What is Forex Trading?

 

When you look for Investing in the financial market, you get to see three types of market; the first one is the equity market (related to the share market). The second is the commodity market (related to the Investment of precious metals like gold, silver, copper, etc.). The third is the currency market (also known as the forex market in which you invest in INR and Dollar).

 

As I told you, the currency market is also known as the forex market in which dollars and INRs are traded. You may not have heard much about it in India because the profit margin and risk involved in it are less in others. But if we talk about the size of the forex market worldwide, it is worth about 5 trillion dollars. It's insane, isn't it? 

 

Today in this article, I will tell you what Forex market is and how to trade Forex. Also, I will share some Forex trading strategies with you, so let's start.

 

 

What is Forex Trade? 

Forex trading or currency trading is the buying and selling of foreign currencies or currency. It is a very volatile market and can be very challenging for new investors and traders.

 

How to start online forex trading?

To do forex trading, you need to open a trading account with the top broker according to your will. It is advisable to take time to research a broker who provides good service.

 

 

To open a Forex trading account, go to the broker website, and apply online or offline.

                                                                                                                                        

Ø  Fill the form and add essential documents like ID proof (PAN card, Voter ID card, driving license, Aadhaar card).

 

Ø  Address proof (telephone bill, utility bill, ration card, registered lease or sale agreement) and income proof (current ITR, salary slip, Form-16, account statement, etc.).

 

Ø  After this, you can verify all your account details on call or by going to the office.

 

Ø  On in-person verification, your account is opened, and then the confirmation email is sent to your registered email address.

 

Ø  The mail contains your login ID and password that you can use to access your trading account.

 

Following are the strategies used in forex trading:

 

1. Price Action Strategy

 

It is one of the most straightforward and most used forex trading strategies. It is not based solely on price action and any indicators or techniques. The basis of this strategy is that forex trading is explicitly based on price action-bull and bear.

 

2. Counter-Trend Trading Strategy

Counter-trend trading is one of the most successful forex trading strategies. This strategy is beneficial initially, as it helps build the trader's confidence due to the high success rate.

 

3. Breakout Trading Strategy

One of the effective currency trading strategies is the breakout trading strategy. Under this strategy, the trader enters the market when the market is outside its previous trading range.

 

Last Words

Through this article, I told you about  What is ForexTrading, How to Trade Forex, and also shared the Forex Trading Strategies. Hope you enjoyed it; thank you for reading this article.