What Should You Know About FOREX Trading Platform? Why Is It So Important?
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.
The simultaneous buying of one currency and selling of another is determined by two factors. First of all, it's about companies making transactions in foreign countries, generating approximately 5% of the daily turnover. Secondly, we're talking the speculation for profit, which represents 95%.
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.
Unlike other financial markets, FOREX doesn't have a central trading location, being an over-the-counter market. Most financial operations are conducted by telephone or through electronic trading networks.
It's not difficult at all to read and understand a foreign exchange quote. All you have to know is that the first currency listed is the base currency, while the value of the base currency is always 1. The US Dollar is the main currency for quotes, so you must appreciate foreign currencies by considering the value of USD.
FOREX trading platform uses a quote of 2 sides- the BID and the ASK. The BID represents the price at which traders can sell base currency, while the ASK refers to the price of buying base currency.
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. - 23217
The simultaneous buying of one currency and selling of another is determined by two factors. First of all, it's about companies making transactions in foreign countries, generating approximately 5% of the daily turnover. Secondly, we're talking the speculation for profit, which represents 95%.
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.
Unlike other financial markets, FOREX doesn't have a central trading location, being an over-the-counter market. Most financial operations are conducted by telephone or through electronic trading networks.
It's not difficult at all to read and understand a foreign exchange quote. All you have to know is that the first currency listed is the base currency, while the value of the base currency is always 1. The US Dollar is the main currency for quotes, so you must appreciate foreign currencies by considering the value of USD.
FOREX trading platform uses a quote of 2 sides- the BID and the ASK. The BID represents the price at which traders can sell base currency, while the ASK refers to the price of buying base currency.
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. - 23217
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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 @ 2:57 AM
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