Forex Trading Platforms
Forex Trading refers to the trading of a nation’s currency with that of another. This is done via the foreign exchange market which is one the largest financial institutions in the word. The primary function of such forex trade is to ease trading between different countries and to facilitate investment by individuals or corporate in another growing nation.
Forex trading platforms refers to systems via which people can trade in foreign currencies. Previously, such trading was only possible through the banks. But with the technology boom in the last decade the most popular and common forex trading platform nowadays are electronic in nature e.g. Online Sites. In today’s world online forex trading platforms can be used to trade in foreign currencies by anybody who has access to a compute with internet connection.
Forex trade can mainly be categorized into two types. Interbank transactions and merchant transactions depending on the nature of parties involved. Thus the online platform to be used depends largely on the type of forex trade, trade volume as well as the amount of desired control.
Starting from the common services provided by basic online trading stations like setting stop and limit levels, live streaming market quotes showing the best buying and selling prices, providing tutorials on reading deal rates to further advanced active trading platforms consisting of additional benefits like lower commissions as volume increases, increased levels market depth in information provided, highly secured ‘one-click’ transactions for people dealing with high volumes, hedging, technical charting, advanced analysis, etc. Hence, web based, state of the art forex trading platforms are the order of the day catering to millions of dollar volume of trade.
The only disadvantage that is present in case of the topic of forex trading platform is the absence of one central exchange where all currencies can be traded by all the parties simultaneously. Instead, now, all transactions are done, whether by internet or telephone, through vast and elaborate networks which connect the banks, brokers and traders.
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