The digitized economy gives various opportunities to earn a living. A nine-to-six office routine is not the only way to make money. Electronic platforms providing access to the international foreign exchange market are in high demand, and for a good reason. Today, clients of Forex Broker in Nigeria can boost their income by trading currencies.
To start, find a trustworthy intermediary for access to the marketplace. Trading with Alpari is an increasingly popular choice in Nigeria due to the company’s lengthy experience in the field. The company has established itself as a credible broker. It provides a cutting-edge platform (MetaTrader) and an impressive range of 250+ finance tools.
The next step is education. A client needs to learn the ropes of Forex trading, which is facilitated by the broker’s expert guidance. In essence, the trading consists of selling and buying world currencies – hence the name.
The said exchange rates are always in flux, which means you earn a profit by timing the deals effectively. Thus, the task is similar to selling and buying of stocks. Stockbrokers tend to buy low and sell high (i.e., they purchase shares cheaply and sell them when the price has risen). The same applies to Forex players.
Not only is this market international, but it is also the largest in the world. The value of transactions conducted daily amounts to trillions of US dollars. Aside from traders and intermediaries from all continents, currencies are bought and sold by financial institutions, such as international banks or hedge funds. In fact, retail trading accounts for a mere 5.5% of the whole market.
Currency traders from Nigeria are now able to participate and gain profits from differences between the ever-changing exchange rates. These are determined by a multitude of factors, belonging to both micro- and macroeconomics. Here are some of the key factors affecting currency rate shifts:
● The pace of economic growth.
● Interest rates.
● Geopolitical changes.
● Political systems.
● Monetary policies.
● Imports and exports
This finance tool may seem confusing to rookies. Your broker will provide ample educational materials to help you grasp the basics of Forex predictions. All currencies are traded in pairs, containing a so-called base currency and a term currency. Here is the logic behind such an indicator
One of the most popular combinations is GBP/USD. This indicator basically shows how many US dollars (the quote currency) you need to spend to buy a single British pound (base currency). For instance, the value may be 1.2700, meaning that one pound is worth 1 dollar 27 cents.
The same logic applies to the opposite – purchase of US dollars for British pounds. Besides these two, there are other base currencies: Euro and the Nigerian Naira.
Each pair of currencies has two indicators – its so-called bid price (applied to selling) and ask price (applied to buying). For example, these may be 1.27355 and 1.27363, respectively. The difference between the two constitutes the “spread”.
In the above example, a trader’s goal could be to buy US dollars while they are cheaper and sell them back later – after their value has risen. To spot the most favorable moment, participants should either use advanced trading accounts or best trading hours. Each transaction could result in either profit or loss depending on its timing.
If you do not have sufficient time to participate in trading yourself, you could always delegate. This option is called copy trading, and it means that an expert trader conducts transactions that are copied into your own account.
You may transfer money to and from your trader account easily. Alpari offers a wide range of possible channels, from bank cards to Skrill, there is a wide range of channels. The same methods apply to withdrawals.
Traders are also given regular incentives. Bonuses and limited-time promotions include top-ups of trading credit and multiple rewards