forex trading for beginners

Forex Trading For Beginners 2020

What is Forex Market

Forex Trading For Beginners: Forex Market is a legitimate trading market that is responsible for generating business worth of USD 5 trillion on a daily basis. Forex is beneficial for the spectaculars as it is opened 24 hours and 5 days a week.

Facts of Forex Market

Per day volume of the New York Stock Exchange (NYSE) is 22.4 billion and is considered to be the world’s largest financial market. But the foreign exchange market generates revenue of $5 TRILLION a day trade volume.
These $5 trillion covers the whole world, BUT daily trading volume from retail traders earn somewhere in between 5-6% of overall volume, or between $300-400 billion.

Can you make money by forex trading?

Yes, you can make money by a forex trading platform. All you need is a broker that is competent in his field, proper knowledge and learning skills. But even after all of these things it is quite tough to make money online. Forex trading for beginners, it is not as easy as you think. According to a survey in 2020 it was found that almost more than 85 % of the forex traders are unable to earn enough money to get rich easily. There are only five to ten percent of the financial experts who made their money by creating a hedge or by using the technique of short selling. So as a beginner you must have the basic knowledge of this market and its trading platform.

How Do I start Forex Trading

Education

 Forex trading for beginners requires that the knowledge of essentials and basics of the forex market. They should know that they can play in both directions and can execute a trade by buying or by selling first. They must know about the Inflation rate and the interest rate of that specific countries of their desired currency pairs in which they are going to trade.

Visiting Online Websites

The beginner or the student forex trader should visit different websites that have complete details of forex markets, different and useful contents about trading as a beginner.

Practice on demo-Account

Before investing in the forex market, it is crucial for the investor that he must learn the basics and dynamics of the market by practicing on a demo account on the software of his broker. Forex trading for beginners starts from a demo account.

Minimum Deposit

If you are a beginner to forex trading do not start on a massive scale. It can increase the risk of great loss due to your lack of knowledge and experience. So always start with a minimum amount starting from 100 $ to 300$ after making some experience at the demo account.

How do I choose a broker

Choosing a quality broker really matters especially for a beginner.  A good broker has always the following qualities:

Regulated

A good broker is always regulated and registered by their relative regulation department.

Trading Platform

For beginners, it is very important that the software must be user-friendly, easy to use, and have some basic and advanced tools for basic trading.

Quality of Research Report

The broker should have a team of researchers. They should collect news and analyze the data properly. Their reports must be of good quality and advanced. Beginners should seek assistance from these reports that are easy to access.

Customer services

A best broker is the one who gives you the best service. For a beginner, it is very important that his query must be solved immediately. In this way he learns more as he get the answer at the peak moment of his tension. A best broker also gives you recommendations regarding the trades via call. To a beginner the best broker must be responsive to his call or a text.

Things to learn as A Beginner

There are some tips that will help in forex trading for beginners.

Major Currencies

Beginners always start their forex trading with the “major currencies”

Each Currency is denoted by a symbol. Each symbol consists of 3 letters. The first two letters show the country name and the third letter shows the currency of that country. It is mostly the first letter of currency. Like USD is the currency of UNITED STATES OF AMERICA named as DOLLAR.

Currency Codes

In 1973, the International Organization for Standardization (ISO) established the three-letter codes for these currencies that we use today.

The three letters are known as ISO 4217 Currency Codes.

Here is a table of showing different currency codes

Country Currency Symbol
United States
DOLLAR
USD
Eurozone
EURO
EUR
Japan
YEN
JPY
Great Britain
POUND
GBP
Switzerland
FRANC
CHF
Canada
DOLLAR
CAD
Australia
DOLLAR
AUD
New Zealand
DOLLAR
NZD

These currencies are called major because the majority of trade is executed on the exchange of these currencies.

Currency Pairs

Forex trading for beginners ask for the knowledge of these main currency pairs

Major Currency Pairs

Beginners should also have some knowledge of currency pairs.  In these pairs, each currency is paired up with the US Dollar. We can also say that the currency pairs containing US Dollars are called major currencies. Here are the major currencies pairs of US dollars.

Currency Pairs Countries Slang Name
EUR/USD
Eurozone/USA
euro dollar
USD/JPY
Japan/USA
dollar yen
GBP/USD
England/USA
pound dollar
AUD/USD
Australia/ USA
aussie dollar
USD/CHF
Switzerland/USA
dollar swissy
NZD/USD
New Zealand/ USA
kiwi dollar

Minor Currency Pairs

Yen Crosses

Minor currency pair is also known as major cross-currency pair. In minor currency pairs, the currency of a country is not paired with the US Dollar. The most frequently traded pairs are:

  • Euro Crosses
  • Pound Crosses
  • Yen Crosses

When the currency of Japan is paired up with other currencies, they are called YEN crosses. This table shows some yen crosses.

Currency Pairs

Countries Slang Name AUD/JPY
Australia/Japan
Aussie yen
CAD/JPY
Canada/Japan
loonie yen
NZD/JPY
New Zealand/Japan
Kiwi yen
GBP/JPY
United Kingdom/Japan
Pound yen
CHF/JPY
Switzerland/Japan
Swissy yen
EUR/JPY
Eurozone/Japan
Euro yen
EUR/JPY

Euro Cross

When the currency is paired up with the Eurozone currency, the EURO crosses are formed. Have a look on the EURO crosses

Currency pairs

Country Jargons EUR/CHF
Eurozone/Switzerland
Euro swissy
EUR/GBP
Eurozone/United Kingdom
Euro pound
EUR/CAD
Eurozone/Canada
Euro loonie
EUR/AUD
Eurozone/Australia
Euro aussie
EUR/NZD
Eurozone/New Zealand
Euro kiwi
EUR/NZD

Pound Crosses

They also pair up with the other currencies like pairing of euro with the currency of Norway krone makes a EURO-NOCKIE.

Pairing of the Great Britain Pound with other currencies is called POUND CROSS.

Currency pairs

Pairs Country Jargons
GBP/CHF
United Kingdom/Switzerland
pound swissy
GBP/AUD
United Kingdom/Australia
pound aussie
GBP/CAD
United Kingdom/Canada
pound loonie
GBP/NZD
United Kingdom/New Zealand
pound kiwi

Exotic Currency Pairs

When a frequently traded currency of an established currency is coupled with a less traded currency of any of developing economic state is called EXOTIC CURRENCY PAIR.

Like examples of exotic currencies include the

  • Thai baht
  • The Uruguay peso
  • Iraqi dinar

Some of the exotic currency pairs are

Dollar baht is the result of the pairing of the US dollar with the Thai Bhat (USD/THB).
Dollar mex is formed by the pairing of Dollar and Mexican currency (USD/MXN).
The Scandies

“Scandinavia” covers the three kingdoms of Denmark, Norway, and Sweden.

Their currency krona or krone means CROWN.

Denmark and Sweden established the Scandinavian Monetary Union in 1873. Norway joined in 1875.
But after World War 1, the states were separated on 4 November 1814. But now these currencies are separated and termed as  The Scandies.

  • Norwegian krone, NOK
  • Swedish krona, SEK
  • Danish krone, DKK

G10 Currencies

The most heavily or frequently traded currencies are the G10 currencies. The most liquid and flexible trading occurs in the G 10 Currencies.

  • United States dollar, USD
  • European’s Union euro, EUR
  • United Kingdom’s pound, GBP
  • Japanese yen, JPY
  • Australian dollar, AUD
  • New Zealand dollar, NZD
  • Canadian dollar, CAD
  • Switzerland’s franc, CHF
  • Norwegian krone, NOK
  • Swedish krona, SEK
  • Danish krone, DKK

CEE Currencies

“CEE” is the abbreviation of Central and Eastern Europe.

These countries include

Albania, Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic, Slovenia,
Three Baltic States (CENTRAL EUROPE) include Estonia, Latvia, and Lithuania. The four main currencies of the forex market are:

  • Hungarian, forint (HUF)
  • The Czech Republic, koruna (CZK)
  • Poland’s currency, zloty (PLN)
  • Romanian, Leu (RON)

The Briics

BRIICS is termed for the five major emerging national economies:

They are Brazil, Russia, India, Indonesia, China, and South Africa.
It was founded by Jim O’Neill in 2001, and then Chief Economist of Goldman Sachs.
First, there were only four countries were added to Brazil, India, China, and Russia but later it was named as BRIICS by the addition of Indonesia and South Africa. Here are the BRIICS currencies along with their codes.

  • Brazilian, real (BRL)
  • Russian, ruble (RUB)
  • Indian, rupee (INR)
  • Indonesian, Rupiah (IDR)
  • Chinese, yuan (CNY)
  • South African, Rand(ZAR)

Forex Trading for beginners or how to start?

Basically forex exchange is the exchange of one currency with the other that you can do trade easily if you have already worked in the commodities trade or in the stock market. But forex trading for beginners demands that they choose their trading platform or enhance their skills online on different platforms. Our website provides a great research on forex trading and guidance.

Our website forex scams. Com provides necessary and important details for the beginners of forex trading. On our website, you will find the solutions to your toughest problems.  If you are a beginner don’t neglect the instructions given above. Our content Forex trading for beginners will help you for a good start.

For any query regarding to forex market just leave a comment on our page or contact us.