Trading currency pairs, or Forex, is a very popular form of investment speculation these days. One of the main reasons for this is that many novice traders are attracted to forex trading because of its enormous daily turnover, which is reputed to be in the region of $7 trillion. They believe that with such a large pot of money available, they should readily be able to grab a slice of it. On our platform, you can select from all the major currency pairs, the commodities currencies as well as exotic pairs. There is a full array of forex pairs to select.
However, reality paints a different picture by demonstrating that only a small percentage of investors are successful. This is because many forces exist that strongly influence the price formations and structures of currency pairs, making them hard to predict and difficult to trade profitably.
Consequently, novices are faced with a steep learning curve that they need to overcome in order to achieve success. One of the biggest complexities that they face is that they always have to evaluate not only the direction that the price of a currency pair will move, but also the size or magnitude of this movement. This can be quite a daunting task for the inexperienced since currency pairs, such as the EUR/USD (the most popular asset in the marketplace) only move a few pips a day, and a pip is 1000th of a point or four decimals to the right. This means that currency moves are tiny so you need to have a huge amount of a currency to earn a reasonable profit.
As an alternative, many traders have started to use CFDs (contracts for difference) as a method to trade Forex because of the many simplifying benefits that they offer, plus they have built-in leverage allowing a trader to easily ramp up their holdings in the market. For example, by taking such an action, you will then be able to just focus on forecasting the price direction of a currency pair without the necessity to evaluate its size. NSXCOIN offers an extensive education platform that will allow you to conquer the forex markets and understand how to trade with CFDs. With a bit of education, guidance and experience, you should be easily on your way to mastering the markets.
Another important task that you must undertake in order to directly trade Forex successfully is to design a well-tested risk and money management strategy so that you can control your risk exposure per trade. However, if you trade forex using CFDs, you do not need to undertake a complex task so stringently.
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