Forex: Daily Trading

Day trading is one of the ways of forex trading. Usually daily bargains are opened and closed on the same day – you can make as many trades during the day, as you want. It's your decision.

It is possible, that daily trading transactions will actually last longer, than one day. When this happens, it is automatically extended for 22:00 Greenwich every night, until you close the. When you extend it you will be charged a fee for additional 24 hours. This fee will be collected once a day, when the deal will be extended. The fee will be charged to your free balance in the trading account, and if it does not have enough balance - charged to your credit card.

In that case,, if you do not have a credit card, then the free residue, which would be in your account when performing subsequent transaction will be deducted.

Day trading is becoming more popular now, as more and more people use the Internet.

Forex day trading involves four main stages

Step 1: You have chosen to perform a transaction on the Forex

Do you believe, that the USD will rise in value, because you're watching the market and believe, that growth is most likely in the near future. You decide to buy USD to its occurrence and sell after the increase. Thus, you will make a profit, if indeed the USD will rise.

Step 2: Are you preparing for the transaction

You choose the currency pair to trade. You can choose to trade EUR / USD, what it means, you need to buy or sell EUR USD by. После того, as the value of the dollar increased to a level, you expect, you close the deal. Then you get more euros for USD, you bought.

This can be represented by the following Example

Assuming, the rate for EUR / USD is 1,2600, this will mean, 1 EUR sold for 1,2600 USD. This also means, you get 1,2600 USD, if you sell 1 Euro. If the EUR strengthens and moves to 1,2700, you will pay 1,2700 USD, to buy one euro (USD is now worth less than). Respectively, sell EUR at the back 1,2700 in exchange of USD, will bring you profit 0,0100 USD. In this example,, if you purchased 10 000 Euro, you have made a profit 100 USD. Purchase 10 000 EUR only requires 100 USD deposits, if you use the shoulder 1:100. In this hypothetical case, investiruя 100 USD, you got the same profit. Nonetheless, if the cost would have decreased by EUR 1,2500, you would have lost 100 USD.

Next, you need to decide on the amount of, with which you want to trade. You should not use the entire amount, because you can use the loan funds. The most common is the shoulder 1:100.

You can set the speed of the stop-loss. This is the rate, with which your transaction is automatically closed, if it goes against, what do you expect. While, as your transaction is still open, You can change the rate at any time. This will allow you to make, that you do not lose more, What are you willing to sacrifice.

Step 3: Monitor your account

Constantly checking your online account, you can see, as your account is changed 24 hours, seven days a week. This gives you the opportunity for opening and closing or changing transaction, when you want it.

Step 4: Closing the deal

You can choose the time, to close the deal, when you want it. If you set the speed of stop loss and trade reaches this rate, it automatically closes. Some traders believe the stop-loss a good way to make sure, that they do not lose more than the limit, which they set. The deal may also be closed automatically, if you set the speed Take Profit. This means, that you are freed from the need to constantly monitor your positions.