Online Forex trading in Ghana
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When it comes to Forex trading in Ghanawhether you are an experienced trader or a complete novice, a critical factor to help you achieve financial success is: After all, it is simply the currency of the host country you are travelling to, and you need to spend in the local currency once you get to your destination.
For this, you exchange dollars for the foreign currency. The Forex market is, undoubtedly, the most volatile and exciting market in the world. The online Forex market is mostly speculative in nature. With your online trading account, you buy or sell currencies based on what you think will online forex trading in ghana or fall in value. Unlike commodities or stocks, Forex is an off-exchange market.
This simply means transactions are done over-the-counter OTC directly between the parties involved. No supervision by an exchange is necessary.
Thus, you can easily access the online market wherever you may be, and anytime you want. There are certain features unique to the forex market that make it more attractive to investors compared to traditional investment vehicles.
These pairs comprise the majority of transactions in the Forex market. These are also the most liquid currencies. Note that in the major currency pairs, trading is done against the dollar.
Outside of the majors, many other currencies can be traded. These currencies are called cross currencies as the rates of exchange are computed through the US dollar. Currency pairs are written in a specific format. The first currency is the base currency while the other is referred to as the counter currency.
On the other hand, when you are selling, you are selling the base and buying the counter. If you are trading in the online forex trading in ghana direction, meaning you are selling the pair, you would have used dollars to buy the Euro. Using the example given above, and the dollar falls against the Euro, you would have lost money from the transaction.
In an online Forex trade, two parties are online forex trading in ghana involved: You are the trader and the market maker is the entity that facilitates the trade, typically your broker, by quoting ask and bid prices on a particular currency. In essence, market makers create the market where traders can engage in trading.
Currently, individual Forex traders comprise the fastest sector of the online Forex market. Other sectors include securities dealers and large commercial banks collectively known as the interbank marketsmaller banks, hedge funds, and multi-national corporations.
Due to the global online forex trading in ghana of the Forex market, trading is open 24 hours daily, 5 days in a week. As the market closes in one part of the online forex trading in ghana, trading day begins in another region. Thus, you can trade in a certain market, taking into consideration the events that are currently taking place in the particular region.
As mentioned, the market is open 24 hours daily starting from the opening in Sydney on Monday mornings, until the closing in New York on Friday evenings. Three sessions make up a trading day.
The session opens in Asia at around Towards the end of the trading day in Europe, the US session begins as it opens at Because everything is done online, in theory, you can engage in trading without stopping, beginning at The most exciting times to trade are the times when two different sessions overlap. These are considered as the most volatile periods as high trading volumes are happening. And, as expected, high volatility comes with big opportunities.
As it is sandwiched between the two other sessions, the European market has the highest trade volume. Around half of all the transactions daily involve the European session. You can trade online anytime of the day, anywhere you may be, using your preferred device. You can choose the time most convenient to you, a time when you can closely check on the status of your trading positions, close deals, amend terms of your trading positions, or withdraw funds.
The easy access that online Forex trading offers is what makes it very lucrative to traders, whether full-time or part-time. Forex trading is speculative, but you can profit whether the market is on an upward or online forex trading in ghana trend since currencies are always traded in pairs.
This means you can profit by correctly guessing the direction that the currencies in a pair will go. You will gain profit if you guess correctly which currency will strengthen go up or weaken go down relative to the other. A good idea is to purchase while a currency is low, then sell it one it begins to strengthen.
Later, we will walk you through the steps in Forex trading. As traders gain trading experience they develop their own trading strategies that they find effective, based on fundamental and technical analysis.
Fundamental analysis considers news announcements, macro-economic data, as well as other reports that can trigger price fluctuations. The biggest factor that affects fluctuations in currency rates is the law of supply and demand. This is actually true, not only in the Forex market, but in other markets as well. In Forex, other factors may come into the picture and trigger the rise or fall of a particular currency.
These include events of political, geographical, or economic nature. With fundamental analysis, you will understand how these factors can affect currency prices and subsequently come up with sound opinions on how movements in currency rates will go. Prevailing interest rates is among the most influential indicators as any changes to the interest rate policies of a country can affect different currencies simultaneously.
An announcement by the US Federal Reserve Bank on changes in the interest rate on loans it extends to online forex trading in ghana, for example, has a great influence on the US dollar value. The dollar is involved in the majority of Forex transactions. Politics and economics, on the other hand, are closely related. Thus, changes in administration or government policy can trigger fluctuations in currency prices.
Geography can likewise affect currency rates. The value of the Japanese yen was adversely affected by the earthquake that hit Japan in While there are inherent risks associated with Forex trading, these can be controlled and mitigated by putting various safety measures in place. For one, you can set a stop loss to make sure online forex trading in ghana even if you are on a losing trade, your losses would not exceed the amount you are willing to risk. As a beginner, it is recommended that you start with investments that you feel comfortable about, while you continue growing as a trader.
In this section, the basic topics of Forex trading were discussed including what, when, and where to trade, as well as the entities involved in trading. In the next section, we will provide a step by step guide on how to trade in the Forex markets.
It is easy to begin as a trader. The first step is to register with one of our recommended Forex brokersopen a trading account, and fund it with the amount you intend to invest.
Various payment online forex trading in ghana are available. In general, deposits made via bank wire transfers, eWallets, credit cards, or debit cards are accepted. You online forex trading in ghana begin trading once receipt of your deposit is confirmed. You will be provided with training and support by a personal account service manager.
If you have no prior experience in trading or you feel that you are not yet ready online forex trading in ghana trade, online forex trading in ghana can first use a demo account where you can get a feel of real market conditions but without the risk of losing real money. While this can simulate the trading environment, in general, it cannot make you completely understand the psychology of trading that trading online forex trading in ghana real funds using a live account can provide.
Thus, it is recommended that you get your feet wet by starting a mini account that has a low initial deposit requirement, then try making small trades. The smallest unit of currency price movement is called a PIP. A pip is equal to 0. A currency pair is always quoted in two prices on the currency table. The price on the right side is the buy or ask price. This is the price you will pay when buying.
The price on the left side is the sell or bid price. This is the rate you can sell for. As previously discussed, when you buy a currency pair, you actually buy the base currency as you sell the counter currency. On the other hand, when you sell a pair, the reverse is true. The difference between the ask and bid prices is known as the spread. To put it simply, the spread is the difference between the amount you need when buying a specific currency, and the amount you will receive when selling it.
Basically, the spread is the cost to trade. Some brokers advertise low spreads. However, you need to check if there are other fees and commissions that they may charge their clients.
Ideally, your broker should only earn from the spreads. Here is a simple example to help you understand better. Let us use the most traded currency pair: If the rate moves from 1. If the price goes down to 1. Because the Forex market has a bi-directional nature, you can place a trade in either direction.
Depending on your trading strategy, you can opt to either buy or sell. To explain, online forex trading in ghana allows traders to trade a large sum of money with only a minimal amount deposited in their trading accounts. To gain a significant online forex trading in ghana, you will need to trade large sums of money since currency rate movements are small and slow.
By trading in big sizes, you potentially earn a bigger online forex trading in ghana for every pip.