What Is FOREX Trading Platform And How Does It Work?
What exactly is FOREX? World market has changed dramatically in recent years. The new investment strategies emphasize on risk minimization. Among the most profitable market opportunities open to traders is FOREX (Foreign Exchange Market). FOREX trading platform has a daily turnover of US$3. 2 trillion. When it comes about the largest financial market in the world, it's all about buying and selling currencies, which are traded in pairs.
There are two reasons to buy and sell currencies. About 5% of the daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or have to convert profits from foreign sales into domestic currency. The remaining 95% is represented by profit or speculative transactions.
How exactly does FOREX work? FOREX transactions are based on major currencies such as Australian Dollar, Canadian Dollar, US Dollar, British Pound, Japanese Yen and Euro. The world's largest financial market operates 24 hours a day. The greatest advantage is that traders are able to respond in no time to currency fluctuations.
FOREX is different from any other financial market because it has no central trading location. In general, transactions are conducted through electronic trading networks or by phone.
Anyone can read a foreign exchange quote as long as he knows two basic concepts: the first currency listed represents the base currency and that the value of the base currency is always 1. US Dollar is the base currency for quotes, meaning that the other currencies must be appreciated by taking into account the value of USD.
When using FOREX trading platform, often you'll see a quote of 2 sides, namely the BID and the ASK. The BID is the price at which you can sell base currency (at the same time buying the counter currency). The ASK is the price at which you can BUY base currency (at the same time selling the counter-pair).
What matters the most is to be aware that every investment is risky. You can never be 100% sure about how exchange rates will move. Therefore, it's recommended to use stop-loss orders, which are specific instructions on how to exit your position if the price reaches a certain point. - 23211
There are two reasons to buy and sell currencies. About 5% of the daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or have to convert profits from foreign sales into domestic currency. The remaining 95% is represented by profit or speculative transactions.
How exactly does FOREX work? FOREX transactions are based on major currencies such as Australian Dollar, Canadian Dollar, US Dollar, British Pound, Japanese Yen and Euro. The world's largest financial market operates 24 hours a day. The greatest advantage is that traders are able to respond in no time to currency fluctuations.
FOREX is different from any other financial market because it has no central trading location. In general, transactions are conducted through electronic trading networks or by phone.
Anyone can read a foreign exchange quote as long as he knows two basic concepts: the first currency listed represents the base currency and that the value of the base currency is always 1. US Dollar is the base currency for quotes, meaning that the other currencies must be appreciated by taking into account the value of USD.
When using FOREX trading platform, often you'll see a quote of 2 sides, namely the BID and the ASK. The BID is the price at which you can sell base currency (at the same time buying the counter currency). The ASK is the price at which you can BUY base currency (at the same time selling the counter-pair).
What matters the most is to be aware that every investment is risky. You can never be 100% sure about how exchange rates will move. Therefore, it's recommended to use stop-loss orders, which are specific instructions on how to exit your position if the price reaches a certain point. - 23211
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Want to find out more about forex trading platform, then visit John Eather's site on how to choose the best forex trading robot for your needs.
posted by X - Men @ 2:54 AM
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