What is Online Trading? Online trading is basically the act of buying and selling financial products through an online trading platform.
These platforms are normally provided by internet based brokers and are available to every single person who wishes to try to make money from the market. Most brokers, like iFOREX, provide a variety of financial products including Shares, Commodities, Indices and Forex. While trading Shares like Google or buying and selling Commodities like Gold or Silver might be quite familiar, Forex trading has gained extreme popularity over the last couple of years due to some of its major features.
What is Forex? To make this simple, imagine you are getting ready for a trip to New York and you exchange 500 Euros into Dollars.
A week later, your trip is unfortunately cancelled and you decide to change your Dollars back into Euros. Surprisingly, you end up with 505 Euros: a profit of 5 Euros! This is known as a profitable foreign exchange trade.
You initially purchased Dollars at a certain rate of exchange and during the week that followed, the value of the Dollar went up against the value of the Euro. Without even meaning to do so, you managed to make a small profit as you bought your Dollars at a low rate and sold them back at a higher rate - the aim of any successful trade.
Leveraged Trading Typically, if you buy at a low rate and sell at a higher rate - then you will make a profit. However, if you invest with only a small amount, the profit you can make will also be relatively small. By trading with iFOREX you can use leverage of up to 400:1 When using leverage you can increase your purchasing power and simultaneously increase your profit potential. Instead of a 5 Euro profit you made when you exchanged your 500 Euros to Dollars and back, you could have made a profit of upto 2,000 Euros. Please note that while trading with leverage can work in your favor, it can also work against you and cause higher losses.
Just remember that with iFOREX you can never lose more than you invest! 3 Ways to start What should you invest in? Good question! Some people choose a certain investment based on emotions or go according to a recommendation made by a friend.
Others may choose to follow the advice of an investment advisor or make a decision based on their own accord. Whatever you decide to invest in, we strongly advise taking it slowly and cautiously. You can even use some of our educational material to improve your trading knowledge. Our clients tend to start out in one of the following ways.
What is ECN Forex Trading? ECN, which stands for Electronic Communication Network, really is the way of the future for the Foreign Exchange Markets.
ECN can best be described as a bridge linking smaller market participants with its liquidity providers through a FOREX ECN Broker. This linkage is done using sophisticated technology setup named FIX Protocol (Financial Information Exchange Protocol). At one end, the broker obtains liquidity from its liquidity providers and makes it available for trading to its clients. On the other side, the broker delivers clients' orders to Liquidity Providers for execution.
The ECN automatically matches and executes the orders requested, which are filled at the best available prices. One of the extra benefits of ECNs, over and above the existing legacy online trading venues, is that the networks can be accessed and are often more efficient during 'after hours' trading, which is a particularly relevant benefit for FX transactions.
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ECNs are also highly efficient for traders operating EAs (expert advisors) for automated trading, as the speed of execution is accelerated. Certain ECNs are configured to serve institutional investors, others are designed to serve retail investors, others are compiled to cross over between both sectors, ensuring that retail traders can experience similar levels of quotes and spreads to that of institutions. An ECN broker benefits from commission fees per transaction. The higher trading volume the broker's clients generate, the higher the broker's profitability. That unique trading model ensures ECN brokers never trade against their clients and that ECN spreads are much tighter than those quoted by standard brokers. ECN brokers also charge clients a fixed, transparent commission on every transaction. Trading with FXCC as part of the efficiency delivered by an ECN, results in lower fees, whilst there is the added benefit of additional trading time availability.
Because we gather price quotations from several market participants, we are able to offer our clients tighter bid/ask spreads than would be otherwise available. RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please click to read full Risk Disclosure. FXCC does not provide services for United States residents and/or citizens. FX Central Clearing Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), under CIF Licence Number 121/10 and operates under the EU Markets in Financial Instruments Directive (MiFID).
FX Central Clearing is on the FCA(UK) Register (Reference Number 549790) and EEA Authorised.