Online currency trading takes place on the international currency market, such as London, New York, Sydney and Tokyo. The currency market, with a daily average turnover of US $ 5 trillion, is the world’s largest liquid financial market. What is online currency trading?
How does online currency trading work?
The “FOREX” market means Foreign Exchange, which translates as the currency market on which we trade currencies.
Trading on the online currency market consists in predicting changes in the value of one currency relative to the other. Just like when buying shares on the stock exchange. We hope that the value of the selected company will increase and thus we will profit. However, there is a diametrical difference, in the currency market we can earn on increases and decreases in exchange rates, which makes Forex much more attractive.
Below are some examples of major currencies:
- EUR / USD Euro / US dollar
- USD / JPY US dollar / Japanese yen
- GBP / USD British pound / US dollar
- USD / CAD US dollar / Canadian dollar
- USD / CHF US dollar / Swiss franc
- AUD / USD Australian dollar / US dollar
- NZD / USD New Zealand dollar / US dollar
The main features of currency trading
- Markets are open 24/5
- High liquidity
- Greater trading capacity due to leverage
- Possibility of making a profit / loss depending on how the market moves (up or down)
- Better chances of risk reduction due to the use of stop loss orders and risk management strategies
- Forex trading can be more predictable thanks to technical and fundamental analysis
- Trading is available through several trading platforms; desktop computer, mobile phone application, web application
- Transactions can be automated or semi-automatic. (EA)
We need to look at long-term investing in Forex. If we set ourselves a quick profit, we will probably lose cash quickly. Let’s add consistency to the list of important rules. A good strategy and action plan that we will stick to can be the key to success. In addition to many skeptics, we also meet optimists who claim that with the right approach and commitment to trading we can make an interesting, and above all, prosperous way of life.