Our tight spreads and substantial liquidity are a result of combining quotation streams from 14 of the world's largest foreign exchange dealers which constitute more than 70%2 of the market share in the global interbank market. This results in displayed quotes as small as 1/10 of a PIP. Trend-less - Erratic price movements which are often steep ( greater than 45 -degree angle ) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they often result in very little net price movement over time.
The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Quotation using a country's home currency as the unit currency clarification needed (for example, USD 1.11 = EUR 1.00 in the Eurozone) is known as indirect quotation or quantity quotation and is used in British newspapers ; it is also common in Australia , New Zealand and the Eurozone.
Unlike stocks or futures whereby they are traded over a centralized exchange, forex trading is traded over the counter. So there is always a possibility of counter party risk. And for you the retail trader, your counter party risk is usually your broker.
Early in the last century, nearly 50% of the world's foreign exchange was conducted using the Pound Sterling. Today, daily forex trading turnover in the London market represents 41% of the world, more than double that of the United States at 19%. If you choose a reputable UK broker, then you can be assured that the firm can draw upon a broad pool of experienced and professional staff in the UK.
MetaTrader 4 has undergone years of professional development and improvement. With its huge eco-system, it is the favourite choice of both novice trader and institutional fund manager alike. Traders need a program that allows them to analyse quotes, make trades and develop strategies. They also need to control their trading accounts on the move with a mobile device.
Generally for traders looking for certainty with their trading costs, fixed spreads will be the preferred choice. Traders who are looking to pay a smaller spread would prefer floating spreads. Ultimately as to which is better will depend on your specific trading needs.
Minor or exotic currencies are so-called as they are the currencies of less prominent or emerging economies such as the Hong Kong Dollar, Mexican Peso, Swedish Krona, Hungarian Forint and so on. They are traded in smaller quantities when compared to the majors and often the cost of trade is much higher due to their illiquidity.
Forex traders are buying and selling currencies. Usually their work is to make transactions, based on simple arithmetic rules: to buy as cheap as possible and to sell as expensive as possible. After completing the following few steps, you'll know how to trade on Forex market.