Important Things You Should Know To Become A Forex Trader (2024)

Can You Become a Millionaire Through Forex Trading？

Forex is a currency trading industry that operates over the counter (OTC). This market sets the exchange rates for all currencies. Forex refers to the buying, selling, and exchanging of currencies at predetermined prices. In 1992, a man dubbed 'George Soros' gained one billion dollars by trading currencies. If you want to trade USD/INR in India, you may do it on the National Stock Exchange.

If you trade Futures here, deals are made in lots of 1000 units. Trades are conducted by depositing an Initial Margin. Following the first margin deposit. If your transaction fails, you may take the loss and cancel the contract. Alternatively, if you believe that this loss is transitory and you want to keep or keep your position, you must pay the amount of loss.

This is referred to as the Maintenance margin. You had accumulated Rs. 70,000 at the end of the month, including this Profit of Rs. 5000. You could easily get the ring for Rs. 75,000. Because you had hedged your position by purchasing the contract on the exchange, this was doable. Trading with foreign brokers who are not authorized brokers is illegal in India.

It is considered a violation to transmit money to any foreign broker for margin financing. Mr. Warren Buffet, the Wall Street icon, once said, “We don't have to be smarter than the others.”

How Long Does It Take To Learn How To Trade Forex？

Forex, despite its appearance on the internet, is exceedingly difficult. Forex is a zero-sum market, which means you must have the advantage to profit. It's also a very liquid and complicated market. This implies that it is well-known for stealing money from retail traders since around 70-90% of forex traders lose money.

How long does it take the remaining 10-30% of traders to master the art if we discount the 70-90% of traders that lose money attempting to trade forex？ On average, it will take a determined student around a year to learn to trade forex.

When it comes to markets, you never stop learning. There are always modifications to be made, items to be tried, new market circ*mstances, new tactics to be implemented - the list goes on and on. After roughly a year, you should be lucrative in the market (not losing money). I'd expect to see a decent degree of consistency month after month after another 6 months to a year.

• Small market fluctuations may have a large effect. The majority of FX trading instruments are extremely leveraged. You only pay a percentage of the value of the deal upfront, but you are still liable for the whole amount.

• The exchange rate is quite variable. They tend to move about a lot, even in brief bursts. There are major investing risks since currency changes might cause you to lose money.

• Currency markets are notoriously difficult to forecast. Exchange rates are influenced by a variety of things.

• Risk management strategies provide very limited protection. Stop loss orders merely limit your losses. You may also pay a fee to have your stop loss order guaranteed.

• Forex fraud and scams Offers and advertising that seem to be too good to be true most likely are. Learn more about foreign currency trading fraud from the US Commodity Futures Trading Commission.

• Risks associated with forex providers If your FX supplier went bankrupt, you could not receive your money back.

• Trading delays may have a significant impact on outcomes. You may be unable to execute transactions when you would want to due to a lack of liquidity in the market, execution risk, or computer system issues.

About WikiFX

WikiFX is a global corporate financial information searching tool. Its core function is to provide basic information searching, regulatory license searching, credit evaluation, platform identification and other services to the included foreign exchange trading companies.

It has over 39,000+ listed brokers both regulated and unregulated and the team has been seriously working with 30 financial regulators from across the globe.

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