Forex, the foreign currency exchange, is the most traded financial marketplace in the world. About 90% of all trading volume is speculative trading, which means Forex is extremely liquid – it is easy for traders to find each other and make a trade. Financial instruments are constituted by currency pairs.
Being an electronic trading network, Forex is not tied down to physical space or time, so it is open 24 hours a day, 5 days a week. The currency pairs traded on Forex are called majors and minors (involving USD), cross pairs and exotic pairs.
Forex trading explained
The essence of trading on foreign exchange is to monitor movements of currency fluctuations and acting on this knowledge – to buy and sell currency to make as much profit as possible.
On Forex, buying and selling both happen in one trade. For example, placing a buying order on USD/EUR assumes buying euros at the opening of the position, waiting until they appreciate against the dollar and then selling them for more dollars than you originally bought the euros for.
At Double.Trade we allow for something called ‘leveraged trading’ where the leverage is as high as 1:200. For instance, this means that if you buy 100,000 euros at a price of 1.23 USD you will not need 123,000 dollars, but only a margin of 6,137 USD. This allows you to operate with big assets even if you don’t have large funds on your account.
How to trade
To start trading simply create an account with Double.Trade, deposit funds there, sign-in to the app and go for it. When trading currency pairs, pay attention to interest rates = this is the main force behind currency supply and the main tool for central banks in controlling inflation.
When interest rates go up, it is more expensive for other banks to borrow money from the central bank. The price rises and the inflation decreases.
Thus, the interest rates together with the margin and leverage influence the trader’s profit and loss calculations.
Why trade Forex?
Double.Trade makes sure you trade under the most advantageous conditions
A wide range of
currencies for trade
Double.Trade gives you access to more than 100 currency pairs. This amount is enough to speculate on the currencies you desire and keep your finger on all market movements 24/5
Forex is the largest and most interesting of all financial markets. It is open 24 hours a day with a daily turnover around 5 trillion dollars. It attracts the most interest from traders.
Free of Charge
Trading on Forex with Double.Trade is free of additional charges. The broker’s profit is determined by a spread – the difference between the buy and the sell price of an asset. It usually ranges from 0% to 0.0012% of the transacted volume.
You Can Start Small
It is advised for beginner traders to start out by trading mini and micro lots. If the standard lot is 100,000 units of base currency, mini is 10,000 units and micro is 1,000 units. This means smaller PIPs and generally more affordable trades.
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