It is never late to get into the naira, forex trade in Nigeria
Foreign exchange condensed to ‘Forex’ is a market for foreign currencies with all activities allowed outside the central money systems. The naira is a common trade item in the forex marketplace and is exchangeable into any national currency.
Forex trade goes in pairs – by ordering one quantity of another currency and exchanging with a quantity of the naira. Forex rate for the naira like other currencies is determined at the forex market.
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Companies, traders, banks in Nigeria are a direct participant of forex trade in Nigeria. It is also necessary for making business sales and transaction outside the country which require payment in foreign currencies.
Forex trade is legal in Nigeria and the Central Bank of Nigeria plays the biggest role in forex trade and forex market in the country. It is in control of money supply and inflation as well as regulation of the forex trade and market space in Nigeria.
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How to get into naira, forex trade in Nigeria
Forex transactions basically take place over the internet via a dealer network or over-the-counter (OTC) market. There is no central marketplace for forex activities – buying, selling or exchanging at a particular rate.
While anyone in Nigeria can trade forex with ease, there are forex brokers who offer advice and assistance.
Several forex brokers exist online to make trading easy. However, it is also important to use forex brokers under the CBN regulation umbrella.
Forex Trading Steps
- Choose a genuine broker
- Selecting a currency pair – Forex trades in currencies on pairs, choose the preferred two
- Position – reflect on changes in the exchange rates
- Access risk/reward ratio
One last tip – learn how to read forex charts and how to analyze the forex market, as it helps in making better trading choices.
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