The interbank foreign exchange market (English forex - foreign exchange) was formed in 1971 after the transition of international trade to a system of floating quotations. Previously, exchange rates were fixed. Forex works according to a very simple principle - currency exchange takes place on any conditions that the parties agree to.
Instructions
Step 1
To make money on Forex, you first need to get there, which is not an easy task. To enter this market, you need to have a capital of 100 thousand currency units. However, to start trading, it is enough to have a couple of thousand - transfer them to the account and get a loan from the bank. For one dollar of collateral, you can get $ 100, this ratio is called a leverage of 1: 100. Naturally, the bank is not driven by a desire to help you. The money will have to be given with interest, so think carefully about whether it is worth the candle.
Step 2
Let's say you played badly. Banks are always vigilant about the funds in the account, because this is their money. In case of unfavorable price movements, your transactions may be blocked. Experts recommend starting trading with a deposit of $ 2,000 to $ 5,000, taking a margin loan with a 1:30 leverage, and adhering to strict discipline in order to limit possible losses. Typically, the client does not have to pay a financial institution to use the account. In any case, banks will not be left behind - they will earn on the difference in chickens in the interbank market and for the client.
Step 3
As for beginners, analysts advise to trade only popular currencies such as the dollar, euro, Japanese yen, British pound sterling. "Exotic" currencies sometimes seem to give a chance to earn some good money. However, you can just as well miscalculate. If it suddenly turns out that there is no buyer for your product for several days, fluctuations in quotations may leave you at a loss.
Step 4
Technically, there is nothing complicated. There is only one "little thing" that decides everything in Forex - analysis. To know which currency is trending upward, you need to carefully study the political and economic aspects that affect the change in exchange rates. Many analysts think that predictions can be made by studying charts showing price changes in the past. Thus, they believe, it is possible to predict the "behavior" of the exchange rate. In any case, a beginner investor will need to undergo training. Numerous brokerage companies provide a wide range of Forex trading training services.
