Forex Trading



Forex
The Forex market is the largest market in the world with daily reported volume of over $3 trillion making it one of the most exciting markets for trading. Finotec provides an online forex trading platform for individuals who want to speculate on the exchange rate between two currencies. In doing so, traders buy and sell currencies in order to achieve of making a profit when the value of the currencies changes in their favor.


Quoting Conventions
Currencies are quoted in pairs, such as EUR/JPY. If you buy EUR/JPY you have bought euros and simultaneously sold yens. You would do so in expectation that the EURO will go up relative to the JPY. If you think that the euro will go down relative to the JPY, you will sell EUR/JPY.


Margin and Leverage
The margin is a deposit to ensure against trading losses. The margin requirement allows traders to hold a position much larger than the account value.
If you buy 200,000 USD/GBP, your margin used is $1,000. Usable margin are the funds available to open new positions or sustain trading losses. If the equity (the value of your account) falls below your margin used due to trading losses, your position will automatically be closed.


Forex Trading Strategies
Forex trading strategies intend to explain and elaborate the trend in Forex trading market by using technical and fundamental analyses. Finotec has created educational tools to learn about forex strategies. Enter the Finotec E-learning center to learn more about Finotec Education Program.


Spread
Currencies are quoted with a ask price and a bid price. For example EUR/USD quotes 1.2315/1.2320 (Bid/Ask). The spread is the difference between the two prices. Finotec is compensated for its services through the spread between the bid/ask prices.