Forex Online Trading: Easy to Understand Trading Solutions

Posted by icmarkets on January 21st, 2015

The Forex market is one of the most fast paced and most exciting markets to participate in for trading. However, it is only recently that this market opened its doors to traders outside large financial institutions, central banks, corporations, and extremely wealthy circles. This, in large part, is thanks to the emergence of the internet and online trading platforms that make the market more accessible to average investors. Today, even small investors can trade currencies easily with just a simple click of a mouse using their online brokerage accounts.

In the Forex market, daily fluctuations are often small, though not insignificant. Many currency pairs move less than a cent per day, which is equivalent to a change of only 1% in its value. This makes forex one of the least volatile of the many different financial markets around. Many currency speculators rely on this leverage, giving them the opportunity to increase the value of possible movements. Here, leverage can be as large as 250:1, and while higher leverage also equates to extreme risk, forex brokers are able to make high leverage the industry standard because of the round-the-clock nature and deep liquidity of the market. This makes movements more meaningful for traders.

The high leverage and extreme liquidity of the market has helped fuel the growth of currency trading, making it an ideal place for investors and traders. Positions can be held for days, weeks or months, or opened and closed within minutes as the trader pleases and currency prices are based on supply and demand considerations, and therefore are close to impossible to manipulate because a market of this size will not allow even the strongest and largest players to move currency prices at will.

Like other forms of CFD trading, the forex market offers great opportunities for investors to make profit. However, success greatly depends on a trader's understanding of the market basics as well as the science behind currency movements. Learning this is not hard, especially with the kind of resources available for budding traders who want to take Forex and CFD trading seriously. Additionally, online trading platforms make it easier for traders, including the most novice and inexperienced investors to learn and understand the rules and ways of the trade, allowing them to get in on the game faster, and make profits while reducing risks.

About IC Markets

Headquartered in Sydney, International Capital Markets Pty Ltd is a provider of online forex trading services, offering individual traders, money managers and institutional customers proprietary technology, tools and education to trade online. IC Markets has distinguished itself among industry leaders with its unique True ECN forex technology, proprietary tools and services, and remarkable focus on customer service. IC Markets is regulated by the Australian Securities and Investments Commission in Australia.