How to Start Forex Trading in South Africa
Forex trading in South Africa is a growing market, supported by a variety of regulated brokers and a legal framework that encourages participation. Here’s an overview of the key aspects of forex trading in South Africa. How Does the Forex Market Work? The Forex market is the largest and most liquid financial market globally, with a daily trading volume of approximately 100 trillion Rand (about 6.6 trillion USD in 2019). Forex trading entails buying and selling currencies. Traders buy a currency at its current market price and sell it later at a target price, hoping to profit from the price difference. This profit potential is due to the constant volatility in currency prices. Market volatility peaks during the opening hours of stock markets in Sydney, Tokyo, London, and New York, with the highest trading volume occurring during the overlap of London and New York markets. Given that South Africa shares a similar time zone with London, South African traders can take advantage of these pe...