What is Forex Trading and How Does It Work_

1. What is Forex Trading and How Does It Work?

2. What is Forex Trading? Forex trading is currency trading on the foreign exchange market. This means trading currencies against other currencies and buying, holding, or selling based on the conversion point. These points are measured in minute changes called pips. These differences in pips are where traders are able to make profit. Forex operates on a global basis, so it is currently considered both the largest and most liquid trade option on the market. Before you choose the best Forex trading software with a few different components to it, you need to know how forex trading works.

4. How Does Forex Trading Work? The Forex market trades currencies against other currencies. It is a larger scale process similar to when you go to the bank to trade your money for a different currency before an international trip. Forex works by trading in pairs. An example is having Euros and then trading to USD. There will be a bid price listed for the Euro and an asking price for USD. Profit tends to be made by holding certain positions before selling. There are long and short positions for traders to make. A long position is held when there is an expectation for the bought currency to increase in overall value. A short position is held when there is an expectation for the bought currency to decrease in its overall value. There are a variety of currency pairs to choose from when looking at the market. These range from major pairs, minor pairs, and exotic paris.

5. How Do I Start Forex Trading? There are a couple of steps to starting out your Forex trading journey. Start with some initial education on Forex trading. Be sure you know how it works and any risks involved with trading. Find your broker. Find your Forex software. Once you have your broker, open your account, or preferably a demo-account to start and be able to test out the platform and any desired software. After accounts are set, download a trading platform compatible with your software and brokerage. I.e. MetaTrader 4. ● ● ● ● ● Start your trades. You can either do this manually or get software that executes trades automatically for you.

6. How Do I Pick the Best Forex Trading Software? Picking the best Forex trading software has a few different components to it. These include but are not limited to: Check to see what platforms the software is compatible with. You will want to be sure the trading platform you use, like Metatrader 4, will be compatible with the software you want to use. Check to see if the software you want to use is going to be user friendly and offer support. This means checking into reviews of the software on the company’s site and outside directories or listings. Be sure you can take the software on a “test-drive”. Skip the monthly subscription. The best forex trading software will be a flat fee to purchase rather than having to pay month to month to keep software access. ● ● ● ●

7. What is the Best Forex Trading Software? The best forex trading software is not only easy to use but will work with a variety of platforms and offers a great user experience, end to end, along with it. The best Forex trading software all depends on who you are as a trader. Kemistri is proud to offer some of the best Forex trading software on the market. Falcon is option one for Kemistri working with MetaTrader 4 and uses a combination of the Relative Strength index indicator and a bespoke MACD indicator to predict trends in the market to achieve consistent solid results. Phoenix is option two and uses direct market access to a broker’s pricing to identify trading movements based on the volume of orders at the brokers’ exchange. Condor is option three within the Kemistri packages and is meant for traders that want a bit more risk than some other traders. This algorithm aims to seek out the more volatile moves on the market and aims to take advantage of the European market.