How to Become a Forex Trader in Nigeria

How to Become a Forex Trader in Nigeria

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What Exactly Is a Forex Trader?

Forex trading has grown to be a significant source of income for people all over the world. It is critical to understand who a forex trader is and what they do.

To comprehend a forex trader, it is critical to understand the following:

A forex trader is someone who buys and sells different currencies on the foreign exchange market.
A forex trader can be a professional who trades for a variety of companies and firms, or an individual with little or no experience who trades for personal gain.

A forex trader constantly monitors the market, noting when various currencies’ values and exchange rates change, as this will determine his major moves and profitability.

Forex traders profit from correctly predicting when currencies will rise and fall in value against one another and then selling or buying accordingly.

Though this is a high-risk venture with high-reward potential, it can also be a very profitable one if the investor or trader conducts thorough research before investing.
Forex traders can trade from any country because this is a type of investment that can be done from anywhere in the world if the proper tools are used.

 

How to Become a Forex Trader in Nigeria

What Is Nigerian Forex Trading?

Forex trading has become a very popular source of income in Nigeria, with many workers and investors turning to this type of investment to maximize profits.

 

Forex trading in Nigeria entails the following:

Predicting the rise and fall of various currency values and profiting from these fluctuations.
Forex trading has become so popular in Nigeria that it is estimated that 400 million Naira is traded daily.
Though forex markets and trading profits do not compensate for the significant risk involved in trading in the foreign exchange markets, there has been a significant increase in the number of traders from all parts of the country in recent years.

This type of investment allows traders to make a good profit in a short period of time. As a result, forex trading has become extremely popular in the country.

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Forex Trading Strategies in Nigeria

If you want to trade forex successfully, you must have a solid strategy in place. You’ll also need to be familiar with a variety of strategies in order to understand the reasoning behind short-term moves.

Link To Brokers Website

 

Scalping

This lightning-fast strategy aims to extract only a few pips (basis points) from each trade. Scalpers may only hold a trade for a second or two before exiting. You should be familiar with indicators, and you’ll need a quick trading platform and an Internet connection with no latency — timing is everything in scalping. This strategy is based on an understanding of how charts move rather than the fundamentals that drive the long-term movement of currency pairs.

 

Trading during the day

A forex day trader makes intraday trades and is completely out of money by the end of the day. Day traders prefer to avoid big overnight moves. Because the forex market is open 24 hours a day, this is less of an issue. This strategy, however, allows traders to avoid the weekend pause. Day trades can last the entire trading session or only a few seconds.

 

 

Trading in Swings

Swing positions seek to profit from short-term price movements. These positions may be held for a number of days, but they are not required to do so. To make money, swing traders may need to understand the fundamental macroeconomics underlying a currency pair.

Because a swing trade has a longer potential time frame than a scalp or a day trade, news items and macroeconomic conditions can have a greater influence on it.

 

Trading in Positions

Long-term trend trading is another name for potential trading. These traders are looking for large price changes in a currency pair. This type of trading may be suitable for you if you are a patient trader who is unconcerned about small, short-term chart movements. You’ll need a solid understanding of market fundamentals as well as the infrastructure of the currency you’re trading.

 

Nigerian Forex Trading Example

Assume NGN/USD is trading at 0.002575/0.002595 and you believe the price will rise, so you plan to purchase the pair. You want a million dollars. This currency pair’s margin rate is 4.02 percent, so you’ll only need $103.92 in your account.

After 4 hours, the NGN/USD price has risen to 0.003010/0.003030. You benefitted from a 4.15-point move, and your profit is (1,000,000*0.003010)-(1,000,000*0.002595), or $415.

 

 

How Do You Get Started as a Forex Trader in Nigeria?

There are various steps to take in order to become a very successful forex trader, as it is very easy to lose funds in this volatile forex market.
Both amateurs and professionals can succeed in forex trading in Nigeria and make even more money in less time by following a few simple steps.

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How to Become a Forex Trader in Nigeria

Some fundamental steps that traders can take to improve their chances of success in forex trading are as follows:

The first step toward becoming a successful forex trader is to understand currency pairs and how they trade against one another, i.e. how they rise and fall against one another.

The next step is to find a reputable forex broker with whom to open an account. Be cautious because there are many scam brokers in the country who take investors’ money and then disappear.

It is critical to ensure that any Forex Broker chosen is regulated and licensed to trade currencies.
FXTM ForexTime is one of the best currency trading platforms in Nigeria for forex traders and investors.

Another critical step is to begin with a demo account, as this account will allow you to learn to trade with virtual money while preventing traders from losing real money while learning to trade.

 

List of Nigeria’s Wealthiest Forex Traders

There are many successful forex traders in Nigeria, as many workers and professionals have invested in this type of investment, learning how to become a forex trader.

Among the top forex traders in Nigeria are:

  • Uche Paragon
  • Blessing Ezeako
  • Bade Ajidahun Afioluwa
  • Chinedu Onuoha
  • Benjamin Ilesanmi Ajimoko

 

 

Do Forex Traders in Nigeria Pay Tax?

It is critical to understand that profits from forex trading are taxable because they are classified as capital gains and can be taxed at a rate of 10%.

What are your thoughts on forex trading in Nigeria and how to become a forex trader in Nigeria, including currency pair trading? Please share your thoughts in the comments section.

 

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