Tutorialonline.my.id – What is Forex Trading? Here’s what it means and how it works.Forex trading is a profitable investment of money. Let’s see how to play!
Along with the development of fintech, forex trading is the most popular type of investment with high liquidity so it is quite profitable. In addition, this instrument can be run online with little capital. No wonder many investors are competing to learn how to operate it.
Well, in this article, OCBC will discuss how to trade forex along with strategies and applications that you can use. What are you waiting for? Check it out!
What is Forex Trading?
Forex trading is foreign exchange trading to various destination countries for tourism and business purposes in order to make a profit. In practice, there is no determination of the currency that should be traded so it is very dependent on supply and demand.
Some people think that the way forex trading works is by exchanging money at the Money Changer, even though this transaction is done online and aims to make profit, not just to get foreign currency. On a large scale, people even take advantage of this method as an investment field and a profession.
An example of forex trading is when you buy pound sterling (UK currency) but at the same time sell USD (American currency) when the value is high. Now as additional information, this activity is not only carried out by individuals, but also by countries, multinational companies, central banks, and so on in a network called the “Forex Market”.
Forex trading law is lawful and officially recognized because there is certainty regarding the form of transaction goods, process, amount, time, and so on. This is contained in the DSN MUI fatwa No. 28/DSN-MUI/III/2002 concerning currency trading or Al-Sharf.
How to Trade Forex Correctly
One way that investors often use is to use forex trading robots to analyze the market through algorithms. However, in reality, this tool does not yet have legality according to Indonesian law, so it is vulnerable to fraud or falsification of information.
So that you can avoid it, it is necessary to know how to carry out this investment properly. Well, right away, the forex trading methods and strategies are as follows.
Try Investment Instruments First
Usually, forex trading investors are people with long enough investment experience. They make this instrument as a tool to increase profits in addition to stocks, bonds, and so on. Therefore, it is highly recommended for you to first try dollar savings or stock mutual funds that work similarly.
Learn How to Trade Forex
After having experience in other instruments, don’t forget to learn Indonesian forex trading through the information provided by the OJK or ask an experienced mentor.
The most important preparation in forex trading is to prepare funds as capital for buying and selling foreign exchange. Start with a small nominal, which is around US $ 1 – US $ 1 only, then you can add it when you are more skilled at playing.
Looking for a suitable broker
For ease of administration, if you are in the country, you should choose a forex trading broker from Indonesia. In addition, also look at the legality, make sure the company is registered with the Commodity Futures Trading Supervisory Agency (CoFTRA).
You can also save costs by choosing a forex trading broker with small commissions and consulting rates.
Prepare a Qualified Gadget and Network
Forex trading is an investment made online Monday to Friday for 24 hours. Therefore, to monitor market fluctuations, prepare a capable gadget and network so as not to lose the opportunity to profit or even lose due to late handling.
Discipline and Thorough
One of the tips to be successful in forex trading is to be disciplined and thorough. Monitor and analyze well to know when to sell and buy foreign exchange and learn in-depth how it works.
Forex Trading App
After knowing how to carry out this investment properly, you can start learning forex trading with the following applications.
Agrodana Futures News
This application was developed by the Agrodana Futures broker which makes it easy for users to perform technical and fundamental analysis independently. Here are the facilities that you can find.
Latest foreign exchange news and analysis.
Calendar and economic data.
Market price movements.
Technical analysis video tutorial
Hanson Forex Investing
Furthermore, one of the forex trading applications is Hanson Forex Investing which is able to provide news on foreign exchange, stop loss, take profit, and open positions. In addition, there are educational videos for beginners.
Even though it is paid, Trade Optimizer has the advantage of ease of transaction with 14 calculators for risk analysis, positioning, and even analyzing post-trading conditions. No wonder this forex trading application is a favorite of traders.
Next, one of the recommended forex trading applications is Meta Trader 4 which is famous for being quite popular among traders. There are several facilities, namely online charts, indicators for technical analysis, real time price quotes, and even the opportunity to do independent analysis.
HSB Trader is a forex trading application that is suitable for beginners because it makes it easy to learn fundamental analysis and techniques, tricks, and monitor market price movements from time to time on a regular basis. In addition, you don’t need to worry because the legality has been registered with the Ministry of Trade of the Republic of Indonesia.
Furthermore, one of the recommended applications for forex trading is MIFX Trader. Some of the advantages that you can get are the ease of transactions without carrying additional MT4, a one-click withdrawal menu to withdraw profits, as well as price alerts as a tool to monitor favorite pairs.
That was the discussion of OCBC for those of you who want to learn forex trading. Make sure you choose the application and understand how to play it correctly in order to get maximum profit. Spirit!