Forex trading is the buying & selling of currencies with an aim to make a profit. Traders can place their trades in the forex market, which is an over-the-counter market that allows investors to trade currencies.
Forex trading used to be the exclusive business of the banks where the banks make millions of dollars by just exchanging the currencies of different countries. But the internet has changed all that and now you can trade Forex even in your own bedroom with as little as $100 start up capital.
1. Open An Account With Forex Brokers
Forex brokers are platforms or mediums through which you are able to buy and sell or trade. To make it simple for you to comprehend, they act as the middle man between the sellers and buyers. Choosing the best forex broker is the first thing that will make you successful with forex trading. It is very important to know that, there are some forex brokers that are selective– some didn’t allow Nigerians.
Never start trading directly on a live account if you are a beginner as your real money will be at risk. We advise you to first create a demo account with the broker of your choice and then learn to trade by building & testing out a trading strategy that works for you. Only once you are confident about your trading style & strategy, only then you should decide to trade with real money on a Live account.
2. Have A Domiciliary Account
This is very important for effective transaction and to enable you make a withdrawal of your profit when there is any. Some use other currency medium like the eCurrencies but at the end, it will still get to Domiciliary accounts. The Dom account is used for cashing or depositing funds into your Forex trading account.
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3. High Performing Laptop
This is very necessary for efficiency and accurate performance in live market. Do not make the mistake of using a wacky laptop for Forex trading. Most times, the losses people make is as a result of inefficient trading devices. The profit you make depends on your trading skills. Yes, people are still making profit in Forex trading in Nigeria and will continue to make profit as long as currency remain in use.
4. Place your First Trade
After you have created your live account & funded it with your Forex broker, you can then open your first trade. The two positions that you can take in the Forex market are either the “long position” or the “short position”.
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You need to study and analyse the trading charts or the market news & then decide whether you want to place a buy order or a sell order.