Trading tutorial for beginners
Trading can be undertaken in many ways and it can be accomplished using multiple trading units. These trading units are most commonly listed on the trading market which can be bought or sold depending on the user or trader in the process. Unlike investing, trading is a small term opportunity where the asset can be held for a short time duration. In comparison to all the trading assets available, a new amateur trader mostly choose forex owing to its high liquidity, volatility and leverage to begin the trading journey. First step first- to understand the basics, you can take help from any online forum or tutorial but to have a deep understanding and definite skill set for trading, you must enroll for a Forex Trading School in Kolkata that will provide you with in depth knowledge about the business along with complete guide for forex trading. Not just limited to Kolkata, there are many renowned reputed institutes that offer value added detailed Forex Trading Training in Bangalore as well as in various other metro cities.
Tradewave is one of the well-known trading academies that has tutors from across the domain who are well experienced in the field. To begin a fruitful career in the business of trading, it is important to learn from no less than the best academicians. There are numerous short term certificate level courses available to choose from and on successful completion of the program, students will be provided with a valid certificate as well.
Beginner’s guide for Forex Trading
Forex is nothing but short form for foreign currency. Trading in forex means exchange of currencies and hence the trading is always done in pairs. Forex trading happens from financial markets. One needs to speculate the fluctuation of price of currency with respect to another currency to incur profit. Forex market is the most potential, volatile and liquid market in the world.
- Foreign currency pairs – You trade one pair of currency with other. For example, the sign EUR/USD means you are trading Euro against Dollar, where EUR is the base currency and USD is the quote currency
- Trading hours – unlike other trading markets, forex trading market functions round the clock i.e., 24 hours a day and five days in a week. The market opens at 5PM EST on Sunday afternoon and closes at 4PM EST on Friday afternoon
- Ways of trading – Depending on the trader, you can choose for CFDs or Contract for Difference, Spot trading, Futures trading and Options trading
- Forex pips and spreads – Pips by definition is a unit of measurement that indicates change in the value of a currency. It is short form for percentage in point. Spread is the difference between bid price and ask price quoted by the broker
- Margin and leverage – Leverage is the amount that can be borrowed from the broker for trading and is always quoted as a ratio. Margin is the amount or money that must be present in your trading account to apply leverage
Trading in Forex is highly profitable owing to its liquidity but like any other business you need to practise and master the art in incur profit over loss.