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FOREX TRADING STRATEGIES ~ online forex trading platform reviews
Generally, a Forex trader should trade only the major currencies, especially those who are against the US Dollar. This is due to the fact that these currencies have a higher trading volume and are more liquid and, therefore, are more likely to profitable.
The British Pound, the Euro, the Japanese Yen and the Swiss Franc are good currencies to focus on considering that they are widely traded in the Forex market. This will give the trader more room for maneuver in his trading strategy.
The Australian Dollar, the Canadian Dollar and New Zealand Dollar have less volatility in the market, but still, there are opportunities to isolate trends within these classes of currencies. it is important to remember that there are always hidden costs that are connected with the trade of a particular currency.
Such a hidden cost is the interest to be paid for holding a position overnight on a coin. This because we are doing margin trading which means that we use borrow money to facilitate our exchanges. This interest is known as a "Roll Over" margin and the payable rate depends on the brokerage firm. Right now, UFXMarkets requires a very low fee of 0.0025%.
You should always take into account all the hidden costs that you have to pay for holding a particular position on a currency pair. Finally, if you are a novice trader, you should consider getting a market position in the long term than a short-term position.
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