What you need to know about forex trading in Nigeria

Forex trading involves speculation on the currency values with an aim to make profit. Forex is traded in currency pairs, where one currency is pitted against the other – means when you buy one currency, you automatically sell another currency.

As an example, take NGN/USD as a currency pair. Here, NGN is the “Base Currency” while “USD” is the “Quote Currency”. Base currency represents how much of a quote currency is required to get one unit of Base currency. Suppose you expect the NGN to appreciate in near future, you would buy NGN/USD, which means you have bought Nigerian Naira and sold the US Dollar simultaneously.

If NGN appreciates in future against the USD, you will close the position by selling the NGN/USD pair which means selling the NGN and buying back the USD…

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