6 Best Naira Forex Trading Accounts in Nigeria,What is Forex Trading?
AdVocê é um comerciante experiente? Use nosso bônus para testar suas estratégias. Você é um comerciante iniciante? Use nosso bônus para aprender sem risco 24/03/ · 6 Steps to Start Forex Trading in Nigeria. Learn the basics of Forex Trading; Understand how the Forex Market works; Open an Account with licensed Forex Broker; It has branches in the United Kingdom, Canada, Australia, Cyprus, Israel and the United States. In , it had valued its value at more than $ million. The company is listed on the Boston ... read more
In the same way, bad news may induce a decline in investment and a fall in the value of a currency. Currency values are influenced by the stated economic health of the area they represent. This is a factor that could have a significant impact on currency pricing. Trades will be made according to what Nigerian traders feel the currency is going to do, which may either increase or decrease demand for the Nigerian Naira.
These Nigerian traders can use credit ratings in addition to interest rates and economic data when making investment decisions. The language of each market is distinct. Before getting into forex trading, Nigerian traders need to know these terms:. Every currency in the world is assigned a three-letter code, with the Nigerian Naira expressed as NGN in the forex market. The US dollar USD is engaged in the great bulk of foreign exchange trading even though there are more than other currencies in existence.
The euro code: EUR , which is used in 19 EU nations, is another popular currency in the foreign exchange market. Additional well-known currencies include:. All forex trades involve two currencies that form a currency pair. Forex trading relies heavily on the following seven currency pairings, which are also referred to as the forex majors:.
For each currency pair, the current rate of exchange between the two currencies is represented by the two currencies in the pair.
Subsequently, the base currency will always be expressed as a single unit, with the quote currency varying according to the current market and the amount needed to buy a base currency unit. Nigerian traders must note that the base currency is normally listed first, followed by the quotation currency.
However, historical practice dictates that certain currency combinations be represented differently. Investing in the stock market is a lot like FX trading.
To begin a forex trading career, Nigerian traders can follow these simple steps. Learn about Forex. Nigerian traders must acknowledge that forex trading typically offers higher leverage ratios than any other financial market.
In addition, the factors that drive the forex market are also different to those that drive equity market prices. Any political and economical news in Lagos, Nigeria can spart volatile movements in the forex market, either in an upwards or a downwards trend. Traders who are just starting out have a plethora of training material, books, courses, classes, and other educational materials, tools, and resources at their disposal to ensure that they are thoroughly educated in forex trading.
Choose a broker and set up an account. Some forex brokers make up their fees by charging a flat commission on trades. However, other Forex brokers do not impose any fees for trading. It is instead via the spread in forex trading indicated in pips that exist between the purchasing and selling prices that they earn their money. Micro accounts are ideal for beginner Nigerian traders because they have lower capital requirements, lower degree of risk, and smaller positions size of 1, units of base currency, in this case, Nigerian Naira depending on whether they are buying or selling currency.
To put things in perspective, one normal account lot is equivalent to one hundred thousand dollars. With a micro forex account, Nigerian traders can learn the basics of forex trading and find out what kind of trading strategy works best for the trader.
While the CBN approves forex trading and provides a regulatory framework, it is the responsibility of Nigerian traders to ensure that they only use the services of regulated brokers. Develop a trading strategy. Traders must consider how much money they are willing to invest and the degree of risk they are prepared to face to avoid losing their initial deposit.
It is important to remember that forex trading is a high-leverage business. Those who are prepared to take the risk, however, will reap greater benefits.
Traders must remain on top of their numbers. If Nigerian traders have any open positions that need to be closed, they must make sure that they have enough money in their trading account to cover any future transactions.
Ensure emotional Equilibrium. There are many uncertainties in forex trading and unanswered questions. When it is time to close a position, traders must be strict about it. Nigerian forex traders use forex trading strategies, despite whether they are active traders who have a forex career, or they trade when they are home.
Forex signals and technical indicators are typically part of a currency trading strategy. Automated or manual approaches may be used to identify these signals. Trading chances are found by examining chart patterns and averages using manual approaches. Trading signals are generated, and transactions are executed automatically by algorithms based on a variety of predetermined circumstances.
Nigerian traders can utilize a wide variety of trading methods to help them make smarter selections when it comes to trading. Technical analysis, as well as fundamental analysis, may be used together in forex trading methods, just as in other trading systems.
Traders can subsequently construct a more well-rounded trading strategy by combining elements of both technical and fundamental analysis.
Any forex trading strategy selection criteria must first be established. Nigerian forex traders must consider the following to help them narrow down the search on an ideal strategy:. 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. To be an effective trader, Nigerian traders must first identify their own style of trading. In addition, traders can open a virtual trading account to practice and test forex trading tactics.
Scalping is best suited to forex traders that like short-term transactions lasting only a few minutes, or those who want to take advantage of many market changes. 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. This forex strategy is best suited for Nigerian traders who can devote the necessary time and attention to the larger trading volumes and the resulting quick transactions.
The following are times of high trade volume:. The best forex pairs to trade using scalping strategies are as follows:. Day trading in the Forex market. Day trading is an alternative to scalping if Nigerian traders wish to trade for short periods but are not comfortable with the fast-paced nature of the method. 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.
Because of the time and effort required for this form of trading, Nigerian traders need to partner with a broker that can grasp economic performance and factors that might have an impact on their trade.
Subsequently, the trading position may be adversely affected if any important economic developments occurred on that day. Swing trading in the foreign exchange market.
Traders who want a mid-term trading strategy that allows them to hold positions for many days might use swing trading, which tries to benefit from movements in price. Even while it requires less attention to the market than does day trading, this method exposes Nigerian traders to overnight or gapping disruptions.
Position Trading. 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. Investors who have a long-term view of currency markets may maintain holdings for months or even years at a time. Long-term gains are expected from this method. 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.
Carry Trade. Read Review. In forex trading, there are three sorts of charts. They are as follows:. A candlestick chart is the simplest and most often utilized chart style in the forex industry today that Nigerian traders can use. Trading techniques can easily be developed using the trend lines that can be seen on a line chart.
Price breakouts or trend shifts may be detected using the information contained provided in a trend line, for example. 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. Each bar on the chart represents a single trading day and includes the starting price, the highest price, the lowest price, and the closing price of a deal. 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.
Japanese rice dealers employed candlestick charts for the first time in the 18th century. They have a more pleasing appearance and are simpler to understand than the previous chart kinds.
To show the opening and highest price point of a currency, Nigerian traders utilize the top section of a candle, while the bottom portion of a candle is used to show the closing price and lowest price point. 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. Candlestick charts often use the hanging man, and the shooting star patterns.
Young Nigerians have become dedicated fans of forex trading, making it one of the most popular ways to make money in the country. Mobile devices and desktop computers can both use it, and it is accessible all the time, making them a great deal less expensive than other options. The only requirements are a cell phone and some capital. Mobile trading platforms have become extremely popular in Lagos as it allows Nigerian traders to remain updated on their trading while they travel.
It is common for traders to lose money because they do not have a risk management plan in place to limit their losses.
There are a few basic techniques to reduce risk when developing a good risk management plan:. 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. The licenses of all properly licensed brokers are listed at the bottom of their websites, and a quick check with the appropriate authorities reveals whether they are.
When Nigerian traders use well-regulated brokers, they are given access to negative balance protection. This is a vital risk management tool that ensures that the trading account does not go into a negative. Nigerian traders can try their trading strategies using a demo account, with the most popular brokers offering this option. The practice account works in the same way as a live account but uses virtual money until traders are ready to trade real money.
Nigerian traders must be aware of the leverage that they are employing once you begin trading on a live account. While increasing trading capital to more than 1, could seem like a good idea, the impact that leverage can have will apply to any losses that the trader incurs. Some brokers provide leverage of or even Until traders are confident about the impact of leverage on their trading, they should stick to a leverage ratio of no more than All currency pairs that include the US dollar are considered major forex pairs, with these also the most stable currencies.
When trading exotics, Nigerian traders should be aware that they are riskier and more expensive than trading major and minor currency pairs. Keeping an eye on the markets all day is not feasible for many new investors. Fortunately, copy trading is available from brokers and individual signal providers.
Beginner Nigerian traders can use copy trading services to imitate the trades of more experienced traders, and the brokers take a tiny percentage of the profit. Nigerian traders must always use a stop-loss on every transaction they open to avoid significant losses in Forex trading. When the price reaches a certain level, a stop-loss order will automatically terminate the transaction.
It is only natural for traders to want to stay on to a losing transaction in the hope that one day, it will turn around and be lucrative. However, this is not the way it always turns out, with most traders experiencing significant losses at this point. Many novice Nigerian forex traders struggle with the sheer volume of information on trading platforms and their inability to use them effectively while learning how to trade. For clients of forex brokers, trading platforms are software applications that allow them to participate in the foreign exchange market.
Trading platforms can be used across a series of devices, and they can either be web-based terminals, a mobile app, or software application. Traders can use trading platforms to place buy and sell orders in the foreign exchange market. For the benefit of their customers, forex brokers make these tools readily accessible. Many brokers today offer a proprietary trading platform or trading app that can be used for order processing and research. Online trading platforms for individual and institutional customers are available from a broad range of brokers.
Banking and brokerage firms may also construct their own custom trading systems to fulfil their own internal demands, which are then implemented through institutional trading channels. Several platforms provide forex charting programs that Nigerian traders can use in combination with other technologies, such as predictive forecasting software and online trading, to get an advantage in the forex markets.
The benefits of Forex Trading While forex trading and the foreign currency market have significant hazards, they also include numerous benefits that may make them a profitable and appealing activity. A fraction of a second in normal market situations is all that is needed to open and close a trade in any of the major currencies. 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. Unfortunately, this is not something that many Nigerian traders can do in either the stock or bond markets in Nigeria.
Because of this, part-time traders prefer Forex trading because it allows them a flexible trading schedule that does not conflict with their full-time occupations. The forex market offers a broad range of trading opportunities for investors. Hundreds of currency pairings are available for trading by any type of individual Nigerian trader regardless of their trading style or strategy. Spot transaction or a future agreement are two more options available to them.
To fulfill the demands of Forex traders, futures contracts are available in a variety of sizes and with a variety of maturities. In comparison to other markets, the forex market has minimal trading costs.
Comparatively, the transaction costs of Forex trading are exceptionally cheap when compared to dealing in other markets, with Nigerian traders able to start with small initial Nigerian Naira deposits. This is because the Forex market is run by dealers who issue two-way quotes to cover their own risks.
In terms of financial asset markets, forex markets have the biggest leverage. Currency pair: A currency pair denotes the two currencies you will be trading. One currency will be bought or sold and the other currency will be exchanged in return. All forex trading is done via a currency pair. In this currency pair, the NGN is known as the base currency and the USD is known as the quote currency.
There are three types of currency pairs — major, minor, and exotic. Major pairs are the most traded pairs in the world. Exotic pairs are the least traded pairs. You should always try to trade major currency pairs since these are more predictable, have tighter spreads, and have the highest trading volume.
Pips: A pip is the smallest movement that the price of a currency can make. Pip is generally the fourth decimal movement of price in currency pairs. The spread that you will be charged for trading a currency pair is denoted in pips. Leverage: Leverage is the ratio between the amount of money that you need to invest and the amount of exposure that you can gain in a trade.
For example, the leverage offered by a forex broker can be The higher the leverage, the larger the trade that you can make with a given amount of money.
Leverage increases the potential profit you can make through your trades since you only need a fraction of the money to be able to enter a sizeable trade. However, this also increases the amount of risk that you face with your trades. Bid Price: The bid price is the highest price that a purchaser is willing to pay for a security. In forex, the bid price refers to the amount of base currency needed to purchase the quote currency.
Ask Price: The ask price is the lowest amount that a seller is willing to pay to sell a security. In forex, the ask price refers to the amount of quote currency that you will need to sell in order to get one unit of base currency. Spread: The spread is essentially a fee levied by a forex broker.
It is denoted as the difference between the bid price and the ask price. The difference between the two is the fee that the broker is charging in order to provide brokerage services. The spread is usually variable in nature. This means that the spread fluctuates in accordance with the liquidity and the timing of the trade. The spread for trading each currency pair will be different. Usually, major currency pairs have tighter spreads than minor currency pairs.
This means that trading major currency pairs is more affordable than trading other types of currency pairs. Their spread with Micro Account is 1. Lot sizes: Lot size is the amount of currency that you will be trading. There are three different main lot sizes in the forex market.
Different brokers offer different types of lot sizes, however, the terminology for the three main types of lots has largely remained the same. Currency pairs can be traded online as CFDs or other derivative instruments. There are several brokers and banks that offer forex trading services. Such services can be either by acting as a market maker or by straight-through processing STP. This depends on the business model of the forex broker or bank.
A demo account can be used to trade with virtual currency before making actual trades. Beginners can gain experience, learn terminologies, understand volatility, check suitability, and test their strategies using demo accounts. For example, HotForex registers the traders from Nigeria under HF Markets SV Ltd, which is in St.
This makes HotForex Group a safe Forex broker for traders in Nigeria. Even though your account is not registered under Tier-1 regulation, but the fact that the broker that you are trading with is well regulated reduces the risk for safety of your deposited funds.
Forex trading platforms have transformed the way people interact with the financial markets. These platforms enable traders to gain exposure to hundreds of different markets around the world. There are several trading platforms available in the market these days. This makes choosing a trading platform difficult. Choosing the wrong platform can cause you to suffer from slow trade execution, no educational material, no technical indicators or analysis, and so on.
Since each forex broker offers a certain set of trading platforms, the trading platform offered by a forex broker is an important consideration while choosing a forex broker as well. Trading platforms are offered by forex brokers.
A broker can offer a single trading platform or a variety of them. The most common trading platforms offered by brokers are MetaTrader 4, MetaTrader 5, or cTrader.
Some brokers also offer their own proprietary trading platform. As of date, there are no forex brokers licensed by the Nigerian government since the industry is still unregulated. Hence, before choosing a broker, you should check whether they are regulated by a tier-1 financial authority like the FCA of the UK or the ASIC of Australia. There are a few top-tier brokers that have local offices in Nigeria and offer local deposit methods to Nigerian traders.
These are OctaFX, Hotforex, and FBS. You should make sure that the forex broker websites that you visit are genuine. Nigerian traders often end up visiting fake look-alike websites and get scammed. There are several scammers operating online that pose as regulated brokers. This makes it risky for retail traders. Hence, it is important to only register your account on genuine websites. Online forex trading is a highly risky activity.
Here are some of the types of risks that you will face:. Forex trading is currently unregulated in Nigeria but it is not illegal to trade forex. Is Forex Trading profitable? But you must understand that even then there is no guarantee that you will make a profit. Is Forex Trading Good for Beginners? No , Forex trading involves high risk. Those who are new to trading must spend time and effort to learn the basics and understand price movement in forex market before starting.
Forex trading can be good for those who are familiar with short term trading in other markets. Demo trading accounts can be very useful for the beginners. Beginners in forex trading can gain experience, learn terminologies, understand volatility, check suitability, and test their strategies using demo accounts. How do I Start Trading Forex? Learn about forex market and trading platforms 2. Deposit Funds 4.
Place a trade order through online trading platform. How to trade Forex in Nigeria? You can start trading forex by opening your account with a CFD broker that is licensed by Top-tier regulations like FCA, CySEC, ASIC etc. Nigerian clients are registered under offshore regulations but you should choose a reputed forex broker that is licensed with multiple top-tier regulators. See Best Forex Brokers in Nigeria See Best Brokers.
Forex Trading in Nigeria Forex Trading is not regulated in Nigeria. Best Forex Brokers. Forex Trading Guides. Forex Trading Apps. Editorial Team Updated on March 24, Summary Table of Best Forex Brokers for Beginner traders in Nigeria in Leverage Learn More.
Chapter 1 What is Forex Trading? Understanding the Forex Market and its Participants The forex market is the largest financial market in the world. How Are Currencies Traded and the Various Forex Instruments Forex is traded in pairs. We have briefly covered each financial instrument here: Spot forex contract — A spot forex contract is the most widely used instrument for forex trading.
What is Online Forex Trading and How Does it Work? Chapter 2 Basic Forex Terminology. The three sizes are Standard, Mini, and Micro. A Standard lot is equivalent to , units of the base currency. A Mini lot is equivalent to 10, units of the base currency. A Micro lot is equivalent to 1, units of the base currency. Chapter 3 How Can You Trade Forex in Nigeria?
What you need to Trade Forex in Nigeria Here are the basic steps involved in forex trading and opening an account with a forex broker: Learn about Forex Trading: It is essential to first learn how to trade forex before you start your trading journey.
Choose a Forex Broker: The next step is to find a forex broker that is both safe and reliable. Any Forex Broker that you choose must be licensed by at least one Tier-1 or Tier-2 financial regulatory authorities. You should also research the different types of accounts provided by the broker. Fill out an application form and complete KYC: You will need to register and open a trading account with the forex broker.
This will also involve completing KYC norms, but this can be done completely online. Choose a username and password: Once your account is approved, you will receive a username and password or you can choose your own.
Deposit money into your account: You will need to deposit some money into your account in order to start trading. Each broker has its own minimum initial deposit requirements. Practice trading: You can practice forex trading through a demo account. This is highly recommended for new traders. Stay informed: A key part of being a successful forex trader is staying informed on the latest developments and news.
What do you need for online forex trading? There are certain things that you will need in order to trade forex online. Here are the basics: Device: You will need a personal computer, a laptop, or a smartphone in order to be able to access the markets.
Home » Forex Brokers » Forex Trading Nigeria: The Ultimate Guide. This is an in-depth look at everything you need to know before trading forex in Nigeria. The forex market is a global platform where currencies can be exchanged, even the Nigerian Naira, regardless of whether it is for business, travel, or leisure. Every exchange rate is determined by various factors such as the overall economic situation in Nigeria, news releases, and so on. While there is no single, centralized forex market or exchange located in Lagos, Nigeria, forex trading can be carried out over a network of computers, with the Central Bank of Nigeria CBN overseeing forex trading activities , ensuring that traders are protected.
Forex trading can therefore be considered as a combination of foreign currencies and exchange rates. The act of converting one currency into another e. Nigerian Naira to US dollars is known as foreign exchange and can be done for several purposes, the most common of which being business, trade, or tourism. A currency exchange market is a valuable tool because it allows us to buy and sell goods and services both inside our own country and across international boundaries.
Nigerians must exchange currencies to allow for international commerce, business, and travel. To trade currencies, traders must be connected to one of the main financial hubs in Frankfurt Hong Kong , Hong Kong London , New York Paris , Singapore Sydney , Tokyo Zürich or Frankfurt Frankfurt.
Nigerian traders have the benefit that they can connect to any of these sessions according to their unique trading strategy and trading horizon. A high level of volatility and continuous price movement characterize the currency market. Forex markets are dominated by commercial and investment banks, but there are also speculative possibilities for professional and individual investors to trade one currency against another.
The currency asset class has two main characteristics:. Investors can benefit from the difference in interest rates between two distinct economies by purchasing and selling currencies with differing rates of return. Forex trading is a potential source of money for Nigerian investors.
With an estimated daily transaction volume of million, forex trading has grown very popular in Nigeria. Nigerian traders are often drawn to forex trading since it provides the opportunity to generate substantial gains in a shorter period minutes and hours instead of months. In this article, you will learn about the following:. The basics of Forex trading in Nigeria. The factors that drive forex prices. Forex terms and definitions. All that you need to know about currency pairs.
How you can start trading forex in Nigeria ASAP. The forex trading strategies that you can consider. A crash course on Forex Charting. What you need to do to protect yourself in the forex market. What trading platforms are and how they work. The pros and the cons of forex trading to decide if it is suited to you. FSCA, FSA, CySEC, FCA, CBCS, FSC BVI , FSC. IIROC, ASIC, CFTC, NFA, FCA, FFAJ, MAS, MFSA. The foreign exchange market is the platform that facilitates the exchange of currencies globally.
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.
For example, when someone buys cheese from France, they are required to pay using euros. The individual can exchange their currency either through a broker or they can exchange it at a currency exchange kiosk. Traveling works in the same manner, for example, euros are not an accepted currency in Egypt, which means that a French visitor cannot pay for a visit to the pyramids with euro.
In this scenario, the traveler must convert their euros to the Egyptian pound to pay for their tour. Foreign exchange forex trading is similar in many ways to stock trading, with Nigerian traders trying to acquire currencies that they believe will rise in value or sell currencies that they believe will fall in value. Traders can choose from the following three ways to trade forex:. Exchange rates are set in real-time here on the principal forex market based on supply and demand.
To secure an exchange rate for a certain amount of money at a future date, Nigerian forex traders might engage in a legally binding private contract with another trader instead of immediately completing a deal. Traders may also select for a conventional contract to buy or sell a preset quantity of a currency at a predetermined exchange rate at a future date.
Because of the wide variety of currencies traded on the forex market, it is impossible to make accurate forecasts about the direction of exchange rates. When it comes to forex, supply and demand are the primary factors that determine the price movement, and it is necessary to grasp these variables to be successful.
Injecting more money into an economy, such as via quantitative easing, may lower the value of its currency. The Central Bank of Nigeria CBN manages the supply of Nigerian Naira in the country, much like other central banks are in their respective regions. If more positive news about Nigeria and its economy emerges, there will be increased investment from foreign investors.
There must be an equal or greater increase in the supply of money for the price to rise. In the same way, bad news may induce a decline in investment and a fall in the value of a currency. Currency values are influenced by the stated economic health of the area they represent. This is a factor that could have a significant impact on currency pricing. Trades will be made according to what Nigerian traders feel the currency is going to do, which may either increase or decrease demand for the Nigerian Naira.
These Nigerian traders can use credit ratings in addition to interest rates and economic data when making investment decisions. The language of each market is distinct. Before getting into forex trading, Nigerian traders need to know these terms:. Every currency in the world is assigned a three-letter code, with the Nigerian Naira expressed as NGN in the forex market. The US dollar USD is engaged in the great bulk of foreign exchange trading even though there are more than other currencies in existence.
The euro code: EUR , which is used in 19 EU nations, is another popular currency in the foreign exchange market. Additional well-known currencies include:. All forex trades involve two currencies that form a currency pair. Forex trading relies heavily on the following seven currency pairings, which are also referred to as the forex majors:.
For each currency pair, the current rate of exchange between the two currencies is represented by the two currencies in the pair. Subsequently, the base currency will always be expressed as a single unit, with the quote currency varying according to the current market and the amount needed to buy a base currency unit.
Nigerian traders must note that the base currency is normally listed first, followed by the quotation currency. However, historical practice dictates that certain currency combinations be represented differently. Investing in the stock market is a lot like FX trading. To begin a forex trading career, Nigerian traders can follow these simple steps. Learn about Forex. Nigerian traders must acknowledge that forex trading typically offers higher leverage ratios than any other financial market.
In addition, the factors that drive the forex market are also different to those that drive equity market prices. Any political and economical news in Lagos, Nigeria can spart volatile movements in the forex market, either in an upwards or a downwards trend. Traders who are just starting out have a plethora of training material, books, courses, classes, and other educational materials, tools, and resources at their disposal to ensure that they are thoroughly educated in forex trading.
Choose a broker and set up an account. Some forex brokers make up their fees by charging a flat commission on trades. However, other Forex brokers do not impose any fees for trading. It is instead via the spread in forex trading indicated in pips that exist between the purchasing and selling prices that they earn their money.
Micro accounts are ideal for beginner Nigerian traders because they have lower capital requirements, lower degree of risk, and smaller positions size of 1, units of base currency, in this case, Nigerian Naira depending on whether they are buying or selling currency. To put things in perspective, one normal account lot is equivalent to one hundred thousand dollars. With a micro forex account, Nigerian traders can learn the basics of forex trading and find out what kind of trading strategy works best for the trader.
While the CBN approves forex trading and provides a regulatory framework, it is the responsibility of Nigerian traders to ensure that they only use the services of regulated brokers.
Develop a trading strategy. Traders must consider how much money they are willing to invest and the degree of risk they are prepared to face to avoid losing their initial deposit. It is important to remember that forex trading is a high-leverage business. Those who are prepared to take the risk, however, will reap greater benefits. Traders must remain on top of their numbers. If Nigerian traders have any open positions that need to be closed, they must make sure that they have enough money in their trading account to cover any future transactions.
Ensure emotional Equilibrium. There are many uncertainties in forex trading and unanswered questions. When it is time to close a position, traders must be strict about it. Nigerian forex traders use forex trading strategies, despite whether they are active traders who have a forex career, or they trade when they are home. Forex signals and technical indicators are typically part of a currency trading strategy. Automated or manual approaches may be used to identify these signals.
Trading chances are found by examining chart patterns and averages using manual approaches. Trading signals are generated, and transactions are executed automatically by algorithms based on a variety of predetermined circumstances. Nigerian traders can utilize a wide variety of trading methods to help them make smarter selections when it comes to trading.
Technical analysis, as well as fundamental analysis, may be used together in forex trading methods, just as in other trading systems.
Traders can subsequently construct a more well-rounded trading strategy by combining elements of both technical and fundamental analysis. Any forex trading strategy selection criteria must first be established.
Forex Trading in Nigeria,An overview of foreign exchange in Nigeria
It has branches in the United Kingdom, Canada, Australia, Cyprus, Israel and the United States. In , it had valued its value at more than $ million. The company is listed on the Boston AdVocê é um comerciante experiente? Use nosso bônus para testar suas estratégias. Você é um comerciante iniciante? Use nosso bônus para aprender sem risco 24/03/ · 6 Steps to Start Forex Trading in Nigeria. Learn the basics of Forex Trading; Understand how the Forex Market works; Open an Account with licensed Forex Broker; ... read more
Offers popular forex trading platforms including proprietary trading platforms and trading apps. Leverage increases the potential profit you can make through your trades since you only need a fraction of the money to be able to enter a sizeable trade. This allows Nigerian traders to trade larger positions sizes and invest more capital. ASIC, FSA. These platforms enable traders to gain exposure to hundreds of different markets around the world.
Scalping is best suited to forex traders that like short-term transactions lasting only a few minutes, or those who want forex trading in nigerian banks take advantage of many market changes. Types of Currency Pairs Currency pairs are mainly classified into 3 types: 1 Major Currency pairs: These are the currency pairs that include US Dollar as one of currency in the pair. The currency asset class has two main characteristics: ️ It is possible to profit from the difference in the interest rates between two currencies. Take advantage of low trading costs with no transaction fees or currency exchange rates. This is the traditional way in which forex trading is and was done, forex trading in nigerian banks. The following are some of the drawbacks of forex trading to keep in mind.
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