Several trading platforms offer information and analysis for online forex. Today, new applications are being developed by these sites to allow you to buy and sell currencies from around the world as well as professional traders. But, it is important to keep in mind that forex is like poker. You can win big as you can lose everything. So, how do you go about making online forex profits?
What is Forex?
Forex is the global currency exchange market. Exchange rates fluctuate, changing 24 hours a day from Monday to Friday. Online forex is the world’s largest financial market. It is on it that the largest volume of trade has been made: several billion dollars (all currencies combined) are traded on it every day. To facilitate online trading activities, forex displays currency rates in pairs. For example, for the euro:
- EUR/USD (United states dollars = American currency)
- EUR/GBP (Great Britain Pound = English currency)
- EUR/JPY (Japan Yen = Japanese currency)
- EUR/CAD (Canadian dollars = Canadian currency)
- EUR/AUD (Australian dollars = Australian currency)
Forex is regulated in France by the Autorité des Marchés Financiers and the Autorité de Contrôle Prudentiel. There are platforms that are allowed and others that are not.
Step 1: Register for free on a trading site
To start, you need to select, from the available platforms, one on which you plan to do your transactions and create a virtual account. When making this choice, it is useful to consult the list of brokers not authorised by the Autorité du Marché Financier (AMF) and the Autorité de Contrôle Prudentiel (ACP) in order not to engage in a “one-off adventure”. It is also necessary to find out in advance about the forex operating system.
Step 2: Fund the account
Most sites recommend a minimum bet of 100 or 150 euros in general. But you can bet less (50 euros) or more. As soon as you register, an advisor will call you to explain how a trading platform works and give you training to teach you how to monitor currency fluctuations and the best times for a bet.
Step 3: Monitor the exchanges
This is where it all comes down to. You must be constantly attentive to currency developments and changes to know when to buy and when to sell to make a profit. Just as you can earn money, you can also lose your entire bet. This is the principle of forex. The platforms offer demo accounts (E-Toro) to help you become more familiar with the world of forex. Buying and selling activities are done as if on a real platform.
In addition, there is a copy trader function (E-Toro) on some sites for beginners who still want to maximize their earnings. This function allows you to copy your activities to the best traders of the platform to follow them in their moments of exchange that they choose each time. This is a safer way to make a profit in this financial market.
You can therefore invest in the traders of your choice at specific times or stop copying one or more of them at any time and re-cash your investment and your generated earnings.