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.
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:
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.
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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.
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.
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
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.