How To Trade Forex Online, Sounds Complicated?

We know it may sound complicated, but nowadays you can actually trade forex online from anywhere you want by simply using your own computer, smartphone or tablet.

we want to walk you through and to show you exactly how you can trade forex online, it is easier than you think.

Let’s begin with some simple terms that you must understand before trading……

 

Forex Trading Terminology

 

  • Currency Pair – currency pair will be written as XXX/YYY. The base currency is the currency on the left-hand side (XXX), and the quote currency is the currency on the right-hand side (YYY). We will always trade on the base currency against the quote currency.
    For example: EUR/USD – the base currency is the euro and the quote currency is the U.S. dollar.
  • Pip – the change in value between two currency pairs is measured as a pip, usually, the pip will be equal to 0.0001.
    For example: EUR/USD – if the currency rate will rise from 1.1942 to 1.1952 it’s mean that the currency rate has increased by 10 pip’s.
  • Buy/Sell position – after you will decide which currency pair you want to trade on, you should decide either to Sell or either to Buy.
    For example: EUR/USD – When a trader launches a BUY position, it’s mean that he buys euro and sell U.S. dollars at the same time. In that case, the base currency should gain value in contrast with the quote currency in order the trader will get profit. On the other case, the trader will launch a SELL position if he thinks that the euro will lose value in contrast with the U.S. dollar.
  • Leverage – by simple words, leverage will give you the ability to trade on a bigger volume with the money that you invested.
    For example: 1:100 leverage means that in order to trade on 10,000$ you should invest 100$, each 1$ worth 100$ trading volume.

 

Opening An Online Trading Account

 

Make your own research before opening a trading account with the broker, the main things you should check is:

  • Regulation – the most important thing that needed to be checked. Depending on your nationality, These are the regulation you should look for.
    banking, business, checklist
    Some major regulations are:
    United States: Commodity Futures Trading Commission (CFTC).
    United Kingdom: Financial Conduct Authority (FCA).
    Cyprus: Cyprus Securities and Exchange (CySEC).
    Australia: Australian Securities and Investment Commission (ASIC).
    Germany: Federal Financial Supervisory Authority (BaFIN).
  • Demo account – some brokers will offer a Free demo account that allows you to get more experience with the platform, In this account, the trades you open won’t be based on real money so you can gain experience and confidence trading.

 

  • Experience – Brokerage with years of experience are better than new ones, years of activity shows that the brokerage is stable.

READ OUR BROKERS REVIEWS

 

Verify Your Account and Start Trading

 

After opening an account with the broker you chose, it’s highly important to verify your account and submit the relevant documents, you are not allowed to trade or withdraw funds until the account is fully verified.

 

Place your order

    • Set the trade volume.
    • Decide which position to open, Sell or Buy.
    • Invest.

(Optional)- Set up a Take profit/Stop loss command:

      • Take profit – Ensures your trade will be automatically closed with profit, only if the currency pair market rate reaches the specific rate you chose.
      • Stop loss – In case that your trade is going against you and you want to limit your losses, Stop loss ensure your trade will be automatically closed at the specific rate that you chose.

 

Track your open positions

 

You are able to check the open positions at any time you want, the forex market is volatile and remember that trading with leverage is a double-edged sword, it can go against you as well as with you.

Follow your trades and make sure to close your trade if the profit satisfies you or if the loss is too much for you.

Oh and a very important thing you should remember, Don’t Be Greedy!blur, close-up, fingers

 

Summary

 

In order to become an expert in online trading, you will need more information. In this article we will guide you through the simple way to start trading forex online, we will add more articles in order to help you gain knowledge.

Stay tuned and share your opinion by Commenting below, let us know if you found this article useful or if you have  any questions.

 

 

 

 

 

 

 

9 thoughts on “How To Trade Forex Online, Sounds Complicated?”

  1. I am looking for a way to diversify my portfolio and have been meaning to check out currency trading for some time. Thank you for the tutorial, the term and language can be so confusing sometimes. Is Forex trading a buy and hold strategy or something you get in and out of quickly? Are there ETF’s you can invest in using this strategy? I look forward to hearing back from you.

    • You welcome Steve,
      Buy and hold strategy is recommended while trading on stocks.

      As we mentioned above, by using the leverage we have the ability to trade on a bigger volume than the actual investment.
      Therefore, small movements worth a lot of money.
      That’s the reason why short-term positions are recommended while trading Forex.

      You can invest in ETF’s using this strategy because of their higher daily liquidity.

  2. I did trading in the past but I wanted results to fast and in a bad way. So I will do everything you put here and hope it goes well! Thanks!

  3. I’ve been very curious about Forex trading for some time now and was a little confused with how it all worked. Your article was clear and concise and I learned enough to get the ball rolling and start trading! I love your site and thanks for sharing all this great information!

    Steve

  4. Thanks for your tutorial regarding forex trading. I used to trade forex and commodities with a method of placing the probability in my favour. I would ensure the daily trend confirmed with the weekly trend and ensure commodity trends agreed with the trends of their strongest currency such as gold ‘s trend syncs with the Aussie dollar and oil syncs with the Canadian Dollar etc – the trend is usually your friend, however, there are endless methods of trading.
    The only recommendations I have regards doubling a demo account up before going live, then start off with a minuscule amount to get the hang of trading in real time meanwhile never trade without a stop loss.
    How long have you been trading? You’ve inspired me to get trading again,
    Simon.

    • Hi Simon,

      Thank you for your kind words…

      I am first of all glad you are inspired to get back trading – if any assistance is needed please don’t hesitate to contact for more information.

      We in TradeProperly hold experience level of 10 years and above in the markets – and it never stops as you always learn and strive to evolve further.
      We aim to teach and instruct how to conduct the market in the best possible way and therefore education comes first.

  5. Hello Shai
    I always see Ads about Forex but I never know what it is about. Now, after reading your article, I have an idea about it. I discover it is very easy. You cover everything. May be I will think joining Forex and trade properly as you suggested. I think people who trade in Forex must know about raising and falling of money currency. Is there another article regarding the techniques of Forex?
    Thank you!

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