How to Trade Forex
How to Trade Forex If your just starting out in online trading, it may feel a bit daunting, however have no fear as AvaFX are one of the most respected. With them, you will learn that as a trader, you are in control of your own destiny. It’s about how you trade, following your plan, not being led by your emotions and using all there tools are your disposal to enhance your trading potential.
Quite simply, a currency exchange rate is the rate at which the base currency can be exchanged for the quote currency. These currencies are quoted in pairs, such as the widely traded pair EUR/USD where the euro, on the left side is the base, and the US Dollar is the quote. Economic factors such as industrial production, inflation and political events can influence these exchange rates. These factors are the main market influences for whether you buy or sell a currency pair.
A more practical example of a How to Trade Forex is illustrated as follows:
How to Trade Forex In this example of the EUR/USD the EURO is represented as the base currency and the USD as the quote currency, and it represents the number of US dollars that one euro can purchase. The quotation of EUR/USD 1.2000 in numbers means that one-euro can be exchanged for 1.2000 US dollars.
How to perform a Trade
- Open your online real account , make a secure deposit, with 0 commissions. Now let’s execute your first trade.
- After you have conducted your research and, in case you need it, consulted with there support team, head over to the trading platform where you can open a position on the instrument of your choice. Take a look at the spread, and decide how many units you want to trade, plus your leverage level. Remember to start small and build up when you get the hang of trading. It is important to use stop loss orders each time you open a trade.
- Once you have opened a trade, you will need to monitor your investment and keep abreast of its performance. Should you see on a trading chart a decrease in the activity and the markets are trading against you, you should consider a sell, or wait for the stop-loss to kick in, to limit the damage on your account. Alternatively, if you see your trade has profited, then consider closing your position.
- Making changes to your portfolio from time to time is advised, you are constantly exposed to emerging markets, and you can decide to diversify your trades. Whatever the case, follow your trading strategy.
- Executing a withdrawal request at AVAFX is simple and easy and can be done via the platform.
TRADING PLATFORM
Ava Trading Platform is a completely customizable trading platform with a
depth of functionality that is both easy to use for the beginner
and a complete solution for the experienced trader. From this single
platform, traders receive real time quotes for all forex pairs,
commodities, indices, stocks and government bonds.
Furthermore the trading platform also provides live news feeds from Dow Jones,
market commentary and insights direct from the AvaFX dealing desk
and up to date economic daily calendar of important news and announcements.
The “drag and drop” functionality of the platform means
that users can have multiple screens open at the same time. For
instance a user could have 5 minute, hourly, daily and weekly charts
of a particular instrument all open at the same time. From the same
page you could also have open positions showing.
ONE-CLICK
Additionally using the buttons below the main menu customers can easily customize as many tabs as required to suit the particular needs of the individual trader. These “workspaces” can be created, edited and deleted with the click of a button. Also the where information is located within the workspace tab is also completely customizable.
In addition trading straight from charts coupled with one-click execution of trades, stop losses and limit orders makes Ava Trader very intuitive and adaptable. This gives the trader great flexibility, allowing entry and exiting of the market very quick.
CHARTS
The instrument charts are completely customizable and through the use of a drop down the user can quickly move to another instrument or time period. Charts can also be saved.
DEALING RATES WINDOW
In addition the dealing rates prices window is a versatile window that allows
the trader to choose their favorite tools quickly and see per second
market movement in preferred instruments at the glance of an eye.
However this is completely customizable and the table can be minimized
with one click in order to see other information the user requires
at the time.
Also this window lets the trader simply buy or sell in one click by either pressing the “bid” or “ask” price.
THE DEALING RATE TABLE
This table gives the trader a view of a range of instruments with live prices and daily highs and lows. Therefore from here you can also add new instruments to the platform by right clicking on the table.
OPEN POSITIONS
Furthermore the open positions window is very convenient as it allows the trader to see all trades they are currently in and also to set stops, limits and OCO (one cancels other) orders even after the trade has been opened.
ORDERS
The orders window display all orders and commands that the trader has made for future trades. The main benefit of using orders is that if a certain price is achieved you can set the platform to make a trade even when you are not there watching the market at the time. Obviously in times of high market volatility some order cannot be filled.
ACCOUNT INFORMATION
For instance this window gives the trader a quick view of his account including balance, “equity” (a term that represents the balance with the profit/loss of open trades included), used and available margins.
CHARTING TOOLS
In conclusion the Ava Trader charts are both intuitive and highly powerful for technical analysis. Line, bar, candlestick charts are all available. Overlays such as support and resistance lines, moving averages, momentum, RSI, Fibonacci, weighted moving averages, Bollinger bands, MACD, and a wealth of other indicators are easily employed on any chart.
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