Day trading Forex [the Foreign Currency Exchange Market] is unlike any other market in the world. When day trading Forex online, you’re able to trade currencies 24 hours per day, six days per week. Unlike the American equity markets, in the online, daily Forex market, you’re able to take advantage of global economic news releases. While the stock market is closed, you can be online, trading Forex through major announcements.
Nearly $3 Trillion dollars is exchanged in the Forex markets each day. When compared to the $30 billion dollars of combined daily volume in the American equity markets, you can easily see why Forex is so liquid. With so much money changing hands, news announcements can have a drastic affect on the Forex currency markets. When the US releases its Non-Farm Payroll each month, traders in Asia, Europe, and the United states are reacting to the numbers. The combined volume of all these regions can cause significant movements- in some cases the GBP or Euro may move as much as 3 cents off of an economic release.
Day trading Forex through FX Trading is an entirely online process. Although you have a live currency consultant that’s available daily, you mange your Forex account through the internet. The electronic nature of the Forex market provides tremendous advantages. Execution through FX Trading is instant. You’re able to automate your trading account, setting predetermined stop, trailing stop, limit, and entry orders. FX Trading offers Negative Balance Protection. All of these features make online Forex currency trading much more convenient and profitable than other markets.
Another significant characteristic of the Forex market is the ability to use leverage. FX Trading offers its clients leverage as high as 400:1. This industry leading leverage allows you the potential to make significant gains off of small movements in the Forex market. With 400:1 leverage, you only need $250 to open one standard lot. If the GBP moves 1 cent and you’re on the correct side of the trade, you’ll make $1,000. With our 400:1 leverage, that’s a 400% return off of a 1 cent movement. As you’ll soon realize with our demo trading accounts, daily Forex currency movements of one cent or more occur often.