Online foreign exchange trading The transition to online forex trading or currency trading is a natural progression for millions of traders around the world looking to start trading forex on MT4. Our introduction to forex trading for beginners is a great way to lay a solid foundation, especially if you are new to the currency markets.
Online foreign exchange trading
For those looking to dip their toes in the water, our Introduction to Forex Trading covers all the important basics for beginners as well as a few more advanced topics. We start with “what is forex” and move down to swap and rollover rates.
What is forex?
Online foreign exchange trading or global currencies (“Forex” or “Forex” or “Forex”) is the largest market in the world, with a daily turnover of more than 5 trillion US dollars, which dwarfs the combined trading volume of stock and bond markets in the world.
For this same reason, private investors and retail traders have entered the market and discovered many advantages – many of which are not available in other markets.
The liquidity and competitive prices available in this market are unparalleled, and today with the erratic performance of other markets, the growth of foreign exchange (currency trading), investment and management is accelerating.
Who trades forex?
Online foreign exchange trading, web-based research and analysis along with competitive pricing has made the market more accessible. Hundreds of thousands of knowledgeable individuals, companies and investment funds are actively trading forex. This means that anyone from beginners to experts are day trading.
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How do you trade forex?
Online foreign exchange trading for beginners and novice traders are always curious to know how to trade forex from both a practical and analytical point of view. When it comes to forex trading, it is important to develop a strategy that works for you. This can be done by combining exhaustive research and practice with a free demo account. Our guide on forex trading for beginners allows new traders to develop their skills.
What is the best platform for forex trading?
MetaTrader 4 is a leading forex trading platform that allows beginners and experienced traders alike to make quick trades, adequately analyze the market, and use an efficient and reliable platform.
By offering a free demo account, MetaTrader 4 can be an ideal introduction to forex trading for beginners, as they can try real trading experiences at no cost. MT4 also offers advanced charting options, mobile platforms, and the ability to trade forex, indices, and commodities.
The base currency and the counter currency
Online foreign exchange trading requires two currencies (intersection) where the first currency is known as the “base currency”, and the second currency is known as the “quote currency”. Forex trading involves the simultaneous buying of one currency and selling of another.
Buying a currency pair means that one is speculating on the base currency appreciating in value against the counter currency. Instead, when you sell a currency pair, you are expecting the base currency to fall in value against the counter currency.
GO Markets will automatically convert your winnings and losses into your deposit currency.
The spread of supply and demand
At Online foreign exchange trading, investors are offered spread trading, which provides level buying and selling for the trade. When clients want to sell a currency pair, they are interested in the bid price. Instead, when clients want to buy a currency pair, they are interested in the ask price. The bid price is always lower than the ask price.
The difference between the bid and ask prices is known as the spread, which is usually measured in pips. The trading spread for the major currencies can range according to the liquidity of the market, however, you will find the major currencies usually range between 0.5 – 2 pips.