FX trading is short for Forex trading. Forex is short for Foreign Exchange.

What makes it different than FX investing is that trading is more short-term in nature than investing.

FX trades can last from shorter than a minute to days or even weeks. Those trades that are opened and closed on the same trading day are called FX day trades.

An FX trade can be viewed simply as a complete transaction. Let’s say for instance you are bullish the EURUSD and you then buy the EURUSD. When you sell the EURUSD then you close your transaction and that makes for a complete trade.

FX trading has become very, very popular especially now that high-speed internet connections and market data are more readily available. FX traders look to profit from the many short-term moves within the market. FX investors on the other hand may view these short-term market fluctuations simple as market “noise” (insignificant moves).

Trading these short-term moves can be extremely profitable for those who know what they are doing. There are many of these short-term moves within every major trend as well as when the market moves sideways.

It should be understood that since FX trading involves a higher frequency of transactions that the transaction cost are an important concern. This is why markets must be evaluated because they need to move actively enough to provide enough profit potential for the FX trader.

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Technorati Tags: Forex Trading, FX Trading

Forex investing should be viewed different than Forex trading because it is. Investing, regardless of the market traded is longer term than trading. Most people are familiar with Forex trading so let’s cover a bit more about Forex investing.

Those who wish to invest in Forex will typically have several things in common.

– They will be looking for larger moves in the Forex market and therefore a larger amount of profit per trade.

– Most will have a larger amount of working capital – greater potential reward comes a greater level of risk.

– Willing to accept a larger amount of risk – The level of comes with the larger potential reward per move.

– Less hands on – Most Forex investors don’t want to look at the screen every single day, but would rather check on their investments less frequently.

– May use more fundamental data – Forex investors may use more fundamental data than the Forex trader does. They may look at a country’s basic economic data to determine the long-term outlook for that country’s currency. Such data may include, inflation, deflation, gross national product, monetary policy, etc.

Forex investing may also be completely hands-off is the investor places their funds in a managed Forex account. In this type of account the account managers will usually take a percentage of the profits as compensation for their services. This type of fee is referred to as a performance-based fee.

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Technorati Tags: Forex Investing, Forex Investments

A Forex trading platform is used by the Forex trader to place online Forex trades. The platform is software that you download to your computer from your Forex broker. When you open a Forex trading account your broker will give you a username and password you will use to access your account info as well as place trades.

Trading platforms vary greatly in what is offered. Platforms that offer premium features may carry a fee or a minimum opening account balance. Some platforms include a Forex charts component and even let you trade directly from the chart.

The trading software you get from your broker doesn’t have to have every possible bell and whistle. You can trade Forex quite successfully with the simplest software.

Here’s what to look for when searching for a Forex trading platform:

Ease Of Use – Is it easy to use or do you feel you have to jump through hoops to place a simple order.

Allows You To Place A Wide Variety Of Order Types – any software that doesn’t allow you to place the orders you need won’t be of much use to you. If, for instance, you are not allowed to place limit orders (which would be ridiculous) simply find another broker.

Easy On Your Computer System Resources – This is especially important if you will be using your computer for other tasks while running your trading software.

The best way to decide which Forex trading platform is best for you is to try out a few different ones. Forex brokers make this pretty easy these days as most all of them offer a free Forex demo account. The demo account is a great way for you to familiarize yourself with the platform.  So make sure that you try out a few different ones before you make your final decision.

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Technorati Tags: Forex Trading Platform, Forex Trading software

Opening a Forex demo account can do wonders for your Forex trading. Just about every Forex broker will allow you to open up a demo account for free.

A demo account comes with a certain amount of "play" money included. These Forex accounts allow the user to place online trades in the account using the broker’s online trading software. This software is also referred to as the broker’s online trading platform.

You can sign up for a demo account at the website of the broker of your choice. You will create or be assigned a unique username and password for access to your account. Once you have received your username and password you can then log in to your Forex demo account and start trading.

Many Forex demo accounts will have a limited amount of time for you to use them such as 30 days. If you think about it that makes perfect sense as some people would simply treat the demo account as an online game and never open an account.

If you are serious about trading Forex profitably then take the use of you demo seriously and make it count. Practice placing trades and watch what happens. Did you click the "Buy" button when you meant to click the "Sell" button? These are the types of mistakes that practice using your trading platform will help to eliminate.

When you have become very familiar with your broker’s trading platform it’s time to go to the next level. The next level is funding your account with real money so that you can make real profits.

As you can see practicing your trading using a Forex demo account is an important step on your way to Forex profits. I order for your practice to serve it’s purpose you must treat every trade as if were real.

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