Failure to plan is intending to fail when it comes to the currency market. The more tactics you master, the more probable it is that you will earn regularly. Begin your adventure with some well-researched game plans.
- Day trading
- Range trading
- Price action
- Trade trading
Trading forex in South Africa
Trading forex in South Africa, for example:
Let’s imagine the price of ZAR/USD is 0.05780/0.05790, and you believe it will climb. This currency pair’s margin rate is 3.17 percent, and you want to buy R150,000.
You’ll need $275.08 in your account; I Will borrow the rest from the broker.
The price of the ZAR/USD is rising as expected. Its stock is trading at 0.06020/0.06040 after 3 hours.
23-point move (0.06020-0.05790), thus your profit is $345 (R150,000*0.06020)-(R150,000*0.05790).
In South Africa, you can earn money by trading forex:
Outside of the typical “buy low, sell high” philosophy, there are other ways to profit in the forex market (which works just fine as well). The more you know, the better equipped you will be to recognize opportunities as they arise.
Carry trading: You can profit from the directional movement of a currency pair, but you can also profit from the currency’s interbank interest rate. Holding a currency in Forex is the same as holding it in a bank. Your investments earn you interest. Carry traders seek to profit from interest rate differentials between currencies.
Binary option: You can participate in all-or-nothing options instead of accepting profit or loss depending on the real-time movement of a currency pair. You win money if a currency is at a specific price on a specific day. You lose your investment if it is lower than the pre-determined price on that day.
Shorting: If you believe the value of a currency will fall in the future, you can borrow it and sell it at a high price to repurchase it at a lower price later. This is referred to as currency shorting.
What to see for When Selecting a Forex Broker
The finest forex brokers will exhibit the following characteristics regardless of where they are based:
- I Will open an account for you
- Have a fair reputation
- Offer the currency set and assets you want to trade
- Require a low minimum deposit
- Set prices with reasonable dealing spreads.
- Keep order slippage to a minimum.
- permit enough leverage for your preferred trading strategy to work
- Provide negative balance protection
- Segregate customer accounts from their own
- Support the deposit and withdrawal step you wish to use.
Users in South Africa highly recommend Forex. On the plus side, Forex is regulated by Top-Tier regulators such as the FSCA in South Africa, the FCA in the United Kingdom, CySEC in Cyprus, and the DFSA, making trading with them quite safe. Furthermore, out of all the brokers, we’ve tried so far, Forex has one of the lowest spreads with their trading accounts. The benchmark average spread for a major pair such as USD/EUR for a Zero Account is 0.1 pips, which is quite low compared to other brokers, but it is not the lowest overall expenses, including $6 commission for each lot. The rollover and commission fees are also obvious and upfront, unlike some brokers who do not publicize them.