In the world of today, where financial information flashes in the real, but the virtual environment, online transactions with financial instruments are the best solution to keep money on the move, to make a profit, and why not, to make a career as a trader.
There is no secret and no rules of entry into this world of online transactions. The only law is the personal mood to run a quantity of money. There is no need for high financial knowledge to understand the mechanism. Everything is all about software, more and more efficient trading platforms, able to connect millions of people in real time to financial markets around the world and to trade a wide range of financial instruments. Once this platform is accessed, everything becomes clear and becomes extremely simple. In this way, anyone can become a trader.
Anyone can start a trader career using an online platform. Moreover, the better the platform is, the easier it is. There are performance platforms that provide study materials, such as Trading Review, (daily reviews, news, economic calendar, tutorials, webinars, seminars). At the same time, it is possible to indirectly advise other traders in the market, using the same platform. For a trader who can not sufficiently devote himself to online trading, he can build the right package, using tools such as Trading Center for Trading Signs, Autochartist.
Many companies on the market offer trading platforms and the rivalry of them goes to the field of software. The more expensive, the better they are. Specifically, these platforms have the following technologies:
- Central Trading, through which signals are transmitted via email or telephone;
- Strategy Runner, a development tool that provides the best trading conditions;
- Auto-trader, a robot that helps customers automate transactions;
- Social Trading, a service through which traders can see other customers on the market to get a customer insight into market understanding, which is the secret of success in trading.
Find the appropriate trading instrument, the platform, the appropriate account type, the educational information relevant to your level and the helping tools. See more here.
How do you earn money on the FOREX market?
The FOREX market is the largest trading market in the world and is the place where the currencies of different countries in the world can be traded, that is, they can buy some coins and sell others to benefit from fluctuations in currency. All banks trade on this market, and the value of the exchanges exceeds one trillion dollars a day. The FOREX market is open nonstop so that transactions can be made anytime.
The advantage of the FOREX market is margin trading, i.e., the opportunity to benefit from the gains (and losses) of an investment on the spot market but with much less money invested (even 1% of the amount).
Example: Let’s say the EUR / USD ratio is 1.2. If on the spot market (the regular market) to buy 1000 euros we need $ 1,200, on the FOREX market we generally need only 1% of this money, the rest of the money “borrowing” from the broker against an interest overnight very small.
Let’s say now that the EUR / USD ratio is 1.3 and we are counting on growth (that is, buying the euro and selling dollars). It means that the 1,000 euros (1,200 dollars purchased) have now become 1300 dollars, so in the spot market, we have earned $ 100, which represents a yield of 8.3% ($ 100 earnings on the $ 1,200 investment). On the FOREX market, however, profits are as high as $ 100 but compared to our investment of only 1% of the $ 1,200 ($ 12). Which means a yield of 833.3%.
The difference between how much money you need on the spot market and how much money you need in the FOREX market is called leverage. On my example above, if we need 100% money on the spot market and only 1% on the FOREX market, that means that the leverage is 100. I’ve seen for some time online brokers who also offer advantage 200, 400 or even 500. Keep in mind: this is a bit tricky! Do not necessarily choose the smallest leverage! It is true that it allows you to invest as little as possible and gain as much as possible, but you have to think that it is very likely to misinterpret speculation.