Written by Julie Brownlee on March 18th, Instead of having to dredge through all the companies on the stock market and the research that goes with this, you can trade a handful of currencies.
Not only does this make research much easier, but it allows you to hone your skills to uncovering winning strategies to trade forex. So if you want to start trading Forex, how much cash do you need to start? For example, you could trade the rand against the dollar or the euro against the pound. By trading currencies in pairs, you speculate that one currency will strengthen against the other. Trading Forex With Futures.
If you want to trade the rand using currency futures, you need an account with a stockbroker who offers currency derivatives trading. Your current stockbroker may offer this type of trading; you just need to ask. Trading Forex With Spread Trading.
If you want to trade currencies excluding the rand, the easiest way to do this is with spread trading. You can spread trade through trading companies such as GT You can trade a wide number of currencies against each other, including: If you want to spread trade currencies, you need to open up an account with a company offering spread trading.
Instead you should focus on how much you need to trade following a strict risk management strategy. How much you put into each trade is called your position size. With position sizing, the idea is that you risk small amounts on each trade. You then adjust how much you risk according to the outcome of each trade. Sticking with our example, if the trade goes your way and you make R profit, you now have a pot of R10, As you win more trades, your trading pot increases and so will what you risk.
Want to make money trading Forex? This includes how much money you need to start trading forex. Well, it depends on a number of things. Let me show you. So how exactly do you start?
You have two options… The rand against a basket of major currencies; or Different currencies, excluding the rand. Which Currencies You Can Trade You can trade a wide number of currencies against each other, including: What am I talking about? So how can you do this? Of course, the opposite is also true.More...