How to Trade Forex

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In the past, when you heard the phrase ‘financial trading’, you might have assumed that it only involved buying shares in companies listed on the stock market and that you could only make money if the share price went up and you sold your shares. While this form of trading is still popular today, there are alternatives which come with more chances to make a profit even in gloomy economic circumstances. One of those is Forex trading where, with the help of City Index, you can trade on whether a currency will rise or fall in value against another.

How Forex trading works is that you choose a currency pair e.g. the GB Pound/Euro, and decide whether one half of that currency pair will rise or fall in value against the other half. This form of trading has been in existence for a few decades, and as it represents a lower risk than buying shares in listed companies, it has grown in popularity. Forex trading from City Index allows you to trade at a leverage of between ratios of 20:1 and 400:1, and being a leveraged product, it could yield potentials massive profits.

If you think that one half of your chosen currency pair will rise against the other in value, you should buy (go long). Conversely, if you think the opposite will happen, you should sell (go short). That fact that you have a chance of making money even if the currency markets are depressed means that Forex trading represents an attractive proposition for novice and experienced traders looking for another way to make profit from financial trading.

Take a look at the video below on showing how to trade forex from City Index.

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