Foreign Exchange Trading: Making Money With Cash

foreign currency trading

Foreign Currency Trading Software: Shop Around For Best Results

There is a wide choice of foreign currency trading software for the forex market. When you are just getting started with forex trading you will need to shop around to find the platform that will suit you best. But what types of program are available and what features should you look for?

Online brokerage accounts are always run through forex software. Your broker may either give you access to a platform that runs on their server or you may have something that runs on your own computer.

Brokers may have their own custom forex trading platform or they may use a generic platform which they can have tailored to their company. This should provide you with many features including a wide variety of charts, tools and analytical capabilities that can indicate changing patterns and trends in the price movements. There may also be a forex alert feature or a running commentary on the financial news.

In some cases you can customize your desktop view of the software. This is more useful than you may realize at first. It can save a lot of time to have your preferred settings or combination of tools and charts load automatically when you log in.

If you choose to use automated foreign currency trading software, otherwise known as a forex robot, this will need to connect to your brokerage account to make the trades. Most robots use the platform Metatrader 4.

If you are running a program yourself, be aware that this usually means that your computer must be switched on and connected to the internet at all times while you have open trades, stop losses or orders to open a trade at a certain point. If your internet connection is often broken by storms or other factors, or if your internet provider automatically cuts the connection any time there is no activity from your machine for more than a certain time, you will not be able to trade effectively unless your instructions have already been passed to your brokerage account and are stored there.

The software should be simple to access and use. Clear instructions plus an FAQ page or manual that you can go to for reference are essential. Beyond that there should be some kind of support, either live or by email, when you need more detailed help or cannot find the answer to your question in the documentation.

Forex trading is risky and you can make losses as well as gains. In this very fast moving market it is vital to have all of the information that you need at your fingertips, plus the power to make your selected trades fast. Automated foreign currency trading software can help you massively and you need the best that you can get your hands on.

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Tuesday, June 30th, 2009 fx trading software No Comments

Fx Online Trading: A Brief Introduction

For a novice, forex currency trading or international currency trading as it is sometimes known, may seem to be a whole new world but the nuts and bolts of the system are relatively straight forward once you have learnt the basics. You initially just need to get an understanding of the terminology and trading terms to see how the markets work.

 

Making big money quickly is what forex currency trading is all about. It is possible for investors to make big profits very fast because the rates of exchange on the forex market can rise and fall very quickly. This means of course that it is risky and there is also a chance of losing big, just like most things that have the chance of big returns on your investment.

 

As you will know if you have ever exchanged currency for a vacation, the rates constantly move, even throughout the day. For example you may change $100 into Euros before your European trip, and then find that you have not spent it all when you return so need to change it back to US Dollars. The exchange rate will probably have moved whilst you were away and you could have made a small profit after charges once you have changed it back.

 

Foreign currency trading is all about changing currencies hoping to make a profit all of the time, but instead of changing money at the bank they use a broker or more often these days an online currency trading system. There are actually many similarities to stock trading where your small deposit can be used to leverage much bigger deals. One difference from stock exchange trading is that fx traders are not limited to dealing in one country.

 

You can trade any two currencies wherever you live. This means that the market is truly international. Due to the various time zones around the world, the forex trading hours are all day long from Monday morning in Australia to Friday afternoon in New York.

 

Each of the major currencies is represented by 3 letters: USD for the US dollar, EUR for the Euro, GBP for the British pound,  CHF for the Swiss franc, JPY for the Japanese Yen, , CAD for the Canadian dollar, AUD for the Australian dollar etc. The exchange rate between two currencies may be expressed like this: USD/GBP 0.68. This means that to buy one US dollar you will need 0.68 British Pounds.

 

If you want to start out in fx trading you will need to look for a broker that you think are trustworthy that can set you up with a currency trading account. It is worth shopping around and checking the forex trading forums for tips and recommendations. Check out how long the company has been in business and what your rights and liabilities will be. Read all of the fine print so you are not surprised by additional charges that you were not expecting.

 

You will probably also want to use a bot to do your trading for you. This is automated forex trading software that can trade 24 hours a day according to the rules and restrictions that you set for it. There is usually a demonstration option so that you can paper trade with the online currency trading system for a while before you actually bite the bullet and trade with real money. There are many forex robots on the market and most of them come with full instructions and currency trading tutorials.

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Wednesday, May 13th, 2009 Introduction No Comments