Forex Online Trading , Learn How To Trade Forex

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Saturday, May 06, 2006

Forex Online Trading

Forex online trading has exploded during the last few years both in volume, but more important in the number of participants. The real revolution in forex online trading happened when together with banks and large financial institutions, individuals got to participate in the market.

Here are some of the advantages that make forex online trading the best market to trade.
  1. Liquidity - The forex market is a 1.9 trillion $ market - the biggest and most liquid market in the world
  2. 24 hours trading - Forex online trading follows the sun around the globe - Starting with Australia , Japan , Europe and ending with The United States. From Sunday night to Friday late in the day , the Forex market is always open.
  3. Leverage - One of the big advantages of forex is it's leverage which can go from 1:1 to 400:1 and yes , you choose the leverage and you can adapt it to your style of trading , whether it's aggressive or conservative. Different brokers offer different leverage so be sure to choose the one that's right for you. Remember more leverage means bigger gains as well as bigger losses
  4. Fractional trading - The forex market is a decentralized market - This means that there's no regulators , and no standard contracts like there are in futures markets. Basically in forex online trading you exchange money with another party. You choose what amount of money you exchange. There are a lot of brokers offering fractional trading. This basically means you can make your pips as big or as small as you want - You can make 1 pips= 1$ , or 1 pips=100$ or even 1 pips=0.01 $. It's all up to you.
  5. No commissions - In forex trading there are generally no commissions, most forex brokers make their money of the bid/ask spreads.
This is just a brief introduction to those that might be new to forex. This blog is both for those new to forex as well as experienced traders. In my next post I'll explain what this blog will be mainly focused on.

Remember this blog will be updated constantly so be sure to bookmark this page and revisit it often.


Good trading and big profits to all!