MEANING OF ONLINE FOREX TRADING

Forex is the short term for the foreign exchange. Forex trading involves the buying and selling of one currency to another. Examples of currencies are GBP/USD, GBP/JPY, EUR/GBP and USD/JPY. these currency pair the first one is base currency and the second one is quote currency. Examples in pair of GBP/USD, GBP is the base currency and USD is the quote currency. Forex trading can be done physically or online. Example of physical trading is like when you are crossing from one country to another you need to have the currency of the destination country in order to purchase good and services there. You will need to buy the currency of the foreign or destination country for the in order to purchase goods. This means that you buy a foreign currency and sell your domestic currency. By doing so we man that you have participated in the forex trading. Online trading include the uses of trading platform and internet. The common trading platforms are meta trader 4 and meta trader 5. Forex trading can be done into the banks, Bureau de change or within the boarder if you are crossing the country. Main participants of the forex trading are banks, financial institutions, governments and individuals. online. Trading needs analysis of the market to know the direction of the movements of the market. Forex traders use fundamental analysis in which issues like economics news, interest rate and political issue are being considered in analysis, meanwhile technical analysis comprises the use of indicators, candlesticks, trendlines and market structure. Factors like economics, interest rate, global events, news and political issues make the movements of the market, in the beginning, online business was only done by large institutions, banks and governments, where individuals could not be reached by financial business. Individuals started to be involved in online trading in 1990s due to the development of the technology. Due to the developments of the technology the brokers emerged that made simple for the individual to participate in online forex trading. The brokers acts as a middle between the individual and the global market. Brokers facilitate trading, deposit and withdraw of funds of the individual in the global market