Before 1996-day trading wasn’t a thing and being a forex trader was really only realistically possible for people working in the financial industry. In that year, though, NetPicks was founded and was one of the pioneers enabling people to be able to trade assets online such as stocks, bonds, futures, options, and currencies. Since that year they have not only set up platforms for people to trade assets but have also been educating folk on the right way to go about it. They say people need to know the right strategies and then execute them correctly, refer to (Financeswire.com).
Forex trading is known by several other terms such as currency trading, FX trading, and foreign exchange trading. What it boils down to is trying to make a profit by figuring out whether one currency will go up or down against another currency, learn more on crunchbase.com. This type of trading goes around the clock because there’s always a currency market open somewhere in the world that currency traders can make their transactions on. The New York City trading market might be closed, for instance, but when it is the one in Australia is open for business.
The team at NetPicks says that currency traders should always trade in currency pairs, matching one currency against the other. The vast majority of currency traders stick to the world’s biggest currencies as going off into exotic currencies doesn’t make a lot of sense. NetPicks says the reason for this is that the risks of using exotic currencies just doesn’t match the award.
For those new to currency trading, the team at NetPicks has explained some of the basic terminologies that are used. PIP (or Pip), for instance, stands for Price Interest Point. That term is used to refer to whether a transaction has a gain or a loss. Bid Price is what a currency trader wants to sell their currency pair for while Ask price is what a currency trader is willing to pay for a currency pair. The spread is the difference between these two number. This spread is also measured in PIP and each of them is the equal of one basis point.