Trading for beginners
Trading for complete beginners may seem a complicated task to do. There is so much information out there to remember and to study to start trading. However, no need to worry, as we have selected some basic questions a beginner may face.
So, feel free to look through them to join a society of traders. The world of trading is not that difficult when you know what you are dealing with.
How beginners can start trading?
First of all, you should find the broker suiting best for beginners, OptiMarkets is one of them, as it offers a Trainee account type for beginners with a small first deposit. Secondly, you should learn as much as possible about trading on the market, and the peculiarities of its functioning. That is why OptiMarkets provides a lot of educational materials for beginners, so you can download the books on the “Tools” button, then choose the “eBooks” button on the main menu above. Last but not least, simply start trading!
What trading platform suits you best for novices?
A beginner needs such a trading platform to be easy to perception even for the first time in use. OptiMarkets offers you ever popular STATUS, which is very trusted by the traders worldwide, as it offers great functionality, and, more importantly, is simple in use. WebTrader is even simpler in use, as it requires no additional installation process, you can trade directly via the Internet. Finally, you can download the mobile application, which offers you all the guidance on how to exploit the app.
What are the main risks the starting traders should know?
The main risks are the leverage risks, the higher leverage, the higher benefits or losses. Then comes interest rate risk, when a country’s interest rate rises, the currency could strengthen. There is a chance that during the 24-hours, exchange rates will change even before settling a trade. Besides, the transaction risk increases the greater the time difference between entering and settling a contract.
What is сurrency pair?
A currency pair is a price quote of the exchange rate for two different currencies traded in FX markets. When an order is placed for a currency pair, the first listed currency or base currency is bought while the second listed currency in a currency pair or quote currency is sold. The EUR/USD currency pair is considered the most liquid currency pair in the world. The USD/JPY is the second most popular currency pair in the world. OptiMarkets offers you over 50 different currency pairs to trade.
Does Forex trading bring income?
Forex traders seek profit in this field. Online trading allows you to earn fast and a lot, but at the same time, it involves a great number of risks. Leverage is a tricky condition, as it can multiply your investment, but if you are not quick enough you can fail that quickly as well.
How much money do I need to start trading?
It depends on the account type you select. If you are a starting trader, you can choose the Trainee account type with OptiMarkets, where the initial deposit is $200. If you feel confident in your trading skills, you can open the Expert type of account, where the initial deposit is a bit higher, namely $2,000.
What is pip?
Pip is an abbreviation for “price interest point”. A pip is the smallest price movement that an exchange rate can make dependent on forex market convention. Most currencies pairs are estimated out to four decimal spots and the pip change is the last (fourth) decimal point. A pip is in this way comparable to 1/100 of 1% or one premise point.
What does scalping mean?
Scalping is one of the most famous strategies. It includes selling very quickly after an exchange gets beneficial. The price target is to make money on the deal.
What is leverage trading?
Leverage stands for use of borrowed funds intending to increase one’s trading position beyond what would be available from their cash balance alone. Forex traders often use leverage to earn from relatively small price changes in currency pairs. Leverage includes borrowing some amount of the money needed to invest in something. In the case of Forex, money is usually borrowed from a broker. Leverage helps both to earn more and increases the chances of losing as well.
Who is a broker?
The broker is a mediator between traders and round-the-clock interbank helping to conduct a trade. The broker provides a variety of services, they can offer different assets to trade, many account types oriented on traders with different levels of knowledge and experience. OptiMarkets is a broker offering several major assets to trade, including Forex.
How to choose the account type?
It is better to write down the main features you are looking for in an account, and then look through the offered types, and decide, which suits you more. However, one of the main things you should pay attention to is your level of experience, as some account types are specially developed for such criteria. OptiMarkets has taken the needs of its customers into account and created two types oriented on the professional and starting traders.