How to Start Trading Forex in Ukraine • Forex Strategies

Many foreign investors are turning away from Ukraine for good reason. Exchange control rules that generally focus on domestic transactions apply to businesses and residents, both foreign and domestic in the country. Ukraine’s singular financial focus is the stabilization of the hryvnia, or hryvna, the currency that replaced the hyperinflated Soviet-era karbovanets.

It was 2019 that brought a welcome relaxation of foreign exchange regulations. The National Bank of Ukraine (NBU) removed around 40 restrictions that had restricted trade in the country for decades. Among other reforms, Ukrainian businesses are no longer required to hold their foreign income in hryvnia, bank customers can use borrowed capital to purchase foreign currency, and cross-border lending is no longer subject to an interest rate cap. COVID didn’t start Ukraine’s 2020 with a bang, but they’re in the best financial position they’ve seen in some time.

Getting started with forex in Ukraine may seem difficult, but following the steps below will help you get started.

Everything in modern digital forex trading is built from your internet connection. You will access and connect your forex broker, trading interface and bank from the web. The more reliably and efficiently you can do this, the better your chances of success.

You can contact offshore forex brokers who operate in Ukraine. Make sure to choose a broker regulated by the financial structure of its country.

You will need to connect a third party bank account to fund your trading account. You will also need to verify your identity, which can be strict if you are dealing with a reputable forex broker. Take the time to do it right.

Transfer money from your third-party account to your investment account. Make sure that the broker you choose does not give you any problems when you want to withdraw funds. You can check this through service notices.

Your broker may have its own trading interface. If not, there are industry standard interfaces that many people use, such as MetaTrader.

Start your forex career and invest in financial stability and profitability.

Now that your setup is ready to trade forex, you need to review effective strategies. To fail to plan is to plan to fail in the highly competitive forex market. Here are the most common and well-known trading strategies that you should know.

Scalpers are extremely fast traders who can only hold a currency for a few seconds before exiting the trade. The purpose of scalping is to take advantage of very short-term movements. These moves are based almost entirely on chart patterns – news events don’t really matter to the scalper. The profits are small for each trade, but the scalper compensates for this with an extremely high trading frequency. Some scalpers use automated bots to help execute many trades per second.

Momentum trading is an investment style for short-term traders. Impactful short-term events can cause a currency to move quickly in one direction, and the momentum trader is there to catch it. These types of investors usually stay away from even calm markets. Momentum trading is news driven and relies on the ability to react quickly to the market rather than predict it.

The position trader is the opposite of the scalper. Where the scalper cares very little about the fundamentals that govern a currency, that is exactly what a position trader focuses on. Short-term chart movements have no bearing on how the position trader invests either. This is a long-term investment that may require you to hold an investment for months or even years before exiting the trade. Due to duration, position traders are looking for big profits.

HRN/USD is trading at 0.03740/0.03760. You want to buy ₴120,000 now and sell because you think the price will go up very soon. The margin rate for the HRN/USD currency pair is 8.75%. You will need $393.75 cash in your account to control ₴120,000 with this margin rate.

After 2 hours, you see that the price of HRN/USD is 0.03780/0.03800. This is an increase of 2 points and your final profit will be $24:

(₴120,000 x 0.03780) – (₴120,000 x 0.03760) – if you sell at that time.

Now that you have a better idea of ​​the different types of investors, you can start looking at the many financial vehicles that the forex market allows you to use.

• Short sale: You don’t have to be on the “long” side of a currency to profit from it. If you think the price of a currency will fall, you can short sell it and profit from its fall.
• Contract for differences (CFD): CFDs are financial vehicles that follow the price of the currency they mark. If you buy and sell CFDs, you are not actually buying or selling the currency. The value of your account will rise and fall with the movement of your investments.
• Binary Options: These are simple yes or no decisions that do not directly follow the currency price. Wins and losses are usually larger, as you gain or lose a fixed percentage of your investment depending on your decision.

Remember to only choose regulated forex brokers to ensure that your personal and financial information is protected.

Here are some of the most commonly used terms you will hear in the forex market:

• Seed: The smallest currency split allowed by the forex market, $0.0001
• Lot size: The amount of currency you wish to exchange
• Orders: The description of your forex entries and exits
• Calls: A contract between 2 people, a buyer and a seller, which facilitates the transfer of currency on a certain date at a certain price

The nearly $2 quadrillion foreign exchange market creates opportunities that many Ukrainians struggle to find in their own financial markets. Although Ukraine is progressing, your best bet is probably to research good offshore forex brokers and forex trading resources.

You will need the latest forex news and strategies to be successful in forex. Bookmark this page and website for the latest information to inform your investing strategies!