Every Internet user might have come across bright advertising banners inciting to try Forex trading. To some, this seems impossible to make a profit without financial background and economic education.
Step-by-step Guide on How to Use the Forex Financial Trading Platform
While others are trying to select a Forex platform and experiencing complications with the choice and use of it. If you are interested in trading in the world’s biggest financial market, we have prepared a guide that will help you understand the specifics of Forex trading platforms and how to use them.
Online Trading: What It Is & Its Advantages
Before the development of online trading, traders and investors had to trade by mail, telephone, and fax. Traders had to make a buy or sell decision over the phone with their broker. Additionally, with top brokers like XM brokers, however, this process is simplified to empower traders with high-quality automated execution.
This process was very slow as brokers needed to confirm transaction details such as price, quantity, type of trade, duration of it, exit price, account specification, etc. The digital age has significantly impacted online trading in general.
The difference between the past and the present exceeds all expectations. Nowadays, it is possible to trade from any corner of the world, be it South Africa or Vietnam — you just need a stable internet connection.
Thanks to the available trading platforms, traders can now enjoy the following benefits:
- transaction costs are significantly lower as trades take place online rather than over the phone;
- the transaction speed is much higher;
- numerous financial instruments are available;
- a trading platform can execute any of your trading transactions as long as you have an Internet connection;
- traders have access to a wide range of tools and indicators;
- virtually no physical work, all tools calculate data automatically and literally instantly;
- traders can simply add a trend line to the chart with a double click;
- moving, deleting, adding lines, instruments, and indicators occur in a few seconds;
- online courses, analytics, and online trading sites are available within a single platform provided by a broker like Forextime
As you can see, not only the ease of trading has improved significantly, but also the simplicity and quality of tools, indicators, and analysis methods provided by trading platforms are at a high level meeting the demands of traders.
Online trading platforms also allow for a wide variety of orders that can be set up instantly with a broker of your choice. A wide selection of orders is an advantage as it allows traders to create an accurate trading plan.
Buy orders are the following:
- placing a buy limit order (buy below the current market price);
- placing a market buy order (buy at the current market price);
- placing a stop order (buy above the market price).
Sell orders are:
- placing a limit sell order (selling above the current market price);
- placing a market sell order (sell at the current market price);
- placing a stop order (sell below market price).
Closing orders are:
- stop-loss to enter a predefined level with a loss;
- take profit to enter a predetermined level with a profit;
- a trailing stop order to enter higher levels as the trade develops.
The last major advantage of using trading platforms is that there are no restrictions on how traders trade. They can choose any trading strategy they prefer.
When trading online, there is no limit to any trading style. Here’s a quick summary of the trading styles:
- scalping — short-term trading;
- intraday trading;
- intra-week trade;
- swing trading;
- long-term trading;
- Renko bars and other types of charts;
- expert advisors.
Some of these trading styles seemed unimaginable decades ago when you still needed to contact a broker. Online trading has truly revolutionized the world of trading and created numerous financial instruments for a growing segment of traders.
The Age of Mobile Devices
When choosing and utilizing a platform for trading, it is crucial to think about the devices you are going to use for trading.
The majority of contemporary platforms offer compatibility with iOS and Android devices, making it possible for users not to stop their trading activity when they leave homes or offices.
Practicing in a Demo Mode
Reliable platforms provide users with the possibility to hone their skills in a demo version of the trading platform. Therefore, if you have no experience, there is nothing to worry about, just create a demo account and learn the specifics of the platform and try your trading skills in a demo mode.
After you feel comfortable on a chosen platform, you will be able to switch to real-money trading and try making a profit in the Forex market. Good luck!