While on stock markets investors only trade with institutional investors (like mutual funds), on Forex market there are more parties that trade and it is very important for all participants to understand the functions and reasons of those players. And here we talk about governments, central banks, financial institutions, speculators and hedgers.
Investors include in their portfolios investments like stocks, mutual funds and bonds, but they can also choose options, another type of security, very popular due to their versatility. They enable investors to adjust position depending on any situation that arise. Furthermore, there are more types of options you can choose and they are presented below.
The hours that you choose for trading can also impact the results and are actually very important. It is good to know when to take action and when to avoid trading.
Even if trading Forex may seem easy and as a trader, you get informed and you follow every recommended step, there are some common mistakes and traps that give troubles to many traders at some point in their career. Let’s see which are the most frequent problems and how to avoid them.
In the past, trading currencies was practiced especially by multi-national corporations and well-resourced investors, but nowadays this market has also opened up for average investors. Forex is the foreign exchange market where these currencies are traded and speculators have many opportunities to take advantage of exchange rates movements.
Every year the foreign exchange market is growing and becomes the most attractive market for traders. Everyday financial institutes and dealers are trading huge amount of currencies. There are several popular currencies that every forex market should acquainted, but the most traded currencies are:
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When you decide that you are ready to trade, remember that you have to create a Forex account firstly. This is for you to be able to trade currencies, and for this you should be aware of some factors before taking this step. As you can figure out, like the equity market, each Forex account and its services differ, so it is essential that you find the proper one. So here are some important elements you should consider when you choose an account.
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Misunderstood terms and sentences about binary options can lead to unsuccessful trades. So it would be very useful to find out the meaning of some specific terms and this will help you to understand better how a financial market works and what are its characteristics. Before starting a trade, check the list below and make sure you know all the concepts.
An underlying asset represents the specific item or type of item you are trading on, so it is the asset you purchase an option against. Some popular example would be: currency pairs (USD/EUR, USD/GBP), indices (Dow Jones, FTSE-100) and precious metals (Silver, Gold). Keep reading →
Assuming that you already know the basic terms of this market and you started to trade, we want to tell you how to improve your skills and become a successful trader. Keep reading →