Tuesday, April 6, 2010

How to Make Money Trading Currency Online

Many traders make hundreds of dollars each day by trading currencies online. The curreny market called the forex market is open 24 hours a day, five business days a week. The forex market opens on Sunday afternoon and closes on Friday afternoon. It is open 24 hours per day because the currency is traded all over the world and each market is open different hours.

OPEN A CURRENCY TRADING ACCOUNT

Open a currency trading account online with a reputable online broker such as Interactive Brokers, GFT Forex or Forex.

Research each broker before you make a decision.

You will want to ask about the fees charged and rules for each brokerage.

Before you trade currency with a live account (real money), you should practice trading for at least three to four months using a practice account and pretend money.

Trading currency can be very risky and all of your money can be lost in one breathe. Most currency brokerages will sell you out of your position if you go below 25% value of your currency units purchased, however, depending upon how much you have purchased, you can wipe out your funds.

FUND YOUR ACCOUNT

Fund your currency trading account with money from your own personal check, credit card or atm card. You must use an account in your name to fund your currency account.

The fastest way to fund your account is through your credit card, debit card or atm card.
For many currency trading acounts the minimum amount is $250.00 although it is recommended that you start with at least $2,500.00 in the beginning.

When you are trading currencies, you are trading one lot worth either $100,000 or $10,000. If you have a mini account each $10,000 lot purchased must be backed by $100.000 in your account.

PRACTICE TRADING

Practice trading currency with a practice account through your currency broker. You will learn how to buy, sell, sell short, and buy to cover. You will learn about market orders, limit orders, and stop loss orders.

You will learn about currency pairs and currency crosses. You will learn about the major forex pairs such as USD/JPY, EUR/USD, GPB/USD, USD/CHF and USD/CAD. The US Dollar, Japanese Yen, Euro, Britsh Pound, Swiss Franc and Canadian Dollar the the most traded currencies.

You will learn all of the nick names for currencies such as the greenback for the US Dollar, the swissy for the Swiss Franc, and the cable or the sterling for the British Pound.

Find trading advice and forex market news online on websites such as actionforex.com or investopedia.com as well as the website for your forex broker.

1 comment:

  1. eToro is the #1 forex broker for newbie and established traders.

    ReplyDelete

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