Online trading Forex is now a massive industry unto itself. Of course a lot have businesses have been transformed by advances in IT such as faster Internet connections and more affordable PCs; however few have been affected as profoundly as Forex. It seems Forex and the Internet are a perfect fit as the market has doubled in size in just ten short years.That brings the daily turnover for Forex trading to about four trillion dollars a day.
What are the advantages of online trading Forex?
Obviously the biggest advantage of trading online is that you can do it from home. With modern trading platforms like Metatrader 4 you can receive Forex updates in real time 24 hours a day. This is pretty liberating for those who don’t live in major trading hubs like London, Tokyo and Sao Paolo.
Online trading Forex offers other major advantages. With Metatrader you can automate your trades. As your computer receives the latest market fluctuations you can set your application to automatically buy or sell currencies depending on what’s going on. This is useful for managing risk as you can automatically sell a currency when its value falls below a certain level.
How does Forex trading work?
Forex traders make money by correctly predicting the values of currencies in the future. For example if you believe that the value of the US dollar is going to rise then it makes sense to buy dollars; when the value rises you’ll have a more valuable currency. Traders make their predictions based on the political, economic and cultural state of the country whose currency is in question. Major events such as war and natural disasters can have a dramatic effect on the value of currencies. If you are interested in global economics and politics then a career in Forex might be right up your alley.