Forex trading offers a unique way of earning money online. But being eager to earn in Forex isn’t the only way to profitability. You must first understand the concept of Forex trading and get to know the right trading tools from MyFXBook that you must use in the market. Forex trading, Forex exchange, or just Forex involves the buy and sell of currency pairs in the Forex market. It is decentralized and the largest as well as the most liquid market in the world.
Benefits of Trading Currency Pairs
There are a couple of benefits that Forex trading has to offer to deserving traders.
There is more than $5 trillion worth of transactions every day in the Forex market. That being said, it is known to be the most liquid and the largest financial market in the entire world.
Attributing to its high number of market participants, it is operating efficiently and there is less to nothing manipulation by large market players.
Unlike traditional trading, you can trade Forex currencies just by paying a portion of the full about of the asset. You will only pay the spread and start trading right away.
Low Capital Required
You don’t have to own huge capital when you trade Forex currencies. There are even brokers that allow you to start trading with just $50 in your account.
This is considered one of the highlights in trading Forex. But be mindful, leverage can make great profits but is also capable of bringing huge profits into your account.
Currency pairs that are traded in the Forex market are moderately volatile and could create sharp changes in market events.
Best Forex Trading Tools
Here is the list of the most useful trading tools in Forex today.
Trading platforms – some of the most advanced trading platforms that we have today are MetaTrader 4 and MetaTrader 5. They have proven their efficiency throughout the years. MetaTrader 4 is ideal for Forex traders because it targets the Forex market. Meanwhile, you can also use MetaTrader 5 if you are trading currencies. You can even trade other instruments like commodities and indices with MT5. You can do so just by using a single trading platform.
Charting Software – MT5 and MT4 are examples of advanced trading platforms that offer real-time charting services. These types of services are very helpful in predicting market movements.
Economic Calendar – Huge financial news and events affect the movement of currency pairs in the Forex market. Thus, it is important to acquire an economic calendar from MyFXBook that will make you aware of upcoming events that could influence the movement in the Forex market.
Financial News Wire – Financial news affects the direction of the Forex rates. Getting access to this type of news allows you to be aware ahead of time and be prepared once the news hit the public.
Forex volatility calculator – having a volatility calculator in Forex trading allows you to determine the past volatility of the currency in different time frames. With a Forex volatility calculator, you are able to have an idea about the risks involved in every currency pair you trade.