Sunday, September 25, 2022

Beginner’s Guide to Trading Forex in Nigeria  

Forex trading is one of the highly profitable online businesses in Nigeria. However, if you are venturing into it, you need the right information to excel.

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Hence, this guide has been written to teach you some things you need to know about Foreign exchange (Forex) in Nigeria.

We explore the following aspects of Forex Trading in Nigeria, including; 

  • How to start trading forex in Nigeria
  • Reliable tactics for trading forex in Nigeria
  • Terminologies in Forex
  • Frequently Asked Questions (FAQs)

How To Start Trading Forex in Nigeria

These are the procedures required to start trading forex in Nigeria.  

  • Have a good internet connection: You would need a device with a strong battery, a powerful processor, a high RAM, high storage capacity, and a large screen.
  • Select a Trustworthy Broker.
  • Create a Trading Account and fund it.
  • Download and install the trading app.

Reliable Tactics for trading Forex in Nigeria

Trading and getting profit doesn’t just depend on luck. You need a number of working strategies and tactics to rake in the big bucks. Here are some of them:

Position Trading: 

This strategy functions in the long term. The traders buy a currency pair and hold it until the pair’s price reaches a high position on the charts.

Related: Top 10 forex brokers in the world

It’s a high-risk, high reward strategy and could take months or even years to accomplish. To use this strategy effectively, you need to be well-versed in fundamental analysis and the strength of the currency pair.

Scalp Trading:

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Unlike Position Trading, this is a short-term, low-profit strategy. Here, the traders buy a currency pair at the bid price and instantly sell it at the ask price.

The spread is usually positive, so they get to make a few extra pips at the end of the day. You need a good understanding of indicators and a very fast internet connection for this one.

Swing Trading:

This is another short-term process. Traders hold a buy or sell position for a period ranging from a few weeks to a few months.

In a few exceptional cases, the position is held for days. These positions are liable to be affected by large-scale economic factors like interest rates.

Terminologies in Forex

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Go long: To Buy

Go short: To Sell 

Ask price: The price at which a seller is willing to sell

Bid price: The price at which a buyer is willing to buy

Spread: The difference between the bid and ask price

Pip: The smallest unit by which the value of a currency pair can change. It is $0.0001 by convention.

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Frequently Asked Questions (FAQs)

What is the minimum amount required to start trading?

You need at least $100 to trade in the market.

When does the Forex market open and close?

The market opens by 22:00 GMT Sunday and closes by 22:00 GMT Friday.

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Oasdomhttps://www.oasdom.com
Oasdom is a knowledge driven hub promoting self reliance and inspiring business creation. We provide series of practicable business, blogging and life advice to offline & online entrepreneurs. We help you learn things that are beyond the 4 walls of a class room.

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