Real-Time Forex Trading is a form of speculation in which a trader bets on the movement in the exchange rates of foreign currency pairs. It involves trading in placing an order to buy or sell a specific currency pair at the current exchange rate. In addition, it requires the use of real-time forex charting software.
Understanding Real-Time Forex Trading
Forex currency traders perform real-time forex trading on the foreign exchange market. They use analysis based on technical and fundamental indicators. In addition, it helps forecast the movement of the currency pair traded. As real-time currency trading is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies in an attempt to cut losses and take profit.
The Composition of Forex Trades
As the largest market in the world, traders buy and sell various currencies. Forex trading involves the purchase and sale of currency pairs. Then, the exchange rate of the pair is the rate at which one currency can be exchanged for the other.
In the exchange between foreign currency pairs is a factor of the base currency. For instance, the currency pair listing may appear as EUR/USD 1.3045. At this point, the euro (EUR) is the base currency, and the U.S. dollar (USD) is the quote currency. As a result, the rate costs $1.3045 to buy one euro. Buying this pair means buying the euro and selling the USD. Otherwise, selling this pair would mean selling the EUR and buying the USD. It happens by clicking a buy or sell button related to the EUR/USD pair.
Real-Time Forex Trading Accounts
There are three kinds of lots, namely standard, mini, or micro-accounts. Standard forex accounts trade in lots of 100,000 base units, Mini accounts allow 10,000 unit traders, and Micro accounts allow 1,000 base unit trades. Furthermore, standard accounts enter orders in multiples of 100,000. Mini account holders place in multiples of 10,000. Micro accounts may use any multiple of 1,000.
The Forex market is open for 24 hours in five days per week. Forex brokerages offer real-time forex trading chart to clients. On the other hand, websites that offer free trading have no guarantee of accurate or timely information. Each broker may have different traders and banks providing liquidity, rates sometimes vary slightly between brokers and/or charts available online.
Real-Time Forex Trading Tactics
An investor may not be concerned with the by-the-second fluctuations of a currency pair. While any style of trader can use real-time charts to make trading decisions, short-term traders rely on real-time charts the most.
Short-term is divided into two traders. There are day traders and swing traders. Day traders hold positions for seconds, minutes, or maybe hours. Meanwhile, swing traders hold positions for days or weeks.
Traders utilize trend trading as their primary trading method. Trend trading is attempting to capitalize when the price is moving in one sustained direction for a given period of time.
