The trading day’s opening and closing prices are shown by dashed lines on the left and right, respectively. When prices rise, the colour green or white can be used to represent that, while when prices fall, the colour red or black is typically used. ️ The fourth rule of trading is to verify the positions every day after the trading day has ended. However, historical practice dictates that certain currency combinations be represented differently.
This is because you need to acquire the currency of the country you are visiting by exchange the currency of your home country. 👉 Overall, Exness is the best Naira Trading Account Forex Broker in Nigeria. Exness offers a choice between different retail investor accounts along with offering Nigerians the option of registering a Naira-denominated account. 👉 A Nigerian trader’s risk/return ratio is the trade-off between the lowest possible risk and the greatest potential reward. 👉 Because Nigerian investors are often wary of taking on more risk, assets with higher inherent risk must provide higher projected returns to justify taking on more risk.
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We have tested all the Top Brokers in Nigeria to give you unbiased reviews & comparisons. You can notice that the price made a double top at an important resistance level. The example of swing trade would be if you are holding it till the next support zone, which is marked on the chart. Let’s say the high for EUR/USD for the last 3 months is 1.31 (making it a price level of importance).
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These methods require little expertise and allow you to learn while earning. Platforms like OctaFX and HF Markets also offer easy-to-use interfaces. Demo contests are a safe way to compete since you trade with virtual money but still have the chance to win real prizes. This is perfect for beginners in Nigeria who want to make money in Forex without risking their own funds. You can combine affiliate programs with trading signals or independent trading to maximize your earnings. A Forex affiliate program is like a partnership between you and a Forex broker.
Analyzing the Market Effectively
Bigger potential for return, on the other hand, does not inevitably imply a higher level of risk. 👉 Your other balance is the amount of money Investment Real Estate you would have if you closed all your deals, and lastly, your “net balance” is the second balance. ➡️ The Exchange Rate is the rate at which a currency from one nation may be exchanged for a currency from another. 👉 The brokers serve as a link between you and their liquidity partner or partners (often bigger global institutions) with whom you would not otherwise be able to do business. Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Position trading in Forex is best suited for Nigerians who cannot devote hours of their day to trading but have a deep grasp of market basics. Traders with the greatest patience may choose forex position trading, which does not pay as much attention to short-term swings in the market and instead concentrates on the long run. Traders use the following forex trading methods to organize their trading activities. These tactics may be used in any financial market, not only the currency market. Traders can subsequently construct a more well-rounded trading strategy by combining elements of both technical and fundamental analysis.
This is because the international forex market is unofficially divided into sessions according xtrade review to the time zones. Choose a regulated forex broker and open a practice (or demo) account. Leverage is dangerous because if your trade ends in a loss you are expected to repay the loan and any money you deposited in your trading account will be taken and used to offset the loan.
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- It is important to have a risk management plan in place to avoid losing all your trading capital.
- Platforms like OctaFX and HF Markets also offer easy-to-use interfaces.
- 👉 Whether you should sell or buy a currency will depend on your technical analysis and whether your indicators show that a currency is likely to depreciate or appreciate against another.
- Another major reason for the appreciation in US Dollar is the Risk Off global crisis (or Deflation).
Here’s a balanced look at the advantages and disadvantages of trading Forex in Nigeria. Here you use knowledge from past price movements, to try and predict the future. Also beware of scammers who build cloned website versions of legitimate brokers.
This can make you think of investing more money without studying the market. This is the reason why you need to be objective and invest wisely. Successful traders make informed decisions instead of relying on luck. There is a great deal of flexibility for Nigerian traders because of this and the fact that the market runs around the clock. Even those who are employed full-time might participate in Forex trading on the weekends or at night to relieve stress.
A demo account allows you to practice trading with virtual money, enabling you to familiarize yourself with the trading platform and test different strategies without risking real funds. Once you are comfortable with your trading skills, you can open a live account and start trading with real money. Before you start trading forex, it is important to have a good understanding of fxtm forex broker review the basics. This includes learning about currency pairs, how to read forex charts, and how to use technical analysis to make trading decisions.
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- 👉 For example, if you think that the Euro will increase in value against the US Dollar, you can place a trade to buy Euros using US Dollars.
- Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital.
- A currency is considered one of the most vital tools because it allows Nigerian traders to buy and sell goods and services both inside their own country and across international boundaries.
- We have created a ‘contents’ section so you can use it to browse to section of the information regarding forex trading.
Even though it seems clear, a large proportion of new traders fall victim to Forex trading scams or deal with unlicensed brokers despite this fact. Anyone claiming to be a “Forex expert” on social media should be avoided if there is no proof backing this claim. A down candle is coloured red or black, while an up candle is coloured green or white and signifies a time of rising prices. Candlestick charts may be used to determine the direction and movement of the market based on the formations and shapes they display. In the same way that they are used in other contexts, bar charts are employed by advanced Nigerian traders to illustrate trading periods. Bar charts are known to be more informative than line charts, albeit being a little more complex.
Forex affiliates can earn between $100 to $10,000 monthly, depending on the number of referrals and the broker’s commission structure. Programs like the HFM affiliate program offer competitive payouts. Combining methods like copy trading, contests, and using signals increases your chances of consistent income in Nigeria. You can join and see millionaire traders everyday on our community here. To start using Forex trading signals, you need a trusted provider. Copy trading is a method where you link your Forex account to that of a professional trader.
Mobile trading platforms have become extremely popular in Lagos as it allows Nigerian traders to remain updated on their trading while they travel. Each day, on average, just one deal takes place, and it is not held overnight. Intraday price movements in the relevant currency pair determine profit or loss. With forex scalping, the goal is to make modest but frequent profits while also trying to keep losses to a minimum while trading NGN. As a result of the huge leverage used in these short-term deals, a trader might still suffer large losses.