Forex trading allows you to profit from the fluctuation of currencies around the world, whether it is up or down. Traders use a derivative called Contract for Difference (CFD) to speculate on the prices of currencies without actually purchasing them. The market is open 24 hours a day, 5 and a half days a week and is highly volatile, so you can make big gains and losses quickly.
What is the most used forex trading platform?
To get started, sign up for a free demo account with an online broker. Most reputable brokers offer this and will verify your identity to ensure security and fraud protection. Once your account is verified, you can deposit funds to start trading.
Next, choose a currency pair to trade. Most brokers will offer major pairs like USD/EUR, GBP/USD and AUD/USD as well as some minor and exotic currencies. Select your fx trading platforms strategy and decide how much risk you are willing to take on each trade. You may also wish to use stop-loss and take-profit limits and conduct fundamental or technical analysis.
The MT4 platform offers a wide range of tools to aid your trading, including the ability to add scripts written in MQL4, an in-built strategy tester and a range of advanced order types such as IF-DONE and OCO, which combine a stop order with a limit order so that whichever is executed first, the other will be canceled. It also provides low spreads and zero commission for EUR/USD, making it ideal for beginner traders.