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5 Things You Should Know Before Forex Investment! - Investment - Nairaland

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5 Things You Should Know Before Forex Investment! by Ronald85roy: 5:19pm On Jan 29, 2022
Well, in forex investment, you should know some things that make a favor for you. That's why here I will show you some tips before investing in forex. So, let's roll it:

Investment risk: Start by getting an understanding of your overall investment risk. The risk profile of USD/CAD is very different from USD/BRL. Just as every company is different in the stock market, every currency pair is different in the forex market.

Trading fees: Some brokerages hide fees inside of spreads, or the difference between buying and selling prices for a currency pair. Others charge clear transaction fees based on volume, trade size, or pair. Know what you’re going to pay for every trade.

Leverage used: If you’re exposing yourself to more than $1 of risk for every $1 invested, you’re using leverage. This can accelerate both gains and losses, so know how much leverage you’re using.

Margin requirements: Similar to leverage, margin can lead to outsized profits and losses. If you’re trading with margin, understand the costs, and know the margin requirements for your account.

Profit or loss per pip: Currencies go up and down in small increments, known as pips. Know the amount you will make or lose in dollar terms per pip in an exchange rate change.

Thanks for your time. I think these tips might help you in investing in forex.

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