Is it possible to win a prize in a Forex Contest?

There are a lot of forex contest organized by different Forex brokers. However, winning prizes in such context is not an easy task. Although many forex traders have earned in such context, the rules of forex context vary with the regular forex rule. Thus, placing a lot of winning trades does not guarantee that you would win a forex contest especially as there are many other thousands of traders vying for the same position. 

What is a forex contest?

A forex contest is a competition organized by forex brokers in their platform between their traders to reward a trader who achieves the highest amount of profit within a specific frame of time. Some forex contest is organized with real forex account while the other type is for demo accounts.

The reason why making profitable trades does not guarantee that you would win a forex contest is because a forex context is just a mock-up. Most of the time, you don’t trade during the context with real money and even when you do it only involves a minimal amount of fund. To win in a forex context, you need to know various types of forex trading technique. Sometimes, it would even mean breaking the standard rules of trade.

The top winner in a Forex contest

Despite the Forex broker who organizes the Forex context allocate a massive amount of money for this purpose, in the end; the company is not losing anything. In fact, the organizer of the Forex contest, the broker is the top winner in a Forex contest. If you are wondering how it could be possible, think again.

Forex contest for a Forex broker act more like an advertisement. However, in this regard, the company does less work and pays less. Once the Forex broker announces the Forex trading competition, it encourages new sign-ups especially if it has to do with a demo account. Also, those who sign up spread the news like wildfire leading addition sign-ups. When the competition is closed, a large number of people who participated in the competition with their demo account would love to open a live account.

They commonly sign up because they have during trading with the company’s demo account gain more confidence and trust the system. In this, way, the broker wins more customers and subscriptions which if they had engaged in traditional advertising would cost them a lot of money to achieve.

Because of the potential of Forex context to boost a Forex broker’s profit, they are willing to pay cash prizes to individuals who excel in their trades during the contest. This is why it is possible to win actual cash prizes in a Forex context.

How to win a Forex context

If you are engaging in regular trade, the rules are to win a deal you must be able to do the following:

•    Be prepared to risk one percent of your investment in every trade order you make.

•    Try to apply appropriate risk management

•    Be ready to lose a part of your trading capital.

However, you won’t win the same way if you apply the same rule when trading during a Forex contest. If you are buying and selling Forex with real money, it is good to follow those rules, but with a demo account used in Forex trading, you need to bend those rules.

In a Forex trading contest, a winner is a person who makes the maximum return in a specific time frame. It is not whose profit is the biggest compared to their risk.  To be able to achieve this, you need to assume a relatively large position. You don’t need to risk merely one percent of or your account in every trade you make. On the contrary, you should be prepared to risk from five to fifty percent of your account for every trade order you make. This the secret to getting your return triple at the end of the Forex contest.

Another thing you need to win in a Forex contest is a high win rate. The reason is that when you have a significant stop loss and a minute profit target, it will offer you a high win rate. This would as well make you rank easily above your competitors.

Conclusion

Continually placing a winning trade order and winning a Forex context are two different things. Also, they require two different types of skills.

The most significant winner in a Forex trading contest is usually the company that organizes the contest or the broker.

·        Risk a large percentage of your account on each trade

·        Get a high win rate by having an extensive stop loss or no stop loss at all

·        Go all in at the late stage of a trading contest

·        Sign up a trading contest with multiple entries, the more, the better

Forex Contests gives you the chance to compete with other traders all over the world to win great prizes, essential titles and hone your trading skills.