of all believe that it is their broker who is preventing them from earning money. But the spreads you see are provided by only one company on the list of brokers you work with. And this is not the first broker you work with “in retail" That company is called " liquidity provider».

Company " X» buys a certain volume from a liquidity provider, which subsequently forms spreads in your order book.

Forex insight makes it possible to see purchases of such a large volume of liquidity, because this is a standard transaction in this terminal. MT 4, in turn, does not allow tracking such movements. The retail investor simply does not have the technical acumen to oversee the buying of liquidity.

But this does not mean that the investor trades only against the broker, and the spreads are deliberately widened. In fact, this happens because employees of higher-ranking brokers do not want to work at a loss and simply play it safe by offering inflated prices specifically to your broker.

The best brokers for trading and investment

• Investments
• Trading

There are different schemes

For example, we will sell pound/dollar by 0.1 lot. The senior broker charges a commission of $10 per lot. This means that from 0.1 lot we will pay only 10 cents for this transaction. Here's the diagram. Therefore, the talk that the broker necessarily benefits from you leaking, that they are so bad and falsify quotes - is actually all gossip. This is outdated information. About 15 years ago, this is probably how they worked. Now it is profitable for a normal broker to trade with him and the more volume you create, the more he will earn. And it doesn’t matter whether he makes money on the spread or on the commission, your volume is important to him. It is not profitable for the company for you to lose your money and reduce volumes.

If you started 500 dollars and lost it, then the company will earn only $500 from you. But if you are trading for zero, without even making any money, but you have a lot of transactions, then the company can earn a lot more from your $500.

If you start earning money, your deposit grows, your volume of transactions increases, and the broker’s earnings also grow. That is why brokers who count on a long-term presence in the market consider it important that you, as a client, earn money and not lose money.

In fact, the Forex market is no different from the stock market, and, by and large, any broker needs a stable client base that does not leave them on the negative side. This is how the mechanics of working on Forex work.

If you delve into the details, you can trace the following chain. You buy a position, and at this time a signal goes from this broker to a larger one, which looks something like this: “ Is it possible to buy at this price?“If the senior broker confirms, yes, I am selling, then this price is returned to your terminal. If he does not confirm, then you may have this deal cancelled. This is why such trades are poorly processed during sharp news fluctuations - this is not the faultyour broker. Most often, it is the liquidity provider’s fault. The supplier also overlaps at a higher level. Such " prime» the broker can already reach banks of the level J.P. Morgan. If a high-level credit institution confirms a deal for him at that price, he confirms it for you. These are the principles of the functioning of the market and...

The same thing happens with non-market quotes. Sometimes these brokers give some non-market quotes. This may be due to other terminal settings and other small details. And now the quote has slipped and may appear in your terminal, but this again does not mean that the broker is trying to retouch the chart. This is not profitable for him; it is practically impossible to do if you have a lot of clients.

There is no such thing in the forex market large quantity deception, as the average person assumes.

If you open the quotes of your broker and see that they are very different from the quotes of another, then only then can you blame the broker for dishonesty. If all brokers have the same quotes, and they all go against you, then the fault is not in them, but in your approach.

Why Forex trading is in demand

One of the main reasons why Forex trading is so popular is high liquidity. The daily turnover of this over-the-counter market is several trillion US dollars. In terms of liquidity, it is significantly ahead of any other market.

By the way, why is Forex called OTC?

The fact is that there is no single platform here. Trade takes place all over the world, and this is another important advantage Forex. It works 24 hours a day and you can trade at any time convenient for you.

The Forex market is a vast field of activity for speculators. Most operations ( about 80%) is carried out without a real supply of currencies. This means that about 80% of speculative transactions are carried out on this market, and only 20% of transactions are carried out with the subsequent delivery of currencies. All this indicates high interest on the part of traders and other players in this market.

Another reason for the popularity of Forex trading is development of IT technologies. Today, traders can work from their computer or mobile device without having to submit orders over the phone. This significantly speeds up the trading process and allows you to work short-term.

The high demand for trading in this market is also due to the fact that the so-called leverage. That is, you do not have to have significant capital to work on Forex. It is enough to invest 100-200 dollars to receive income.

With such, even a small investment, Forex trading can bring significant profits, given the high intraday volatility. For example, on stock market Average daily fluctuations for some assets can reach only 10 points. In Forex these numbers are much higher. And during periods of trends, fluctuations can reach 100-300 points, which allows you to make good profits even with relatively small investments.

If you find an error, please highlight a piece of text and click Ctrl+Enter! Thank you very much for your help, it is very important for us and our readers!

Alpari is the undisputed leader in the Forex market today best broker for traders from Russia and CIS countries. The main advantage of the broker is reliability, confirmed by 17 years of work. Alpari gives traders the opportunity to earn and withdraw profits.

Roboforex is an international broker of the highest level with CySEC and IFCS licenses. On the market since 2009. Provides a range of innovative tools and platforms for both traders and investors. Famous for its excellent bonus program which includes a free $30 for beginners.

I’ll say right away that trading Forex is not difficult, you just need to press the buttons, acting within the framework of your trading strategy. But trading in such a way as to make a profit is much more difficult.

Statistics show that only a small percentage of all traders actually make money on Forex. And our task is to become one of them.

You can conduct trades either independently (download the platform, open an account and go ahead), or act differently, shifting some of the responsibility to other, more experienced people. There are several options here too.

Firstly, you can launch the “” or “Copying Transactions” service. The idea is simple: you connect your terminal to the account of an experienced trader and all transactions entered into by him are sent to your computer. Further, all of them are automatically repeated on your account, only they are taken, naturally, on a certain scale, because... The capital of an experienced player in the foreign exchange market is often very large.

If the transaction ends profitably for you, you pay the managing trader part of what you earned as a reward.

This is very good service, allowing novice traders to avoid many problems, loss of deposits, etc., by immediately moving on to making money.

Secondly, there is such a wonderful thing as investing in Forex. Everything is even simpler here - you launch the PAMM account service, which every major brokerage company has, select a suitable account, invest money in it and... that’s it. Your funds are managed by the account owner, who himself concludes all transactions. You only make a profit. An ideal tool for those who are just getting acquainted with the financial market.

Not all options for making money on Forex are listed here; their number is very large and is growing every day; you can read more about all this in the article “Ways to make money on Forex.”

Best regards, Nikita Mikhailov

Nowadays, few people have not heard about the existence of the Forex market. This was “taken care of” by a huge number of advertisements of dealing centers, which fascinatingly tell the story that Forex has long become the main source of income for many people around the world who have gained full financial independence and can afford not only to work productively, but also to have a good rest. Naturally, promises of “easy money” make more and more people interested in what Forex is and how they can master its basics in order to quickly join the ranks of the lucky ones who happily smile from advertising posters, standing against the backdrop of expensive foreign resorts and various exotic corners of our planet.

Before plunging into the world of financial flows and considering what Forex is, it should be warned that, despite the daily multi-billion dollar cash flows, only a disciplined trader who has completed the basics of training and developed his own individual strategy that is understandable to him will be able to make money in their environment. At the initial stage, it is extremely advisable to take your time and not treat work as a gamble, otherwise trying to find out what the Forex market is will lead to very disastrous consequences.

The essence of the Forex market

Having thus finished with the “intimidating” introduction, you can begin to study the basics. At this stage, everyone who is not afraid of the difficulties of the upcoming path should know that there are indeed many truly successful traders in the world and, surprisingly, many of them openly share their experience, since Forex has enough room for everyone, and it provides There are a lot of options for making money for everyone.

Now you can begin to study what Forex is - and this, if you look at the etymology of the word, is the market foreign currency. To be more precise, it is a market in which foreign exchange transactions occur every second, the purpose of which is to ensure trade on a global scale necessary tools. Roughly speaking, you can imagine Forex as a large “exchanger” where people come to transfer monetary units one state into their equivalent, which is used in everyday life of another state.

Who moves the price on Forex

The main participants who have a decisive influence on price formation are the central banks of all large countries peace. They are the notorious “whales” thanks to which the international currency market. We must understand that the main motivation

banks are not at all thirsty for profit, since they are through economic instruments regulate the exchange rate of their country to ensure economic prosperity and stability.

It is very important that the person reading these lines understands what it actually exists for. Forex market, what is it and how can you make money here? After all, the existence of Forex ensures the harmonious operation of the entire world economy, and does not contribute to the satisfaction of some individual interests. But traders, watching how central banks are shaking up the exchange rate thanks to an elementary law based on the search for a harmonious result in the supply-demand relationship, have the opportunity to enter financial flow and use its power to make your own profit.

Concept of currency pairs

How does this happen? For example, someone decided to visit Europe, which means that before the trip he needs to stock up on funds that will help pay for goods and services in European countries. Such a person comes to the “currency dealers” and exchanges rubles for euros. Exactly such a “currency exchanger”, but on a global scale, is the Forex market, where trading operations with currency pairs. In this case, if the dollar is exchanged for the euro, then this is an operation with the EUR/USD (euro-dollar) currency pair.

And, interested in the question of what Forex is, every person can see pictures where traders, people who make money on the Forex exchange, sit in front of screens where various charts are displayed. They display the exchange price of one currency in relation to another. In fact, it is currency pairs that are traded on the market.

How to work

How can knowing what Forex is help you make money? The technical answer to this question is that a person needs:

• choose a broker using TOP Forex Brokers;
• open a trading account (demo or real);
• download the trading platform (terminal);
• provide an Internet connection.

Having carried out these steps, a novice trader will be able to get acquainted with charts of currency quotes, which he can use for analysis and opening-closing trading positions 24 hours a day, all 5 days of the working week. Saturday and Sunday are off days for Forex, and trading resumes on Monday.

What can a trader do?

Thus, by turning on your computer (laptop, mobile device) and trading terminal, the trader will be able to see some current rate, receive signals from the chart, according to his Forex strategy, read someone’s analytical reviews, receive a signal from someone and make a deal, both buy and sell at the selected currency pair.

Read also:

To understand what Forex is and how it works, we can take the euro-dollar pair (EUR/USD) as an example. This is the simplest and most common currency pair. Therefore, by concluding a deal, predicting, for example, an upward movement - the euro will become more expensive against the dollar, you can easily make a profit if this turns out to be true.

If the forecast is correct, the price continues to rise and the trader, who bought the currency at one price, after some time sells it at another, higher value and receives the money invested in the transaction plus the profit from it to his trading account, from where he can always withdraw it to mine online wallet, bank account or wherever he pleases.

Ask and Bid

Continuing our consideration of the EUR/USD pair, you should master the basic terms, without which it is difficult to understand the basics of what Forex is. In this ratio, EUR is the base currency and USD is the quote currency. The trader buys or sells the base currency, and settlement takes place in the quoted currency. To make it clearer, you can again turn to the example of a regular exchange office for help. For example, someone comes to an “exchanger” to sell or buy dollars for Russian rubles. This is how an operation is performed on the USD/RUR currency pair. That is, a certain operation is performed with the base currency (USD), and the quoted currency is calculated or received - rubles (RUR).

Naturally, there are some prices for buying and selling and they are different from each other. That is, for example, you can buy a dollar in an “exchanger” for 36 rubles, and sell it for 35 rubles. In this case, 36 rubles. It will be called the “Ask” price, and 35 rubles, respectively, will be called the Bid price. The difference between these numbers is called “” (spread), in fact, this is the commission on which the exchange office functions.

Forex exchange and the path to wealth

In the same way, a trader can fund his account by first opening it with a broker (dealing center), who is an intermediary between the trader and Forex. Because of this scheme, people often ask the question: “what is the Forex exchange?” In fact, this is not entirely correct, since Forex is an over-the-counter market consisting of a network of servers (computers) between which trading takes place.

Any trader sitting in front of a computer can conclude trade deal, it will be accepted and if he correctly predicts the price rate, then the Forex trader will be able to make a profit as a result, the size of which depends on the size of the deposit and the volume of the transaction itself. Naturally, in order to constantly make a profit, you just need to learn to predict price movements. In fact, everything, of course, is not very simple, but after spending some time on training and practice, you can with a high degree of probability and in most cases close trading operations “in plus”, which will help you become rich and financially independent over time person.

Successful Forex Trading: Important Points

Having imagined what Forex is and where traders get their profits from, you should get acquainted with some concepts that will complement the development of the fundamentals of the foreign exchange market and will help you master the secrets of currency trading with greater confidence.

When starting to trade, a trader often sees various advertisements about Forex services. What is it? In fact, these are the conditions that a broker (dealing center) offers to a trader for the opportunity to trade on the market. Therefore, it is extremely important to carefully study them and select the most comfortable trading parameters.

What is important to pay attention to:

• broker commission;
• minimum deposit;
• trading platform;
• leverage, etc.

Indicators

When starting trading, you should never ignore the help in the form of indicators that are used by all traders without exception. What are Forex indicators - these are special analytical tools that the trading platform contains. With their help, you can determine market sentiment, which greatly simplifies price prediction.

Indicators can show various technical components, for example, changes in the average price, or even psychological ones, showing overbought, oversold zones, and the like. All this allows the trader to act more confidently and make a profit from his actions on Forex.

Signals

Before we look at what Forex signals are, we need to talk about one important difference between them. Signals can be generated by studied and verified indicators or by a broker that contains experts who perform analytics on changes in currency quotes. In the latter case, Forex signals can be paid or free. Often, clients of a dealing center can subscribe to the distribution of such signals or even order a service to send them via SMS.

True, debates about the usefulness of such signals still do not subside. In any case, there is no need to blindly follow such guidelines, but studying and applying them to confirm your strategy with further work on mistakes in case of a negative result will be very useful.

Strategy

During the initial study of Forex, you can often hear about the importance of developing a trading strategy, which the trader must draw up and test himself. What is a Forex trading strategy? This is a set of tools and a certain sequence of actions that allows a trader to minimize losses and try to increase profits.

The main thing in such cases is that the market trader includes in the strategy those tools (indicators, signals, etc.), the principle of operation of which is clear to him. This creates a specific algorithm that allows you to make decisions more effectively, minimizing the influence of emotions.

Bottom line

As a result, we can say that time spent learning what Forex is will definitely not be wasted. You can and should work and earn money here, however, you should first make an effort to gain certain knowledge and get comfortable with trading instruments, software, indicators, and develop an effective trading strategy.

What are traders looking for when they enter into a search engine? Considering that Wikipedia is a huge knowledge base, most likely these people are looking for basic knowledge on the Forex exchange. More experienced traders use forums, blogs of famous traders, etc. Therefore, today we will analyze the basic concepts of the currency exchange and create a small analogue of Forex Wikipedia.

Forex Basics

The Forex exchange is a huge interbank market where they sell and buy currencies different countries. One currency is always traded against another, for example we can buy/sell the euro against the US dollar (EUR/USD) or British pound against Japanese yen(GBP/JPY). The trader’s task is to determine whether the selected currency will become cheaper or more expensive, and play on this by selling or buying this currency.

To make a forecast, traders use technical and/or fundamental analysis and knowledge of the basics of trading psychology. You also need to be able to control yourself and properly manage capital (sometimes the term “money management” is used for this).

Each of the methods of analysis deserves at least a separate article, but we will try to just briefly describe them. In technical analysis, the price chart is very important. All forecasts are made based on the fact that in the past certain situations (displayed as price figures) arose on the price chart when the price moved in one way or another. If at the moment the price has drawn one of these figures, then there is a high probability of the scenario repeating. Figures can be both reversal and continuation of a trend (tendency).

Also in technical analysis, the use of indicators, Japanese candlestick combinations and PriceAction patterns (indicator-free analysis) is very common.

IN fundamental analysis emphasis is placed on the state of the economy and consideration economic indicators a certain country. News trading is also used.

Forex market participants

Participants (players) of the foreign exchange market are:

• banks ( National banks, other large banks).
• funds (insurance, hedge, pension and others).
• market makers (provide liquidity and own huge capital). Liquidity – providing a reverse order, for example, a trader sells 10 lots of a pound against a dollar, the market maker finds another trader (programmatically) who will buy these 10 lots. If there is no such trader, the market maker is obliged to pay off such an order himself by purchasing these 10 lots.
• Forex brokerage companies. Through Forex brokers, private traders can trade in the market. The broker provides the trader with leverage and quotes, software etc. When a trader trades on the stock exchange, the money placed on his deposit is in the Forex broker's accounts.
• private traders. The largest group of market participants, however, the share of its capital compared to other groups of participants is negligible. The purpose of Forex trading for private traders is speculative, that is, making a profit on the difference in the value of currencies. We buy low, sell high.

Forex Brokers

Access to real-time quotes, leverage that allows you to trade on a small deposit, safety of your money and much more - all this is provided to us by Forex brokers. Brokerage companies a lot today. Which one to choose? So that trading conditions are better, and bonuses for replenishment are available, and trading without swaps, and cent accounts are present, etc., etc.

Take a closer look at reliable and proven Forex brokers - these are Forex4you, Alpari And InstaForex.. Special attention Pay attention to the first broker - there are excellent conditions for trading, and optimal opportunities for automatic trading (trading advisors), and cent accounts, and copying transactions ( Share4you), and PAMM investing. There is something to work with, in a word.

Forex trading strategies

The next important step for a novice trader is choosing a Forex trading strategy. A trading strategy (TS) is a set of rules that should bring profit when used. Why do we use the word “should” rather than “bring”? Because not all vehicles that you find on the Internet are really profitable. In order for a vehicle to bring profit (profit), it must be based on a certain market pattern. This may be a statement that after a strong movement in one direction there is always a small rollback (the so-called correction) in the opposite direction. Or that after a gap on Monday when the market opens, the price rolls back to the starting point in about 70% of cases. Over time, you will learn to distinguish truly profitable vehicles from those that are not worth spending time on.

We hope that our little Forex Wikipedia was useful to you. Practice, study the theory, don’t give up if you fail – and you will definitely start making money on the Forex currency exchange. Good luck and remember that the profitability of trading very much depends on

What features does the online Forex market have? Why is it so important to analyze the Forex market? How much can you earn by trading on news?

Good day, dear readers! With you on HeatBeaver is Alexey Morozov, expert and author of a series of articles about Forex.

Today in this article I will talk in detail and in detail about making money on the Forex market.

I don’t like long introductions, let’s get straight to the point!

1. What is Forex and how does it work?

We discussed other important concepts in previous texts; we will not repeat them.

2. 3 distinctive features of the Forex market

Of all the many features of Forex, we have identified the three most important, we will list them and comment on them.

Feature 1. Functionality

Forex was originally created so that you could exchange currencies for international level at the most correct rates. Naturally, this is easiest to do in a stock exchange environment. Afterwards, traders began to use Forex to earn money.

The largest market participants are Central Banks – carry out currency interventions to stabilize the exchange rate national currency. This is especially necessary in crisis years, when it is simply impossible to leave money without support.

Currency intervention is the process of buying or selling a national currency with the aim of strengthening or weakening it.

Currency interventions, however, account for 4 to 6% of all transactions performed; the rest belong to speculators seeking huge profits.

Feature 2. Lack of geographic reference

Due to the absence of a specific place where Forex trading takes place, anyone with Internet access can open transactions. Successful traders travel a lot and trade from different parts of the world.

Having the Internet at normal speed allows you to stay up to date with all the news economic world. In many ways, Internet trading is even more convenient than offline trading: we wrote about its special advantages earlier.

Feature 3. Composition of market participants

We recommend that novice traders undergo training at Alpari (completely free), which we will discuss below. At one of the first lessons of the Basic Course, teachers usually introduce the audience to participants market Forex.

Let's briefly describe them. The smallest but most important group is majority shareholders. These are the central and commercial banks, the largest investment funds.

Majoritarians can change the direction of the market trend through the “infusion” of large capital.

The next group consists of trading firms, which, although they influence the market, do not have enough strength to make fundamental changes.

The last group is the largest: it is a great variety of traders - from beginners to professionals. Representatives of the “third estate” are deprived of the opportunity to exert any influence on the market.

3. How much can you earn on Forex – TOP 5 factors influencing profit

The ability to trade correctly according to the chosen strategy is far from the only factor influencing success. There are a number of other important points that we will describe below.

Factor 1.

According to the rules of money management, in each transaction a trader has the right to risk no more than two percent of his capital. Warren Buffett generally does not recommend putting more than 0.1% of all funds in your account at risk.

What is it for? In order for the loss of this money to leave in reserve the opportunity to open another 49 to 1000 transactions and “win back”.

Ideally, the ratio of possible loss to potential profit is 1:3, that is, each transaction should give three times the possible loss.

Example

We traded Forex at wave analysis with a capital of $1000. For the month, the profit was about $250. If we had a million in the account, we would earn $250,000 in 30 days.

If we have a hundred dollars in our account and we risk 2%, the risk is two dollars. If we get a profit (ideally) three times larger, it will be 2*3 = $6. If you have a million dollars in your account, then one transaction will bring not $6, but $60,000.

Hence the conclusion: the fundamental factor is the amount of capital. The bigger it is, the better. Don’t be afraid of huge numbers: money can be taken under management, there are even companies like FxStart or United Traders that provide deposits for trading.

Factor 2. Efficiency (profitability) of the trading system

Profitability is determined simply - we open 10 trades on a demo account according to the chosen strategy and analyze how many were profitable and how many were unprofitable. Closing of transactions is carried out under clear conditions: if established Take Profit, we don’t move it.

The ratios may be different. If two of three transactions are closed with a profit, this is quite normal. Much depends on the magnitude of risk and profit.

By the way, our risk was twice as high as the possible profit, but it was not spontaneous, but conscious.

Trade your strategy for about a month on demo, and if the results are positive, you can move on to real trading.

Factor 3. Well-chosen strategy

It is necessary to choose strategies that, first of all, will be convenient for you and will not cause psychological discomfort. It is advisable to start with medium term trade, although short-term transactions attract beginners with opportunities to quickly get money.

We have already given a clear classification of trading strategies in the material "". To do right choice, you definitely need to master basic knowledge about Forex. Fortunately, there is plenty of information on the Internet.

Factor 4. Psychological stability

All newcomers consider themselves psychologically stable. They think that the exchange is not capable of turning their heads and forcing them to open transactions under the influence of emotions. Alas, the first days real trade Absolutely everyone is convinced of the opposite.

Forex is not the only way to make money. If, after seriously familiarizing yourself with this work, you realize that you don’t really want to do it, move on to something else, such as blogging or freelancing.

The currency exchange attracts huge amounts of money, but it scares off those already “lured” by high risks. Riskiness financial trading does not decrease or disappear. Probability of loss Money there is absolutely always.

Factor 5. Variability of the market environment

In Forex (as in other markets) there is a concept volatility. The higher it is, the more sharp fluctuations can occur. exchange rates. Volatility varies depending on trading session and news.

Before the release of important news, the market usually freezes, there are practically no movements, but 1-2 minutes before the news is published, very sharp fluctuations begin.

You can make good money here, but you can also lose huge amounts due to slippage.

If you want to trade on news, better do it in the market options, not in Forex.

Trading sessions – opening hours largest exchanges. We describe them in the table.

Forex trading sessions (GMT):

№	Session name	Exchange	Opening	Closing	Volatility
1.	European	Frankfurt, Zurich, Paris (London)	06.00 (07.00)	15.00 (16.00)	High
2.	American	New York (Chicago)	13.00 (14.00)	22.00 (23.00)	High
3.	Pacific	Wellington (Sydney)	20.00 (22.00)	05.00 (07.00)	Low
4.	Asian	Tokyo (Hong Kong, Singapore)	23.00 (00.00)	08.00 (09.00)	Low

Exchanges are located in different cities; due to the time difference, the beginning and end of sessions can be determined differently, possible options we noted in brackets.

Many traders do not like to trade in the Pacific and Asian session, since prices move very sluggishly.

It is imperative to take volatility into account, otherwise you can forget about successful trading.

4. What you need to make money on Forex – 7 useful tips for a beginner

We will indicate tips that we ourselves have followed and that professional stock speculators advise us to follow. This material was partially covered in "", let's look at it from a different angle.

Tip 1. Choose the right trading strategy

When choosing a strategy, it is advisable to talk with a professional, attend a practical webinar or master class. The wrong strategy always leads to money loss. There is a lot to take into account: the size of the deposit, trading time, risks, type of analysis, and so on.

Interesting material on trading strategies presented in the video below:

We wrote about two areas of analytics: technical and fundamental - in the article “”, you can refer to it to immediately understand which direction is best to move.

But what if you have mastered the basics, but are afraid to risk money? Do this. Go to the company’s website, register and create a “Nano” account, also known as “Cent”.

Nano accounts are practically no different from regular ones, but if on a Standard account you need 200-300 dollars for a successful start, then on a cent account 2-3 will be enough. The balance is reflected in cents, you will see amounts of 200-300 USC.

The result is that we kill two birds with one stone - we don’t risk a lot of money, but at the same time we make real investments and get used to watching the balance change, as in a real account.

Tip 2. Practice trading on a Demo account

The exchange will not escape you, therefore, if you start working on it after a month or a year of “training trading”, absolutely no profitable opportunities will be lost.

A demo account is a great way to avoid the masses annoying mistakes, on which amateurs burn out.

Tip 3. Analyze the Forex market regularly

No matter how good the strategy is, the trader must always be aware of what is happening in the market. Each trading day begins with viewing the economic calendar - if serious news is planned for a certain currency, we refrain from trading.

Tip 4. Don't invest large sums at once

If you become a master of the stock exchange game, people themselves will want to invest in you in order to receive interest. So don't rush into investing. own money, especially large sums.

Tip 5. Work on your emotions

If you wish, you can learn to control yourself even in the most difficult situations. Again, strategy helps with this.

If the price goes against us, you must analyze the market and determine whether the deal was opened as planned. If yes, we wait and don’t change anything; if not, it’s better to close.

A trading journal can be an ordinary notebook where you paste printouts of charts with marked actions: where the trade was opened, where it was closed, when the trade was profitable or unprofitable, and so on.

Tip 7. Choose a broker for trading wisely

There are a lot of brokerage firms; we analyzed them in detail in the article “Forex Brokers”. We will point out a number of other interesting companies.

The largest brokerage firm. There are excellent training programs, daily webinars on market analysis, master classes from professionals. There are many currency instruments available for trading, the conditions are quite favorable.

No other broker has as many high-quality licenses as , so only Finam can compare with this company in terms of reliability.

2) BCS Forex

This broker also has a training program and well-developed analytics. You can trade more than 420 financial instruments under a wide variety of conditions.

The spreads are low, so not only mid-term traders, but also fans of pips can make good money. The company holds interesting promotions for beginners, and competitions with huge prize funds for professionals.

3) Alfa-Forex

The company provides earning opportunities for traders, professionals who can work in the analytical department, as well as partners who are ready to attract new clients.

In our opinion, Alfa-Forex is the best option for opening long positions for a period of a week or more. Because in analytics, forecasts are built precisely on the weekly timeframe.

The service is suitable for beginners because it gives huge bonuses: you can get 250% on deposited funds. You don’t have to have a lot of experience to trade: the analytics section contains forecasts for all existing analysis methods.

The positive side of forecasts from InstaForex is the indication of specific actions for various scenarios.

The broker has been working in the market for a long time, offering excellent customer support, training, and high-quality analytics. Trading conditions can vary widely, so both beginners and professionals will find something for themselves best options work.