Binary option system 498: How to do forex trading in uk

Get to know FOREX trading.

The Foreign Exchange market, also called FOREX or FX, is the global currency trading market. With a daily volume of more than $5.3 trillion, it is the biggest and most exciting financial market in the world. Whether you sell EUR 100 to buy US dollars at the airport or a bank exchanges 100 million US dollars for Japanese yen with another bank, both of these are FOREX deals. The players on the FOREX market range from huge financial organizations, managing billions, to individuals trading a few hundred dollars.

Thanks to the internet you can trade on the FOREX market in the same way as traders from the largest banks and investment funds.

All you need to get started is a computer with internet access and a trading account with a FOREX broker.

On the FOREX market one currency is exchanged for another. The single most important thing on the FOREX market is the exchange rate between two currencies (a currency pair).

You’ve probably seen it on the news:

An exchange rate can change very rapidly, sometimes several times a second, so there’s a lot of action going on 24 hours a day, 5 days a week. In general, the currency exchange rates reflect the health of countries' economies. If the economies of the Eurozone are doing better than the US economy, the euro will go up compared to the dollar (EUR/USD ↑) and vice-versa.

Here's an example of a FOREX trade. You decide to buy 1 000 euros against US dollars. The EUR/USD exchange rate at which you can BUY at this moment is 1.4500 so you pay $1 450.

Later, the EUR/USD exchange rate at which you can SELL euros for US dollars is 1.5500. You sell your €1 000 and get $1 550. Having started with $1 450, you now have $1 550 – you’ve made a profit of $100. Alternatively, the EUR/USD exchange rate at which you can SELL euros for US dollars is 1.3500. You sell your €1 000 and get $1 350. Having started with $1 450, you now have $1 350 – you’ve made a loss of $100.

That’s how money is made or lost on the FOREX market.

If you look at the FOREX quotes on your trading platform you will see that there are 2 prices for each currency pair. One is the price at which you can buy, referred to as the "ask price", and the other is the price at which you can sell, referred to as the "bid price". The difference between those two prices is known as the spread. The ask price is always higher than the bid price.

If your FOREX broker offers you leverage of 1:100, you can trade with 100 times more money than your deposit. This means that if you want to buy 100 000 EUR/USD you only need to have EUR 1 000. With this leverage you can take a position with 100 times larger value, resulting in 100 times bigger profits or losses, therefore great care is required when placing your trade. Equities on the other hand are traded without leverage.

To start please get a FREE Practice Account and log in. Then pick a currency pair (e. g. EUR/USD), choose a quantity and press the BUY button if you think the value will rise. Now you are a trader in a market used by millions of people all around the globe. You will earn money if the EUR/USD price goes up, and lose if it goes down. Check out your current profit or loss in the Open positions window. You can keep this position as long as you like. And when you no longer wish to keep your position, just close your trade by pressing the X button in the Open Positions window.

In the above example, we bet that the EUR will go up against the USD so we bought EUR/USD hoping to sell it later at a higher price. This is called long position. But what if we expect that the EUR will go down against the USD? Well, then you do the opposite - you sell the EUR/USD, expecting to buy it cheaper at a later time. The short trading enables you to take advantage if the exchange rate is going down.

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Investments can fall and rise. You may get back less than you invest. CFDs are higher risk because of leverage. Past performance is no guarantee of future results. Be sure you understand the risks.

Trading 212 is a trading name of Trading 212 UK Ltd., Trading 212 CY Ltd. (Formerly: Avus Capital CY Ltd.) and Trading 212 Ltd.

Trading 212 UK Ltd. is registered in England and Wales (Register number 8590005). Trading 212 UK Ltd. is authorised and regulated by the Financial Conduct Authority (Register number 609146).

Trading 212 CY Ltd. (Formerly: Avus Capital CY Ltd.) is registered in Cyprus (Register number 343308). Trading 212 CY Ltd. (Formerly: Avus Capital CY Ltd.) is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence number 290/16).

Trading 212 Ltd. is registered in Bulgaria (Register number 201659500). Trading 212 Ltd. is authorised and regulated by the Financial Supervision Commission (Register number RG-03-0237).

The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Investments can fall and rise. You may get back less than you invest. CFDs are higher risk because of leverage. Be sure you understand the risks.

Forex Tutorial: How To Trade & Open A Forex Account.

So, you think you are ready to trade? Make sure you read this section to learn how you can go about setting up a forex account so that you can start trading currencies. We'll also mention other factors that you should be aware of before you take this step. We will then discuss how to trade forex and the different types of orders that can be placed.

Trading forex is similar to the equity market because individuals interested in trading need to open up a trading account. Like the equity market, each forex account and the services it provides differ, so it is important that you find the right one. Below we will talk about some of the factors that should be considered when selecting a forex account.

Leverage is basically the ability to control large amounts of capital, using very little of your own capital; the higher the leverage, the higher the level of risk. The amount of leverage on an account differs depending on the account itself, but most use a factor of at least 50:1, with some being as high as 250:1. A leverage factor of 50:1 means that for every dollar you have in your account you control up to $50. For example, if a trader has $1,000 in his or her account, the broker will lend that person $50,000 to trade in the market. This leverage also makes your margin, or the amount you have to have in the account to trade a certain amount, very low. In equities, margin is usually at least 50%, while the leverage of 50:1 is equivalent to 2%.

Another major benefit of forex accounts is that trading within them is done on a commission-free basis. This is unlike equity accounts, in which you pay the broker a fee for each trade. The reason for this is that you are dealing directly with market makers and do not have to go through other parties like brokers.

A trader looking to open a new position will likely use either a market order or a limit order. The incorporation of these order types remains the same as when they are used in the equity markets. A market order gives a forex trader the ability to obtain the currency at whatever exchange rate it is currently trading at in the market, while a limit order allows the trader to specify a certain entry price. (For a brief refresher of these orders, see The Basics of Order Entry .)

How to start forex trading.

We recommend you read:

What is forex trading?

Forex trading is a high risk investment, and you could lose more than your deposit. Here is more information on forex trading if you are not sure how it works.

Choose a broker.

You need a forex account with a broker as they offer you a platform to trade on.

Here is an example of two brokers and their bid and ask exchange rates for the EUR/USD:

Choosing the broker with the smallest spread means the exchange rate only needs to make a smaller movement before you can make a profit, for example:

To make a profit with broker A , the exchange rate needs to move by 1.1 pip or more in your favour.

To make a profit with broker B , the exchange rate needs to move by 2.1 pips or more in your favour.

You can use our comparison to find which FCA regulated broker offers the smallest spread.

Forex trading fees.

Although most forex brokers include their costs in the spread they offer you, some could charge you for the following:

Adding/withdrawing charge : Some brokers charge if you withdraw or add money to your account. This is usually a set fee, such as Ј5 for every Ј200.

Overnight trading : Some forex brokers charge an interest charge for leaving a trade overnight, for example 1.5% of the value of any open trades.

Inactivity fee : If you stop trading for a term, such as one or two years, your broker could charge you until you start using your account again, for example Ј12 per month.

Open an account.

After you choose a forex broker, you need to complete an online registration form with them.

You will need to give them the following information:

Mobile phone number.

Your broker will send a link by text message or to verify your details.

You may also have to verify your account by giving your passport or driving licence number. The name on your forex account needs to match the name on your ID.

If your chosen broker has a demo account, use it to become familiar with their forex trading system before you start using your own money.

Make a trade.

You can trade in forex 24 hours a day, Monday to Friday, meaning you can trade on currency pairs more often than other markets, such as indices or commodities.

Making a trade is also called opening a position , and if you make a profit or loss will depend on the performance of the base currency against the counter currency you trade with.

The base currency is the first currency in a pair, the counter currency is the second, for example, EUR/USD has a euro base currency, and a US dollar counter currency.

The exchange rate is how much of the counter currency you can buy with the base currency, for example, if the EUR/USD had an exchange rate of 1.12 you can get $1.12 for one euro.

If the rate moves to 1.13 ($1.13 for one euro), this means the euro has grown in value against the US dollar as you can get more of the counter currency for the base currency.

Forex trading tools.

If you want to manage your trades without watching them constantly, there are a few trading tools you could use:

Limit order : You choose the exchange rate your trade closes at. This lets you take a profit when the rate reaches a level you have set.

Stop loss : You choose the exchange rate your trade closes at, but this does not guarantee further losses as brokers cannot always close the trade at an exact rate.

Guaranteed stop loss : Unlike a stop loss, you pay a fee * to the broker and they will close your trade at the exact exchange rate you choose.

Buy limit : Your broker will open a trade when the exchange rate reaches a value you choose. If the rate is never reached, the broker never actions your trade.

Margin call : When your losses come close to your margin, your broker asks you to add more money. If you do not, your broker closes your trades to stop further losses.

Close your trade.

Before you close you trade, also known as closing your position , you can check if you are making a profit or loss by looking at the active trades on your chosen broker's platform.

When you are ready, select the trade you want to close from your active trades tab and click on the close trade button.

You are then asked to confirm you want to close you trade, then shown how much profit or loss you have made.

Written by Dom, Financial Content Writer.

Updated on 22nd December 2016.

Compare forex trading accounts.

Look for the smallest spread offered when trading on the value of one currency going up or down against another by comparing online forex trading accounts.

Binary option system 498

среда, 9 мая 2018 г.

How to do forex trading in uk

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среда, 9 мая 2018 г.

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среда, 9 мая 2018 г.