Icon close
  • Tenga en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso está permitido por ley. STARTRADER y sus entidades afiliadas no están establecidas ni operan en su jurisdicción de origen. Al invertir a través de este sitio web, es importante comprender que no está regulado por la Comisión Nacional del Mercado de Valores (CNMV) y usted no tendrá las protecciones que brinda la CNMV.

    Si decide continuar y visitar este sitio web, reconoce y confirma lo siguiente:

    1. STARTRADER no tiene sede en España ni licencia de la CNMV.
    2. Usted accede al sitio web por iniciativa propia y STARTRADER no se lo ha solicitado de ninguna manera.
    3. Desea obtener información de este sitio web, que se proporciona mediante solicitud inversa de acuerdo con las leyes de su jurisdicción de origen.
    4. Invertir a través de esta web no te otorga las protecciones previstas por la CNMV.
    5. Si decide invertir a través de este sitio web o con cualquiera de las entidades de STARTRADER, estará sujeto a las normas y regulaciones de las autoridades reguladoras internacionales pertinentes, no a la CNMV.

    STARTRADER quiere dejar claro que se encuentra debidamente licenciado y autorizado para ofrecer los servicios y productos financieros derivados enumerados en el sitio web. Las personas que acceden a este sitio web y registran una cuenta comercial lo hacen por su propia voluntad y sin solicitud previa.

    Al confirmar su decisión de continuar e ingresar al sitio web, por la presente afirma que esta decisión fue iniciada únicamente por usted y que ninguna entidad de STARTRADER ha realizado ninguna solicitud.

  • Si prega di notare che il sito web è destinato a individui residenti in giurisdizioni dove l'accesso è permesso dalla legge. STARTRADER e le sue entità affiliate non sono né stabilite né operanti nella vostra giurisdizione di residenza. Quando si investe tramite questo sito web, è importante comprendere che non è regolamentato dalla Commissione Nazionale per le Società e la Borsa (CONSOB), e non si avranno le protezioni offerte dalla CONSOB.

    Se si sceglie di procedere e visitare questo sito web, si riconosce e si conferma quanto segue:

    1. STARTRADER non ha sede in Italia né è autorizzata dalla CONSOB.
    2. Si sta accedendo al sito web di propria iniziativa e non si è stati sollecitati in alcun modo da STARTRADER.
    3. Si desidera ottenere informazioni da questo sito web, che sono fornite su base di sollecitazione inversa in conformità con le leggi della propria giurisdizione di residenza.
    4. Investire tramite questo sito web non concede le protezioni fornite dalla CONSOB.
    5. Se si sceglie di investire tramite questo sito web o con una qualsiasi delle entità STARTRADER, si sarà soggetti alle regole e ai regolamenti delle relative autorità di regolamentazione internazionali, non alla CONSOB.

    STARTRADER desidera chiarire che è debitamente autorizzata e abilitata ad offrire i servizi e i prodotti derivati finanziari elencati sul sito web. Gli individui che accedono a questo sito web e registrano un conto di trading lo fanno completamente di loro iniziativa e senza sollecitazioni precedenti.

    Confermando la vostra decisione di procedere ed entrare nel sito web, affermate che questa decisione è stata iniziata esclusivamente da voi, e che non è stata fatta alcuna sollecitazione da parte di alcuna entità STARTRADER.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

27 January

Definition of the Forex Market 

When we travel to foreign countries, the first thing that most of us do is exchange the money we have to the local currency of the country we are visiting. By doing that, we participate in the forex market, or the Foreign Exchange Market. Let’s explore the forex market in more detail!

The forex market or foreign exchange market is where you trade international currencies. This market has no actual central location. The transactions happen electronically over the counter in any place in the world.

As for the working hours of the forex market, it is open 24 hours, five days a week. The reason behind that is that transactions occur in different time zones. Once a central market closes, the other one opens. Therefore, it is highly active at any time of the day, with the prices constantly changing!

Though currencies are traded globally, Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo, and Zurich are the major hubs for Forex trading.

What Makes the Currency Pairs Unique?

We have mentioned before that the forex exchange market is one of the largest markets around the world and that it is open 24 hours, five days a week. However, these are not the only features that make it unique. There are several other factors that contribute to that:

1. Forex has high volatility

Imagine how many transactions take place within minutes in the forex market! It literally translates to billions of dollars. Due to this high volume, the price movements for some currencies can be highly volatile. Speculating on price changes in either direction gives you the potential to yield enormous rewards. However, you must bear in mind that volatility is a two-edged sword. The market can swing against you. Therefore, it is critical to restrict your exposure with risk-management measures when trading forex.

2. Forex trading is transparent

This market is open to all participants, who can use the information that market provides to have more influence over their transactions than in any other liquid market.

3. Forex is the most liquid market in the world

Almost any time you peek at this market, a trade is happening. Hundred or rather millions of buyers and sellers, individuals, banks, and companies trade large amounts of currency. The main aim of most of these transactions is to make a profit. Because of that, the forex market is the most liquid in the world.

4. Forex market offers you the chance to go short or long

One of the most exceptional features of trading forex is that you can go long or short. Currencies are quoted in pairs. You are always selling one “the quote currency” and buying the other “the base currency”. If you think the value of one currency will increase against the other, you can buy the pair. If you think it will decrease, you can sell it. Your prediction is the main factor that sets your profit or loss.

The Different Types of Forex Trading

Spot forex trading

As the name indicates, this forex trading takes place either “on the spot” or after a short period. In this trade, currencies are exchanged in physical form.

Forward forex trading

Just like the previous one, the name of this kind of trade is indicative in nature. The trades are executed on a future date or within a set of several future dates (forward in time). In this kind of trading, you sign a contract to buy or sell a certain amount of a currency at a specific price at the set date or range of dates.

Future forex trading

The contracts agreed upon in this form of trading are basically the same as the previous one but there is one exception. Future contracts are legally binding, which is not the case with the forward ones.

How to Start Trading Forex?

Now that you have learned about the forex market, understood its unique features and different types, you are probably motivated to start forex trading. To trade forex, you need to follow these steps: 

1. Choose the type of forex trading you prefer.

Before you embark on your trading journey, you have to choose the type of forex trading you prefer. As an individual, you can either choose to trade forex CFDs or trade forex with a broker. As for CFDs, you trade the difference in price between the time you open a position and the time you close it. You can also speculate the price movement by trading currency pairs via a broker. However, you cannot access other markets in that case.

2. Open Forex Trading Account

As it is the case with other forms of trading, you need to have a trading account with a trusted and regulated broker if you choose to trade forex CFDs.

3. Draw a forex trading plan

If you do not plan, you plan to fail. This applies to every kind of trading. Trading forex is no different. After you have chosen the trading style and opened an account, you need to start working on your trading plan. Your trading plan sets your general guidelines and your trading strategies. You can refer to this plan to know when to open and close positions.

4. Choose an online trading platform

To trade forex easily, choose a good platform. You can choose between MT4, MT5, Web-based platforms, or other mobile apps.

5. Open, monitor, and close your position

Since you have your platform, you can open your first position. After that, you can set the stops and limits. With stops and limits, your trades will be closed when they reach a certain level that you specify. To make sure you make the most of your trade, benefit from all the analysis tools available. Study the market carefully and monitor the movements of the price.

Risk Management with Forex Trading

Though  you are not supposed to have a set minimum in your account when trading forex, you must be careful. Because trading forex and CFDs is highly risky, traders are often advised to risk just 1% of their funds with every trade. However, your required capital varies depending on your goal and trading style.