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Forex Currency Trading is commonly
known as the foreign exchange market, can be abbreviated to FX, Forex or
currency market .
Forex trading is a worldwide industry with a daily turnover of over $3.2
trillion.
Forex currency trading is totally
accessible to traders and novice traders alike, with 24 hour trading and
low dealing costs - it is speedily becoming the trade to be in.
Foreign Exchange
Forex trading online - has major benefits as it is a totally
liquid trading market with traders out there trading 24 hours a day...
Trading Margin
To trade on a margin is great - it means that you can trade at a
much higher level than you have on account with your platform supplier, say you
have $10,000 on account and you are allowed to trade at a margin of say 1% -
this would allow you to trade up to $1,000,000.00 - even though you only would
have $10,000.00 in your account. Different Terms & conditions apply to different
platform/software companies - check their small print..
Spread
Spread is the difference between the Forex
Bid (the price you sell at) and the Forex Ask
price (the price you buy at)
Pips
The term pip - relates to the unit - being the smallest unit by
which a price can change, when trading forex currency there are such terms as -
there is a 4 pip spread. This is revealed when you compare the bid and ask
price. EG: a USD trade is quoted at 0.9765 with an ask of 0.9769. The difference
being USD 0.0004 - this equates to 4 pips.
Risks
Trading on Forex has its benefits but everything has its risks,
try trading for free - before you trade for real - some software
platforms allow you to trade real time - without using real money - we
recommend you try it first - get your eye in...
Forex trading is done via a Forex trading platform, there are many Forex software platforms on the market - all highly interactive - realtime plus some have the ability to shadow trade in real time but with pretend money - this gives you the practice you need before dipping your toe in at the deep-end.
24 Hour Trading
Leverage of 100:1.
Interbank Spot Rate
what is the interbank spot rate?.Click Here!
Risk to Reward Ratio
Consider a stop loss. tactic when trading - the red mist kicks in
when under pressure and you can not see the woods for the trees.
Using a stop loss to help minimise your losses sometimes is
overlooked - with the "it won't happen to me attitude" it is often
too late once the horse has bolted and the deal is lost.