Forex is short for Foreign Exchange Market, and it is a market where currencies are traded.
Next, we’ll look what is forex trading, and how to get started as a trader in Singapore.
What are currencies?
Forex trading is the act of exchanging one country’s currency for another. Currency trading is done online through platforms like SGX, where traders buy or sell currencies against another, referred to as ‘spot trading.’ The Forex market in Singapore is highly liquid, with over $430 billion worth of daily transactions conducted.
Currencies are mediums of exchange used by countries to facilitate trade between each other. Currencies can be classified into three major types: fiat currencies that hold no intrinsic value, commodity currencies whose price fluctuates due to economic factors and collectable/rare currencies that are traded chiefly for investment purposes.
The world’s most widely traded currency is the US dollar (USD), followed by the euro (EUR) and the Japanese yen (JPY).
What is spot trading?
Spot trading is a two-way price negotiation, where currencies are traded based on their current market value. Spot trading consists of buying or selling a currency at its ‘spot’ price, which refers to the midpoint between individuals willing to buy and sell a particular currency.
How do I get started with forex trading in Singapore?
To start online forex trading, you’ll need a trade account as well as access to a Singapore-based bank for funding purposes. Then it’s simply a matter of researching currencies and choosing those that promise high yields through technical analysis. As long as you have sufficient capital, nothing is stopping you from making your first trade!
Types of Orders?
A beginner needs to understand what type of order they should use when executing trades.
Here are four types of orders commonly used by traders:
Allows you to enter or exit at your desired price limit.
Allows you to set an order to trigger only when the market reaches a specific price.
This lets you set an order to trigger when the market reaches a specific price.
This lets you set an order that only gets executed if the market trades at this price or better.
The forex is unique as it doesn’t just trade one currency against another. There are three currencies in play, and they’re traded simultaneously.
These three can be US Dollars, Euros or Japanese Yen – depending on your location and which market you decide to use. Within these three currencies, there are a total of 15 majors (currency pairs).
So, for example, a trader could sell USD, GBP and EUR all at the same time, depending on where they live
Forex Brokers in Singapore
When you are looking for a broker, there are several things that you need to consider.
The first thing is whether the forex broker is regulated or not. By choosing an authorized dealer, you can be assured of your protection as well as having access to top-quality services. If you have any problems with your trades, the government will take care of them and help recover your money. And if they do not help, then at least they will protect you by punishing those who acted illegally. It’s something that every investor should look for in a potential forex broker.
Another significant factor is what type of platform are they using? Do they have their own trading software, or are they using some third-party software developed by MetaQuotes? It might not sound like a big deal, but this is the difference between having a fantastic trading experience and having a terrible one.
Metatrader 4 platform offers such unique features as price alerts, social trading and much more. You can discuss your trades with traders worldwide and create your own group of people that trade the same currency pairs as you do. This way, you will be able to learn even faster and make even more money with your forex trades! I’m telling you – it’s worth it!