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Currency trading and its 7 pairs
All over the world, there are many official currencies that are used. However, on currency trading platforms, only a handful of currencies are actively traded. One currency is exchanged for another at a pre-determined price in online currency trading. For Profitable Currency Trading, it is the most economically and politically stable and liquid currencies that are demanded in sufficient quantities. For instance, due to the size and strength of the economy of the United States, the American dollar is the world’s most actively traded currency. All the primary currency trading pairs contain the USD. In Online Forex Trading, all trading, whether buying or selling, takes place through currency pairs, and the most common currency pairs often involve the US dollar or the Euro. In some instances, though, you will find currencies of countries such as Australia and New Zealand could feature. A currency pair is the national currency of two countries coupled for the purpose of trading on the foreign exchange market. It is a quotation of the relative value of one currency in terms of another currency. Both currencies will have exchange rates on which the trade will have its position basis. Nearly all countries’ currencies can trade, but some currencies pair more frequently than others. The primary currency categories in Online Currency Trading are Majors, Minors (also called Crosses), and Exotics. The 7 Major Pairs Are: Euro Vs. US Dollar British Pound Vs. US Dollar US Dollar Vs. Swiss Franc US Dollar Vs. Japenese Yen US Dollar Vs. Canadian Dollar Australian Dollar Vs. US Dollar New Zealand Dollar Vs. US Dollar In Currency Trading, the Majors are the most liquid and frequently traded, and account for almost 80% of all FX trades. These pairs usually have the narrowest bid (Buy) and ask (Sell) spreads due to the high volumes of buyers and sellers. The Spread is the difference between the Bid and the Ask prices. The term “PIP”, Percentage in Point, refers to a measuring unit used to describe the smallest price change that may be seen in any exchange rate. This is often the fourth digit of the currency pair following the decimal point. When there’s a change in the EUR/USD rate from 1.0530 to 1.0531, that is a one-pip shift. The amount of profit or loss a trader experiences per transaction is determined by the pip value. Exchange rates shift based on which currency of a pair is stronger at any point in time. The currency market moves very quickly, and these prices are provided by international banks, and updated in fractions of a second. Our blog post Market Volatility and How to Handle it in Forex gives more insight into this as well. The currency pairs that are less liquid, and do not trade against the USD are referred to as Cross-Currency Pairs; Some examples of these include the Canadian dollar and the Japanese Yen (CAD/JPY), the Euro and the Swiss Franc (EUR/CHF), and the pound sterling and the Australian dollar (GBP/AUD). Lastly, there are some unusual pairs, which are the least liquid and hence the least traded pairs on the forex market. Due to their low trade volumes, their Spreads can be very wide, and their prices can fluctuate substantially, as opposed to that of the Majors, which have tighter Spreads, lowering one’s trading expenses and increasing your profit potential. There are two categories in a currency pair; the first currency quoted in the pair is called the base currency. This is the currency a trader believes will change value in relation to the second quoted currency in the pair. The second currency is referred to as the quotation currency or counter currency. So, in the currency pair, EUR/USD, the EURO is the base currency while the USD is the quote currency. If a trader believes that the Euro will appreciate against the dollar, at the purchase rate of 1.3560/1.3562, a trader will need to invest 1.3562 in the quote currency, which is the USD, to purchase 1 unit of the base currency. On the other hand, if you were to sell 1 EURO, in anticipation of the Euro declining in value to the USD, you will receive 1.3560 USD. In Currency Trading, buying a currency pair is referred to as Going Long, while selling the pair, is referred to as Going Short. 1- The Euro/Dollar Pair (EUR/USD): Given that this combination stems from two of the world’s most powerful economies, it comes as no surprise that this is the most popular currency pair traded. This pair is also called “the Euro”. This currency pair is known for its high liquidity and incredibly high volumes of trade, making it prime for Day Traders. The pair is affected by economic releases both by the US Federal Reserve and the European Central Bank (the ECB). A strong dollar leads to a decline in the value of the pair, and vice versa. 2. The Dollar/Japanese Yen (USD/JPY): Traders often refer to this pair as “the Gopher”. With the Japanese Yen being a major currency across Asia, the USD/JPY pair is one of the world’s most traded pairs. Japan is one of the biggest net exporters in the world, and this is why many commodity traders and investors regularly need to convert their local currencies into the Yen. The Yen is also a popular currency for “Carry Trade” strategies, which is similar to the “buy low, sell high plan”. Due to a consistently low-interest rate on this pair, traders can profit from the interest rate differential with USD, amidst a stable exchange rate. 3. The British Pound Sterling/US Dollar (GBP/USD): Trading this pair is usually referred to as trading “the Cable”. Back in the 1800s, the exchange rates between these two currencies were transmitted via a large cable that ran along the floor of the Atlantic Ocean. Also a pair seen as highly volatile, with frequent variations in price, pip movements, and exchange rates, technical analysis is a must if you plan to trade this pair. During
Factors That Influence Price Movement in Forex Trading
The values of currencies on the forex market are impacted by the principle of Demand and Supply. Currency values are constantly in flux, regularly going up or down in value. Several years back, Gh¢1 was worth $5. At the time of writing, it is worth $12.30. This performance isn’t random but is attributed to a number of factors. The Forex Market involves buyers and sellers all over the globe participating in trillions of dollars of trade each day. This means that Macro-economic events around the world play an immense role in the forex market. Hence, traders don’t have to stick to trading the popular currencies just because they are popular, anymore; knowledge of the factors that influence price movements in the forex market informs what and when to trade. In this article, we will discuss the key factors that influence price movement in the forex market to help you become a better Forex Trader MACRO-ECONOMICS Primarily, the forex market is driven by major macro-economic factors. These factors influence foreign exchange rates, ultimately determining a currency’s value at any given point. A country’s economic health plays an overarching role in the value, and by extension, the exchange rate of its currency. Just like any other financial market, investors put their monies into economies with a positive outlook and growth potential. Hence, indicators that point to this outlook or potential will boost investments and increase demand for the said country’s currency. On the other hand, a negative outlook harms investments and reduces demand leading to a fall in currency price. Current events and new information are able to quickly affect a country’s overall economic health. It’s therefore important to exercise discipline and stick to your Trading Strategy as news of events and current affairs trickle in, so you are not swayed off course. CAPITAL MARKETS Arguably, the most visible indicator of an economy’s health is the global capital market since it is easy to take note of the release of public information on capital markets. With the steady, 24-hour up-to-the-minute flow of media coverage on the affairs and activities of corporations, institutions, and government entities, a rally or sell-off of securities originating from one country or another, is usually a clear indication of the future outlook of that economy. If you remember from our blog post – “Currency Trading and its 7 Pairs”, many economies are sector driven. Being a commodities market, for instance, the Canadian dollar is heavily correlated with commodities such as crude oil and metals. In effect, a rise in crude oil prices is likely to result in an appreciation of the Canadian dollar relative to other currencies. Commodity Trading similarly relies heavily on such economic data. The bond market and Treasury price fluctuations also affect price movement in the forex market, since fixed-income securities invariably rely on interest rates. Hence, a change in yields will directly affect currency values. INTERNATIONAL TRADE Another major factor that affects the forex market is the balance of trade between countries; the Balance of Trade (BOT) refers to the difference between the value of a country’s exports and the value of its imports at any given time. This forms the largest component of a country’s Balance of Payment, which is a statement of all transactions made between entities within a country and the rest of the world over a certain period. The trade balance serves as a representation of the relative demand for goods from a country; Thus, a country whose goods and services are in high demand internationally will typically have its currency appreciate in value. For instance, if you want to purchase goods from Japan, you will need to convert your money or whichever currency you hold into the Japanese Yen, and the increased demand for the Japanese Yen will lead to a rise in its value. On the other hand, countries with large Trade Deficits – which occur when a country’s imports exceed its exports at any given period of time – need to sell more of their currency for that of the currencies they need, in order to purchase the goods or services of other countries. This situation unavoidably has a negative impact on the value of an importing country’s currency. POLITICAL NEWS Another major factor that results in forex market changes is political news. A country’s political landscape plays a critical role in the perceived value of its currency, and by extension, the movement of prices in the forex market. One thing Forex Traders constantly monitor is political news and events in order to anticipate changes in the economic policies of national governments. These may include a cut or an increase in government expenditure or changes in regulations relating to specific industries or sectors of the economy. Uncertain outcomes following elections, for instance, always affect the forex market. Exchange rates usually react positively to wins by pro-growth or parties that are perceived as being fiscally responsible. Major referendums can also affect price movement in the forex market; a typical example is the Brexit vote, which had a major effect on the British Pound. In addition, the fiscal and monetary policies of governments in their economic decision-making, and central banks’ decisions that impact interest rates, also result in forex market changes. ECONOMIC STATISTICS Economic reports are the backbone of forex market changes. Gross Domestic Product (GDP) reports, which measure the total output of goods and services produced within an economy, for example, may present the most visible economic statistic, since this is the baseline of a country’s economic performance and strength. Another significant factor affecting the forex market in terms of economic statistics is inflation. This is characterized by increasing price levels of goods and services, and relatively falling purchasing power. If country A’s inflation rate is relatively lower as compared to that of country B, the currency of country A is expected to appreciate in relation to the currency of country B, with a higher inflation rate. Inflation can be a double-edged sword; In many cases, it is seen to
Choosing The Best Broker To Trade With
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. 1. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms. 2. CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a Demo account is essential before trading on a live account. Trading on a Demo account gives you the opportunity to trade in real market conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of online forex trading, put your strategy to test, and discover your strengths and weaknesses before you go unto a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to a live account. 3. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage these risks in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world, and own a smartphone, you have no excuse not to learn to trade gold on the forex market. 4.
Choosing The Best Forex Broker To Trade With In Ghana And Africa
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a demo account is essential before trading on a live account. Trading on a demo account gives you the opportunity to trade in real conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of trading, put your strategy to the test, and discover your strengths and weaknesses before you go into a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to the live account. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage them in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world and own a smartphone, you have no excuse not to learn to trade gold on the forex market. TRADING PLATFORM These include: More chart frames
Facts to know about the most successful traders in Africa
Like most great things in life, there are truly few shortcuts to become successful in forex trading. But learning from someone who has the knowledge and expertise in advanced forex trading, definitely gives you a lot of leverage to succeed in advanced online currency trading. If you have started trading forex in Ghana only recently and want to ensure you do it right, then you have stumbled on the right article. One of the principles for achieving success in any area, is following those who have achieved success where you seek to, and in this article, we will share some facts and characteristics of the most successful forex traders in Africa, and hope you can imbibe them as well. Many of these characteristics are key traits that the most successful forex traders have used to master the market and generate consistent profits month in and month out. The Forex market is an ever-changing entity, where each day presents us with different and unique scenarios for trading the market. Therefore, to trade successfully, it’s important to understand that the forex market is fluid and very dynamic, and the question many ask when they begin this journey is what characteristics or attributes are needed to enable them stand a good chance at becoming successful and profitable independent forex traders There is no single formula that all successful forex traders use to ensure profitability on the forex market. Trading is both Art and Science, and the idea that success comes overnight could not be farther from the truth. It takes time to learn the ins and outs, manage your risk and refine your skills and yourself as a trader. That is how the best traders in Ghana and the world over, have done it 1- Begin with a plan in hand You have probably heard the saying “failing to plan, is planning to fail”. Your trading plan doesn’t need to be complicated; you can start by including basic guidelines like – Your Entry and Exit Level Triggers – Position Size – Stop Loss – Take Profit The most successful forex traders in Africa treat advanced online currency trading as a business; complete with plans, daily routines, schedules and obligations. Before you trade, it’s important to recognize the value of good preparation. Most successful businesses always begin their business journey with a good business plan; a formal statement revealing the goal of the business and the guidelines to reach those goals, without which achieving those goals will be difficult. The same applies to the business of advanced forex trading. Successful traders adhere to a set of guidelines to help them execute consistently profitable trades that will help them reach their income goals. This will prevent you from making decisions on a whim. Remember the saying “plan your trade, and trade your plan”. 2- Having Realistic Expectations Some traders may show off their rewards from forex trading, but won’t tell you about the years of effort they put in before they found success. The fact is that, like any other profession, becoming a successful forex trader takes time. The best Forex Traders in Ghana know that forex trading is not a get-rich-quick scheme. While some may see it as a sprint, the most successful forex traders in Africa see it as a marathon, with small rewards accumulating as the race goes on; not with the goal of becoming a millionaire overnight. Trading with high expectations of how fast you will make money is a bad start for any trader. Although the market can make some huge moves than you anticipate sometimes, you should not expect to invest $250 in your trading account, and make $1,000 each trade. If your goal is to double your money every day, it sounds great but it’s not realistic. A realistic goal must be attainable; within your current capabilities. The best realistic goals are short-term goals; make your first goal a small one, and then continue to increase your them as you experience success. The most successful traders stay flexible with their Take Profits, sometimes settling for less, if indicators show that’s all they can take out of the market at that moment. 3- Being Analytical Having an analytical mind is one of the most important facts about the best traders. This means being able to figure out some simple math quickly, understanding percentages, and calculating things like Risk: Reward ratios. The good news is that it can be learned if you don’t already have this. And once you have learned it, and practised it for some time, you are well on your way to becoming one of the most successful traders in Africa, and the world. Being analytical of the market also behoves on you to be analytical of your own performance. You can do this by keeping a record of your trades. At the end of each month, quarter or year, your trading account will most likely be in one of three main categories: your trades either made a profit over the period; were roughly break-even; or lost money. Irrespective of the category you fall into, keeping and reviewing a track record of your trades, is key to building on your strengths and working on your weaknesses. The best Forex traders in Ghana have used this to improve their performance and become successful. 4- Being Disciplined and Patient Discipline is crucial when you’re trading Forex. Our definition of discipline when it comes to advanced online forex trading is to determine your exit strategy even before you enter the trade. Discipline is also the ability to “pull the trigger” when your system indicates to do so. The market gives you infinite opportunities to trade and once you decide which position you’re taking, you should enter your stop loss and take profit orders. This also reflects the ability to be patient until your system triggers an action point. Good online traders are disciplined and patient, and trade as professionals. Becoming a successful forex trader requires strong discipline, and it
How to Make Money From Forex Trading in Ghana
If you’re in Ghana, and are looking to earn passive income through an online source, trading the forex markets is a viable tool to enable you to make money online. Forex Trading, also known as FX trading or more commonly, currency trading, refers to the buying and selling of international currency pairs. As with any trading activity, the aim of Forex trading is also to make a profit, mainly by exchanging one currency for another with the expectation that the prices will alter in favour of one against the other. Currently, the fastest growing sector of the online FX market comprises individuals. Other major sectors include Securities dealers and large commercial banks (collectively referred to as the interbank market), smaller banks, hedge funds, and multinational corporations. Unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather via an electronic network of corporations, banks and individuals engaged in trading one currency for another. This makes it possible and convenient for forex markets to operate 24 hours a-day, five day a week across different time zones and financial centres. What makes this possible is the overlap in trading times of major sessions; hence the best way to make money online, working from home. The factors that contribute to the Forex market being the largest include the facts that it’s the most liquid market; has easy round-the-clock access; and low cost to partake and invest in. In addition, you can exit even more quickly when you take a plunge, and experience set-backs, which are occurrences that come with every trade. Below are pointers to help you earn money online from home in Ghana: 1. Find the right Forex Broker The importance of trading with a most trusted and reliable forex broker cannot be overemphasized. As you set out to earn money online through forex trading, look for a broker who is licensed and regulated in multiple jurisdictions, and offer good customer support. You should also find a broker who follows the rules of the industry, and has a track record of good trading practices. It’s important to ensure that your broker complies with the regulatory framework intended to preserve the integrity of the forex market. It’ll also be in your advantage to find a broker that offers competitive super-tight spreads like Geldex. Geldex Invest is licensed and regulated by the most leading financial regulatory authorities for international brokerage firms. Geldex also has the technology to ensure up-to-date platforms and market integration systems for clients, as well as strong order execution; ultra-low latency and minimal slippage courtesy of our customized, built-for-purpose advanced technology and dedicated servers. Additional features that make Geldex the best are: – Autonomous physical presence in Ghana – Easy Account Opening and Verification Procedure – Funding In Local Currency (GH¢) – Deposits And Withdrawals Through Mobile Money & Local Banks – Negative Balance Protection – Exceptional Customer Support (You’re Assigned a Personal Account Manager) – Great Promotions and Bonuses for You 2. Learn the basics of Forex Trading & Understand the Market Like any money-making venture there is, the Forex market has its own unique characteristics, and it is essential to learn the basics of the trade. For Forex trading, this ranges from acquiring knowledge of the operative terminologies to familiarizing yourself with the geo-political and economic factors affecting the currencies you choose to trade online in. In order to earn money from forex trading, the following are a few of the terminologies, you need to enhance your knowledge of: – Currency Pairs: It’s important to note that currencies are always traded in pairs (e.g., EUR/USD; GBP/JPY; EUR/AUD; NZD/JPY, etc.), and are further categorised into 3 major types- Major Pairs, Minor Pairs, and Exotic Pairs. The EUR/USD remains one of the most traded pairs in the forex markets, and for beginners, we highly recommend that you trade in major currency pairs which hold higher liquidity and narrower spreads such as the USD and the EUR. In effect, narrow or tight spreads translate into limited loss exposure for you. – PIP (Percentage in Point): This refers to the smallest unit of currency price movement. If you take a good look, you’ll realise currency pairs are always quoted with 4 decimal places. A pip is thus equal to 0.0001. In some rare cases, like with the USD/JPY pair, however, a pip is equal to 0.01 – Base Currency and Quote Currency: The currency featured on the left side of the currency pair is the base currency, whereas the quote or counter currency is featured on the right side of the currency pair. Hence, in our EUR/USD example, the EUR is the base currency, while the USD is the Quote currency. Bid and Ask Price: The Bid price is the buying price of a base currency, while the Ask price is the price for selling the Base currency. In practical terms, it is the price at which a Forex Trader wants to sell a currency pair for, and an Ask price is the price at which a Forex Trader will buy a currency pair at. Example EURUSD BID: 1.1500 ASK: 1.1502 The Bid price is always lower than the Ask price Spread: This simply refers to the difference between the Bid and Ask price. When you buy a currency pair, you’re in practical terms, buying the base currency and selling the counter/quote currency. The reverse applies when you sell a currency pair. Put more simply, the difference between the amount you need when buying a specific currency, and the amount you receive when selling it, is what is known as the spread. – Lots: Trading currencies takes place in Lots, with there being 3 types of lot sizes, based on the units; Micro Lot (1,000 units), Mini Lot (10,000 units), and Standard Lot (100,000units). – Fundamental and Technical Analysis: the skill to read and analyse the market, is a critical aspect of earning money online by trading the forex market. Whereas fundamental analysis
E-levy to Temporarily Cause Disruptions in the Stock Market- Analyst Predicts
Gifty Annor-Sika Asantewah, a financial analyst and advisor to Geldex Invest, has predicted that the eventual roll out of the e-levy will have surging consequences on the Ghana Stock Exchange (GSE) in the short run. According to the analyst, many local investors got caught in a bears trap at Ghana Stock Market since the government started the implementation of the e-levy, noting that investors should gear up for more bearish run, especially this week and the subsequent ones. “The announcement of the e-levy saw a bearish run in the telecommunication stocks, particularly MTN Ghana stocks few months back as investors sentiments dampened. Now if you watch the market, there is a surge in market activity as a result of the implementation of the electronic levy… In the interim, the stock market will suffer the more as investor will rush to avoid more liabilities by liquidating stock assets. “MoMo users are running to Mobile money operators and banks to cash out moneys to avoid exorbitant charges on transactions. This is definitely causing a panic and the telecom sector stocks will continue to go down till further notice.” Globally, all economies are fiercely pushing to find their feet in the digital ecosystem to broaden their technological and digital horizons to keep up with the ever-changing demands on products and services and in all aspects of the government and corporate world. -Gifty Annor-Sika Asantewah Miss Annor-Sika observed that though the e-levy did not have immediate impact on the nation’s biggest telecommunication stocksMTN Ghana, it might nosedive this week. “It is a bit surprising that the telecommunication sector stocks, particularly MTN stocks showed some unusual resilience in the first three days after implementation of the e-levy by recording no change in share prices. However, the increased in the trading activity means that it might be actually winding up for a big fall in the coming days. You can see that the MTN shares is currently priced at GH¢1.00. I am pretty sure it will fall below the 1 cedi mark in the coming days.” -Gifty Annor-Sika Asantewah The Cause of the Unusual Resilience of MTN Stocks The financial advisor to Geldex Invest, moreover, attributed the unusual resilience to the fact that because the issue of the e-levy was going on for months and weeks before it was finally implemented, investors were prepared and made decisions on what to do with their shares long before the implementation finally kicked in. “Another reason for the MTN Ghana shares not going down immediately after the implementation may be due to the long periods of the e-levy impasse. Most investors may actually took decision on their investment long ago. If you remember, MTN before the budget was read was doing well. It was one of the fastest growing stocks with share price of around GH¢1.80. But since the budget reading and the subsequent announcement of the electronic levy, MTN sector stocks plummeted to the current 1 cedi it finds itself. It is no coincidence that it lost over 70 pesewas in that short period. Profit taking Investors may have taken their profit long ago.” -Gifty Annor-Sika Asantewah Total Volume and Value to Decline Ms Annor-Sika added that the E-levy will cause a decline in the total volume and value of transactions since Ghanaians are not in favor of the tax. “Definitely, the total transactions will definitely go down. It is no coincidence that the revenue target from the e-levy was revised downward. Government knows this will happen.” Though the analyst was of the view that taxation forms a major part in government revenue mobilization, she stated that government should have listened to Ghanaians in this regard and look elsewhere to raise revenues. “Taxation is a legitimate way to enhance an economy, but the current rise in standard of living against stagnating wages and widening brackets of low income earners and downsizing makes the timing very problematic. “Auditor general revealed that $340million was lost to financial mismanagement, corruption, etc. Government should have looked at sealing those loopholes and other means of raising revenue.” -Gifty Annor-Sika Asantewah
WIF targets $5,000 for deprived communities
By Julius K. SATSI, Accra The Women in Forex (WIF) Ghana with its partners have expressed optimism towards raising US$ 5,000 to support the needy in deprived communities through its Elevate Ghana Forex project. The fund, raised through benevolent individuals, will help train 1,000 youth in Forex through the “Elevate Ghana Forex” project and support the needy in deprived communities across the country. The Elevate Ghana Forex project is the initiative of the WIF Ghana to educate young people in forex trading and help alleviate unemployment and poverty. The Founder and President of WIF Ghana, Madam Annor-Sika Asantewah disclosed this during the maiden charity ball held in Accra at the weekend. She said the fund, which is expected to be generated from February to September, would be disbursed through a project and two non-governmental organisations (NGOs) to help the deprived communities She said the funds raised would be disbursed through Menarche-Pad a Girl project to help alleviate menstrual poverty – a situation where girls practice poor hygiene during menstruation. The two NGOs include Cover Me Worldwide to help children gain skills in reading ability and Maternal Right Ghana to help women and children during child delivery. Madam Asantewah urged benevolent individuals to donate towards the fund, which would help most youth out of employment through free forex trading for the 1,000 youths, targeted in three universities across the country – University of Cape Coast, Valley View University and the University of Ghana. She said the organisation intends to send the “Elevate Ghana Forex” project to the Volta, Northern, and Eastern regions. She said calls had come to extend to the Ahafo region, which it would consider in subsequent years since the project is an annual one. The Mayor of Belmopan in Belize, Central America, Her Worship Mayor Sheran Palacio, who graced the occasion, urged Ghanaians not to abandon trades and traditions of the older generation in the quest to go after modernity. She said Ghanaians and Africans must not relent on tilling the soil as it hungers to give humanity its produce As the first female Mayor in her country, she advised young females to take education seriously because it has the power to transform their lives, opening them to the numerous opportunities that exist. The Chief Executive of Loly Fx, Ms Ruth Ofori said: “forex trading is not for the faint-hearted” but was quick to add that it is the aim of the Elevate Ghana Forex project to help the youth to gain a fundamental understanding of the forex market. Ms Ofori, who is a Forex facilitator with the project said, many Ghanaians are now getting to know and appreciate the dynamics of forex trading, unlike previous years. She said: “People are broadening their horizon on forex trading and trying to know what it entails and how they can go about to make some money.”
Three public universities to benefit from FX trading programme
The Founder of Women in Forex (FX) Trading-Ghana, Gifty Annor Sika, has indicated that under the ‘Elevate Ghana Forex Project’ the University of Ghana, University of Cape Coast (UCC) and Valley View University have been selected to benefit from a free forex trading programme this year. The training programme is aimed at introducing the students to the FX trade, equipping them with basic skills and developing their interest in this very lucrative niche market which could serve as a side-job for them even while in school. According to her, FX trading is quite a complex space that requires some level of education and intelligence to manoeuvre. Therefore, tertiary students are better-positioned to comprehend the process and learn the trade faster; hence the decision to involve them. In addition, she emphasised that this year the Elevate Project – which has an objective of training more than 1,000 youth across the country – has selected these three universities as well as three other regions, Volta, Eastern and Northern, as beneficiaries. “The Elevate Ghana Forex Project’s main objectives are aligned with the Sustainable Development Goals (SDGs), and this year as we seek to reduce the inequality gap we are training 1,000 youth across three regions and three universities, as well as some national service personnel. Basically, our idea is to teach, create value and give back to charity,” she said. The Elevate project is the first-ever forex trade training exercise put together in this country to demystify myths about the forex market and digital finance sector as a whole. It also aims at bringing to hand the enormous career and financial opportunities the sector bestows. Touching on the FX market’s worth and opportunities, she said: “The forex market is very liquid and is currently the most liquid financial sector in the world. Last year, it had US$1.26quadrillion revenue and in daily volumes it had US$1.6trillion. If the whole Ghana decided to trade in the FX market, all things being equal everyone would earn US$2,000 daily. “This is how much liquid the trade is, and it is an advantage for the unemployed graduates. Sometimes, people come into this space and because they want quick money they do not learn the trade well – and so end up losing their money to fraudsters and then complain that FX is a scam.” She made these remarks at the inaugural ‘Love in the market’ charity ball and dinner, organised by Forex GH in collaboration with LolyFX and Blooming Trading Limited to raise funds for charity projects. The proceeds will be donated to three charity organisations – Maternal Right Ghana, Menarche Pad a Girl Project, and Coverme Worldwide. Speaking as the guest of honour, Mayor, Capital Garden City of Belmopan Belize, Central America, Her Worship Mayor Sheron Palacio, commended the organizers for having women empowerment at heart, adding that she is very excited to see Accra appoint a female mayor for the first time. “I always say that Africa is my home and any time I come to Africa I feel at home. I am calling on all Africans around the world to make the effort to always visit home and help in development of the continent. Women and girls in Africa need empowerment to unearth their talent and do great things,” she said. Furthermore, she touched on her upcoming conference – the ‘She for She Champions World Summit’ – which aims at bridging the gender equality gap, in line with the Sustainable Development Goals (SDG-five). ding (digital finance) programme this year under the Elevate Ghana Forex Project. The beneficiary universities are the University of Ghana (UG), University of Cape Coast (UCC) and Valley View University (VVU). It seeks to train 1,000 youth in digital finance from these tertiary institutions and three other identified regions The training, an initiative of Women in Forex (FX) Trading Ghana, is aimed at introducing students to forex trade, equip them with the basic skills and develop their interest in the market which could serve as a part-time job for them while in school. The charity ball The Founder of the Women in Forex Trading Ghana, Ms Gifty Annor Sika, made this known at a charity ball and dinner held in Accra last Sunday. The event was organised by Forex Ghana, in collaboration with LolyFX and Blooming Trading Limited, to raise funds for charity projects The proceeds are expected to be donated to three charity organisations which consist of Maternal Right Ghana, Menarche Pad a Girl Project, and Coverme Worldwide Ms Sika said digital finance was quite a complex space that required some level of education and intelligence to manoeuvre. As a result, she said tertiary students were better positioned to comprehend the process and learn the trade faster, hence the decision to involve them She noted that this year, the Elevate Project which had an objective of training more than 1,000 youth across the country, had selected those three universities as well as three other regions -Volta, Eastern and Northern as beneficiaries. “The project’s main objectives are aligned with the Sustainable Development Goals (SDGs) and this year as we seek to reduce the inequality gap, we are training 1,000 youth across three regions and three universities as well as some national service personnel. Basically, our idea is to teach, create value and give back to charity,” she said. The project The project aims to bring to bear the enormous career and financial opportunities the sector bestows. “The forex market is very liquid and is currently the most liquid financial sector in the world. Last year, it had $1.26 quadrillion revenue and in daily volumes it had $1.6 trillion. If the whole of Ghana decides to trade in the digital market, all things being equal everyone will earn $2,000 daily, she said. “This is how much liquid the trade is and it is an advantage for the unemployed graduates. Sometimes, people come into this space and because they want quick money, they do not learn the trade well and end up losing
