FX Trading
The market in Forex trading is a global one that never closes, as the trading hours overlap between different time zones and trading can be conducted day and night, except at weekends. It closes at 9:00 pm on Fridays and reopens at 9:00 pm on Sundays GMT. Online Forex trading is obviously the most popular activity, as the days of calling your broker to make a trade are practically over.
The basic unit of Forex trading is the trading pair of currencies, the first of the pair being the base currency and the second the quote. It is the base currency that a trader buys up or sells off, using the quote. Examples of a trading pair would be the EUR/USD or the USD/YEN, and a trader would be engaged in purchasing or selling the first in the pair using the second or quote currency.
An important concept in FX trading is leverage, or a loan from the broker to the trader to maximise the trader’s results, effectively magnifying a trader’s investment to more effectively work the market. With a 100:1 leverage, for example, the broker matches the trader’s dollar with 100 dollars of his own. A trader putting in $10 with a 100:1 leverage will expect to trade $1,000.
There is plenty of Forex trading software available to assist the trader in honing his skills and predicting fluctuations in the market. Online Forex trading is big business and increasing numbers of small and large investors are attracted to this, the world’s biggest market with a multi-billion dollar daily turnover.
The Forex trading system is at its heart simple, and the liquidity of the market throws up numerous opportunities for making big profits. Trade Forex today, using a practice account, available from many service providers.