With a blurred economic outlook in the corner and the ravaging COVID-19 onslaught hitting record highs, financial traders, including forex traders around the globe are repositioning for opportunities.
It should be noted that the currency market is by far the largest financial market in terms of liquidity, value, and turnover. It looks to be on the rise, as remote trading takes shape.
In 2016, the currency industry was valued at $1.934 quadrillion dollars, with forex trading turning over $5.1 trillion daily. In 2019, it was estimated to be worth a staggering $2.409 quadrillion dollars, with a daily turnover of $6.6 trillion.
According to the Bank for International Settlements, and buttressed by data from Bloomberg News, currency trading volume in the global foreign-exchange market has jumped to the highest-ever level at $6.6 trillion.
As the COVID-19 crisis continues to disrupt economic activities at unprecedented levels for traders and banks; Nairametrics considers it pertinent to empower its readers on the best way to position, and take advantage of the volatility, as it is bound to trigger potential opportunities.
Uche Paragon, Head of Education, CCI Trading Africa, in a recent interactive session, witnessed by Nairametrics, spoke on the critical steps a forex trader must take to become successful.
He said, “There are no universal rules in trading forex per se, what is really important is that you define the strategy, and the platform you use in trading,”
On strategy, He highlighted on traders sticking to a particular strategy, for example, focusing on a tested indicator on a currency pair in a given market, coupled with avoiding platforms exposed to high slippage and trading manipulation by certain forex brokers, especially most of the non-ECN brokers.
Also,Uche Paragon gave the importance of the use in Research trading tool, study techniques and how they can be implemented in your strategy. Study how the market behaves and learn how the trading industry works.
In a detailed explanatory note, Adegbotolu Kehinde Erastus, Research and Market Analyst, Scope Markets, gave detailed insights on the endless opportunities of the forex market saying;
“With Nigeria’s population presently standing at over 200 million, comprising of vibrant youths who are mostly unemployed, forex trading has become a legitimate way for them to earn money at their fingertips, and also it has become a way to earn passive income for the employed populace. Brokers now support their clients with lots of educational material on Forex trading
“So, one doesn’t necessarily need to have an educational background about the financial markets, everything from the basics to the advanced, trading strategies are all available with the broker any client wishes to register with. One of the advantages of forex trading is that a trader can profit under any market condition.
“Even when the market is rising or falling with very good trading strategies, you can make very good profits, and because the financial market is available for 24 hours from Monday to Friday, with different market sessions, profitable trading opportunities do not cease. Even when COVID-19 put all commercial activities to a halt, the Forex market was still very active with traders making profits.”
Finally, it’s critical to observe that though currency trading often brings substantial profits, it is important to note that the leverage offered to forex traders, comes with a high risk of losing your capital.