If you are as confused as I was when I first started trading forex, there is this article that will do wonders for you. From forex facts to the best online forex trading platform, your questions will be answered.
Okay, let’s look at some of the basics. What is currency? Well, forex, the word is simply a combination of the word Foreign Exchange. That’s it, you are ready to trade. Do you want more? The foreign exchange market is an electronic market where currencies are traded in different countries.
In effect, you are trading the value of currency A compared to the value of currency B. Although you can combine any two currencies to form a currency pair, there are four currency pairs that are considered larger pairs.
They are: EUR/USD (Euro/Dollar), GBP/USD (Pound/Dollar), USD/JPY (Dollar/Yen), USD/CHF (Dollar/Franc). You can use all of your trading activity to trade just one of those pairs.
Now some interesting facts about the foreign exchange market (forex). It is 30 times larger than any other financial market. Remember this fact, we will address it later. The forex market is open 24 hours a day, 5 days a week. This is a great feature as it allows you to engage in trading business no matter where you are in the world.
Go back to forex sizing for a moment. Due to this feature, the forex market offers money traders opportunities that are not available in any other trading tool. Although this article may be written for more information, I will give you an example. There is no slippage on Stop orders during normal trading hours. If you’re not sure what this means, I recommend you spend some time looking around. This is the quality, in itself, that distinguishes Forex from all other markets.
So now we have the basics of this article. What is an online forex trading platform?
The fact is, even if you are trading, following some type of forex trading warning or any other type of forex trading system, you will need an online forex trading platform.
Online Forex Trading Platform
Regardless of which forex broker you choose, you will be offered some type of online forex trading platform. In general, the trading platform will be the same, whether you are trading small contracts or full contracts.
What should an online forex trading platform provide?
First, you should be able to see your account value as soon as possible. Also, you should be able to see how much money you have in the market and what pair of money at any given time.
Second, the value of all interest rate pairs must be in your hands. This means that you should be able to define which currency pairs you want to target and you should be able to choose the appearance of the quotes.
Third, the ordering process should be easy to find and easy to use so you can respond quickly when you see an opportunity appear on its own. If you see a reward for 20 channels and a risk trade for 10 channels, you don’t want to mess with the mouse or keyboard, you just want to trade.
In short, that’s it. Those are the three things that a forex trading platform should offer. If you have those to exchange money in foreign exchange (forex), it’s just a few clicks.
Now go make money. Good business for everyone.