The best way is start your forex trading journey, is to sign up with a broker and request a forex trading demo.
A demo account will assist you in getting familiar with all the various trading terminology as well as using various indicators.
Some terms to look out for and their description, in short:
– Spread: The amount between the asking and selling price of the broker. Each trade will have a spread, which will be the cost of the trade towards the fees of your broker.
– Lot: The quantity of a certain instrument.
– Long / buy: You will profit when the market goes up.
– Short / sell: You will profit when the market goes down.
– Bear market: A market with a downwards trend.
– Bull market: A market with a upwards trend.
– Stop loss: The limit you put on each trade, to make capped any potential losses when the market turns against you.
– Leverage: The amount or contribution from the broker towards every trade you make. The leverage of each instrument as well as each broker varies, but are normally to the maximum of 100:1.
– Floor or sealing: The bottom or top turning point in a consolidation (sideways) period of an instrument.
– Counter trend / retail trading: Trading between the floor and sealing during the consolidation period of an instrument.
– Breakout or trend trading: Trading on an instrument when it break-out from the consolidation period of an instrument.
Hope these terminologies will assist you while using a forex trading demo account from a broker.
Note: Currencies, Commodities, Cryptocurrencies and CFD’s traded on margin carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with leveraged financial trading before deciding to trade because you can lose some or all invested capital. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.
Forex Company Comparison:
Please see the various online forex companies reviews below:
Trade Forex, Stocks, Indices and Commodities.
|Demo Account: Yes|
South African Office: Yes
|Min Deposit: $250
Shaw Academy: FREE Financial Trading Course.