Forex Trading Has Never Been This Easy!!
Do you know that now you can trade in the Forex market without any limitations? Well, majority of the online brokers allow it, but that depends upon the trading software you use. Here are some basic guidelines for you to get started with Online Forex trading.
Online Trading Platforms
First and foremost, you need to decide the trading platform that you will be working on. You have got two options, Java web based system and Client based system. Java based platform is the typical website version and is preferred by majority of the traders especially the new players. It is used everywhere on any device, you just need to login to the website and access your account. On the other hand, the Client based system requires you to install the software first and then trade online. You will have to download and install it on every system that you use.
This is the reason why Java based system is more popular among online brokers. Whether you are at home, office or a friends place, you just need to have a system and internet access to trade online. Also it is comparatively safer and secure from viruses and hackers. In either case, we would recommend you to open a demo account first, try all the trading tools and features and then make your selection.
The Broker’s Screen
Once you have selected your trading platform, it is really important that you familiarize yourself with the Forex broker’s website and the main screen layout. Here are some common features that you will find on every broker’s trading screen.
- The very first tab will be of your profile or account status that includes your account balance, past transactions, profit and loss that you made in the past, your current trading status, allowed account margin and used account margin used etc.
- The most important tab for both buyer and seller is the live screen area that shows the current exchange rates. You will notice constant fluctuation in the numbers as the currency value is updated every second.
Foreign Exchange Orders
Now that you know what to look for in online platforms, the next step is to shortlist few brokers and register free demo accounts with them. This will help you in making the selection of the permanent live account. Once you are done with that, now is the time to indulge yourself in the game of real money. Here comes the most attractive part of online Forex Trading, you don’t actually have to involve yourself in the trading rush. Just pass an order to your broker and he/she will do the rest. By order we do not mean real court like order, these are terms used in Forex trading. Here we have listed the type of orders that you may instruct your broker to proceed with.
Market Order: This order is used to execute the trade at current rate. With this order, you allow your broker to buy or sell foreign currency at the prevailing prices.
Limit Order: Here you set a range of price for your broker and instruct him to execute the trade in case the market price falls in that range.
Stop Loss Order: This is read as another type of limit loss where you can place a stop order in case the prices do not move in your favor. For example, you pass a stop loss order at 10% of the current price. It means you have allowed your trader a loss of up to 10% on trading of any specific currency pair.
Good till Canceled (GTC): Some traders keep their orders active all times. With GTC, you instruct your broker to cancel your order and stop the transaction.
Good for the Day (GFD): GFD means that your order will remain open by the end of the trading day.
Now you are all equipped to step in the circle of Forex trading. Grab your laptop and get to work. Look for online Forex brokers and start playing with some demo accounts. Settle on the one with the most easy to use interface and that allows you to trade without any limitations. In any case, your decision to pass orders would depend upon two main factors; risk and return on capital. Keep a constant check on the live screen of currencies, stay updated with business news and read all the analysis reports published by the broker. Last part is something which is ignored by most of the traders. Your Forex agent won’t advise you in that much detail as you will find in their reports. These will help you make the right order depending upon your investment limitations and preferences.