Forex is one of the most widely traded markets in the world. A network of computers make up this market, rather than a physical exchange with a set closing time.
The forex market follows the sun; opening with the start of trading in Japan (Sunday night in the UK) and closing when trading concludes in the US on Friday night (around 10pm GMT). This is why it is possible to trade forex 24 hours a day, five days a week.
What is liquidity?
The Forex market is the largest market of the financial world. As long as human beings are not traveling to other planets, this market will rule in the world of finance. Today, we are going to talk about Forex market liquidity. Before we go further into our discussion of liquidity, it is important to give the readers a bit of an idea of liquidity. Liquidity refers to how easy it is to convert an asset into money. For example, when you are trading in the Forex exchange market or commonly known as Forex, you can trade with various currencies. You can choose to trade the market with oil, gold and also with a normal form of currency of various countries. No matter what currency you are trading or if you are into the gold and oil market, you can always convert your assets to your national currency or your desired currency any time.
The largest trading market, forex attracts more and more would-be traders each day. Keen on making a quick profit, they rely on their instincts or clever strategies in order to profit from the ups and downs of various currencies.
However, as it deals with the relative prices of coupled currencies, certainty is never to be found on foreign exchange market. The risk is therefore inherent to the practice of forex trading. In order to achieve and maintain success for a longer period of time, professional traders make use of a few methods to simplify the process and remove some (never all) of the risk.
A forex bonus is free money that a forex broker gives you to trade using its trading platform. The only string attached is that you can’t take out the amount unless you trade a certain amount of positions. There are a number of forex bonuses and not every bonus is the same. They vary in size, type and bonus clearing requirements. And obviously each of them has its own pros and cons depending on the amount of your trading capital, trading strategy and trading experience.
There are usually four types of forex bonuses featured by different forex brokers –
When we enter into the domain of Forex trading, we will enter a learning curve until we understand the intricacies and the finer points of trading. Even after learning the basics, everyday will still be a learning process. Now with that being the case, all the traders are bound to make mistakes, at least in the early stages.
In this post, we shall look at some of the most common mistakes committed by traders. This information will help you in avoiding setbacks and losses as a trader.
Over-trading:
This is one of the main reasons why many traders self-destruct. Although learning the basics is important, it is equally important for you to understand when to enter into a trade, and when not to.
Trading can be addictive, which is why you might not notice it when you are overdoing it. Therefore, it is very important for you to plan your trades carefully, and make a point to stick to your plans.
You might be tempted to make irrational decisions and start trading, even when the conditions are not favorable according to your training strategy. It is a very risky thing to do, and in most cases, it will simply lead to losses that could have been avoided.