Forex trading is a currency market that is open or 24 hours and only closes between Friday evening and Sunday evening. It is the largest investment market in the world, and it continues to grow. The market trades trillions of dollars every day which is huge compared to the volumes traded at the regular stock exchanges such as the NYSE. Currency trading platforms such as Tradegl.com have moved online over the past decade or so and as a result, both professionals and beginners in the trade are having an easier time trading because it suits their investment goals.
How forex trading works
The forex trading platform has sessions. The major sessions are the European, Asian and USA sessions. There are times when the market times may overlap, but most of the times, the currency of the respective market is traded only during the stipulated market hours. This arrangement obviously means that there are currency pairs which will have bigger trading volumes at certain points during the day while others will have lower volumes.
Understanding pairs and pips
Unlike the regular stock exchange, in Forex, currencies are always traded in pairs. This means that you have to buy one currency and sell another in the market. All the currencies are generally priced out to the fourth decimal point. A pip is a percentage in point, which is normally 1/100 of 1 percent. Traders prefer to us micro lots because in case losses occur, they will be in cents. As one progresses and understands trading, they can stop using the micro and mini-slots, depending on their self-confidence and the amount they can stand to lose in the trade.
The difference between stock and forex
Global equity markets have thousands of stocks and products to offer traders. Unlike these markets, the Forex market has about 18 currencies you can successfully trade in. These are the currencies that are most commonly traded:
· US dollars
· Canadian dollars
· Japanese Yen
· British Pound
· Australian Dollars
The lack of options may seem limiting to strangers, but in reality, it makes portfolio management very easy for you as the trader and the system in general.
How the market moves
One of the similarities that exist between the stock and forex markets is that they are controlled by the same forces. One of the forces which moves forex is supply and demand, just like the stock market. For instance, if there is a shortage of dollars in the forex market, the will be an increased demand and the value of the dollar will go up. This means that if you had earlier purchased the dollar, selling would make you profit. Interest rates and geopolitical factors also affect the forex market.
To become successful at forex, you have to start an account on a platform such as TradeGL. The system allows you to register details, decide how much to use as the initial investment and start the process. A good system will guide you through the initial steps of the investment and offer support and guidance to make learning easy for you. Most sites also offer a training version or simulator where you get to test your forex skills with online currency. As you get better, you can start making trades on the actual market.
These are the things to know about Forex trading. A lot is happening in the money market, and with the entry of concepts kike cryptocurrencies, the regular stock trade seems like a distant past. With an online forex trading account, you basically get to decide where and when you will do your trade, you do not even have to rely on a stock trader to help you make the dream a reality.