Forex trading has been receiving tons of newcomers. Some really do excel and did a great job choosing their paths while others are stuck figuring out their stuff. This promising trading industry has turned lots of investments up and down. And that is the reason why people are scared of getting into forex trading. But before you get insanely discouraged, get yourself first to research.
Are you planning to get into the world of forex trading? Obviously, you are. That is why you are reading this article. Well, before you completely enter the trading industry, you must first get to know of these facts.
Fact #1: There are many types of the trading platform
A currency trading platform, which forex traders use, is practically a software that acts as your access to the trading markets. Examples of which are:
- Meta Trader 4
- Trade Station
These platforms are widely used today by newbies and prominent traders in the industry. These developments are competitors of each other in providing quality services. They differ in the usage of programming languages, device compatibility, features, and more.
Fact #2: One broker can be different from another
Like how there are various types of platforms, there also are for brokers. These differences are subject to the traders’ preferences. There are lots of types of forex brokers
to exist like
- ECN (Electronic Communication Network)
- STP (Straight Through Processing)
- Hybrid (Combination of ECN and STP)
Entering the forex trading industry is not as easy as it seems to be. You have to consider your goals and plans. It is not a one-fits-all market and that is why there are different types of brokers.
Fact #3: The volume of trading stands more than 9 digits per day
The foreign exchange market has a colossal volume of 5.1 trillion dollars daily as per the 2016 Triennial Central Bank Survey of FX and OTC derivatives markets. This large volume made a extremely remarkable point-of-view for the traders and future traders.
Fact #4: There are two categories of traders
In forex trading, they label the two types of traders as a bull (the bullish) and bear (bearish). The bull refers to those who are exceedingly increasing their share prices, the succeeding ones. On the other hand, bearish are those who are apparently failing on having a good discernment on their share prices.
These trader labels are proof that you will instantly earn a lot when you enter the forex market. These two are the reason why there exist different types of trading platform
Thus, there are always risks of trying something new but the best weapon to excel and be like the bulls in the forex is to plan ahead. Give it good research and see what will work for your priorities and goals.
Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.