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If you want to buy and sell currency pairs from the comfort of your home or even via your mobile device , you will need to use a trading platform. Otherwise referred to as a forex broker, there are literally hundreds of trading platforms active in the online space.
This makes it extremely difficult to know which broker to sign up with. In the below sections of our forex trading PDF, we explain some of the considerations that you need to make. You should also look out for analysis tools available to you. In some cases, this might be embedded, while some offer tools such as technical analysis and fundamental analysis.
This is because it will save you a lot of leg work having to move between different sites and sources of information. Some of the fastest and easiest trading platforms are MetaTrader 5 MT5 and MetaTrader 4 MT4. Crucially, both MT4 and MT5 are fast and receptive trading platforms, both providing live market data and access to sophisticated charts.
It is essential before you begin trading seriously that you fully trust the trading platform you intend on using. This is especially the case if you intend on using a scalping strategy, for example. However, if you like to trade, it is vital for your peace of mind and your finances that you are fully confident with the fast execution of data transfer. This is also the case with the precision of quoted prices, and the speed of order processing.
All of these things are going to help you to have a successful forex trading experience. To enable you to make the most of new opportunities, the ideal forex broker will be available to you 24 hours a day and 7 days a week, in line with the forex market opening hours. To save you from having to request that your broker takes action for you, your forex broker should enable you to manage your account and your trades separately. By doing this, you will be in a much better position to quickly react to any shifts in the market, and hopefully, make the most of potential opportunities.
This will enable you to gain better control over any open positions as and when they arise. It is important to ensure that your forex broker of choice is a reputable company, who will ensure that your personal information and trading funds are fully protected and backed up. Segregation is frequently used amongst forex brokers as a way to separate your funds from the funds of the company i.
their daily costs, debts and running costs. So, no matter what happens to the forex broker, your money is safe and segregated. If you find that a forex broker is unable to do this, we would suggest you find a better broker as it is standard practice these days.
All of the brokers listed towards the end of this forex trading PDF are regulated by at least one reputable licensing body. In terms of getting set up as an online forex trader, the steps remain constant regardless of which broker you decide to join. Below we list some of the steps that you will need to take. In order to open an account, you will need to enter some personal information. Standard details requested by the broker will be things like your name, residential address, and contact details.
Some brokers will also require your tax status and will ask you to provide more financial details such as employment status, net worth and any regular income. In this instance, you will usually need to answer some multiple-choice questions based on your experience. This is usually a fairly simple process. Known as KYC in the industry Know Your Customer , this simply means that the forex broker is going to need you to prove who you are.
Some brokers will verify this using scanned copies of documentation. Now you need to select your payment method of choice usually from a drop-down list. Bear in mind that how long this takes to go into your trading account will largely depend on the payment method — so always check this before parting with your cash.
Some brokers even support e-wallets like PayPal and Skrill. After reading our forex trading PDF you should now be feeling confident enough to begin trading.
However, we do recommend that you always try out a free forex trading demo first. This will allow you to test out your newly formed trading strategies before risking your own capital. In the next section of our forex trading PDF, we explore some of the more important technical indicators and market insights used by seasoned traders.
First invented by Richard Donchian, the donchian channels can be adapted as you like, in terms of parameters. Should you choose to view a day breakdown, for example, the indicator will be created by taking the lowest low, and the highest high of that period so in this example 30 periods. When observing the moving average on a donchian channel you can look at averages stretching from 25 days to the last days. The direction which is permitted is determined by the direction of the short-term moving average.
With this in mind, you should think about opening one of the following two positions:. You will need to sell your pair in order to exit your trade if you open a long position and visa-versa. This is another commonly used forex indicator. The simple moving average aka SMA operates at a slower rate than the present market price known as a lagging indicator. Furthermore, it uses a lot of historical price data. In fact, more so than most other strategies.
A good indication that the latest price is higher than the older price is when the long-term moving average is below the short-term moving average. This could be considered a buy signal due to an upward trend in the market.
In the opposite scenario when the long-term moving average is higher than the short-term moving average, this of course points towards a sell signal due to a downward trend. Moving averages are usually used as evidence of an overall trend, rather than purely forex trading signals. Of course, this is a great way to make your breakout signals much more productive.
If you are alerted to a sell signal, this indicates that the short-term moving average is below that of the long-term moving average, so you might want to place a sell order.
However, if you are given a signal to buy, this usually means that the short-term moving average is higher than that of the long-term moving average. Using breaks as trading signals, the breakout is considered a long-term strategy.
The breakout itself occurs when the market goes further than these consolidation limits — whether that be lower or higher. As such, a breakout must take place whenever a new trend occurs. By looking at breaks, you will have a good indication of whether or not a new trend has begun. In this case, you might want to use a stop-loss order to give you a better chance of avoiding a substantial loss.
As glamorous as a career in forex trading might sound, there are a number of risks that you need to take into account. In the below sections of our forex trading PDF, we explore these possible risks in more detail. The transaction risk is in relation to the exchange rate and any time zone differences. This means there is a chance that at some point between the beginning and end of a contract that the exchange rates could be subject to change.
The risk of this happening elevates with the more time that passes between entering a contract and settling the same contract. This generally leads to investors withdrawing investments, and as a result, your return will be lower.
The good news is that when a currency rate is on the rise, chances are that the respective currency will be stronger. When this does happen, your returns could be higher. This is because seasoned investors like to gain exposure to stronger currencies.
The higher your leverage is, the higher your losses or benefits will be. Of course, this means leverage can affect your trading in a positive or negative way — depending on which way it goes. The final part of our forex trading PDF is to explore which brokers are popular with both newbie and seasoned traders. Each of the forex trading platforms listed below has been pre-vetted, meaning that you can be confident they tick most boxed. This means that each platform is regulated, offers heaps of forex pairs, has low commissions and fees, and supports several payment methods.
AvaTrade is an established broker that offers thousands of financial instruments. On top of stocks, indices, commodities, and cryptocurrencies all via CFDs , you can also trade heaps of forex pairs. There are no trading commissions to pay, and spreads are very competitive.
You can either trade via the AvaTrade web-platform, or via popular third-party provider MT4. The platform is heavily regulated, with several licenses under its belt. com is an FCA, CySEC, ASIC, and NBRB-regulated online broker that offers heaps of financial instruments. All in the form of CFDs - this covers stocks, indices and commodities. You will not pay a single penny in commission, and spreads are super-tight.
Leverage facilities are also on offer - fully in-line with ESMA limits. Once again, this stands at on majors and on minors and exotics. If you are based outside of Europe or you are deemed to be a professional client, you will get even higher limits. Getting money into Capital. Having made it this far through our forex trading PDF, you should by now have an understanding of how technical analysis works, and have a good grasp of the macroeconomic fundamentals which guide currency values.
Armed with all of the useful information included in this guide, you should be ready to get out there and start trading forex. Hopefully, making a profit and learning more along the way. If you are a trader with somewhat limited funds, you might find that swing trading suits you best.
If you have a larger trading fund available to you, you might have a more profitable experience with fundamental based trading. Either way, w e do recommend trying out a free demo account where possible before trading with your hard-earned money. As well as reading helpful guides like ours, actually learning by doing will also provide you with a better sense of how it all works and how you might like to trade yourself.
What does forex mean? Forex as a term refers to 'foreign exchange'. You will make money in two different scenarios. You either buy a currency pair for less than you sell it for long order , and you sell a currency pair for less than you bought it for short order. The spread is the difference between the bid and ask price of a forex pair. This gap in pricing must be included in your profit and loss forecasts, and it is how the broker ensures that the platform always makes money.
This depends on the type of forex pair you are trading. The pip refers to the movement of one decimal place in a pair. This depends on several factors, such as your location, the currency pair, and the broker itself. In most cases, traders from the UK and Europe are capped to leverage of on major pairs and on minor and exotic pairs.
Slippage means that your forex order is executed at a slightly different price to what you had asked for. Free Forex Signals Telegram Groups of Forex Trading for Beginners: How to Trade Forex and Find the Best Platform Learn 2Trade Forex Channel.
Learn 2Trade Crypto Channel. Download Our Forex Trading PDF! This price is the quote by the broker. It is the last decimal in the price. For Example: In the quote 1. At this price, you can sell base currency in the pair. This price is shown on the left side in the quote ticker by the Broker. At this price, you can buy the base currency mentioned in the pair. It is shown on the right side of the quote ticker by the Broker. Spread is the fees charged by forex brokers, so it is essential to choose a forex broker that has lower spread you should also check the overall fees.
Forex trading can now be done by anyone in Nigeria, anytime, from home or anywhere through the internet. You need to signup with a Forex broker. We will tell you exactly who to choose. In order to trade forex, you need to find a CFD broker. There are numerous forex brokers available for local traders such as Hotforex , Exness , XM Forex , FXTM , Forex.
com, FxPro, Oanda etc. We have compiled the list of best forex brokers for Nigerian traders based on 9 factors. Start Trading at FXTM Important: Forex Trading is risky, so have a working strategy before trading with real money. Start with Demo Accounts: Never start trading directly on a live account if you are a beginner becaue your real money will be at risk.
Once you have found the Forex Broker of your choice, you can then open an account with that broker to start trading or demo account to learn. This account will enable you to place your trades in the interbank market at the live currency prices. Once the verification is complete, you will need to make a deposit to fund your live account. These funds will be used to place live trades at the real market prices. The long position implies that you are buying a currency pair and are betting on it to rise in value in the future.
For ex. Buy order in forex is similar to buying an equity stock. You buy the currency at a low price, and once it reaches a higher value, you can then sell off the currency, thus making your profit.
The short position can be taken when you believe the price of the currency will fall in the upcoming period. You can place a sell order when the currency is at a higher price and then when the value falls significantly, you can buy it back at lower price, thus realizing your profit.
Profit or Loss? Depending on the movement of the currency pair that you were trading, you will either be profitable or make a loss once you close the trade.
You will make a loss in this case. To understand it more, let's use an example again. If you place a 'Short' trade for EURUSD at 1. But if in this same example, the price of EURUSD goes to 1. Also Read: Our detailed guide on How to Trade Forex in Nigeria. There are many different strategies that are followed by successful forex traders. But most of them fall into 2 categories which are 'Technical Analysis' and 'Fundamental Analysis'.
While the fundamental analysis is mainly related to trading based on Economic outlook for a currency which could be impacted by news events like GDP, Unemployment data, balance of trade, capital outflows etc. Most technical forex trading strategies involve some level of study and analyse of the chart or trend patterns of the currencies before making an actual trade. Good thing is that almost all brokers around the world now offer MT4 or MT5, which are excellent platforms for sound technical analysis.
Only based on your strategy, you can make actually get the best returns in the future. We call the high the resistance. There can be resistance levels on lower time frames as well, but we will use a higher time frame to find important levels for positional trends.
Once the price crosses the previous high to achieve a higher high price crosses 1. The low is now called the support. If you are a new investor, it is a good strategy to begin trend trading on one of these pairs. This is because these pairs are very liquid, have low spreads and have stable volatility. Since these currencies are stable in their movements, they will help you in managing your risk initially by reducing volatility against your direction.
It is always a good strategy, to begin with, a USD pair because of stability. There are various other pairings available which do not include the USD. Day trading is not strategy per se, it is more of a trading routine. In this strategy, you place your trades, and close them within the same day or within a hour window to book your profits or loss. You can realise profits quicker in this strategy although the risk is also higher, as most of the traders try to gain high returns with small capital.
This is a very common strategy followed by a wide variety of traders, but you must understand its risk as well. Another strategy is known as scalping. This strategy is based on opening a position for a short time and closing it to make a small profit. These strategies can be a great way to book profits quickly. If you are ready to start Forex trading then you may have doubts on which broker or app should you choose to trade online.
Forex Trading, like any other market investment has many benefits but also carries significant risks. On the positive side , forex trading has the potential to bring good income if you trade with a sound working strategy while properly managing your risks. You don't need very high capital to start. It is really important to understand all the risks. How you can manage these risks? Be cautious, have a fully tested trading strategy on demo and use good risk management to be successful at forex trading.
At Forextrading. NG our ultimate aim is to help you choose the best broker for your trading needs. Get A Free PDF Version Of This Guide: Contains all the tips, resources and case studies found here.
NG is an Investment Comparison website with an aim to help Investors in Nigeria find the best forex brokers. Read More. Read full risk disclaimer.. NG: Your Guide to Forex Trading in Nigeria.
All Rights Reserved, See Best Brokers! Forex Trading in Nigeria The Ultimate Guide for Beginners. For Nigerian Investors, forex trading can be a way to earn wealth. Akin Benjamin Last updated: September 24, Don't have time right now? Read the guide later! Give me my PDF See Best Forex Brokers! Broker Name Regulation Max. Leverage Min. FXTM is a Tier-1 regulated forex broker. Their spreads are low with Advantage Account. HotForex - Low spreads with Zero Account.
HotForex has low spreads for most curreny pairs. Their Swap fees is moderate. Chapter 1 What is Forex Trading? Chapter 2 Understanding Currency Pairs.
Chapter 3 How to start Forex Trading? Chapter 4 Forex Trading Strategies. Chapter 5 Forex Trading Platforms. Real Life example of Forex Trading Have you traveled overseas?
The Securities and Exchange Commission, SEC is a Government Agency Mandated to Regulate and Develop the Nigerian Capital Market. SEC Towers, Plot , Samuel Adesujo Ademulegun Street, Central Business District , Abuja, FCT. Lagos 3, Idejo Street, Opposite ICON House, Off Adeola Odeku Street, Victoria Island P. B Marina Lagos State. Port-Harcourt 5b Isaiah Odolu Street, GRA phase 2 Port Harcourt Rivers State.
The attention of the Securities and Exchange Commission SEC has been drawn to the increased advertisements in electronic and other media soliciting investors to engage in leveraged online retail forex trading.
The public is hereby advised that online retail forex trading is currently unregulated and consequently may be subject to abuse. Until a framework for regulation of online retail forex trading is developed by the SEC, any person participating or engaged in such investment activity does so at his or her own risk.
Headquarters SEC Towers, Plot , Samuel Adesujo Ademulegun Street, Central Business District , Abuja, FCT. Public Notice: Online Retail Foreign Exchange Forex Trading. Share this: Email Twitter Facebook WhatsApp LinkedIn Print.
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Trading Books. Download 91 essential trading books and PDFs, including fundamental and technical analysis books, across Forex, stocks and crypto-currencies. Or learn to trade with Forex Trading In Nigeria Pdf. Forex Blog. April 30, Why Trading Discipline is the Key to Consistent Profits in How to Design a Simple Forex Trading Plan For Beginners. FREE told about forex trading, with a personal real-life experience of someone who has traded Forex for the past 12 years. After going through this short book, you will be able to make an informed Central Bank of Nigeria (CBN) hereby releases the revised guidelines on the operations of the Nigerian Inter-Bank FX market towards the liberalisation of the market. Guidelines The 19/10/ · Circular On Designation Of Ten Individuals And Three Entities By The National Sanctions Committee And Addition To The Nigeria Sanctions List; Notification for Third CMC Forex trading in nigeria pdf GCMT Limited Trading as CMTrading, is a Securities Dealer registered in Seychelles with company registration number ,l and is licensed and ... read more
Author of this review I am a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader. The timing in forex trading is is usually the most active as it involves many crucial! Trading vs Plus Maximum leverage limits vary in diﬀerent This is the amount that will be used to cover your potential losses. So, when traders expect the price of an asset to rise, they will go long.So I generally close the position or wait out the increased spread unless it is really pumping. In this chapter, you will learn everything you need to know about Currency pairs. Even if the announcement is in your favour, price generally whips up and down at least a few pips before taking direction. If you think of the markets as a big clock, fundamentals are the gears and springs forex trading in nigeria pdf move the hands around the face. Keep this chart by your side and make sure to mark these reports in your calendar!