Due to its convenient online format, the currency trading market has become one of the largest financial trading markets worldwide. Despite the large percentage of traders who do not experience profitable trades, the currency trading market is continuing to grow. If you wish to be a successful foreign currency trader there are certain factors about the market that you must know.
1. The forex market trading hours
One feature that sets the foreign exchange market apart from other financial markets is the trading hours. Unlike the stock market that requires traders to trade during set operating hours, the forex market operates on a 24 hour time frame. This means a forex trader can trade at any time day or night for five days per week. The online format of the forex market also allows for traders to trade any currency regardless of the time zone, although some currencies are best traded at specific trading sessions.
2. Tracking the major foreign currencies
Another enticing aspect of the forex market is that can trade all foreign currencies. This may be overwhelming for beginner traders and one may choose to trade as many currencies as possible. This is not advised, and it would be best for one to focus on the major currencies during your first months as a trader. By focusing on these currencies you will be able to track trends easily and stay up to date on any influential events that can affect your trade.
3. Filling the orders
The high level of liquidity of the forex live market allows orders to be filled at any time. The 24 hour operating times also contributes to a speedier filling of trading orders. This is highly beneficial as there is always a means of filling an order regardless of the time it is posted. This convenience is due to the online format of the foreign exchange market and the size of the forex market. Anyone who has access to this market can trade online and profit from different placed transactions.
4. Profiting from the foreign currency trading market
The forex market allows for trading profits regardless of whether the currency value has increased or decreased. This is a unique feature to the forex market which can explain its highly lucrative nature. Many traders experience substantial profits via the use of leverage. Leverage is utilised to place large orders using a small amount of trading capital. While this can be beneficial if the trade result is positive, it can be devastating if the trade results in a loss. It is important to remember that leverage increases the risk of a trade and should be used with caution.
5. The importance of trading support
There are various types of trading support available to the forex trader and it is essential you make use of all of them. Forex forums allow a trader to discuss trading strategies and forex-related information with different forex professionals. Demo accounts allow one to test a trading platform and gain practice before you begin trading on the forex live market. Finally, a forex broker is available to provide support when making trading decisions. It is vital that the forex broker is available at all times to help with instantaneous trading judgements.