Connect with us

Infotech

Forex for Beginners: Unveiling the currency exchange and how to trade it

Published

on

Forex can be explained as a network where buyers and sellers come together to exchange currency at a mutually agreed-upon price. It is the method through which individuals, companies, and central banks exchange one currency for another.

The primary motivation behind most currency conversions is to generate a profit. The daily conversion of currencies can cause significant price fluctuations in certain currencies. The fluctuation in forex markets is what makes it appealing to traders, as it offers the potential for higher profits but also comes with increased risk.

In this article, we explain what is forex trading is and how does it work.

What is the forex market?

Currencies are traded on the foreign exchange market. The most distinctive feature of this market is the absence of a central marketplace. Rather, over-the-counter (OTC) electronic currency trading is carried out. This means that instead of taking place on a single, centralised exchange, all transactions take place among traders throughout the globe via computer networks.

The market is open five and a half days a week, 24 hours a day. The main financial hubs of Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo, and Zurich are the global hubs for currency trading, spanning nearly all time zones. This implies that after the U.S. trading day concludes, the currency market opens in Tokyo and Hong Kong. With price quotes fluctuating all the time, the currency market can be extremely lively at any given moment.

How does forex trade work?

Forex trading can be done in a number of ways, but they all operate by buying one currency and selling another at the same time. Many forex transactions have historically been completed through a forex broker, but with the growth of online trading, you can now use derivatives like CFD trading to profit from changes in currency prices.

With leveraged products like CFDs, you can start a position for a small portion of the trade’s total value. In contrast to non-leveraged products, you speculate on whether you believe the market will appreciate or depreciate rather than assume ownership of the asset.

Leveraged products can increase your profits, but if the market goes against you, they can also increase your losses.

What is leverage?

Leverage lets you trade huge sums of currency without paying the full price. A small margin deposit is made instead.
The full trade size determines your profit or loss when closing a leveraged position.

What is the spread?

The spread is the difference between forex pair buy and sell prices. Forex, like many financial markets offers two prices when you open a position. To open a long position, trade at the buy price, slightly above the market price. Short positions are opened at the sell price, somewhat below the market price.

What is a margin?

Margin is crucial to leveraged trading. This is the initial deposit you make to create and maintain a leveraged position. Remember that your margin requirement depends on your broker and deal size when trading forex with margin. Margins are usually reported as a percentage of the full position.

What is a pip?

Forex pair movement is measured in pips. Forex pips are one-digit movements in a currency pair’s fourth decimal place. Thus, GBP/USD jumps one pip from $1.35361 to $1.35371. Fractional pips, or pipettes, are the decimal places after the pip.

What is a lot?

Trading currencies in lots standardises forex trades. Forex trades in tiny sums, so lots are large: 100,000 base currency units. Because individual traders may not have 100,000 pounds (or whatever currency) to trade, most forex trading is leveraged.

The bottom line is that there is a steep learning curve to forex trading, and the markets are very volatile. Given the risks involved, investors should proceed cautiously.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Infotech

Kaduna Govt, Google, DSN launch first AI for beginners in Hausa

Published

on

Google  in collaboration  with Data Science Nigeria  (DSN) and the Kaduna State Government  on Tuesday launched the first Artificial Intelligence (AI) in local language – “AI for Beginners in Hausa’’.

The initiative is aimed at empowering women in Northern Nigeria.

The Kaduna State governor, Sen. Uba Sani, in his address, expressed profound gratitude  to the partners for building  support  for  women to use technology  to harness  the social economic  development of the state  and the country  as a whole.

The governor was represented  by the Deputy Governor, Dr Hadiza Balarabe, at the launch of Arewa Ladies for Tech, and the  launch and mural  unveiling of AI for Beginners Learning  Video series.

According to Sani, AI is not just the future; it’s the present.

“By equipping our people especially our women with AI skills, we are not only paving the way for a more prosperous and innovative Northern Nigeria but also laying the foundation for Kaduna to become a thriving tech hub.

‘’Today, as we gather for the official launch, I feel the pride that Kaduna State is at the forefront of digitalisation. This initiative to teach AI in Hausa will demystify  the complex  nature of AI,’’ he said.

He, however, appreciated the efforts of DNS , Google, for the tireless effort in ensuring the success  of AI in local language.

“Your commitment to laying a vibrant and inclusive  digital  economy is commendable”.

The Director, West  Africa, Google, Mr Olumide Balogun, said in his welcome address said that Google’s  mission was to organise the world’s information and make it universally accessible and useful.

Balogun said that this mission drives Google to create opportunities that not only support individuals but also empower communities.

“In Nigeria, our vision is to unlock economic opportunities for everyone—whether you reside in Kaduna, Lagos, or Onitsha, and whether you are an entrepreneur, a student, or a trader.

“We strive to ensure that our programmes and efforts provide substantial opportunities for all.

“Technology, especially the power of the internet, has become a pivotal tool in accessing growth and enhancing lives.

“Yet, we recognise that many underserved communities and groups face significant barriers in harnessing these opportunities; this brings us to why we are here today,’’ he said.

He said that in 2023, through Google philanthropic arm, Google.org, made a steadfast commitment to address these challenges.

According  to him, Google pledged a $1.5 million grant to empower 20,000 Nigerian women and youths from underserved communities with essential 21st-century skills

He said that this includes a plan to train 5,000 women and girls in areas such as data science and artificial intelligence through the Arewa Tech4Ladies initiative.

Balogun said that this initiative was a commitment to enhance the representation and inclusion of women in the tech sector.

He said that in 2023, Google launched this pioneering programme to train 5,000 women and girls in data science, artificial intelligence, and entrepreneurial digital technologies.

“Today, I am thrilled to announce the launch of a new educational initiative – `The AI for Beginners in Hausa Learning Series’.

“This video series is a key part of our Arewa Tech4Ladies programme, tailored specifically to make learning about Artificial Intelligence accessible in the Hausa language.

“By bringing AI education to the forefront in a local language, we aim to demystify technology and make it relatable and understandable for thousands of women and girls across the region”.

“These series are not just  educational tools.

“They are bridge connecting untapped potential with the global digital economy”.

He said: “In Google. we have trained over 3,453 women and girls in foundational tech skills.

“This training has enabled them to participate in local tech-related employment and entrepreneurial ventures, showcasing the direct impact of our efforts on the economic empowerment of women in Northern Nigeria,”.

Also speaking at the launch, the Chief  Executive Officer of DNS,  Dr Bayo Adekanmbi. said that by making AI education accessible in Hausa, the partnership  was creating opportunities for innovation, entrepreneurship, and social impact.

“These women are the future leaders and innovators of Northern Nigeria, and AI is the tool that can amplify their potential,” Adekanmbi said.

Dr Kadhifu Inuwa, Director-General, National Information Technology Development Agency,  in his presentation  on  “AI in Education” , said that a lot had been missed because AI was not being taught in local language.

According to Inuwa, NITDA is aware of  what Google has done in ensuring digital  skills for citizens

The D-G was represented  by Dr Ahmed Tambuwal, Head, Digital  literacy  and Capacity Building  Department of NITDA

Continue Reading

Infotech

2024 Q1: MTN hits 78m subscribers, up 1.3%

Published

on

MTN Nigeria says its total subscribers
increased by 1.3 per cent to 77.7 million, as at March 31, 2024, from 76.7 million recorded in the same period of 2023.

MTN Nigeria’s Chief Executive Officer, Mr Karl Toriola, said this in the company’s unaudited financial statement sent to the Nigerian Exchange Ltd.(NGX) in Lagos.

Toriola said that the subscribers, however, dropped by two million, compared to the year ended December 2023, due to the implementation of the NIN-SIM directive, which affected the development of its user base.

He said that the telecommunications service provider’s active data users increased by eight per cent to 44.5 million in the quarter under review, compared to 41.2 million posted in the same quarter of 2023.

According to him, active mobile money (MoMo PSB) wallets of the service provider increased by 48.7 per cent to 4.8 million in first quarter of 2024, from 3.2 million recorded in first quarter of  2023.

Toriola said that the firm’s total revenue also increased by 32.5 per cent to N752.98 billion in the period under review, as against N568.13 billion posted in the corresponding period of 2023.

The managing director stated that the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of the telecommunications company, however, declined by 1.9 per cent to N297 billion as at March 31, 2024.

This is compared to N303 billion posted in the same quarter of the previous year.

According to him, the firm recorded a net loss of N392.69 billion for the quarter under review, indicating 462.2 per cent decline, compared to N108.43 billion posted in the same quarter of 2023.

The managing director stated that the company’s net loss for the quarter resulted in a further increase in its accumulated losses and negative
shareholders’ funds to N599.2 billion and N434.7 billion, respectively.

Toriola explained that severe macroeconomic headwinds overshadow the strong operating performance of the firm.

He said: “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base.

“The Naira depreciated to an all-time low of N1,627/per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) in march, from N907 per dollar at the end of December 2023, before moderating to N1,309 per dollar by the end of the quarter.

“Additionally, the inflation rate maintained an upward trajectory, rising to 33.2 per cent in march, with an average rate of 31.6 per cent in the quarter.

“During the quarter, we also continued to manage the effects on our business of the industry-wide directive of the Nigerian Communications Commission (NCC) for a full barring of subscriber lines not linked to their National Identity Number (NIN) – the NIN-SIM directive.

According to him, this impacted the
development of the telecommunications service provider’s user base across all of its key business units (voice, data and fintech) in the first quarter.

Toriola said MTN implemented the directive on subscribers who did not submit their NIN and those with more than five lines linked to an unverified NIN.

He noted that despite these challenges, the telecommunications service provider remains committed to serving its customers.

Toriola said MTN would also accelerate the growth of its commercial operations with discipline, focus on value-based capital allocation and expense efficiencies.

Continue Reading

Infotech

Airtel’s market share increases in latest telecom sector report

Published

on

In a recent revelation from the Nigerian Communications Commission (NCC), Airtel Nigeria has emerged as a standout performer in the country’s telecommunications sector, marking significant gains in market share over the past year. According to the NCC data, by the end of March 2024, Airtel Nigeria has grown its market share over the last year into a remarkable 29 percent, solidifying its position as a leading telecom provider in the region.

In stark contrast, other mobile network operators such as MTN and 9mobile have faced considerable setbacks, with MTN witnessing a notable 3.19 percent decline in market share and 9mobile experiencing a 0.5 percent decrease. Even Glo, a prominent player in the market, saw a decline, albeit less pronounced, with a 0.58 percent drop in its share of internet subscribers.

Airtel Nigeria’s success story goes beyond market share gains. The company has also witnessed a substantial surge in its share of internet subscribers, boasting an impressive 165 percent basis points increase. This surge correlates with the launch of Airtel 5G, which the company began rolling out in June 2023 and underscores the telco’s continued push to grow its customer base nationwide.

Airtel Nigeria’s ascendancy in the telecom market comes at a pivotal moment when mobile network operators face challenges of rising operations cost and exchange rates volatility. The company’s recent results solidify its position as a frontrunner in Nigeria’s telecom landscape.

Continue Reading

Trending