subject: Forex Trading Tutorial - Simple Way To Understand Forex Trading [print this page] Learning by studying a pile of theories may not really tempting; in such a case, you need structured lessons that guide you step by step. If this step by step guide is utilized in a good forex trading tutorial where you can test it straight away, it will be less difficult for you to comprehend the lessons.
Nevertheless, if you are unfamiliar with forex trading at all, you still have to begin with theories such as definition of leverage, pips, currency pair, etc. But given that the motto of a good forex trading tutorial is "make the student do it", here is what you have to do:
1. Open a demo account in an online forex broker that uses MetaTrader4 trading platform. Here are a few suggestions: AvaFX, TadawulFX, and FXCM. Note that AvaFX and FXCM offer two types of trading platform, so make sure you choose MetaTrader4 (also known as MT4) for when you decide to use EA later.
2. When you've done with the registration and installation process, log in and study your platform user interface. With the trading platform before you, it'll be easier to describe something and you can test it immediately.
By default, the top left area is the currency pair column. The "symbol" column consist of currency pairs such as USDCHF (US Dollar and Swiss Franc), GBPUSD (British Pound Sterling and US Dollar), EURUSD (Euro and US Dollar), and so on.
The next column is "bid" (also known as "sell") column; it represents how much you will get for selling the first currency. Example: sell EURUSD at bid rate 1.362 means you spend EUR 1 to gain USD 1.362.
The "ask" (also known as "buy") column represents how much you must spend the second currency to gain the first currency. Example: buy EURUSD at ask rate 1.378 means you spend USD 1.378 to gain EUR 1.
Now right click on one of the currency pair and click "new order". A new order window will pop out and you'll see two big "sell" and "buy" button. At this stage, it's not necessary to implement any forex trading strategies , so just try to click one of them and you will get a confirmation message that you have executed the order successfully. See your open trades info by selecting "trade" tab at the bottom of the MetaTrader platform.
"Forcing" the student to test and practice the lessons themselves is a must in a great forex trading tutorial; this way, they can grab the concept being taught quicker. If you're able to understand your trading platform interface and how to use them at the end of the tutorial, you have mastered the foundation of forex trading.
