Using forex trading software in the forex market

Today’s Forex (Forex) trading is recognized as one of the most profitable ways to make money online. To trade Forex, all you need is a computer with an Internet connection and an account with a Forex broker. Since the market is operating 24 hours a day (5.5 days a week), Forex traders basically work freely regardless of location and time. Despite the high daily turnover volume (almost $ 2 trillion per day), it is surprising to know that only a few currencies are actively traded: the US dollar, Australian dollar, Japanese yen, British pound, Swiss franc, Canadian dollar and euro are the top seven .

FOREX trading is mainly traded on major international banks, even after it opened to the public in 1998. According to the Wall Street Journal Europe, 73% of trading volume is covered by the top ten. Deutsche Bank, at the top of the table, covered 17% of all currency trading; UBS in the second and Citi Group in the third; taking 12.5% ​​and 7.5% of the market. Other major financial partners on the list are HSBC, Barclays, Merril Lynch, JP Morgan Chase, Coldman Sachs, ABN Amro and Morgan Stanley.

Approximately half of the transactions for the market participants segment were strictly between sellers (i.e., a Bank or a large currency seller); others are mostly between distributors and financial institutions.

Almost all traders often use one or more trading systems / software to trade Forex online. These software come bundled with a Forex broker when you open an account. In short, this is how this software works: Forex trading software is connected to the broker system via the Internet, currency prices are updated directly, and you call for trading through the software. This trading software often requires minimal computing power, so it can now run on most home computers while connected to the Internet.

Some basic things you can see in most forex trading software:

1. Trading rate window: Show currency pair prices with live updates. Usually the market will appear low-high in this window as well.

2. Open the Positions window: Show the number of tickets you have purchased (trade). Basic information such as card number (trade reference number), trade number, currency, open positions, current closing position, and orders are usually displayed in this window.

3. Closed position window: Show the number of tickets (trade) you have sold. Good trading software will show you a summary of your deal in this window, such as gross profit / loss, open / close positions, number of trades and number of interests.

4. Account window: A window showing your general status. Your account balance, equity balance, daily gain / loss, your overall gain / loss, usable margin and actual capital. Check the available margin in this window. Always give enough margin to avoid “margin calls” that force you to close all deals.

5. Automated Trading Orders: In normal cases, the functions of trading orders are embedded in the Forex trading software. For forex trading, stop loss order and limit order are the two most commonly used functions.

Automated trading orders in Forex trading

Restricted orders:

As a trader, you can make these orders when you want to buy / sell currency at a better price compared to the current market. Limit orders are often used to automatically make a profit when the price reaches a certain level. For example, the current EUR / USD is at 1.2693 and the pre-determined limit order is at 1.2700. The order will be executed automatically every time the price reaches 1.2700.

It is important to know that limit orders can only be placed at a minimum distance from the current market price. In addition, you may cancel or change this order at any time, as long as the limit order price tag is set above the minimum permitted distance.

Stop orders:

Stop orders, sometimes known as stop orders, are automated commands used to limit and limit losses in an open position. It can also be used to block profits in your trade when the market is moving in your direction.

Stop orders work similarly to limit sales orders, determining in advance what the lowest selling price is in some deals. For example, with the EUR / USD 1.2693 stop order at 1.2685, the system will sell your USD portion if the price touches the 1.2685 level. The price of 1.2685 is guaranteed in this case, which means that if the market sinks too fast and falls below 1.2685, you can sell your money at the price you set earlier.

A stop request works perfectly for managing your risk profile. However, it is advisable to use the order with caution, as the market maker provides a room to deceive your money.

Since this article is intended for beginners in Forex trading, you are probably one of the beginners looking for some resources to learn Forex trading. Apparently, there is no immediate solution to being a professional trader. The only answer will be education. Take all the time you need to learn this new trading skill well: Practice everything you learn with a demo account before you think about going “live” with your money. Seminars, e-books, Internet and video courses are all you need to attend.