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What is Forex Trading?
How forex traders make money? Normally the selling price is higher than the buying price. The currencies are bought at lower prices and sold at higher prices and the difference between the selling and the buying price is the margin of earning for the forex traders. The relative values of different currencies are determined and maintained by the economic conditions of the countries. A country with sound economic conditions enjoys the higher value of its currency. Dollar, pound and Durham are believed to be some of the strongest and dominating currencies in the global forex market.
What is an ECN Forex?
Electronic Communications Network acts as a useful marketplace where banks, individual investors and other financial companies do forex trading. The basic purpose of every ECN broker is to provide all the services and technical assistance required for making money through forex trading. The ECN forex brokers perform a number of functions for their clients or account holders. Firstly, they provide the clients with the guidance and financial market analysis that helps in trading currencies. Secondly, If the clients do not have enough time to do to do trading by themselves, the ECN brokers not only manage account for the clients but also conduct trading of currencies, buying and selling, with the approval or permission of the clients. Thirdly, the trading rooms of the forex brokerage houses provide very useful information to understand the tricks of the trade.
What is a Forex trading platform?
Forex trading platform is automatically integrated computer software which allows traders or investors to buy and sell currencies. The software provides the investors with the tools and analysis to make currency trading decisions effectively. These softwares are offered by the financial institutions such as banks and brokerage houses. If you have money and want to do forex trading, you need to open an account with a Forex Brokerage Company. After you have opened a forex account and deposited money, you become able to buy and sell currencies in the global forex market to make money. The brokerage house allows investors to use forex trading platform. The investor or the trader has the option to download this software on the home computer and start forex trading from the home. The brokerage company issues a user name and password which is used to log in the software of the brokerage company. The brokerage house allows investors or clients to use its forex trading platform. The investor or the trader has the option to download this software on the home computer and start forex trading from home. The brokerage company issues a user name and password which is used to log in the software of the brokerage company.
The investors can operate their forex trading accounts either from the computer of the Brokerage house or from the home computer. Some of the commonly used Forex trading platforms are:
Why Forex trading platform is necessary?
A Forex trading platform enables investors to buy and sell currencies in the global financial market. Following are some of the important features of a standard Forex trading platform:
1) Forex trading platforms display all the currencies and their buying and selling prices in a user- friendly format.
2) Forex trading platforms provide users or investors with technical assistance and effective market analysis.
3) Forex trading platforms offer automated trading and great technical analysis.
4) Forex trading platforms display archival record so that the investors or traders make their decisions properly.
5) Forex trading platforms allow traders to set the accurate of minimum and maximum boundaries of prices to buy and sell the currencies.
6) Forex trading platforms allow users to open more than one window at the same time.