Tips to start trading in Forex

To start trading in Forex it is important to start from the basics; The exchange rate of a currency. This is the rate at which a given currency is exchanged for another quoted currency, that is, the exchange price.

Something that of course you have to be very clear from the beginning is that in the Forex market all currencies are listed on the which is known as “pairs”. For example, the most used pair is the EUR / USD, which means “Euro vs. the US Dollar”.

In these markets there are a lot of factors that will directly affect the rates of currency pairs. Among those factors we have economic factors (such as production or inflation), political factors and even psychological factors, as can be seen in our guide of the factors that affect the Forex market. These aforementioned factors have a huge impact on the markets, so it is determined by them whether to buy or sell a certain currency pair.

To understand the above more clearly and easily we will see an example of a Forex trade:

We will use the most common currency pair in Forex, the EUR/USD pair, this means that the EURO will be our base currency and The DOLLAR will be our quote currency, this represents how many dollars Americans can be bought with one euro.

If based on the analysis you think that the Euro will have an increase in its value against the Dollar, what we must do is “BUY” euros. On the other hand, if the exchange goes up in our favor, we would proceed to “SELL” the euros getting profit. This would be the basic concept of how profits are obtained in operations.

How to perform a Forex trade?

The first thing we should do is choose the Forex broker and Of course we also have to choose the right CFD (Contract for difference) to start operating.

One of the leading brokers of the Forex market is, which has demo accounts and totally free, It also has tutorials and puts at your disposal agents of attention to Highly qualified client in case you need advice or more services.

Libertex is just an example, you can get many brokers that offer different benefits according to your needs, it is important that you choose wisely and review different options before venturing into the Forex World and take the risks into account represents. It is important to always start with a very small capital that we are willing to lose, because in the operation with Forex it is very complicated to make a profit and most traders lose money operating in the market.

Once you have chosen your broker, have enough training, you have tried demo accounts and understand the risks of trading with Forex, you can think about performing your first trade real.