What Is Forex Trading For Dummies, South Africa?
Google searches for forex trading for dummies in South Africa is on the rise as more and more people consider getting into forex. Whether the results they come across are really helpful or not is another thing.
There is evidence almost everywhere that more and more people in South African are jumping into forex trading because it is seen as one of the quickest ways to make money online. You can grow a mere R1000 to more than R3000 in just one month. You can even make more.
Forex trading has become one of many ways to make money online. The advantage of trading forex is that you do it in your own time and at any location of your choice. All you need is a computer that is connected to the internet.
What Exactly Is Forex Trading?
Forex trading is basically to buy and sell currency pairs using an application that gets downloaded into your computer. You can also trade via a broker’s website if you did not download the trading platform.
If you are at any international airport and you are travelling abroad, you usually had to find a currency exchange point at the airport, and then exchange the money you have into the currency of the country you are visiting. Even if you may not be aware but whenever you do this, you have just participated in the forex trading market.
But this is not how forex is traded lately. You do not have to go to the airport or whatsoever. You trade foreign currencies right at your place of choice.
The biggest stock market in the world, which is the New York Stock Exchange, trades a volume of about $22.4 billion each day. Forex is traded daily or even hourly. This means that you can simply enter the market at 10:00, make profit and then exit the market at 11:00. Depending on what you are trading and what your margins are, you could make R100 000 in just an hour.
What Gets Traded In Forex Trading Markets?
The very simple answer to this question is this: money is traded in forex!
Here are some currencies that are traded online
SYMBOL COUNTRY CURRENCY NICKNAME
USD United States Dollar Buck
EUR Eurozone Euro Fiber
JPY Japan Yen Yen
GBP Great Britain Pound Cable
CHF Switzerland Franc Swissy
CAD Canada Dollar Loonie
AUD Australia Dollar Aussie
NZD New Zealand Dollar Kiwi
How To Buy And Sell Currency Pair In Forex Trading?
Forex trading means the simultaneous buying of one currency and selling another. Currencies are traded through an online broker or dealer, and are traded in pairs. You do not have to go around looking for a dealer. It is simple a software that gets downloaded.
For example the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY). When you are trading in the forex market, you simply buy or sell in currency pairs.
Different Strategies To Trade Forex Successfully
There are many ways or approaches people take when they trade forex online. These are simply called forex trading strategies. There are also various products that can be traded in forex. The most popular ones are spot forex, currency futures, currency options, and currency exchange-traded funds (or ETFs).