Forex is the acronym used to represent the foreign exchange market. This is the worldwide market place that is used to buy and sell currencies from all countries. In order to trade on the Forex market place you are required to have a Forex account with a brokerage firm. Most firms allow you to open a Forex account without charging a fee. Brokerage firms do have requirements for the minimum amount of deposit that you have in your account before placing trades.
Forex trading is fast paced because it is an over the counter market. Unlike the New York Stock Exchange, there is no opening bell or closing bell to mark the opening hours. With Forex currency trades are made at all hours of the day and night. Trading on the Forex market requires the use of a computer that is connected to the Internet. Trades are conducted by connecting to your Forex account and entering your trades. Trades can be completed manually or through an automated system.
Manual Trades
Manual trades are completed when the trader selects a pair to trade and manually enters this trade into their computer. This trade is entered in their Forex account. With a manual system the trader has to be present to complete the trade.
Manual trades are completed when the trader selects a pair to trade and manually enters this trade into their computer. This trade is entered in their Forex account. With a manual system the trader has to be present to complete the trade.
Automated Trades
Since trading is open 24 hours a day some traders use automated computer systems. This system watches the market all day and night. If something happens that match criteria that has been programmed into the automated system, the computer will complete the trade automatically. The trader does not need to be present when the trade is entered.
Since trading is open 24 hours a day some traders use automated computer systems. This system watches the market all day and night. If something happens that match criteria that has been programmed into the automated system, the computer will complete the trade automatically. The trader does not need to be present when the trade is entered.
In order to complete your first trade on the Forex market, you would select what pair of currencies that you want to trade. It is called a pair because you are buying a currency and paying for it in another currency. You would select that pair to get the current price. You select the number of shares you want to buy and place your order. That is all it takes to make a trade of foreign currencies.
Making a Forex trade usually takes only seconds to complete. Your computer system will be used to enter the trade and it will almost instantly give you verification that the trade has been completed. You can then decide when you want to sell your purchase. Hopefully you will make a profit on the sale.
Article Source: http://EzineArticles.com/?expert=Jennifer_Bland
No comments:
Post a Comment