Few people know that you can make money on the difference in exchange rates without leaving your home. Such opportunities are provided by the Forex market. However, currency trading is not for the faint of heart, and besides, making transactions with currency requires certain knowledge, skills and self-discipline.
It is necessary
Agreement with a brokerage company, free funds, software, a computer with Internet access, professional knowledge
Instructions
Step 1
The structure of the interbank foreign exchange market Forex is a set of buyers and sellers of various types of currencies scattered around the world. The largest players in this market include large banks, investment companies, and pension funds. They are called operators.
Step 2
Market operators exchange currencies among themselves by making so-called transactions. The minimum value of a transaction for the purchase and sale of currencies is approximately one million US dollars. Today, no one changes such amounts of funds in cash, the operators are connected with each other by a special network that allows you to almost instantly make transactions with currency. In this case, the physical movement of money does not occur.
Step 3
A small investor, a simple individual like you and me, will not be able to enter such a market. However, this does not mean that the opportunity to join financial alchemy is missing for you. There are intermediary structures for this.
Step 4
Intermediaries are brokerage companies that, on the one hand, are clients of market operators (banks), and on the other hand, they provide small investors with buying and selling currencies in relatively small lots (contracts). Thus, to carry out financial transactions, it is enough for an individual to have an amount of several tens or hundreds of thousands of US dollars.
Step 5
So, you have analyzed the brokerage market. If your knowledge in this area is not enough, seek help from a financial advisor. Now you should conclude an agreement with the broker to provide access to transactions in the foreign exchange market.
Step 6
Before you take this crucial step, understand that you are entering the unpredictable world of investing in order to make a profit. This world provides an opportunity for potentially unlimited income, to which comes an equally unlimited risk of losing all your investments. The sooner you give up thoughts of easy money, the better for your wallet.
Step 7
Making transactions in the foreign exchange market is an explosive mixture of special knowledge, skills in analyzing the market situation and elements of art. Once you've made the decision to become a foreign exchange trader, invest your time and some of your funds in financial education. It will certainly pay off and allow you to avoid unnecessary frustrations at the first stage.
Step 8
But the training took place, the contract with the broker was signed. Open an account with your chosen brokerage company. Please note that the brokerage market today is filled not only with reliable and proven professionals. There are also dubious "kitchen" brokerage firms that attract potential clients with low commissions and scanty investment amounts. The most reliable choice is a reputable bank licensed to carry out currency transactions on the Forex market.
Step 9
To make transactions with currency, you need to download and install a trading platform - specialized software connected to the services of a brokerage company. In this case, you can make deals with one click of the "mouse", having previously selected and set the required parameters. Some terminals have a special built-in software environment that allows you to automate trading by creating trading robots that take on the routine work of making transactions.
Step 10
Trading terminals differ from each other externally and functionally, but this does not change the essence of the method of making a profit: you need to buy one currency relative to another at the lowest possible price, and after a while sell at the highest. The resulting difference (minus commissions and taxes) will be your profit.
Step 11
The technical details of making transactions with currency are beyond the scope of this article and require separate consideration. Arm yourself with patience, train your psychological factors management skills - and over time you will proudly call yourself a professional currency trading.
