Forex Trading Guide, Benefit and Lack That You Must Know

Speaking of investment, of course there are many instruments to choose from, one of which is forex trading. This tool is quite risky but the benefits are also great. As a forex trader, you are free to decide which currency or foreign currency you want to trade.

In other words, there is no demand or dependence on any particular currency in order to make a profit. Most importantly, traders are able to make the right decisions when it's time to buy or sell, and pay close attention to the supply and demand levels of their chosen currency.

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As an investment application, apart from offering benefits, forex trading also has its own risks. Before starting to learn about forex investing, it is a good idea to know the risk profile offered by one of these types of investment.

What is Forex Trading

If you are starting to get curious about what forex trading is, then here will review it in more detail through this article. Forex is an investment product with the activity of buying and selling foreign currency. The activity of buying and selling foreign currency or foreign exchange which is abbreviated as forex.

Basically, how to trade forex is quite easy to do. Furthermore, there are currently many platforms that provide trading robot facilities that can help users analyze the market using specific algorithms. However, you still have to be careful.

And ensure the accuracy of the analysis results because the trading robot service still does not have legitimacy in Indonesia and risks fraud and falsification of information. The purpose of this trading is, as an investment in itself. Which is to look for a profit from the difference in the number of sales made.

Benefit of Forex Trading

Forex is actually a form of investment where you buy a foreign currency or foreign currency and expect that the value of the purchased currency will increase. Well, here are some of the benefits of this trading activity, as follows:

1. Profit from the Difference in Exchange Rates

The profit that investors get is the difference between the exchange rate when you buy and the exchange rate that is happening right now. You can do this by buying dollars when the value is still low and reselling them at a higher price or buying at a high price and reselling them at a higher price.

Meanwhile, there are three possibilities for the movement of the dollar, namely up or uptrend, stable or sideways and down or downtrend. If it goes up, then a big profit will be made but if it is down, then the value of the currency will tend to decrease as well.

Before making a dollar investment, you should first know the purpose of this investment. Also make sure, before starting forex trading, that you have also provided an emergency fund that can be used for something that happens suddenly and suddenly.

2. Transactions can be made flexibly

There are so many advantages of forex, one of which is that fund transactions can be done 24 hours a day. This is clearly distinct and different from transactions that might take place in the capital market because the forex market will be active 24 hours, five days a week for you to be able to make any transactions.

3. More Liquid

The next advantage of forex trading is that it is liquid. Therefore, traders can close and open their positions fairly at the market price.

4. No Additional Fees

In fact there are no transaction fees in the online forex market, it's just that there are a number of fees that vary in number, for example, the cost of withdrawing money from a forex account.

5. Benefits can be felt immediately

Another advantage of forex trading that traders can get is that they can take advantage of price increases that result from the difference between the buy price and the sell price on the buy order. Meanwhile, when making a sale, the profit is obtained from the difference between the selling price and the buying or closing price.

6. Get an Edge System

In addition, there is trading using a margin system, where this can make the purchasing power of investors higher than the capital they have. If it is like this, of course, the profit is two ways when the market rises and the price falls. Of course, this may not apply to other types of investments such as stocks.

Lack of Forex Trading

Every investment tool, including forex, of course, has its own drawbacks. Now for more details, let's discuss some of the shortcomings in forex investment, as follows:

1. The Ups and Downs of Forex

It should be noted that all investments have their disadvantages, including foreign exchange. The first disadvantage of this investment is the effect of fluctuations in foreign exchange rates. As is known if the rupiah currency can be very weak.

So it could be dangerous to buy dollars because of course the price is expensive. Waiting for the Indonesian currency to strengthen can take time, so it can make forex trading experience losses.

2. There is Government Intervention

Another risk is the intervention of the original government whose currency is traded in the forex market. The intervention in question is the intervention of the country's central bank by increasing interest rates, releasing government bonds.

At the same time buying foreign exchange on a large scale. By knowing the pros and cons of forex investment, you will then choose the type of investment that suits your abilities as well as your funding needs, for both short and long term investments.

Forex Trading News

There are so many forex sites that are often a reference for investors to find out different things about market movements, the economy and so on. In addition, with this forex news, business people can do fundamental analysis before placing orders or opening positions to buy or sell.

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Fundamental analysis is very important for traders so that profits will increase. Well, here are some websites that make forex news about them, as follows:

1. Bloomberg

Bloomberg is a business portal, where all business related information is available here. You can find, starting from forex or foreign currency, currency or currency movements including rupiah, commodities, futures and stocks.

2. Forex Factory

In addition, you can also see the forex factory site which is the choice of traders. As the name suggests, this site provides various information about the basics as well as the technicalities of forex trading. Not only that, this website will also publish a live economic calendar every day to provide information about forex news.

3. DailyFX

In addition, there is also a dailyFX site which is almost the same as the forex factory, the only difference is that there is analysis by forex experts including forex signals.

4. XE

There is also another forex site called XE, where a lot of news about currency sites are fully available with detailed reviews, so it will be easier for traders to analyze different types of forex fundamentals.

5. Financial Times

Next up is the Financial Times, which presents the most up-to-date information in the world of forex trading. One of the advantages is the more neutral nature of the news, because this website is not owned by the US government.

The Financial Times also allocates more space for forex trading in developing countries, including the Asian region, especially in terms of top currencies. Therefore, the information that traders will get is not only focused on the main currency.

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