In this paper we will discuss about Forex Currency Trading System. It involves in trading with the currency positions. Through Forex currency crading the investors can sell a currency position at a higher price than the cost price, that is, the traders can achieve profit by selling a currency position.
Forex currency trading allows the traders to achieve profit by selling a currency position at a price which is more than its cost price. The nature of the Forex currency market is almost like any other market, for example, stock market, with one exception. That is, the forex traders can repurchase a currency position after selling it once, which is termed as Short Selling.
A Forex traders normally goes for Short Selling if the market goes down. If a Forex traders does exactly the reverse of Short Selling then, it will be termed as Going Long.
Therefore, someone can profit if the market goes up as well, although it depends upon the traders’ assumptions regarding the future market conditions.
Often, the traders go for real time Forex trading, which is called Spot Forex. However, the Forex Market hour starts at 5 pm European Time (ET) on Sunday and ends at 5 pm ET on Friday.
The value of minimum price shift in a Forex Currency Trading market, termed as “Pip”, is set at 0.0001, which means that a price is listed to 4 significant figures. The prices shift, on the basis of chosen currency pair, within 8 to 10 dollars.
Forex currency trading is not much profit worthy for the small investors. Many small traders have lost money through forex currency trading, for their average losses exceed the average profits.
Last Updated on : 23rd July 2013