All types of online trading are subject to the law of supply and demand, including foreign exchange trading, contracts for differences (CFDs), digital currency trading, among others. The law of supply and demand states that if the supply of a commodity increases, its price will fall, and in the event of a supply shortage, its price will rise. This law underpins all the market activity since to buy a currency pair or other asset, somebody else has to sell it to you. Other factors that affect Forex prices, such as geopolitical events, economic releases, and government policies, usually affect the supply or demand for the affected currency. However, each currency pair is usually affected differently by such events.

 

How to trade online?

The basic principle behind online trading is to buy an asset at a low price and sell it at a higher price to make a profit. You can also sell an asset at a high price, repurchase it at a lower price in the future, and profit from the difference.

 

Trading with a Forex broker allows you to buy and sell different assets while incurring minimal costs; hence, you get to keep most of your profits. You can trade stocks, commodities, gold, Forex pairs and cryptocurrencies from a single trading account.