Currency exchange (Forex) trading online is authorized by law and supervised by the CMA in Kenya (Capital Markets Authority of Kenya). It is believed that there are already over 100,000 forex traders in Kenya, and that figure is expected to expand.
Learn all you need to know to get started trading Forex online in Kenya with this comprehensive guide.
Start with a demo trading account
If you want to trade foreign exchange (Forex) in Kenya, you must do so through Forex brokers in Kenya that have been approved and is registered with the Capital Markets Authority (CMA).
Foreign regulators such as the Financial Conduct Authority (FCA), the Financial Sector Conduct Authority (FSCA), the Australian Securities and Investments Commission (ASIC), and others, also oversee a number of international forex brokers who welcome Kenyan traders.
The vast majority of brokers provide free practice accounts. In a demo account, you can practice trading and learn the ropes without putting any of your own money at risk.
Your trial account will be funded with virtual currency that may be used to practice trading methods and gain experience in a simulated trading environment. You can then go on to trade on a real account using a welcome Forex bonus for risk-free trading on the live markets.
Educate yourself on the fundamentals of Forex trading
The Foreign Exchange Market (Forex) is the most liquid market and largest market in terms of daily traded volume. Foreign exchange, or forex, is a market where currencies are traded for each other.
As such, Forex trading refers to trading in currency pairs with the goal of profiting from price fluctuations between the two currencies. Profitable foreign exchange trading requires research into various currency pairs and an understanding of when and where to make investments.
Learn how to mitigate your trading risk
Foreign exchange trading has a high level of risk and can easily lead to a complete loss of capital. Being aware of potential threats and taking measures to mitigate them is crucial.
To this end, one must pay close attention to the exchange rates and currency movements in order to hedge against the risk of volatility.
Hedging products, such as derivatives, should be used in foreign exchange trading to protect against the danger of sustaining large losses. High leverage refers to the practice of trading with borrowed or borrowed and lent funds.
So, if the investor uses a lot of leverage, he or she will have to fork over twice as much money to cover any losses.
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Find a good Forex trading strategy
There are two main categories into which all forex trading methods fall: fundamental and technical. Even though technical analysis is the more common method, traders would be well to master both approaches.
Trading using fundamental analysis relies on news reports about the economy and other factors that affect a currency’s value.
The state of an economy’s fundamentals affects its prognosis. Currency would be worth less if the economy were in bad shape and vice versa. Therefore, familiarity with Fundamental trading fundamentals is essential.
Technical analysis is a method of trading that relies on the examination of charts, the recognition of recurring patterns within those charts, and the application of various technical indicators and other charting aids in order to forecast future price movements in a currency.
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