A person trading stocks on their laptop.

Your Basic Guide to Online Trading

Where to trade Forex?” This question is pretty common among new traders. The answer? Well, an online broker. Which one? The Doji Trader. But why? Read on to find out.

How is online trading done?

Starting off in the online trading world may initially seem a daunting proposition, but don’t worry, The Doji Trader has everything covered to put your mind at rest. We will teach you that trading is all about controlling your destiny; you decide when you want to invest, how much, and when to close trades and which to open, but we can help you to learn the necessary technical analysis to time your trades, control your emotions and grow your account on your choice of broker.

The root of trading for a rookie begins with a coherent understanding that the prices are based upon supply and demand and other basic factors which affect market behavior. The price move is going to occur when supply and demand are out of sync; there are sellers if there are more willing buyers in the market, meaning the price will go up and vice versa. This simple logic applies to the principles of CFDs, trading currencies, etc.

With The Doji Trader, you’ll find a plethora of education that not only introduce you to the fundamentals of Forex trading but teach you how to learn great techniques for market analysis, methods of building strategies, and straightforward insight into trading methods such as scalping for beginners.

How to trade Forex

In simple words, a currency exchange rate is referred to as a rate at which the base currency may be exchanged for the quote currency. The quote of these currencies comes in pairs, like the widely used trader pair GBP/USD that is the Great British Pound (£GBP) and the US Dollar ($USD). These exchange rates may be influenced by certain economic factors like political events, inflation, industrial production, etc. These factors are the primary market influencers for whether you buy/sell a currency pair.

This may be practically explained through an example below:

In this example of the EUR/USD, the USD is represented as the quote currency, and the euro is represented as the base currency, representing the number of US dollars an individual can buy. The quotation of EUR/USD 1.2000 in numbers indicates: that one euro may be exchanged for 1.2 US dollars.

If you think that the value of the euro will increase against the US dollars over the next two days, you will purchase the euro. If the exchange rate rises in your favor, you would sell the euros back at a profit. Basically, when you trade online, this is how profits are made.

The fees?

Honestly, the fees aren’t much. For example, consider the example of Fortrade – one of the leading trading companies in 2020. Fortrade doesn’t charge any clearing, withdrawal, or deposit fees. Instead, Fortrade takes a small fee from each trade, known as the spread. This is a minor price differential between the Bid and the Ask (Bid:Ask) price of a certain trading instrument. The average spread on Fortrade for the EUR/USD currency pair is a mere 0.7. This means that the Bid:Ask will show different prices of 0.7, which is a very competitive spread price.