Introduction – Understanding The word “Trading “First
Before we dive into how to learn forex trading in Nigeria, let’s start from the basics. What is trading? buying and selling of goods is generally called trading. In the market, everybody is a trader and trading. In fact, almost all humans are traders and are trading in one way or another. Whether you’re selling tomatoes, clothes, or even your skills for money, you are involved in trading.
So, what happens when we move from ordinary goods to something more unique—currencies vs currencies, like dollar(USD ) vs naira (NGN) ? That’s where forex comes in.
Trading to Forex Trading
How to learn forex trading in Nigeria has never been easier, thanks to upwardhabits simplicity. in normal everyday trading, you exchange goods for money or money for goods. For example:
You use ₦100 to buy a mango.Here, your ₦100 (a currency) is exchanged for a normal goods (the mango).
Now, forex trading is different. Instead of buying a mango or shoe, you buy another currency, that’s instead of buying a mango. For example:
You use 1500naira to buy 1 US dollars. This is also termed exchange rate.
This means in forex trading, you are buying or selling one currency for another. And here’s a little twist — currencies are also considered a special class of goods. They are not ordinary goods like mangoes; they are the goods that allow you to buy all other goods.
Why “Forex/FX” and Not “FE”?
If you’re a critical thinker 🤔, you might ask:
“If forex means foreign exchange, why don’t we call it FE instead of Forex/FX?”
Technically, FE would make sense. But the word forex/fx became the conventionally accepted term in global markets due to facts it’s conveniency etc. People use FX as a shorthand of forex. It’s simply and easier to say, widely accepted, and has become part of the trading culture but note the actual acronym of foreign exchange is FE.
This mindset of questioning things — not just swallowing information “hook, line, and sinker” — is what will help you survive in the forex world and a good approach on how to learn forex trading in Nigeria, where more than 90% of people fail. And if you didn’t question this, that’s also cool you’re here to learn!
Core Difference Between Normal Trading and Forex Trading
Normal trading = Buying and selling of ordinary goods using currency. Example: You pay ₦100 for a loaf of bread.
Forex trading = Buying and selling of currencies using another currency. Example: You buy 1 dollar with 1500naira (or whatever the exchange rate is).
In the first case, currency acquires a physical product.In the second case, currency acquires another currency.
Every time you buy dollars with naira, pounds with euros, or yen with Canadian dollars — you’ve done forex trading, whether you knew it or not.
Why you should learn Forex Trading in Nigeria
How to learn forex trading in Nigeria is becoming more important for several reasons:
The naira’s value fluctuates, creating opportunities for profit.Global financial markets are now accessible to anyone with a smartphone and internet connection.Forex trading allows Nigerians to earn in foreign currencies without physically traveling abroad.
Learn Forex Trading in Nigeria – The Right way
Many people fail in forex because they rush in without a proper foundation. Here is how to learn forex trading in Nigeria,simple beginner’s path:
1. Understand the Basics of Currency Pairs
In forex, currencies are traded in pairs, like XAUUSD, BTCUSD, US30 just as you can see in the image above. In currency pair quote like USD/NGN which is dollar vs our naira The first currency is USD, called the base currency and the second NGN is the quote currency. When you buy a pair, you’re buying the base and selling the quote.
Watch this, in forex trading something like this USD/NGN = 1500. This means 1 dollar equal to 1500naira. Also is 1500naira equal to 1 dollar. Let’s quote pair format for normal trading and not forex trading, when you use 1000# to buy one orange we can say Orange/NGN equal 1000naira. That’s 1 orange is equal to 1000naira, and 1000naira equal to 1 orange.
so you see now we can actually have pair quote formats for normal trading or goods , but this is not convenient and most widely adopted in forex trading and not normal regular goods trading.
If you buy the pair quote like Orange/NGN =1000 it means you buying 1 orange and giving the seller your 1000naira. Did you know you actually sold your 1000naira simultaneously .🤔😄You sold it that’s why that 1000naira is not going back home with you. If you didn’t it will follow you back home.😄 This is why we say when you buy this pair quote Orange/NGN you’re buying 1 orange and selling your Naira. We call the first one(orange base currency) and NGN quote currency.
if you flip it let’s say you sell Orange/NGN,it means you selling orange and buying NGN and that makes you the market woman selling orange in the market 🤔😄. Oga orange seller !😄😄
And this is how exactly the forex currency pair quotes work. Let’s go full forex mode. IF you buying USD/NGN you’re buying 1 dollar and selling x portion of Naira (depending on the exchange rate) let’s say the rate is 1500.
So if you selling USd/NGN, you’re selling dollars and buying naira and that will probably make you a foreigner, that came into Nigerian and needed to exchange his dollars to get naira,so he can actually purchase tomatoes 🍅 for Sunday stew. 🍲 😄
2.How to make money from forex trading
Alot of Nigerians asking how to learn forex trading in Nigeria are not doing that for fun, they are looking for a means of Livelihood, so the question is how do we make money from all this , well we make money from forex trading just the way money is made in regular goods trading. Let’s say your mum is the woman that was selling that orange, she bought it for 500Naira per 1 and sold to a young man at the market at Orange/NGN equal to 1000naira. So she makes profit of 500naira.
Remember when she went to buy the orange else where from the market at 500naira per 1. She was the buyer not the seller. So she buys from a cheap source or when orange was cheaper due to supply and demand and sold at a higher rate to the man in market. This is how forex works we buy one currency from a cheaper source( that’s when the currency is low or down or price is depreciating) resell it to somebody when the price is rising or going up
Let’s say you bought dollars For 1500naira and after months dollars value went up to 2500naira you can resell it and make 1000niara profit. So both forex trading and normal trading in market are pretty the same with just different in kind of commodities exchanged.
3.Where do we buy this currencies cheaper. 🤔
we know this from two major price action ways:
- 👉 Techincal analysis price action.
- 👉 Fundament analysis price action.
warning ⚠️ by upwardhabbits
If you really want to master how to learn forex trading in Nigeria, remember:Forex is not a get-rich-quick scheme.It’s a skill that requires patience, discipline, and continuous learning.Question everything, even your own trades. This is how you avoid falling into the 90% who lose money.