Do away with ignorance about the forex market - Some questions answered
December 8, 2012
Did you recently take the decision of trading the forex market in order to boost your monthly income? Well, with the spurring debt obligations within the nation, almost all consumers are looking for ways to augment their monthly income so that they have enough money to pay back their liabilities. Are you too wondering about the prospects of taking a plunge in the forex bandwagon in order to become debt free? If answered yes, you should clear your doubts about this particular market so that you don't base any of your decisions on wrong information about the currency market. Here is a list of the most common questions that hover around the minds of the investors when they're new to the trade. Check them out to boost your knowledge and thereby take better informed decisions.
What is the difference between the forex and the other markets?
Currency trading basically doesn't take place on a regulated exchange and is neither controlled by any government body. The members or the investors trade here with each other based on the credit agreements and their business usually depends on their metaphorical handshakes. The traders who participate in the forex market cooperate and compete with each other and this builds enough profits. It is certainly different from all the other markets as there is no fixed rule as there is in the stock market. There is nothing called insider trading in the forex market. It is also traded 24 hrs throughout the entire week.
What is a pip in the forex market?
A pip is nothing but the smallest percentage increase of trade in the forex market and it stands for a "percentage in point". Usually in the forex market, the prices are quoted to the 4th decimal point and if there's any change within that decimal point, it is known as 1 pip which is equivalent to 1/100th of 1%.
Is there any possibility of commission in the forex trading?
If you're a trader, this is rather good news for you that there are no commissions in the forex market. The entire forex market is a "principal-only" firm and all the forex firms are not brokers but dealers. They make money through the bid-ask spread and they don't need to charge commissions for making profits. Once the cost of the spread is cleared by the price, every penny that you gain means pure profit for the trader or the investor.
Which currencies are usually traded in the currency exchange market?
It certainly goes without saying that majority of the traders will trade the most liquid currencies in the market and they're only capable of making better profits. There are the most popular 7 pairs that account for almost 95% of the entire speculative trading. The most common currencies are EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD and NZD/USD.
Therefore, if you wish to try your luck in the forex market, you have to ensure clearing all your doubts before taking any step. Take into account the answers mentioned above so that you don't end up taking wrong decisions.
The online forex trading platform MT4 and its specialized benefits
December 7, 2012
If you’re a forex market trader, you must be aware of the fact that the forex trading platform is one of the most important elements that the forex traders need to consider before joining a trading company. According to the studies revealed by the forex market analysts, the Meta Trader (MT4) currency trading platform is by far the most popular and widely used forex trading system throughout the world. This is till now the best rated forex trading platform that boats of linking a large number of forex traders with the forex markets throughout the world. The MT4 platform offers a consistent, advanced and protected connection and can even be utilized for trading markets lie futures CFDs, options and also stocks. Most forex traders nowadays prefer to offer the MT4 trading platform as they know that more and more traders will be interested towards using it and they just can’t ignore the benefits that it provides.
The biggest benefit that it offers to the forex traders is that it offers you opportunities to create programs such as the expert forex advisors. These might range from the intensive robot like programs that help in discovering the forex signals to the straightforward applications that offer you with basic forex alerts. The MT4 also helps maintain a vigilant eye on the trade, place the trade and when to exit the trade as per the rules that have been set forth by programming. This is one of the most astounding features of the MT4 application.
Some featured benefits of the Meta Trader platform
Apart from the above mentioned benefits, the Meta Trader, there are some other impressive benefits that are provided to the clients. Here are some of them.
- It offers a customized view that will help you put any color into the forex chart.
- It is extremely user-friendly and simple
- Offers 9 time frames for trading
- Carries more than 50 in-built indicators that assists the traders while they analyze the trades
- Offers you an opportunity to use many indicators on a single chart
- Offers multiple chart setups
- Offers real-time export of data through DDE protocol and automated trading
All the forex traders who prefer trading automatically are indeed pleased with the large marketplace and the plethora of options that they’ve got. As mentioned earlier, one can develop his own expert advisor but there are lots of advisors that you might choose from. On the other hand, there are various forex signal companies that offer you with various automated forex signals that have been sent from the meta-trader platform. So, when you’re trying to set up your fortune by trading the forex platform, do make use of the MT4 trading platform so as to gain all the above mentioned benefits and set profits rolling.
