When it comes to currency trading there is a lot to learn. The Forex market is the most complex trading market in the entire world as well as the most volatile. There are many different strategies to trading, and many different ways to make money doing so.
All trading is done in currency pairs. One currency is used to buy another, and the hope is that the difference in changing values between the two creates a bigger gap – allowing the trader to profit. Leverage is also a major part of trading currencies on the foreign exchange (Forex) markets.
Generally speaking $1 controls $100 in the forex so the conventional $1,000 bet size actually controls $100k of currency. This is how such small and frequent volatile movements in the market can result in so much profit – because it is scaled up times 100. The numbers can be a little bit higher or lower, but $100 is a pretty common base.
One of the first things you will need is a trading account with an online broker. Look for a broker online and use the software they provide. Every one of these should come with practice software that uses play money but real life charts. This is crucial in order to get used to how the charts work, how fast the markets move, and to learn how to handle all the action going on so you can profit instead of getting confused which is a recipe for disaster.
Keep in mind that currency markets move by the second, meaning you really need to keep on top of them and learn how to read patterns to have any chance at all of becoming a successful trader. If you do this, you will have a chance make money trading currency.