Forex trading for beginners
Learning to trade forex can be a tough topic for beginners, but this article will help you get started trading forex. This forex trading guide covers real-life forex examples, basic principles, beginner strategies, tips for success and a step-by-step guide to getting started.
What is forex trading?
Forex trading is the process of speculating on currency price movements, with the aim of making a profit. Many currency conversions on the forex market are for practical use, and not for creating profit. However, traders can speculate on forex market price movements, with the aim of capitalising on correctly forecasting these movemen
Trading forex step-by-step guide
1.Open a spread betting or CFD trading account. You can open a live or demo account to trade on price movements of forex pairs.
2.Start researching to find the FX pair you want to trade. Use our news and analysis section to keep up-to-date with market news which may impact FX, and our market calendar to keep updated with market-moving events.
3.Based on your research, decide if you want to buy or sell. Is the research you’ve conducted indicating the base currency (the first-named currency in the pair) is likely to weaken or strengthen? Go long and ‘buy’ if you believe it will strengthen, or go short and ‘sell’ if you think it will weaken.
4. Follow your strategy. Before placing a trade, ensure you have followed your strategy which should include risk management. Also, see our tips on building a trading plan.
5. Place your forex trade. As per your strategy, place your forex trade with defined entry and exit points. Don’t forget to use risk management conditions, such as a take-profit or stop-loss order.
6. Close your trade and reflect. By following your trading plan, exit the market at your forecasted limits. Think about how you performed, so that you can improve after each trade you make.
