How to start trading Forex in Pakistan?

Posted by Jezzy Ashton on June 7th, 2019

Forex stands for Foreign Exchange Trading

Foreign exchange is the process of changing one currency into another currency for Business, travel or Investment. The average volume involved in Forex trading is more than .1 trillion on a daily basis.

How to trade Forex in Pakistan?

You can trade Forex in Pakistan following the following simple steps

1. Select a currency pair

Select which currency pair you wish to trade. There are more than 65 currency pairs to choose from. You have to pick a
trading opportunity that’s right for you. It is important that you select the right currency pair to trade.

2. Decide on the type of Forex you trade
There are three ways to trade forex Spread Betting, CFD or Forex Trading. Each has its particular lot size:

For example, while trading GBP / USD your stake would be in Pounds, while in USD / JPY your stake would be in US Dollars
(the minimum lot size is 1000)

3. Decide to buy or sell the currency pair

Once you have picked a currency pair, you need to know the current price it is trading at. All forex is quoted in terms of one currency versus another. Each currency pair has a ‘base’ currency and a ‘quote’ currency. The base currency is the currency on the left of the currency pair and the quote currency is on the right. Let us put it in a simple way when
trading foreign currencies, you would:

BUY a currency pair if you believed that the base currency will strengthen against the quote currency. Alternatively, the quote currency will weaken against the base currency.

Your profits will increase in line with every increase in the exchange price.
A fall in the exchange price below your open price level will bring you a loss.

SELL a currency pair if you believe that the base currency will weaken in value with respect to the quote currency.
Alternatively, the quote currency will strengthen against the base currency.

Your profits will increase in line with each point the exchange price falls.

An increase in the exchange price above your open level will bring you a loss.

Spread - FOREX pairs have two prices.
The selling price (known as the bid) and the buy price (also known as the offer). The difference between the buy price and
the selling price is known as the spread and is actually the cost of the trade.

You can start to trade Forex with several Forex Brokers in Pakistan proving their services in Pakistan. It is always better to start trading in a demo account while you are learning.