Traders from around the world are beginning to embrace trading foreign currencies through the use of an online trading platform. South Africa has already established itself as a worldwide financial hub, and, more recently, overtaken Japan as Asia’s biggest center of foreign exchange.
Online trading platforms in South Africa are prevalent, with nearly every broker offering their own version of trading software from reputable companies like MetaTrader. Finding the best online trading platform can be tricky, it takes a lot of time and effort to consistently search spread differentials in addition to global news information. Open 24 hours a day during the work week, the Forex is the largest financial marketplace in the world in terms of volume and liquidity.
What Makes the Forex Attractive to Traders?
According to Forex bonus, one of the most interesting things about trading on the foreign exchange is the widespread availability of high amounts of leverage. Firms often offer leverage ratios of 50:1, and some upwards of 200:1 on major currency pairs. Trading in currency pairs on leverage is essentially like using borrowed funds to magnify the potential gains (or losses) of the trade. These high amounts of leverage are generally offered even without requiring significant capital in your account.
Another reason trading on the foreign exchange has become so popular is that you can start trading – and turning a profit – with only a small initial capital investment. Other alternatives require substantial initial capital requirements to open an account, let alone start trading. Since there are few options in terms of the choices of currency in comparison to the vast array of stocks available on any exchange, people tend to feel less intimidated to start learning.
Different Types of Forex Analysis
Many online trading platforms give traders the accessibility to tools for advanced charting and technical analysis. For someone who has never traded before, it can be difficult to understand exactly what that means. Forex traders have at their disposal many types of analyses, which they use to make predictions about the price action. Forex traders use fundamental analysis to view currencies and companies, using the timing of economic announcements to gain insight on their future value. On the other hand, technical analysis uses charts, indicators and trends to assess the true value of a currency. Traders are encouraged to use any additional techniques or information that could add insight into the value of a currency.
Traders continue to put their trust in using MT4 as their online trading platform, preferred in South Africa and around the world for conducting trades and analysis on the Forex market. Trading on leverage in the foreign exchange markets bears a substantial amount of risk and beginning traders should learn about the market before they choose to trade. Demo accounts are available from many brokers worldwide, giving new traders the ability to learn hands-on, use the analysis tools and gain experience without risking any money at all. Learning before entering the market gives traders the best chance of success immediately upon entering.
Image Courtesy: trustedforexbroker.online
Contributing writer at Quick Read Magazine. Loves reading books. Passionate in exploring and cooking local cuisines. Enthusiastic as an amateur cricket player.