Foreign Exchange

Did you know you only need
$USD4.00
to start trading FX

Foreign Exchange Definition:
” The system by which one currency is exchanged for another, which enables international transactions to take place”.

FX is definitely my favourite instrument to trade, mainly because of the speed, ease of making a transaction and most importantly not needing much capital to start with. (See my other bloggs for further discussions). Basically if I think something is about to go up I click buy, when I want to exit the trade I click sell. Only two clicks and I’ve been into and out of a trade. Taken my profits, or donated my loss. That’s essentially how easy the trade is transacted, obviously there’s a bit more to it than that but not much. It’s so quick and because the targets and stops are automated. I placed a trade not so long ago that reached its target and closed out the same second the trade was placed. Took the 14pip profit, and the system didn’t even register a different closing time.

Trading FX means I can trade almost any time of day given there is an active market 24 hours. Essentially the market opens in Wellington NZ on the Monday morning and closes when it’s knocking off time in the US on the Friday. Unlike all other markets there is no exchange as such hence there is no official close of day. Starting in NZ, the market becomes more volatile as the rest of the world wakes up, Australia, Asia, European and the US. Some traders prefer only to trade the overlapping times and others in the quieter times depending on their strategies.

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