Monday, May 5, 2008

How do i Trade Forex?

Trading Forex could be as simple as it is being advertised but before you venture into
online Forex trading, kindly demo trade by downloading the trading platform from any
Forex broker’s website. Moreover, I will advise you start a METAQUOTE4 trading
platform as it is very easy to maneuver, customize and understand be it a beginner or an
expert. Let me sound this warning that there are lots of SCAM online that claims to be a
broker but you can check their rating on
I highly recommend that you only open an account with a registered broker. Having said
that, most Forex brokers provide, “free of charge”, an online trading platform that is
integral with decent charting software. I believe you can consider the data reliable and the
order execution proper as long as you are dealing with a registered broker. However,
some trading platforms and charting software are more intuitive and easier to use than
others, so in selecting a broker, you want to open a demo account first and get the feel for
that broker’s platform to see if it is comfortable for you. You will be able to determine
this with a little paper trading over a few days and weeks.

Also, you want to be sure that your brokers charting software is able to plot the indicators
that your trading methods call for. Most will be able to do this, but not all.
You select the pair of currencies with which you wish to make a Forex deal. You
determine the volume (the amount of the deal). You deposit the "margin" (collateral
needed to facilitate the deal. Usually - only a very small portion of the whole deal, say:
1% or 1:100).
Before you finally activate the deal, you can still "freeze" it for a few seconds (only
available at selected brokers). That enables you to either change the terms, or accept it as
is, or altogether regret the whole idea.
When your Forex deal is running, you can monitor its status and check scenarios online
whenever you wish. You may change some terms in the deal, or close it. Ultimately, you
remain in control, only you can decide when the time is right to cash in your profit! Some
Forex brokers will even let you determine a "take-profit" rate, with which the deal will
close automatically for you.

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