The foreign exchange market or forex/FX-allows you to buy and sell currency pairs, and is the world's fast-growing market. You can trade currency pairs 5 days a week, 24 hours a day. Foreign exchange transactions are very similar to stock trading, where you can buy low and sell high. In addition, you can also buy and sell in a bull or a bear market at any time. ETO Markets is on track to become the world's best foreign exchange broker, providing our clients with a superior foreign exchange margin trading experience.
Market liquidity is an important indicator of whether the market is in a good condition. For example, in a boom market, active trading is encouraged by high market liquidity. Foreign exchange markets have a daily trading volume in excess of $5 trillion dollars, and the vast majority of transactions are focused on "major" currencies.
Leveraged trading is a type of foreign exchange margin trading, where you can open trades that total more than your initial capital; common leverages are 1:100, 1:200, 1:300 or 1:400, but can be higher depending on your level of risk. As an example, a 1:100 leveraged transaction means that $100 can be leveraged to trade up to $10,000. This gives you the earning potential of a $10,000 order, but also the risk of losing a $10,000 trade when you only have $100 capital. In essence, if the market rises by 1%, you double your initial investment, but you can also lose money as well.
The foreign exchange market operates 5 days a week, 24 hours a day. You can trade in the Sydney market on Monday morning at 9:00 am, and until trade ends at 5:00 pm local time on Friday in New York.
With an up to date computer, an internet connection, trading account and trading software (such as MT4), you will easily be able to participate in Forex trading. The MT4 platform is free to download, simply open a real or demo account with us, and log into your ETO Markets trading platform.
Short selling forex trading gives you greater flexibility,in both bear and bull markets In EUR/USD for example, with the euro against the dollar,the euro can be traded either buy or sell based on market trend.
ETO Markets uses very low-cost direct quotes from top liquidity providers. Under the STP or No Dealing Desk forex execution model, we can offer one simple transaction fee structure, giving you unparalleled transparency for our foreign exchange trading services. With ETO Markets, you know the actual cost of each transaction, and there are no hidden charges. In addition, since we specialize in low spreads, high-frequency traders can save a significant amount in transaction costs.
More and more people use the foreign exchange as a form of investment, however most of the time they have no proper understanding of the complexity of the market place. This causes many people to lose a lot of money due to the volatility of the financial markets. Therefore it is important that investors learn as much as they can about the markets and trading, before participating in day trading in the Forex market. They also need to review and understand all of the available tools and software packages, which if used correctly can help them to take advantage of many profitable opportunities.
ETO Markets offers online learning opportunities for our customers, providing easy to understand information about the foreign exchange, and the various strategies and techniques you can use to trade successfully. Learning about forex trading is easy with our demo videos and small class sizes. You will learn how to read forex charts and start to develop your trading strategies; increasing your proficiency and testing your level of understanding using a demo account, before you place a real trade.