Forex trading has always been a mystery for me until about couple of weeks ago when I started reading more about it. Now, after doing enough research, I realized that it is the one of the easiest make money online instrument to get started and make money instantly — of course with its associated risks. In this post, let me explain the basics of forex trading and how easy it is for anybody to get started with online forex trading pretty quickly.
Forex market or currency market or simply FX is the place where currency trading takes place. For example, if a US company has to import something from Japan, it has to pay in Japanese Yen and and hence need to convert the US dollars into the acceptable currency. Forex trading by individuals is nothing but the act of involving in the above process with your small amount of money whereby you buy and sell currencies at the prevailing market price.
Basically, when you buy a particular currency e. US Dollar , it is exchanged against another e. Euro and hence the entity that is traded is known as a pair. Many of us are familiar with the stock markets and share trading. The currency trading is slightly different from stock trading because of the following reasons. In order to trade forex you need to open an account with one of those online forex trading agencies. There are plenty of them to choose from and I found that eToro is a good platform for the reasons mentioned in the next section.
Once you sign up, all that you have to do is to add money to your forex trading account and start trading. Money transfer to the account can be via PayPal, Credit card, bank — wire transfer and many other online money transfer options.
Of course, after signing up one still has the option of continuing with the practice account without adding any real money to your account. It is a matter of couple of minutes before you start trading but wait till you do your homework. All your money can disappear in no time if you are not careful. This is why practice trading accounts are useful. Most trading platforms allow a practice account whereby you can trade using virtual money but use real time features such as price quotes, charts etc.
Please proceed to the next page to read Forex trading tips and common forex terminologies. Hi Ajith Thanks for this informative article. Does eToro charge for their software? I think, they must be making a lot of money due to the spread difference between ask and bid prices.
The volume involved is huge and hence even minor spread differences should fetch them a lot of money My assumption. Well, at the end the whole legality of this business is still questionable. I think government at some point should come hard on this activity and hopefully when they do that, they will open up forex trading opportunities for residents with Indian participatory banks.
Hi, Is this currency trading illegal. If its illegal, what are the actions taken by RBI to avoid this. I am an Indian citizen. Is there is any other option to do this. It is illegal to do forex trading in India and its a non bailable offence,, can anyone share your views. If you are from India, stay away from forex trading. One of my friends say that he is going to singapore with all his accumulated wealth from indian stock market investments and trading and is going to open up a proprietorship kind of business and trade in forex with the help of technical analysis which he has been practicing since last 6 years and is pretty good at it.
Is this really legal as I had a debate with him and he said it is legal but as per RBI guidelines trading in forex international currency pairs is illegal as far as i know. Kindly throw some light in clearing my doubts. By the way, just like India, there are some other countries were Forex trading is illegal. Not sure if Singapore is one of them. Hai Ajith I have been trading forex since July found no difficult in transferring and withdrawing and my broker is Windsor a good from Cyprus and earning a lot invested more than 80 lak will there be any problem as I am indian.
Well, I am not an expert in technical analysis. Learning a bit of technical analysis is the key to make more profit. And keep changing your stop losses each time the price goes up or down. A lot of people make the mistake of not changing stop loss values thereby losing money in a sudden fluctuation.
OR can NRI do legally? Article is very useful. At that time I mentioned about the eToro forex trading platform where you can start a Forex […]. Eb from Surveyosity dropped in to leave […]. A UK company is looking to import a product to Japan. To do this, the […]. While most of the basic technical topics are covered in that article, I […].
Send me an email when someone replies. Ajith Prasad Edassery 1st Dec Comments. October 1, at 6: October 1, at 7: October 4, at 8: October 22, at 8: November 4, at 7: November 5, at 1: November 6, at 9: December 4, at No use as Indians are not allowed to do any kind of Forex Trading…. December 6, at 4: December 7, at December 7, at 8: Hi Ajith , One of my friends say that he is going to singapore with all his accumulated wealth from indian stock market investments and trading and is going to open up a proprietorship kind of business and trade in forex with the help of technical analysis which he has been practicing since last 6 years and is pretty good at it.
December 7, at 9: December 11, at Ajith, Yes Forex trading is legal in Singapore. Couple of my friends are doing here. December 18, at 3: January 15, at 9: Hi ajith, How to minimize the losses in forex? How analyse the market to get profit? January 16, at 7: October 6, at May 8, at 9: January 15, at February 12, at 1: April 20, at 9: October 15, at 3: Popular Posts in this Category.More...