Price action is a trading technique where traders track real-time price movement to make subjective trading decisions rather than just relying on technical indicators.

When you know the best forex trading sessions you can easily track price movement and make the most out of your trades. Because the forex market is a hour beast, forex traders both institutional and individual benefit from this flexibility because they can trade at any time in a very liquid market. So there are limitations traders have to work with. However, the forex market has three peak activity sessions which are the Tokyo, London and New York trading sessions.

These three cities all have one thing in common. The forex market is most active when these three cities are conducting business which in turn means more traders would be active in the market. Since banks and corporations from these regions are going about their day-to-day transactions.

The London session starts when the Asian forex trading sessions come to an end. This is a very busy time in the global financial markets. The New York session starts halfway through the London session, making the action in the forex market more thicker as traders from the United States, Canada, Mexico and other parts of South America. During the Sydney session, the forex market significantly experiences lower liquidity and volatility.

The best time to trade forex for Nigerian traders is between PM and PM Nigerian time. As this is the time that liquidity is highest as the London and New York session overlap. But overall, the best hours to trade forex as a Nigerian trader will depend on your trading strategies and the currency pairs you are trading. Top Nigerian forex traders swear they start trading from the opening hours of the London session — AM to early New York session hours which is PM Nigerian time.

Your email address will not be published. At this price, you can buy the base currency mentioned in the pair. It is shown on the right side of the quote ticker by the Broker. Spread is the fees charged by forex brokers, so it is essential to choose a forex broker that has lower spread you should also check the overall fees. Forex trading can now be done by anyone in Nigeria, anytime, from home or anywhere through the internet.

You need to signup with a Forex broker. We will tell you exactly who to choose. In order to trade forex, you need to find a CFD broker. There are numerous forex brokers available for local traders such as Hotforex , Exness , XM Forex , FXTM , Forex. com, FxPro, Oanda etc. We have compiled the list of best forex brokers for Nigerian traders based on 9 factors.

Start Trading at FXTM Important: Forex Trading is risky, so have a working strategy before trading with real money. Start with Demo Accounts: Never start trading directly on a live account if you are a beginner becaue your real money will be at risk.

Once you have found the Forex Broker of your choice, you can then open an account with that broker to start trading or demo account to learn. This account will enable you to place your trades in the interbank market at the live currency prices. Once the verification is complete, you will need to make a deposit to fund your live account.

These funds will be used to place live trades at the real market prices. The long position implies that you are buying a currency pair and are betting on it to rise in value in the future. For ex. Buy order in forex is similar to buying an equity stock. You buy the currency at a low price, and once it reaches a higher value, you can then sell off the currency, thus making your profit. The short position can be taken when you believe the price of the currency will fall in the upcoming period.

You can place a sell order when the currency is at a higher price and then when the value falls significantly, you can buy it back at lower price, thus realizing your profit. Profit or Loss? Depending on the movement of the currency pair that you were trading, you will either be profitable or make a loss once you close the trade. You will make a loss in this case. To understand it more, let's use an example again. If you place a 'Short' trade for EURUSD at 1.

But if in this same example, the price of EURUSD goes to 1. Also Read: Our detailed guide on How to Trade Forex in Nigeria. There are many different strategies that are followed by successful forex traders. But most of them fall into 2 categories which are 'Technical Analysis' and 'Fundamental Analysis'.

While the fundamental analysis is mainly related to trading based on Economic outlook for a currency which could be impacted by news events like GDP, Unemployment data, balance of trade, capital outflows etc. Most technical forex trading strategies involve some level of study and analyse of the chart or trend patterns of the currencies before making an actual trade. Good thing is that almost all brokers around the world now offer MT4 or MT5, which are excellent platforms for sound technical analysis.

Only based on your strategy, you can make actually get the best returns in the future. We call the high the resistance. There can be resistance levels on lower time frames as well, but we will use a higher time frame to find important levels for positional trends. Once the price crosses the previous high to achieve a higher high price crosses 1. The low is now called the support. If you are a new investor, it is a good strategy to begin trend trading on one of these pairs.

This is because these pairs are very liquid, have low spreads and have stable volatility. Since these currencies are stable in their movements, they will help you in managing your risk initially by reducing volatility against your direction.

It is always a good strategy, to begin with, a USD pair because of stability. There are various other pairings available which do not include the USD. Day trading is not strategy per se, it is more of a trading routine. In this strategy, you place your trades, and close them within the same day or within a hour window to book your profits or loss. You can realise profits quicker in this strategy although the risk is also higher, as most of the traders try to gain high returns with small capital.

This is a very common strategy followed by a wide variety of traders, but you must understand its risk as well. Another strategy is known as scalping. This strategy is based on opening a position for a short time and closing it to make a small profit.

These strategies can be a great way to book profits quickly. If you are ready to start Forex trading then you may have doubts on which broker or app should you choose to trade online. Forex Trading, like any other market investment has many benefits but also carries significant risks. On the positive side , forex trading has the potential to bring good income if you trade with a sound working strategy while properly managing your risks.

You don't need very high capital to start. It is really important to understand all the risks. How you can manage these risks? Be cautious, have a fully tested trading strategy on demo and use good risk management to be successful at forex trading. At Forextrading. NG our ultimate aim is to help you choose the best broker for your trading needs. Get A Free PDF Version Of This Guide: Contains all the tips, resources and case studies found here.

NG is an Investment Comparison website with an aim to help Investors in Nigeria find the best forex brokers. Read More. Read full risk disclaimer.. NG: Your Guide to Forex Trading in Nigeria. All Rights Reserved, See Best Brokers! Forex Trading in Nigeria The Ultimate Guide for Beginners. For Nigerian Investors, forex trading can be a way to earn wealth. Akin Benjamin Last updated: September 24, Don't have time right now? Read the guide later!

Give me my PDF See Best Forex Brokers! Broker Name Regulation Max. Leverage Min. FXTM is a Tier-1 regulated forex broker. Their spreads are low with Advantage Account. HotForex - Low spreads with Zero Account. HotForex has low spreads for most curreny pairs. Their Swap fees is moderate. Chapter 1 What is Forex Trading? Chapter 2 Understanding Currency Pairs. Chapter 3 How to start Forex Trading? Chapter 4 Forex Trading Strategies. Chapter 5 Forex Trading Platforms. Real Life example of Forex Trading Have you traveled overseas?

In this chapter, you will learn everything you need to know about Currency pairs. Let's start! Types of Currency Pairs Currency pairs are mainly classified into 3 types: 1 Major Currency pairs: These are the currency pairs that include US Dollar as one of currency in the pair.

Currency Pairs Lingo While trading forex, you would come across these common terms. Chapter 3 How to start Forex Trading in Nigeria?

It involves speculating on the rise and fall of a currency's fluctuations. But is trading in the forex market really profitable for small or retail individual investors? How much income can you earn from trading forex part time or full time? What are the risks? There are so many other questions that may come to your mind if you are a beginner forex trader.

We will try to answer all these questions and more with this guide. Last updated: September 24, Busy right now? Don't worry. We have created a 'contents' section so you can use it to browse to section of the information regarding forex trading.

This guide is broken down in 6 different sections for beginner traders in Nigeria, and we will continue to update it with new information in the future. Chapter 1. What is Forex Trading? Chapter 2. Understanding Currency Pairs. Chapter 3. How to start Forex Trading? Chapter 4. Forex Trading Strategies. Chapter 5. Forex Trading Platforms.

Chapter 6. Traders can place their trades in the forex market, which is an over-the-counter market that allows investors to trade currencies. This is a platform for investors, institutions, banks, and retail traders. This is larger than all the stock markets in the world combined together.

Have you traveled overseas? If you have then the chances are that you have already traded currencies before. This is because you need to acquire the currency of the country you are visiting by exchange the currency of your home country. In this example you are physically buying USD by exchanging your Nairas.

When you change your Naira into a different currency to spend money on your trip, you are actually making a forex transaction. The rate that you get from your exchanger is decided on the basis of the real time exchange rates plus the profit margin of the money changer. In theory, this is what online forex trading on the internet is all about, but still a bit more than exchanging currencies through a Money Changer.

All transactions in the forex market are based on the purchase of one currency for the sale of another currency. It is really important to understand what currency pairs, and how they work before you can start trading Forex. The opportunities to make profits are higher. These include EUR Euro , GBP Pound , JPY Japanese Yen etc. As you may have noticed that these are the crosses of all the major currencies excluding US Dollar.

As a beginner Forex Trader, you need to stick to major pairs only as it offers high liquidity and predictable market movements. While trading forex, you would come across these common terms. We will be explaining all the important terms here. This price is the quote by the broker. It is the last decimal in the price. For Example: In the quote 1. At this price, you can sell base currency in the pair.

This price is shown on the left side in the quote ticker by the Broker. At this price, you can buy the base currency mentioned in the pair. It is shown on the right side of the quote ticker by the Broker. Spread is the fees charged by forex brokers, so it is essential to choose a forex broker that has lower spread you should also check the overall fees. Forex trading can now be done by anyone in Nigeria, anytime, from home or anywhere through the internet.

You need to signup with a Forex broker. We will tell you exactly who to choose. In order to trade forex, you need to find a CFD broker. There are numerous forex brokers available for local traders such as Hotforex , Exness , XM Forex , FXTM , Forex.

com, FxPro, Oanda etc. We have compiled the list of best forex brokers for Nigerian traders based on 9 factors. Start Trading at FXTM Important: Forex Trading is risky, so have a working strategy before trading with real money.

Start with Demo Accounts: Never start trading directly on a live account if you are a beginner becaue your real money will be at risk. Once you have found the Forex Broker of your choice, you can then open an account with that broker to start trading or demo account to learn. This account will enable you to place your trades in the interbank market at the live currency prices. Once the verification is complete, you will need to make a deposit to fund your live account. These funds will be used to place live trades at the real market prices.

The long position implies that you are buying a currency pair and are betting on it to rise in value in the future.

For ex. Buy order in forex is similar to buying an equity stock. You buy the currency at a low price, and once it reaches a higher value, you can then sell off the currency, thus making your profit.

The short position can be taken when you believe the price of the currency will fall in the upcoming period. You can place a sell order when the currency is at a higher price and then when the value falls significantly, you can buy it back at lower price, thus realizing your profit. Profit or Loss? Depending on the movement of the currency pair that you were trading, you will either be profitable or make a loss once you close the trade. You will make a loss in this case.

To understand it more, let's use an example again. If you place a 'Short' trade for EURUSD at 1. But if in this same example, the price of EURUSD goes to 1. Also Read: Our detailed guide on How to Trade Forex in Nigeria. There are many different strategies that are followed by successful forex traders.

But most of them fall into 2 categories which are 'Technical Analysis' and 'Fundamental Analysis'. While the fundamental analysis is mainly related to trading based on Economic outlook for a currency which could be impacted by news events like GDP, Unemployment data, balance of trade, capital outflows etc.

Most technical forex trading strategies involve some level of study and analyse of the chart or trend patterns of the currencies before making an actual trade. Good thing is that almost all brokers around the world now offer MT4 or MT5, which are excellent platforms for sound technical analysis. Only based on your strategy, you can make actually get the best returns in the future. We call the high the resistance.

There can be resistance levels on lower time frames as well, but we will use a higher time frame to find important levels for positional trends. Once the price crosses the previous high to achieve a higher high price crosses 1. The low is now called the support.

If you are a new investor, it is a good strategy to begin trend trading on one of these pairs. This is because these pairs are very liquid, have low spreads and have stable volatility.

Since these currencies are stable in their movements, they will help you in managing your risk initially by reducing volatility against your direction. It is always a good strategy, to begin with, a USD pair because of stability. There are various other pairings available which do not include the USD. Day trading is not strategy per se, it is more of a trading routine. In this strategy, you place your trades, and close them within the same day or within a hour window to book your profits or loss.

You can realise profits quicker in this strategy although the risk is also higher, as most of the traders try to gain high returns with small capital. This is a very common strategy followed by a wide variety of traders, but you must understand its risk as well. Another strategy is known as scalping. This strategy is based on opening a position for a short time and closing it to make a small profit. These strategies can be a great way to book profits quickly.

If you are ready to start Forex trading then you may have doubts on which broker or app should you choose to trade online. Forex Trading, like any other market investment has many benefits but also carries significant risks. On the positive side , forex trading has the potential to bring good income if you trade with a sound working strategy while properly managing your risks.

The best time to trade forex pairs depends on the currency pair and the location of the trader. Chapter 2. Swing trading is a strategy focused on reaching smaller gains in short-term trends. Also See: Best Forex Bokers in Nigeria Price action is a trading technique where traders track real-time price movement to make subjective trading decisions rather than just relying on technical indicators. A Standard Lot is equal to , units of any currency. Let's start! No sign-up bonus, deposit bonus, or welcome bonus is offered to traders.

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