By Mashum Mollah
The last few years have seen Foreign Exchange (Forex) Trading become popular. Trading in currencies and benefitting from fluctuations has allowed investors to place informed bets and hedge their investments for success.
Multiple forex trading platforms have come up allowing both novice and experienced traders the possibility of engaging in forex trading. Individuals, trading and investment companies as well as governments have taken a keen interest in forex trading.
In very simple words, forex trading refers to the process of buying and selling currencies. You buy one currency in exchange for the other one. When the same rises in volume, you stand to make a profit.
There is no doubt that this requires a lot of trading skills, awareness of foreign markets, and trade flows. Many traders want to get into this simply because you do not need a lot of capital to start.
In this article, we are going to look at one of the newer aspects and developments in the world of foreign exchange trading- the forex contest. Specifically, we will look at five major reasons why forex contests make a lot of sense for first-time or novice traders.
Forex Contest: Meaning and Definition
We have already mentioned how foreign exchange trading platforms have grown in volume and importance in recent years. This means that there is a lot of competition between platforms themselves when it comes to attracting traders and investors.
Trading platforms are aware that they need to build awareness and credibility around their product. This has led them to adopt steps that can help them target first-time traders. One of the major ways platforms are attempting to do this is through Forex Contests.
Typically, traders that want to start trading need to open an account by depositing some money. However, if you are a novice, you will be unsure about ending up losing all your money by engaging in forex trading. This is a risk that cannot be ignored.
This can be overcome by allowing first-time traders to open free demo accounts on the trading platform. The platform itself allows traders some deposit money and encourages them to take part in forex contests.
Very simply, they can use the demo account and the free money that the platform has put in (think of it as a Sign-Up Bonus) and take part in forex contests. The winner of the content stands to receive additional payouts and victory money after winning the contest.
How to take part in a Forex Content: A 4 Step Process
In this section, we are going to help first-time traders understand how they can start playing a forex contest on a trading platform that offers it-
Step 1: Research a Trading Platform that is Running a Forex Content-
Many forex trading platforms have started offering contests to novice traders. You need to go on a credible platform like Traders Union and see the various platforms that are running contests. Read up on them and check for credibility, reputation, and ratings.
Step 2: Open a Demo Account by submitting Details-
Once you have zeroed in on the trading platform, go to its website and open a Free Demo Account. Make sure that you enter the details as has been required by the platform. Also do not forget to check for the Sign-Up Bonus that the platform is providing to its players.
Step 3: Explore the Forex Contest Rules and do your own research-
If you want to win prize money, you need to make sure that you have all the information and awareness. This means starting with the rules and regulations of the contest, looking at the time frame, and investing. Before you make a trade, look at some of the patterns and trends.
Step 4: Start Trading and Investing and hope for the Best Results-
You might not start winning immediately and that is all right. This is why you should open at least three to five demo accounts on different platforms running forex contests. This will help you improve your chances of winning. You want to maximize your winning percentage.
List of 5 Reasons Novice Traders should take part in a Forex Contest
1. Minimal Risks-
Everyone is wary about investing in their own money, especially during the learning phase. By playing a forex contest, you are looking to make the most of the opportunity by giving yourself a chance to win without the risk of losing your money. Not only will you get a lot of learnings, but you also stand to win from the bonus that the platform is offering you.
2. Great Experience-
It is very difficult to achieve forex trading success right from the get-go. You might fail, understand how markets work and then start getting the hang of the systems. This means that playing a forex contest will allow you to gain valuable experience that can help you improve as a trader as time goes by. With this industry coming up in a major way, this is a great start.
3. Winning Chances-
If experts are to be believed, luck plays a major role in forex contests. Yes, you have to read up, do your research and engage in trading decisions that can help you win big. Most of the leading trading platforms have sizable prize money on offer. We are talking thousands of dollars that you can use to buy or invest in a future asset.
4. Gateway to Forex Trading-
As far as investing and trading careers go, forex is right up there with mutual funds and stocks. From Wall Street brokers to national governments, everyone takes an active and aggressive interest in forex trading. Given how world markets are expected to grow in the coming years, forex trading provides a great opportunity as a career and professional path.
5. Freedom to Exit-
Everyone who has been a part of forex trading platforms knows that parting with your deposits is hard. However, if you are playing any forex contest with a demo account, you always have the freedom to exit whenever you want (after the contest ends). In other words, there are no monetary obligations on you at any point in time.
The Bottom Line
In this article, we have tried to list down some important information and details on forex contests. If you are a first-time trader looking to get into the exciting and interesting world of forex trading, you should start with the contests. If you have any other questions or doubts that you would like us to address on the topic, please feel free to reach out to us in the comments section below.
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