Before the ‘how’, here is the what: 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. This strategy 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.
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.
