How much you can earn in the Forex market – the main question for those who are just mastering trading. There are no exact answers to it. Everything depends on the circumstances: market conditions, trader’s skill, deposit size, analysis accuracy and many other factors. Let’s understand.
How much do they usually earn on Forex traders?
In international practice, professionally managing assets of the organization – various investment funds – on average show an average annual return on each dollar invested at a rate of 15-20%. Of these, the most successful are 30-40%. These figures can be considered a target for the trader to understand how much profit he can get.
Factors determining profitability
State of the market
For a year from the summer of 2014 to the summer of 2015, millions of traders could earn on Forex. The fact is that during this time the dollar has risen in price relative to the euro by 30%. Meanwhile, the EUR / USD pair is the most popular instrument of the Forex market, traded by millions of traders around the world. At the end of the year, all of them received, respectively, 30% of profits, which is close to the maximum indicators (see the graph).
An important factor limiting the trader’s opportunities in his earnings on Forex. 30% of the profitability of the pair EUR / USD from $ 100 or $ 1,000 will be, respectively, $ 30 and $ 300. Therefore, if a trader wants to secure a decent income by trading in Forex, he needs to have a starting deposit, which, given the average profitability of the market, will be able to meet his earnings needs. In addition, the risks of trading a small deposit increase many times, while a deposit of sufficient size allows reducing risks. Due to the small size of the starting capital, traders are often forced to abandon interesting and profitable trades, as there is a risk of losing the entire deposit. / P>
A good market situation and sufficient start-up capital will not save a trader from losses if he leads unreasoned and unbalanced trade. Therefore, each trader should work out his own trading strategy and adhere to it in the work. This will allow him to monitor possible risks and avoid unnecessary losses.
How can I make profits on FOREX without investing money?
To understand how much you can earn on Forex, we suggest using a secure demo account in trading terminal MetaTrader. Having opened a demo account, you can participate in the process of trading using virtual money. Thus, you will see how real-time trading in the foreign exchange market is going on, try to develop your own trading strategy, learn how leverage works, and learn how to assess possible risks depending on the size of the deposit. After you master the work on the demo account, you can try to apply the knowledge and skills obtained by opening a real trading account.