Now that things are looking up, Forex traders in Canada may be interested in making more trades, and newbies may be thinking about getting into the game
On Sept, 23, 2019, the Canadian loonie rose by 0.1 percent against the U.S. dollar, when Canadian trade information indicated that the Bank of Canada’s interest rates would not change this year. This new information reassured those who’d bet against an interest rate increase. Now that things are looking up, Forex traders in Canada may be interested in making more trades, and newbies may be thinking about getting into the game. Forex is the process of trading currencies, and the uninitiated will benefit from learning some ground rules before they begin to dabble.
How to get started with Forex
To begin trading currencies, you’ll have to create an account at a company that trades money futures, via an exchange or over the counter, outside of a centralized exchange. Plenty of Forex brokers are out there, and you will need to pick one, so it’s important to find a list of the cheapest Forex brokers. You won’t want high fees to negatively impact your bottom line by eating into any trading profits. When you sign up, you’ll need sufficient collateral, in the form of cash on deposit, to adhere to margin requirements for any contracts that you are holding. Before you start betting on price rises or drops of world currencies (or any other financial instruments, for that matter), you will need to educate yourself. Many platforms offer educational tools that new traders can use to boost the odds of success.
A lot of variables impact the price shifts of world currencies, and you need to be aware of these variables, from changes to government regulations to trade wars to natural disasters and beyond. Successful Forex traders understand the forces that shape currency prices inside and out. Learning about the variables and how to predict price shifts in currencies is something that many traders find fascinating.
Why is trading currencies so popular?
Currencies are an investment class that does get a lot of interest, because traders enjoy speculating on price movements among world currencies, including the Canadian dollar. Forex is short for Foreign exchange, and this exchange is a decentralized worldwide market where pairs of currency get traded. Electronic trading happens, OTC-style, in the world’s big financial hubs, including (but not limited to) Paris, New York and Singapore.
Since it’s possible to trade Forex at any hour of the day or night, it’s ideal for traders who want to build wealth while enjoying the ultimate flexibility. Currency may be traded in futures, forwards and spot markets, and spot trading tends to be the most common form of Forex trading. This market is hugely liquid, with well over 5 trillion dollars in trading volume daily. One major trading pair is U.S. Dollar/Canadian dollar, which is known by the symbol, USD/CAD.
If the loonie grows stronger, you may want to take a bet on the Canadian dollar, or play it safe by betting on a world currency that’s shown a lot of growth and stability in the past. Forex trading gives traders of all skill and experience levels a variety of options. Before you begin, track currency pairs that interest you, and then find a trading platform that’s affordable and feature-packed.
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