Common misconceptions about forex trading.

There are a lot of misconceptions on the Internet about what the Forex exchange is and how to trade on it.

Sometimes it is these misconceptions that become the reason for refusing to trade, and sometimes, on the contrary, the reason for the loss of equity capital.

Therefore, it is so important to realize which of the common judgments is true, and which are simply speculations of ordinary people and bankrupt traders.

• The first and key question is “What is Forex?”, as this exchange was called both “Pyramid” and “Financial Casino”. But in order to understand the essence of Forex , we should consider a simpler analogue of the virtual currency market.

For example, trading in oranges - you do not have money, but you have a company and information about wholesale prices for oranges.

One of the companies can sell them to you at a price of $1 per kilogram with a deferred payment after 3 days, while at the same time there are traders on the market who will immediately pay $1.10 per kilogram. You can take 1000 kilograms and earn $100, but there is a possibility that while you are concluding contracts, the price will drop to $0.95 and your profit will turn into losses or, on the contrary, will increase even more to 1.20 per kilogram.

In Forex, instead of oranges, currency is used, plus, in order to speed up the receipt of profits, leverage .

Therefore, Forex has nothing in common with financial pyramids or casinos.

This is a purely speculative version of the foreign exchange market, where you can make money, but you cannot change the currency for your needs. • To trade Forex you need a lot of money - even 100 dollars is enough for trading, but in order to earn big money you really need solid capital.

Moreover, getting it is not so difficult, one of the options is to disperse the deposit , the second is to attract investors to trust management .

In the first case, you need great luck, in the second, trading skills and positive account statistics over a long period of time. • A bonus is evil - only if you do not carefully read the conditions for receiving it.

• Brokers trade against their clients - this statement applies only to options trading, where most often the second party to the transaction is the dealing center.

But classic trading in most cases is carried out according to an honest scheme. A clear example is scalping trading, when the tight spread is larger than the trader’s deposit itself, so why cut the goose that lays the golden eggs.

• To trade Forex you need an economic education - although only partly, but in order to conduct successful trading you really need to study and practice a lot.
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