Forex dealers offer ordinary people to participate in the Forex market. The bottom line is that a person tries to predict what will happen with the exchange rate of one currency in relation to another, and conducts a deal with a forex dealer. If their forecast is accurate, they earn a profit and is paid by the dealer. If their prediction is incorrect then the investment becomes worth less than its original value in which case the dealer with deduct the difference from the investors account.
If you correctly predicted the movement of the exchange rate, the dealer credits the money to your account – your deposit increases. If you have not predicted correctly, the deposit decreases.
To start Forex trading, as a rule, you do not need a lot of money or special equipment. First, you conclude an agreement with a forex dealer and install the dealer’s trading program on your computer, smartphone or tablet. This program reflects the rates of all currencies in which transactions can be made. Forex dealer can use the quotes of currencies of international currency exchanges, banks, brokers and other assets.
Forex trading requires preparation and understanding of the trading processes from the trader. Different approaches to trading imply different levels of risk, degrees of control over the processes and have different requirements for the level of knowledge and training of a trader.
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