Traders who trade on the Forex

Traders who trade on the Forex

Traders who trade on the Forex

Traders who trade on the Forex basically buy one currency for an amount of money and should that currency appreciate on a given day, the buyer makes a profit. Typically, quantities of currencies are bought in lots, for example 100,000 euros would be the equivalent to 1 lot. The most common traded currencies are Eur/Usd, Gbp/Usd, Usd/Jpy and Usd/Chf.

The difference between Forex trading on the foreign exchange market and other financial markets besides its huge size is that it has no physical location and takes place 24 hours a day, excepting weekends, right across the globe. Forex trading literally follows the sun around the world. Trading moves from major banking centres of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S.

Typically Forex Trading Strategies line up with the individual trading styles of traders. For example, an individual who wants to spend little time dallying in the market will have a strategy that involves spot trading or trading within seconds or minutes. Certain long term strategies, therefore would not fit their trading style and would not be pertinent Forex Trading Strategies.

Forex trading takes place for two reasons. First is the trading activity of governments and companies that buy or sell products and services in foreign countries accounts for about 5 percent of daily turnover. Speculation accounts for the remaining 95 percent. This type of forex trading goes on between investors who aim to make a profit on the difference between high and poor performance currencies. However, as the name suggests this type of forex trading can be compared to guess work as there are so many factors affecting a currency's exchange rate on a given day that profits are not guaranteed.

More than 85 percent of all daily transactions involve trading of the major currencies Australian Dollar, British Pound, Canadian Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar. Forex Yard is another of the more popular forex trading platforms for newcomers to the market and is noted for its ease of use, providing basic but the necessary information and also allowing users to set up the aforementioned demo account.

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