What is Forex Trading? Here's how it understands and how it works
What is Forex Trading? Here's how it understands and how it works - Along with the development of fintech, forex trading is the most popular type of investment whose liquidity is high so it is quite profitable. In addition, these instruments can be run online with little capital. No wonder so many investors are competing to learn how to operate it.
Well, in this article OCBC will discuss how to trade forex along with strategies and applications that you can use. What are you waiting for? Check it out!
What is Forex Trading?
Forex trading is the trading of foreign exchange to various destination countries for the benefit of tourism and business to make a profit. In practice, there is no determination of the currency to trade so it relies heavily on supply and demand.
Some people assume that the way forex trading works is to exchange money on Money Changer, even though this transaction is done online and aims to make a profit, not just want to get foreign currency. On a large scale, people even take advantage of this method as an investment field and profession.
An example of forex trading is when you buy pounds sterling (the British currency) but at the same time also sell USD (American currency) when the value is high. Well in addition to information, this activity is not only carried out by individuals, but also by countries, multinational companies, central banks, and so on in a network called the "Forex Market".
The Right Way to Trade Forex
One way that investors often take is to use forex trading robots to analyze the market through algorithms. But in fact, this tool does not have legality according to Indonesian law so it is prone to cause fraud or falsification of information.
For you to avoid it, it is necessary to know how to execute this investment appropriately. Well, just go ahead, the ways and strategies of forex trading are as follows.
1. Try Investment Instruments First
Usually, forex trading investors are people with quite a long investment experience. They make this instrument as a profit-boosting tool in addition to stocks, bonds, and so on. Therefore, it is highly recommended for you to first try dollar savings or stock mutual funds that work similar ways.
2. Learn How to Trade Forex
After being experienced in other instruments, don't forget to learn Indonesian forex trading through the information provided by OJK or ask an experienced mentor.
3. Setting up a Fund
The most important preparation in forex trading is to prepare funds as foreign exchange buying and selling capital. Start from a small nominal, which is around the US $ 1 - the US $ 1 only, then you can add it when you are more proficient in playing.
4. Finding a Suitable Broker
For the sake of ease of administration, if you are in the country, you should choose a forex trading broker from Indonesia. In addition, look at the legality,
5. Prepare Capable Gadgets and Networks
Forex trading is an investment made online from Monday to Friday for 24 hours. Therefore, to monitor market fluctuations, prepare capable gadgets and networks so as not to lose profit opportunities or even lose money due to late handling.
6. Disciplined and Conscientious
One of the tips to be successful in running forex trading is to be disciplined and conscientious. Monitor and analyze well to find out when to sell and buy foreign exchange and learn the system in depth.
Forex Trading App
After knowing how to execute this investment correctly, you can start learning forex trading with some of the following applications.
1. Agrodana Futures News
This application was developed by ago dana futures broker which makes it easy for its users to conduct technical and fundamental analysis independently. Here are the facilities you can find.
- Latest foreign exchange news and analysis.
- Calendar and economic data.
- Market price movements.
- Technical analysis tutorial video
2. Hanson Forex Investing
Furthermore, one of the forex trading applications is Hanson Forex Investing which can provide news about foreign exchange, stop loss, take profit, and open positions. In addition, educational videos are available for beginners.
3. Trade Optimizer
Although paid, Trade Optimizer has the advantages of ease of transactions with 14 calculators for risk analysis, positioning, and even analyzing post-trading conditions. No wonder this forex trading application is a favorite of traders.
4. Meta Trader 4
Next, one of the recommendations for forex trading applications is Meta Trader 4 which is famous for being quite popular among traders. There are several facilities, namely online charts, indicators for technical analysis, price quotes in real-time, and even the opportunity to do self-analysis.
5. HSB Trader
HSB Trader is a forex trading application suitable for beginners because it provides convenience for learning fundamental analysis and techniques, and tricks, and monitoring market price movements from time to time regularly. In addition, you don't need to worry because the legality has been registered with the Ministry of Trade of the Republic of Indonesia.
6. MIFX Trader
Furthermore, one of the application recommendations for forex trading is MIFX Trader. Some of the advantages that you can get are ease of transactions without protecting additional MT4, a one-click withdrawal menu to attract profits and a price alert as a tool to monitor favorite pairs.
That was a discussion for those of you who want to learn forex trading. Make sure to choose an application and understand how to play it correctly to achieve maximum profits. Spirit!