Common misconceptions about forex trading.

There are numerous misconceptions online about what the Forex market is and how to trade it.

Sometimes these misconceptions lead to abandoning trading, and sometimes, conversely, to the loss of capital.

Therefore, it's crucial to understand which of these common beliefs are true and which are simply the speculations of ordinary people and bankrupt traders.

• The first and key question is "What is Forex?" This exchange has been called many names, from "Pyramid" to "Financial Casino." But in order to briefly understand the essence of Forex, we should consider a simpler analogue of the virtual currency market.

For example, trading oranges - you do not have money, but you have a company and information on 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 chance that while you are concluding contracts, the price will fall to $ 0.95 and your profit will turn into losses or, conversely, will grow even more to $ 1.20 per kilogram.

On Forex, instead of oranges, there is a currency, plus, in order to speed up the receipt of profit, leverage .

Therefore, Forex has nothing in common with either financial pyramids or casinos. It is a purely speculative version of the foreign exchange market, where you can make money, but you cannot exchange the currency for your needs.

• Forex trading requires a lot of money - $ 100 is enough for trading, but to make big money, you really need a solid capital.

Moreover, getting it is not so difficult, one of the options is to accelerate the deposit , the second is to attract investors for trust management . In the first case, you need a lot of luck, in the second, trading skills and positive account statistics over a long period.

• A bonus is evil - only if you do not carefully read the terms and conditions.

• Brokers trade against their clients - this statement applies only to options trading, where the second party to the transaction is most often a dealing center. But classic trading is in most cases conducted according to an honest scheme.

A clear example is scalping, where the consolidated spread is greater than the trader's deposit itself, so why kill the goose that lays the golden eggs?

• Forex trading requires an economic education—true, only partially, but successful trading truly requires a lot of study and practice.
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