Trading FX in South Africa

Trading on the foreign exchange market can be extremely difficult and complicated. There are so many factors involved and so many things to choose from.Currency pairs are the first thing many Forex hear about and begin trading. A currency pair is taking the price value of one currency and comparing it with another. There are 28 currency pairs, with 7 being based in the US Dollar. The US Dollar has the highest base currency than any other currency pair. Cross currency pairs, are pairs not based in US Dollar, these are often least attractive to traders. Along with currency pairs, traders also trade indices. Indices are based on organisation with value based on currencies. South Africans trade currency pairs and indices alike, but it is important to know the difference and which to trade and when.

Like most traders around the world, South Africans trade EUR/USD and GBP/USD more than any other pair. That is the Euro vs the United States Dollar and Great British Pound vs the United States Dollar. These pairs are great pairs to trade, as there is a lot of information about these pairs and its easy to understand these pairs when starting to trade. However, because many people trade these pairs, there is a lot of false information about these pairs. It is important to know how to navigate through false information and real information.

South Africans are also becoming very found of indices. The VIX75 and Nasdaq, happen to be the most traded indices in South Africa. Although VIX 75 is a close second, South Africans love trading Nasdaq. Nasdaq 100, refers to the 100 largest non-financial companies on the New York stock exchange. It is made up of 102 equity securities and it is traded as an indices/CFD. It is a very volatile CFD and is gaining a lot of attention in South Africa because of this. Indices move a lot more than normal currency pairs, which means traders can make a lot more money when trading indices, however this also means they can lose a lot more money. Such high stakes will require traders to have the best possible brokers for their needs, as brokers will take advantage of this situation.

Nasdaq can be a very lucrative indices to trade, but only if you have already mastered normal Forex trading pairs. It takes years to master those pairs, but once you have, moving on to something like Nasdaq will be a breeze. However, traders should always be weary of scams, especially in South Africa, where there is little regulation of scams. One way of searching for scams, is by using WikiFX. WikiFX is a Forex broker inquiry app, which allows traders to search and inquire about their broker. This is a very useful app, especially in South Africa, with all these Forex scams going on.