It is estimated that Nigeria-based traders buy and sell volumes reaching $1.25 million daily. They are a part of the vast global community that rarely sleeps. The currency marketplace is open around the clock, 5 days a week. Given the severe effects of the pandemic, internet-assisted trades may become the key source of finance for many Nigerian citizens.
The financial world is still adapting to the new reality. Since March, the crisis has been wreaking havoc on markets, sending shockwaves around the globe. As a result, volatility has been considerable.
Online tools allow anyone to capitalize on the shifts. A shrewd trader may benefit from short-term fluctuations and turn their foresight into a steady source of income. While the national economy is suffering, online trading provides a feasible money-making scheme.
Although the local trading community is wide and vibrant, the market is largely unregulated. This sets Nigeria apart from South Africa where industry controls are salient. The absence of strict oversight means that values are defined based on supply and demand. In comparison, local stocks may not rise or fall by more than 10% of their daily value.
Profit from Home
With physical movement restricted, consumers are confined to their homes. Workers in the gig and informal economy are the most vulnerable to the general economic downturn. In these conditions, remote earning schemes become essential. The dire state of affairs prompts many citizens to explore ways of working from home. Online trading is not just accessible – it is also lucrative for those who are willing to learn.
International brokers like FXTM allow anyone to connect to the vast global market. All you need is an internet-connected device, a trading platform, and knowledge. Flexibility is maximized, as traders do not have to rush to close their positions before the closing bell. There is a wide range of strategies for success in online trading and brokerages provide educational resources.
Organized currency trading has been around for decades. It engages individuals and major institutions, such as banks and hedge funds. This is the largest finance market worldwide where over 5 trillion US dollars circulate daily. This means you can earn a steady income in a highly liquid environment.
Internet-assisted activities include short-term and long-term schemes. There is a suitable style for everyone. Traders may also diversify their portfolios. Aside from currencies, profit is brought by stocks and derivatives. Through CFDs, one may capitalize on changes in commodity prices, cryptocurrency rates, or stocks. The tool eliminates the need to own the underlying asset.
Another benefit is the opportunity to profit from any kind of trend – both upward and downward. For example, in the equity market, you may only short-sell in an uptrend. In the realm of currency pairs, such limitations do not exist. For example, if you expect the price for your asset to grow, you can buy more of it now to sell later. In the opposite situation, you can short-sell your instrument – after the price drops, you will be able to purchase more of the same instrument.
Nigerians have access to the leverage schemes just like traders on other continents. This means large-volume trades are accessible even with modest investments. For instance, when trading on margin with a 1:100 ratio, just a $1,000 deposit is required to open positions for $100,000. Of course, higher potential gains come with higher potential risks, so caution is important.
Local brokerage firms offer very affordable conditions. Some accounts may be opened with just $10. This way, rookies may switch from training to real trades without high initial risks.
An additional benefit is low transaction costs, as the market is classified as OTC (over-the-counter). This means traders connect to each other directly, without clearing charges common for conventional stocks or bonds. Brokerages generally profit from the difference between the buying and selling prices (spread), rather than any commissions.
Nigeria, which is heavily dependent on oil exports, has incurred significant losses due to COVID-19. Despite the stimulus packages released by the government, consumer spending and quality of life are expected to worsen. In these conditions, ways of remote earning provide opportunities to monetize knowledge and make a profit even despite the downtrends.
In recent years, online trading has been embraced by the African continent. Global brokerage firms tailor their services to local users and regulations are largely relaxed. With assistance from a well-established brokerage, Nigerian traders can take advantage of the extreme volatility caused by the pandemic.