Learning forex lesson for beginners is different from trading in forex. You are not necessarily trading in forex, but you can start by learn the material for trading especially for beginners.

Before you jump directly into this risky investment, you need to know the meaning of forex, the benefits, the market, how it works, and the advantages vs the risks.

In online forex trading, you can make transactions anytime and anywhere for a full 24 hours, from Monday to Friday with a broker such as the Didimax forex broker.

You should understand the two characteristics that distinguish it from the stock market that you can find when learning forex lesson for beginners. Here's a brief explanation:

1. Over the counter (OTC) is a transaction that is only carried out by two parties, namely an investor or trader with a broker. In the stock exchange, transactions are carried out by three parties, namely investors, brokers and stock exchanges.

2. There is no exchange of goods anywhere, forex traders only see the price difference. This is different from the stock exchange, which buys shares to be deposited in a custodial bank.

Forex Lesson for Beginners of How the Trading Works

Similar to the simple principle of stock trading, buy when prices are low and sell when prices are high. Likewise, how forex trading works.

The reason is, traders take advantage of the price difference. Then how to determine forex prices? Here are things you want to know about how forex trading works:

1. Pair or currency pairs

In the world of forex, the price that becomes the benchmark is the exchange rate of a pair of currencies. The term is called a pair. 

So, there must be a currency exchange rate pair that is a trading reference. Currently, there are 47 currency pairs from various countries around the world in the forex market.

2. Open buy and open sell

What is open buy and open sell? Open buy and open sell positions are actually when the trader expects one of the currency pairs to strengthen and the other to weaken. Of course, this aims to predict the benefits that will be obtained.

3. PIPs for your reference

When you study a forex lesson for beginners, you will know that in the world of forex, price movements are called PIPs. Well, this PIP is an important reference that you must understand. Especially when you are learning forex.

So, this PIP becomes one of the main things in calculating the profits and losses in trading. PIP refers to the four decimal places behind the comma of the exchange rate.

Advantages and Risks of Forex Trading

What are your opportunities as a forex trader? So what is the risk of loss? The right trading can lead you to profit. If it is wrong, it can bring losses.

Let's look at the following reviews so that you are ready to become a trader. Forex trading advantages:

Here are the potential advantages of investing in forex:

1. You can start with limited capital because there is leverage & contract size

2. Can be done from anywhere and anytime (online and market 24 hours x 5 days open)

3. Practical with auto trading features

4. You don't have to be online all the time because it can be used as a side job

5. Relatively low cost

6. Provide additional income

7. Before jumping into the market, you can practice with a demo account first.

Forex trading risks:

Here are some things that are a forex risk and you need to be aware of.

1. Tempted by leverage or the facilities provided by the best forex broker

2. Wrong choice of broker, it could be an unregistered and illegal broker

3. Currency volatility.

Before you decide to jump into the world of forex, it's a good idea to study every detail to minimize the risk of loss. You also need to practice directly using a demo account to explore forex lesson for beginners.