The COVID-19 pandemic in 2020 and 2021 turned disastrous for mankind with losses of both lives and economies. The phase turned challenging for almost all the industries including education and tourism. Many lost their jobs. Many suffered losses in businesses. However, a couple of segments flourished and forex was one of these.
Forex was one of the priority activities for most individuals and it is still a popular financial product for traders since then as it is lucrative.
Forex trading reached a new height during the COVID-19 pandemic period as the procedure is easy and straightforward. Its volatility has attracted more novice traders to make money in a short span of time. It can be accessed online and one can start trading with low capital, even with just 50 pounds. The only significant suggestion is to gain knowledge about forex and understand its trading before opening the first position.
The segment is highly regulated by various regulatory authorities in different jurisdictions. It is regulated by the FCA in the UK. This has made it highly trusted among traders.
One of the primary reasons for its increased popularity is flexible trading hours. It is a global marketplace and can be traded 24-hour a day from Monday to Friday, based on different time zones. It is perfect for those who want to consider it as a part-time profession along with the day job or day profession.
Even though one can trade a plethora of currencies, the high liquidity currencies are just eight in number including USD, GBP and EUR. These are called major currencies.
One can trade it as CFDs and it requires just speculating of the price movements instead of buying the currencies. Most brokers offer margin trading to help traders earn more profits. However, it is important to note that leveraged trading is for experienced traders as the risk is enhanced and one may lose even more than the deposit money. It is simply termed as investing borrowed money.
Fore has the potential for huge growth. Continuous practice helps in making more money from the segment. It is simultaneously important to keep an eye on the geopolitical developments as the currencies are not under the direct control of any government or authority.
Proper knowledge about the forex market and trading strategies will help in placing winning trades. Beginners are suggested to start with a demo account to get real exposure to the market without using real money. Most brokers offer demo accounts and these are accompanied by virtual funds. Trading with a demo account simultaneously helps in understanding the trading platform.