My daughter looked at me for a few seconds and walked away, leaving me wondering as to what happened here. Important Trading Times There are a few further important forex market hours to be aware of.
Your Guide To The Stock Market
However, Forex trading is different from exchanging money at the Foreign Exchange outlets. There is much more to Forex trading than just exchanging one currency for another. The two currencies that have the highest trading volume on the Forex market are the US Dollar and the Euro — but, other currencies are traded as well. Unlike the stock market or the futures market, where my broker offers me a leverage of 2: Now, a leverage of The price of any currency is always versus anther currency — for example the US Dollar versus the Euro.
So buying and selling a currency pair is based on whether you think the base currency will appreciate or depreciate against the counter currency.
One interesting aspect — you will find most currency pairs quoted to 5 decimal points. Now, obviously, you do not deal in such small denominations when using money to buy something. That roughly covers the basics of Forex terms that are used in the market. Actually, there are three ways in which individuals, corporate and institutions trade Forex — the spot market, the forwards market and the futures market.
The spot market witnesses the largest quantum of trades — that is because both the futures and forward markets are based on the underlying real asset i. However, this was not always the case. The futures market was more favored in the past because it was available for a longer period of time for individual investors.
But, now with electronic trading, the spot market surpasses all others. However, companies and institutions prefer the futures and forward markets more than individual investors, as they need to hedge their foreign exchange risks. Oh, sorry, I need to tell you the difference between spot, forward and future trades. The spot market is where I buy or sell currencies according to the current price — which is determined by the demand and supply for that particular currency. The biggest difference between the spot and the forward and futures trade is that while the spot trade deals in actual currencies, the future and forwards trade do not.
The futures contracts have specific details, such as, settlement and delivery dates, number of units, minimum price increments etc. These are traded on public commodities markets with the exchange acting as a counterpart to the trader, i.
Actually, when you asked me to tell you about Forex, I was going to suggest that you go through the site yourself. Not only does the site contain basic information for those who have absolutely no idea or knowledge about Forex and Forex trading, it also features detailed information on Forex trading, knowledge and information based articles, news from the Forex, Equity and Commodity markets, information and links to brokers, analysis of the various markets and financial news from around the world.
After spending a few weeks reading all I could about Forex trading, I signed up with a broker from their list and opened a Demo trading account. This actually helped me a lot, allowing me to practice Forex trading without any risk. Once I was confident that I could manage a few small trades without risking too much, I opted for a live mini account with the same broker. The process itself is rather simple and everything is online.
I deposited some money into the account and started trading — and have been doing so ever since. Oh, they also have a list of the top Forex managed account service companies that lets you to invest in the Forex market — even if you have absolutely no knowledge about Forex. All you need to do is put up a small amount of margin money in your account and the broker takes care of all the trading and managing of the account for you.
I opened two accounts — one where I am trading on my own with the mini account and one where the broker trades and manages the mini account — sort of like spreading my risk. In a nut shell, this is one complete site for learning and trading — and I too have been recommending it to those who ask me. My daughter looked at me for a few seconds and walked away, leaving me wondering as to what happened here.
With the many trading platforms available, this has made it easier than ever to trade around the clock and on the go, on smartphones and tablets for example. During the day is when most political and other economic events will be going on and affecting the currency prices.
It is also when the most traders will be buying and selling currencies, so this is often the most active and volatile period for trading forex.
If you are looking to trade particular currencies, such as the Japanese yen or Singapore dollar, the best time to trade forex may be over night. The forex market is open 24 hours so you can trade through the night, which may be best when trading Japanese, Chinese, Australian and other currencies which could be most active at those times due to time differences.
This can suit certain traders, if you are freelance, work during the days or nights or it is a full-time profession.
These additional forex trading hours also provide many more possibilities to profit and take advantage of any price fluctuations that you would otherwise miss. Generally, the best time to trade forex is when the most markets overlap and the currency pairs you are trading are heavily tied to both.
There are a few further important forex market hours to be aware of. Like everyone, the markets do have a rest, with annual and national holidays seeing certain ones close for set periods, when no trading activity will take place.