Forex (foreign exchange) is almost certainly something you've heard or read about, demonstrating how widely it's used. However, there are many people who are interested but lack a basic understanding of how the South African financial market works or just do not know where to begin.
Currency pairs are commodities that reflect the value of two separate national currencies in the forex market. The first currency in the pair is the base currency, while the second is the quotation currency.
Isn't it true that FX trading is becoming more popular as a result of the increasingly strict financial realities with which we are all now confronted？ You may start earning money right now without having to leave your home. To trade forex safely, you must find a reliable broker who prioritizes fair trading conditions and timely payments.
In comparison to other markets, FX has no fees for trading operations save for the standard market difference between the ask and bid prices.
Certain brokers make it possible for people who want to engage in the worldwide market and learn about trading to do so. In South Africa's financial services market, the broker is a rising star. Many brokers in the market now provide discounts for FX traders in order to attract more new investors and encourage those who have been with them for a long time to become loyal customers. As a result, the number of new accounts in South Africa is increasing with time. Furthermore, because hundreds of new accounts are opened every day throughout the world, the forex market is recognized as the most accessible traders. The most beginner-friendly trading market is one in which reputable brokers are excited about providing a wide selection of training tools and recommendations to help newbie traders become more effective traders.
HOW DO I BEGIN TRADING FOREX IN SOUTH AFRICA？
Trading in the foreign currency market, like any other employment, necessitates a certain set of skills, abilities, and moral qualities. So, what are the greatest strategies to make money trading forex in South Africa？
If you are familiar with the vocabulary and essential ideas of the forex language, it will be much easier for you to understand a trading book, article, or video.
To begin with, there's a considerable chance you'll be distracted by questionable information, which you'll read but not really comprehend.
You may learn all you need to know about forex trading by reading articles, books, or watching videos. In South Africa, there are various forex brokers, however not all of them follow the industry's high trading requirements. Make a list of the criteria you want to seek for in a broker. You'll be able to recognize your broker's greatest features as well as any potential stumbling blocks if you consider your personal criteria.
In South Africa, the FSCA controls and regulates forex trading. All South African-based brokers must be regulated by the Financial Services Commission of South Africa (FSCA); however, foreign-based brokers are not obliged to be regulated by the FSCA. Anyone can legally create an account with any Forex broker, regardless of where they are located.
South Africans can legally engage in the foreign exchange market through any FSCA-certified forex broker who is authorised to provide derivative products to South African traders. The daily forex trading volume in South Africa was anticipated to be approximately $19.1 billion USD in 2017. The South African Rand (ZAR) is also one of the top 20 most traded currencies in the world, with annual trading volume of over $70 billion US in 2016.
In the currency market, failing to plan is planning to fail. If you master additional methods, you are more likely to profit on a regular basis.
Day trading, often known as price action trading, is a type of trading in which all trades are closed at the end of the day. Setting a time limit on trading might help an investor avoid overnight losses. While foreign currency markets are open 24 hours a day, weekend fluctuations may be rather surprising. Day traders are risk takers who employ many of the same trading strategies as price action traders. This approach is more volatile than other strategies like as position, range, or trend trading, in addition to having a higher trading frequency.
Range traders may hold a position open for a few hours, days, or even weeks. Support and resistance levels are used in this type of trading to try to profit from larger patterns.Range trading is a good approach to use when a currency pair is moving in an unpredictably large range. Traders that are regularly successful buy at the range's lows and sell at the range's highs.
The time span for trend trading and range trading is the same. The key difference between a range and a currency pair is the direction in which it is moving.The successful trader will be able to identify the trend (which is usually just up or down) and trade accordingly. Small pullbacks are often overlooked in favor of bigger gains.
