Learn the fundamentals of forex trading from scratch. Perfect for those just starting their trading journey in South Africa.
Forex (Foreign Exchange) trading is the buying and selling of currencies in the global marketplace. It's the world's largest financial market, with over $6 trillion traded daily. As a South African trader, you'll be participating in this global market from your local timezone.
Currencies are always traded in pairs. The first currency is called the "base currency" and the second is the "quote currency." For example, in EUR/USD, EUR is the base and USD is the quote currency.
The forex market operates 24 hours a day, 5 days a week. Understanding market sessions is crucial for South African traders:
11:00 PM - 8:00 AM SAST
9:00 AM - 6:00 PM SAST
3:00 PM - 12:00 AM SAST
Select an FSCA-regulated broker that accepts South African clients
Practice with virtual money before risking real capital
Never risk more than 1-2% of your account per trade
Begin with small position sizes and gradually increase as you gain experience
Be aware of SARB regulations regarding offshore investments. Ensure your broker complies with local requirements and consider the annual R1 million offshore investment allowance.
