This year, remote work opportunities are in higher demand than ever. Due to COVID-19, millions of people have had to learn to make money from home. Sticking with an office job is not the only avenue, there are quite a few internet-based professions to consider. For example, Indians can access the largest financial market through apps and turn knowledge into income.
It is difficult to find a person who has never heard of Forex. The global foreign exchange rarely sleeps – it is a vibrant environment where trillions of dollars circulate every day. Traders are their own bosses – they can work full-time or have very flexible schedules. You, too, can join their ranks if you are willing to learn about this market.
Overview of the Market
Of course, humans have been exchanging currencies for centuries, since the dawn of international trade. Here, we are not talking about offline operations when you go to a bank office to exchange cash. Neither is the activity connected with trade (at least directly).
For most people, Forex is an entirely virtual system. It has two levels – the interbank market (where institutions interact) and the OTC (over-the-counter) market. The latter is what you will connect to if you want to make money from home.
Foreign exchange is a vast system where institutions and individuals exchange currencies. It works 24 hours a day five full days a week. You do not need a Ph.D. in finance to partake in trading. Since the 1990s, the market has been open for retail traders (i.e., individuals) who work through brokers. These companies function as intermediaries: they provide access, the software, and training.
How Profit Is Made
So, what is the source of profit for traders? Unless you live in a bunker, you know that currency rates are always changing. For example, the US dollar may rise or fall against the Euro. For example, these changes are important for any American traveling to the EU, or any European visiting the US.
These rates are affected by many factors. They are susceptible to political and economic drivers ranging from interest rates to geopolitical tensions. You can learn the basics of foreign currency trading in India through Forextime, a global broker brand with operations in the country.
As currencies lose or gain value, you can profit from a well-timed trade. Basically, traders aim to buy low and sell high. For example, if you expect the US dollar to become more expensive, you can buy more of the instrument and sell it back after the rate spikes.
An important advantage of the FX market is that both upward and downward trends can work to your advantage. When you foresee a drop in value, you can sell the currency in question. Afterward, you can buy more or it for less. Trading is this constant process of buying (going long) and selling (going short).
How to Gain Access
To begin, you need to register an account with a broker. Traders in India should only work through regulated companies – those which have an official license. It is preferable to choose brands authorized by industry watchdogs like the FCA in the United Kingdom or the CySEC in Cyprus.
These providers guarantee client protection, including negative balance protection. This means a client may never end up in the red. A reliable broker provides efficient support and training opportunities.
There are two types of accounts – demo and live. Both are free to register, but the demo mode is used for simulated trades. It unlocks the trading software in its practice mode, so one can hone their skills safely. Remember, though, the company is not responsible for your own mistakes. It creates the necessary conditions for success, arming you with the software (desktop platforms and apps) and providing guidance.
How to Make Decisions
How do traders predict the market? They may use two different sets of tools. Fundamental analysts monitor financial news to spot factors that may sway the rates. For example, when the central bank of a country raises its interest rate, more capital flows into the economy, and its currency strengthens.
The second approach is technical analysis. Here, you will focus on special indicators like volume, or moving average. These are applied to price charts on the trading platform. Indicators allow you to identify patterns that are likely to repeat themselves.
Is It Easy to Begin?
All this may seem daunting but believe us: you do not have to be a genius. All the necessary educational materials can be found online. There is an abundance of articles, webinars, YouTube tutorials, books, etc. on the subject. Naturally, a beginner should learn about common strategies and practice a lot before using real money.