Learn Everything About Forex Trading and Start Trading ZuluTrade
What is Forex Trading?
The term “Forex Trading” stands for foreign exchange and refers to the buying or selling of one currency in exchange for another. Currencies are traded in the foreign exchange market, a global marketplace that’s open 24 hours a day in different parts of the world. All forex trading is conducted over the counter (OTC), meaning there’s no physical exchange and a global network of banks and other financial institutions oversee the market.
Spreads are usually low, making forex trading relatively cheap. However, you should look into all associated costs when choosing a broker, as some may also charge a flat fee or variable commission.
A 24-hour Market
From Monday morning in Australia to the Friday afternoon close in New York, the forex market never sleeps. Forex Trading is not subject to the opening hours of any centralised exchange system. As long as there’s a market open somewhere in the world, deals can take place.
Benefit From Leverage
In forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. The arrangements in the Forex markets provide investors to lever their original investment by as much as 20 to 30 times and trade in the market. This can magnify both gains and losses.
Liquidity refers to the ease with which an asset can be bought or sold with a limited effect on its value. The global scale of foreign exchange combined with the high volume and 24-hour activity, make the forex market the most liquid market in the trading world. This is an advantage because it means that under normal market conditions, with a click of a mouse, you can instantaneously buy and sell at will.
Trading Options Forex markets provide traders with a wide variety of trading options. Traders can trade in hundreds of currency pairs. They also have the choice of entering into spot trade or they could enter into a future agreement. Futures agreements are also available in different sizes and with different maturities to meet the needs of Forex traders.
Most online forex brokers offer demo accounts to practise trading and build your skills, along with real-time forex news and charting services. By simulating a live trading environment, demo accounts give you the chance to get used to a trading platform, familiarise yourself with market movements and develop a risk management strategy, all without making any financial commitments.
How Do I Start Forex Trading?
Create your Account
If you want to become a manual Forex Trader, you must first create a traders account on ZuluTrade.
Find a broker
Find a suitable online forex broker and fund your account.
Choose a platform
You must have a forex trading platform like ZuluTrade Webtrader or MetaTrader4.
After completing all of the previous steps, you are now ready to trade. You can also open a demo account funded with virtual money to test out the broker’s forex platforms and services before going live. Demo accounts are excellent for testing out trading strategies and practising trading without risking any funds.
Features of our Forex Trading Platform
The ZuluScript feature enables the ability for investors to create “scripts” or a set of custom instructions that can carry out trading operations if conditions and specified criteria are reached.
Technical Charts and Indicators
A simple yet effective way to get the information from the Trading Station user interface with technical charts (Candlesticks, OHLC, Lines), a large variety of Indicators (Trend, Oscillators, Volatility, Volumes, Williams %, etc), custom lines, objects, along with the ability to create trading robots by running the ZuluScripts.
A prized feature on ZuluTrade is The Automator. You can set rules to lock profit, update Stop/Limit for selected trades, close profitable trades or get notified of any significant changes on the markets. The Automator allows you to build rules at the Settings tab of your Forex account.
Integration With Automated Trading Software
Interface Forex trading software places trades automatically based on the occurrence of the desired criteria. The software should have the necessary connectivity to the broker(s) network for placing the trade or direct connectivity to the exchange to send the trade orders.
Frequently Asked Questions (FAQs)
Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Profit sharing accounts are subject to a monthly performance fee per selected trading system.
Forex trading involve a real risk of loss. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss. Past performance is not indicative of future results.
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. Please click here to see full disclaimer.