Traders aim to profit from these price movements by using Forex trading strategies in Nigeria, whether through speculation or hedging. Forex trading in Nigeria refers to the process of buying and selling currencies in the foreign exchange market with the goal of making a profit from price fluctuations. In simple terms, it involves trading one currency for another, such as exchanging USD/NGN (US Dollar to Nigerian Naira).

This helps you understand what works and what doesn’t, and it allows you to improve your strategy over time. In your journal, write down the reasons why you entered a trade, how the trade went, and what you could have done better. When you start trading with real money, it’s easy to let fear and greed take over. If you’re on a winning streak, you might feel invincible and start taking unnecessary risks. If you’re on a losing streak, fear can make you hesitate or abandon your strategy entirely. When you learn forex trading, you spend time developing a strategy that works for you.

US shifting from aid to trade in Nigeria, others – Ambassador

Many traders earn a full-time income by running their forex trading business in Nigeria or elsewhere, but it’s important to understand that it’s not a guaranteed way to get rich quickly. Proper education, risk management, and patience are essential to achieving long-term success in forex. You can start forex trading business in Nigeria with as little as $5 in a Micro account, but a more comfortable starting amount is $100 to $500. This allows for better risk management and the ability to hold trades without risking too much of your capital. Starting with more capital also gives you more flexibility as you grow your trading account.

• NG 1.00pm to 10.00pm On a final note, it’s worth remembering that volatility has no schedule.
• It’s essential to choose a regulated Forex broker that complies with these regulations to protect your investments and ensure fair trading.
• Low fees are especially helpful for growing your account without losing too much money to broker commissions.
• This is an in-depth look at everything you need to know before trading forex in Nigeria.

The exact profit that you make will depend on your position sizing (which depends on your account size & leverage used). If you place a ‘Short’ trade for EURUSD at 1.0000, expecting it to go to 0.9900, and the price does go in your direction, you would profit from this trade. To realize your proft (or loss), you need to close the trade that you opened. The short position can be taken when you believe the price of the currency will fall in the upcoming period. If the present price of EUR/USD is 1.10 & you think that it would fall to 1.0 in the near future then you can place a sell order in the marker. Let’s say that you change ₦410,000 to US Dollars for travelling, and you get 1000 USD from the exchanger.

Some brokers allow you to start with as little as 5,000 Naira (approximately $10). Use Forex trading leverage in Nigeria carefully, as it can amplify both gains and losses. Always start small, focus on Forex trading strategies in Nigeria, and practice with a demo account before investing real money. The MetaTrader 4 (MT4) and MetaTrader 5 (MT5) apps are among the best for forex trading in Nigeria.

Forex trading education in Nigeria is offered through various platforms, including online courses, Forex trading blogs in Nigeria, and Forex trading mentorship in Nigeria. Many brokers also provide free tutorials and webinars to help traders understand the basics and advanced strategies. Whether through self-study or professional programs like ChartsEmpire Academy, education is crucial to start Forex trading in Nigeria with confidence and success. These positions may be held for a number of days, but they don’t have to. Swing traders may need to understand the fundamental macroeconomics behind a currency pair in order to make money. Because the potential time frame of a swing trade is longer than a scalp or a day trade, news items and macroeconomic conditions can exercise more influence over them.

Section 12: Why Forex Trading Can Be Hard for Beginners

Choosing the right strategy depends on your personal goals and how much time you have to dedicate to trading. If you’re looking to make quick profits and have the time to monitor the market throughout the day, scalping or day trading might be a good fit. However, if you prefer a less time-consuming approach, swing trading or trend trading might be better options. A demo account tries to mimic real-life trading so you can practice with fake cash till you are experienced enough to open a real trading account with the broker. Beginner forex traders usually trade popular pairs like EUR/USD (or pairs with USD on the right hand side) because they have more liquidity & calculating profit/loss is easier.

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Now, that you know How To Make Money in Forex, start trading WISELY and don’t rush. So feel free to ask any questions before you shoot for anything new to you. With your smartphone and a small amount of money, you can now buy and invest in stocks locally and internationally. Whether you’re interested in Nigerian stocks through Afrinvest, dollar investments through Bamboo and Risevest, or a mix of both with Trove and Chaka, there’s a platform for you. This makes Risevest perfect for people who prefer a hands-off way to invest. You choose a plan, deposit money, and let the experts manage your investment.

Trading smaller lot sizes like 0.01 is great for beginners who are just starting their forex trading business in Nigeria because it allows you to trade with less risk. For example, if your strategy tells you to enter videforex broker review a trade when a currency pair reaches a certain price level, wait for that level to be hit before you act. Let your strategy guide your actions, and over time, you’ll start to see more consistent results in your forex trading business in Nigeria. There are many different strategies used by forex traders around the world. Some strategies focus on short-term trades that last just a few minutes, while others are designed for long-term trades that last days or even weeks. Below are a few of the most popular strategies that you should consider as you start your forex trading business in Nigeria.

• For those who want to learn forex trading, HF Markets offers a range of free educational resources.
• The platform provides trading tools for buying Nigerian stocks, treasury bills, and other investment products.
• The US dollar (USD) is engaged in the great bulk of foreign exchange trading even though there are more than 170 other currencies in existence.

Position Size Calculator

Unlike the others, Afrinvest focuses more on Nigerian capital markets and is better suited for users who want direct access to local stocks and bonds. With Chaka, you can trade thousands of stocks and exchange-traded funds (ETFs) in naira or dollars. It also features a tool called SmartInvest that automatically puts your money into pre-selected dollar investment plans based on your risk level.

Learn Forex for as low as $69

Do note that this is just a hypothetical example & not real resistance on EURUSD chart. The cyclical currencies of major commodity exporters like AUD, ZAR, CAD, BRL etc. are most affected during such events of Risk off & growth Slowdown as the commodity prices are dropping. Interest Rate differentials can cause high volatility in the Forex Market. For example, during 2022, the Federal Reserve in the US had to tighten their monetary policy to control high inflation. And they were the first major Central Bank to tighten ahead of the ECB, BoJ & BoE. This has caused the US Dollar to rise sharply against the EUR, JPY, GBP & other major currencies in 2022.

A reputable broker will provide transparent customer support and avoid Forex trading scams in Nigeria. The cost of starting Forex trading in Nigeria varies depending on the broker and the account type you choose. Generally, you can start with as little as $100 (around 50,000 Naira), especially if you use brokers that allow low minimum deposits.

When the price reaches a certain level, a stop-loss order will automatically terminate the transaction. Young Nigerians have become dedicated fans of forex trading, making it one of the most popular ways to make money in the country. Mobile devices and desktop computers can both use it, and it is accessible all the time, making them a great deal less expensive than other options.

👉 Millions of participants in the Forex Market simultaneously buy one currency while they sell another. Some retail and institutional traders exchange currency for business, leisure, or to earn a profit. There are countless examples of scammy forex brokers who refuse Fintech stocks to let you withdraw your funds, or brokers who go bankrupt and take your funds down with them. The forex brokers we recommend and review all pass our test of security of funds. Afrinvest is a well-established Nigerian investment company offering a digital platform for stock trading.

The second-most important factor is the functionality of the broker’s trading platform. You need to have a wide selection of currency pairs, including gold, silver, oil and even various stock indexes to be able to place your trades with. If you’ve been successful with demo trading, it is time to open a live trading account. It is important that you make sure your have gone through all the steps of verifying your account with the broker before you deposit money. Most brokers will require you provide them with an identification document such as a National ID or passport, and a proof of residence document such as a bank statement or a information systems lifecycle utility bill.