Forex, a shortcut of foreign exchange market, is buying and selling currencies. In other words, you buy a particular currency at a low prize and you sell it high. Access to Forex is often provided by brokers through their trading platform on the Internet or via downloadable software. People that own mobile smart phones or tablets can also trade using their iPhones, iPad or Android powered mobile devices via a mobile Forex trading app, therefore, they have access to the foreign exchange market anywhere they are which is very convenient. If you are new to this market, continue reading to familiarize yourself with how mobile Forex trading works and which account is best for you. When doing Forex trading, you should also know about the risks associated with it. In addition, take into account the tips for mobile Forex trading.
How Does Mobile Forex Trading Work?
To get started, you need a mobile Forex trading app on your mobile device and platform. Then register an account or log in and start trading. The biggest benefit of these apps is that you get access to the global Forex markets in real time, you can monitor your trades as well as start or close positions (or bets) directly from your mobile. In addition, you can see quotes of the instruments you trade and other trade orders also in real time.
But first you need to learn more about Forex trades. These trades are made in incremental lots, representing the size of your position or bet not your full trade value, starting from 10,000 and going all the way up to 100,000 in your chosen currency. Therefore, when you trade, you deposit a percentage of your position in an account known as initial margin which is usually between 1% and 2.5% of the position, but sometimes it may go all the way to up 10% if you have suffered a heavy loss. However, have in mind that by trading on margin, you may lose more than your initial investment.
(your capital may be at risk)
What Type of Account is For You?
To be able to do mobile Forex trading, you need to have a trading account. The best account for you is the one that will allow you to invest how you want as well as the one that will allow you to trade for less. If you want to trade in particular currency, then it is best to exclude Forex currency trading platforms that don’t have your currency. In addition, a lot of accounts offer all the major currencies, therefore, if you want to do business in a smaller regional currency, this may be a problem.
There are different types of mobile Forex trading accounts like CFDs and spread betting so knowing which one is the best for you is very important before you start trading. Spread betting is betting whether or not a currency will rise or fall over a particular period of time and it is classified as gambling. In CFDs, on the other hand, there are agreements to pay out the difference between the first and final prize and you have to pay 10% or 25% of the actual value of your trading currency.
What Are the Risks of Mobile Forex Trading?
Just like any type of gambling, you should never spend more money than you can afford to lose. However, the mobile Forex trading market is difficult to predict and there are risks associated with this type of trading. One of the risks is that currencies can dramatically increase or decrease in the short run. This, combined with trading on a margin, can expose you to big risks and you might spend more money that you ever wanted. Using instruments like stop losses and maintaining small margins can reduce the risk, but you have to know that mobile Forex trading is pretty complex and should be taken with seriousness.
Survival Tips for Mobile Forex Trading
There is a lot of time and energy involved with Forex trading on mobile. Many people usually give up after their first few attempts. But this won’t happen if you following the following survival tips:
- Download safe and stable mobile Forex trading app.
- Develop your own Forex trading style and stick to it. Don’t blend in with the crowd.
- Use technical analysis so you can interpret market trends intelligently.
- Have in mind the different costs insured during trading.
- Carefully choose your tools and stick to them. Don’t rush things and jump onto using a new tool simply because it is new. Test it first and see how it does.
- Be patient. Its takes time to evaluate markets and understand trades.
- Always buy strong trades and sell them when they are week.
- Know when to exit the trade. If it goes downhill and stays that way for a longer time, it’s time to walk away.