Forex trading involves buying and selling world currencies in an attempt to make a profit from the exchange rate differences. Forex day trading is a particular type of trading that involves trading in deals that are usually open for just the one day.
However it is possible for Forex day trading to continue on for more than one day. When dealing with brokers there is, as always, a fee charged to take part in day trading.
List of the Best Day trading platforms
If the trade continues on into the next day the renewal fee is automatically taken out of your account every night at 22.00 GMT for as long as the deal remains open. If there are not enough funds in your account, the deal will either be closed or your credit card will be charged.
Forex day trading has the potential to yield high profits but comes with a lot of risks of experiencing a loss. However although you may stand to lose the money you invest, you will never lose any more than that! This is thanks to the stop-loss function that most brokers now offer as standard.
The Forex trading market operates 24 hours a day, 7 days a week. Trading takes place between banks and banks, Forex brokers and banks and individuals and brokers. Also there is always a session in operation. For example when the European session is finished, the US session will start.
It is good to know that nobody has an advantage over anyone as there is little or no inside information what so ever in the world of Forex. Also the rates are announced publicly so that everyone hears at the same time.
How To Start Forex Day Trading:
If you feel brave enough and feel that the potential financial gains you could yield are well worth the risk of losing all your money then you need to know where to start.
Basically to start day trading Forex, what you need to do is open a trading account with your chosen Forex broker.
This will then allow you to buy and sell currencies through the Forex client program whenever you choose. The set up process is quite easy as it only takes an average of 5 minutes to set up!
Usually the minimum amount of money you can start trading with is $100 to $10,000, depending on the Forex broker you set up your account with. A small fee is always charged when you decide to trade.
Did You Know?
Did you know that the Forex market has a daily volume of $3.2 trillion! And is one of the largest markets in the world today.
In general the potential financial gains you could receive from Forex day trading could be truly overwhelming if you are willing to take the risk in the hope that it will work out for the best.