Forex trading is one of the most popular types of investments. You need to know the meaning of TriumphFX forex trading to understand more.
Forex (foreign exchange) itself is the trading of foreign currencies. Like trading, the goal is to make a profit.
In simple terms, forex trading is like buying a foreign currency and then storing it for a certain period and reselling it when the currency’s value increases or the exchange rate strengthens.
However, the profits obtained are generally small if you do it this way.
To reap more profits, investors buy and sell forex online like stocks. As with any investment, of course, some risks come with it. The higher the profit, the higher the risk of loss. To get a complete understanding, here is a review of forex trading.
Understanding Forex Trading
Foreign exchange or forex can be called foreign exchange or foreign exchange. The meaning is the same: a trade by exchanging foreign currencies for profit.
Citing various sources, this understanding of forex trading can occur because of the need to use a foreign currency. For example, when you want to travel abroad, you must transact in the currency of the country concerned.
The currency exchange turned out to be profitable. Profits are obtained from the difference in the value of the currency traded.
To get a bigger profit, investors must observe and analyze the condition of the money market and various factors that can affect the value of currencies in the world.
Difference between Forex and Stocks
Stocks and forex are types of liquid investments. Even so, there are some differences between the two. TriumphFX Summarizing various sources, here are the differences between forex and stocks.
1. Stocks have no ‘leverage’ option
In general, the notion of leverage is the use of borrowed funds to increase the return on investment. Investors can use the ‘leverage’ option with a certain ratio in forex trading.
2. Trading hours
Stock exchange trading hours are limited from morning to evening following the trading schedule. While in forex trading, trading hours last for 24 hours.
3. Fundamental analysis
In its implementation, forex does not require fundamental analysis. Meanwhile, stocks prioritize fundamental analysis, aiming to make the purchased shares have a good foundation to continue to rise.
4. Investment objectives
While stocks can be used as a trading tool and an investment, stocks with good performance tend to fluctuate continuously to be used as trading and investment alternatives.
5. Traded goods
In forex, the goods traded are relatively small. Most forex traders only focus on the value of major currency pairs such as EUR/USD, USD/JPY, GBP/USD, USD/CAD, AUD/USD, and NZD/USD.
When combined with world stock exchanges, thousands of stocks can be traded or invested.
6. The nature of the transaction
The final difference is the selling time. The nature of stock transactions can be said to be one-way. You buy an issuer when the exchange opens and sell it at the close of the exchange. The difference in price at closing can be a gain or a loss.
While in forex, transactions are two-way. You can buy it and then sell it in a short time, then buy it back after a while.Cara Melakukan Trading Forex
How to do forex trading is not much different from stocks. Here are some things you can do to be able to transact forex.
1. Choose an official broker
Choose an official broker registered with the Commodity Futures Trading Regulatory Agency (CoFTRA).
You can check the list of official brokers on CoFTRA’s website. Although you can choose a foreign broker, for security, it is better to use a domestic broker that is easy to track.
2. Register and create an account with the broker
For beginners, forex brokers will usually teach you how to read the graph of the movement of the currency values of each country. However, before registering, ask how much deposit you have to pay in advance.
3. Carry out trading activities
After registering and creating an account, use the deposit, you paid for capital to buy the currency you want.
In buying foreign currency, that currency will coexist with other currencies. For example, USD/EUR means that you will buy United States Dollars compared to Euros, and vice versa.
That’s the meaning of TriumphFX forex trading, and the difference with stocks. Understand forex trading in more detail so as not to lose. Some experts consider forex trading more complicated than stocks.