Forex trading is the new way to make money by trading foreign currency. If you haven’t had a chance to look into Forex trading, I will try and explain some of the basics as well as discuss what automated forex software can help you with.
Forex trading is a system that goes on 24 hours a day, and unlike the stock market the Forex market keeps going even while you are sleeping or away from your computer. The main part of the trading involves a term coined “currency pairs”. This involves taking one kind of currency and pairing it with another. The value of the first currency is determined by its value compared to the other currency. The first currency in the pair is called the “base currency” while the second in the pair is called the “quote currency”. The currency pair shows what value of the “quote currency” is needed to purchase one of the “base currency”. For instance, if the currency pair was USD/EUR, the currency pair is being quoted as USD/ EUR =1.5 and then you purchase the pair. This will mean that for every 1.5 Euros you sell you will purchase 1 USD.
There are multiple software packages that allow you to do you trading while you are away from your computer. This in turn can increase your productivity on the market by capitalizing on the peak hours that certain currencies are traded. It will also display the “ask” and “bid” of the currency pair simultaneously. It can show you the time in “real time” as well as the “ask” and “bid” price of the currency pairs you are looking for. This software can also track minute to minute reports on your trades. You can export these to .PDF, xls or HTML formats.
Would I completely rely on automated forex software? No, but it does help manage the times where you are away from your computer.