Compared to other financial markets, there is no trading market exchange central or material location. The trading market is 24 hours a day through a global network involving banks, companies and individual traders. This means that currency exchange rates fluctuate in terms of value for each other around the clock, allowing multiple trading opportunities you can take advantage of.
What is Forex Trading and How Does IT WORK?
Start forex trading in 6 steps:
1. Select the couples of currency you want to start trading
You choose currency pairs for trading is the first decision you will have to take as a Forex traders. Pairs of major, secondary and non-current currencies that you can choose from.
The new traders tend to start working currencies that are familiar with them before moving to opportunities related to currencies are less vulnerable.
2. Select the Forex trading type you want
Execution. There are many ways to trade with us. These methods include both contracts for differences and price margins.
Trading contracts for the differences - You can trade a certain number of contracts for differences with basic currency units. If you choose the USD / USD circulation, for example, your investment will be euro. On the other hand, if you are trading US $ / yen, your investment will be in US dollars.
The betting margins prices - You are trading currency pairs for each movement by a point, normally the fourth decimal point.
3. Select your decision either to buy or sell
After your choice of the market you will trade, you should also set the current trading price and the direction you think the market will move.
Forex pairs are traded as one currency (core currency) against another currency (pricing currency), and therefore:
If you think that the basic currency will strengthen the coin of the pricing or that the currency pricing quotes will decline against the basic currency, you will be able to purchase this pair of currencies.
If you think the core currency will decline against the pricing currency or that the pricing currency will rise against the basic currency, you can make a decision by selling.
Each pair of currencies is the first price is the offer or sale, the second is the price of demand or purchase. The difference between the two advertisers is what we call the name margin difference, which is the cost of trading.
4. Add trading orders
Trading orders are intended to rotate automatically later when exchange rates meet a specific level predetermined.
Stop loss orders and limits are used to make sure that unlocked profits and losses remain at the minimum.
5. Continue your trading transactions
In active mode, your profits and losses are subject to volatility with every movement of prices in the market. For this reason, it is important to follow your purchase orders and sell your real time. This way, you can easily add or close trading deals if necessary.
6. Close trading deals
Closing a trading transaction looks like a deal. If you initially bought 5 units, you need to sell the same number of units when closing. When you close the transaction, your profits and your loss will be reflected directly on your trading account.
Forex trading strategies
The successful trading strategy depends on the basic analysis and technical analysis, using the basic analysis that reviews the company's data invested with it and the economic situation and the possibility of increasing market value.
While the technical analysis is done by following graphs to analyze the price movement in the trading market.
Daily stock trading strategy
Daily trading is often attracting many investors to get more profits by completing daily deals, during daily trading you can sell and buy stocks throughout the day during the specific watches and once the trading market is closed out of deals, with daily trading investors uses frameworks Lowest time for a minute or five minutes or a quarter of an hour or hour and other time frames.
Although the daily trading is profitable, it needs great skills and experience so that they can manage their risks, so they can also make the right decision regarding trading operations.
Strategy "Swing Trading" in stock trading
This strategy is defined by swinging and differs from the daily trading strategy, where traders can retain stocks and sometimes several weeks, in this strategy, trading depends on a combination of basic analysis and technical analysis to make the right decision.
You can use technical indicators such as motor averages, one of the most common indicators at online trading.
Stock retention strategy
One of the best trading methods recommended by experts where they can retain their arguments for several weeks and sometimes several months, in this way you can rely on long time frames.
For example, you can continue the daily, weekly and monthly graph to take the right decision regarding trading operations. While technical analysis helps you determine the time of entry and out of deals, many traders are preferred to retain because they own shares for long periods.