FOREX TRADING FOR BEGINNERS lesson1 by @spyrex
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So I just started forex trading lessons so I could diversify into other areas with great profit. For a long time now ive heard stories on how risky it is and advice on how to go about it, there are alot of scary and funny stories about it though but since I start my experience with forex its been pretty fun and worthwhile and that’s why I would love to share it with everyone out there. These lessons are usually for a price but I learnt mine through questions, assistance from friends and studies and ill be passing on the knowledge so we can all grow together. Ill advice you open a demo account while starting up, youve got to be careful as a beginner to avoid silly mistakes.
Firstly what do we understand by the term FOREX market. Its basically a shortened form for “foreign exchange market” and its currently the largest market in the world. On an average trading day it trades about 5 trillion Us dollars. I know right? That’s like mind blowing.
From the name foreign exchange you realize we are dealing with various foreign markets and currency pairs. For example the United States dollars, Euros, yen etc
So what are currency pairs? Let me break it down easy
Each currency has different values and comparing would mean identifying each of their exchange rate. Let me break it down.
I am from Nigeria and our currency value is quite low due to the economy so if im to compare the exchange rate of the US dollars compared to Naira
1 usd would be 380 naira and not 1 naira. I presume you now understand what I mean.
Same with EUR/USD which is a more popular currency pair in the forex market
1 euro could presumably be 1.0878 in USD.
This is just the fundamental basics in FOREX
Ill give a list of the 5 major currency pairs we have
EUR/USD
GBP/USD
USD/JPY
AUD/USD
USD/CHF
Incase you are confused by some of the symbols ill give their country and currency
Symbol. Country. Currency
AUD Australia Dollar
CAD Canada Dollar
CHF Switzerland Franc
EUR eurozone Euro
GBP Great Britain Pound
JPY Japan Yen
NZD New Zealand Dollar
USD United states Dollar
On our next lesson I would be showing you HOW WE MAKE MONEY ON FOREX.
Feel free to share anymore additions on the comments since we are all learning. This way we can grow together.
Cc.
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