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The foreign exchange (forex) market is a perfect alternative to investing in global share markets especially during the current share market volatility. Trading shares can be slow and laborious and individual trades can influence prices.
The forex market is the largest financial market in the world, which is estimated at a volume of over 2 Trillion (USD) traded daily [1]. Individual traders can trade this market due to the deregulation of the financial markets and the associated levels of leverage that brokers offer.
Because of the above, the high liquidity of the forex markets allows traders to trade much more easily than say with shares, where it may be difficult to fill an order.
The increase in online trading brokers has seen the growth in partial contract trading – mini or even micro trading where traders can start trading with as little as 100 USD or 1 USD respectively. This opens new doors to traders that don’t have a lot to invest. Another benefit of online trading is the automation of trade execution that increases the efficiency of price fills and position close outs when margin falls short. This essentially means that the trader cannot lose more than he or she invests – a great form of risk control not always available in other forms of investment.
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The forex markets trade through an electronic trading desk that has no fixed physical presence, which allows this market to trade continuously (24 hours) for 5 days of every week of the year. The forex markets offer very competitive and low cost transaction fees. A trade in the forex markets involves buying or selling one currency against another and there is no direct correlation between the foreign currency markets and the stock markets.
No one individual could physically, mentally or emotionally monitor these price movements for a complete week. The volatility of the forex market and the speed it can demand can, however, take people by surprise. Getting in and out based on panic emotions can reduce trading the forex markets to gambling in the hands of the novice.
Therefore, CHTrader is a tool to make successful trading decisions much easier over an extended period of time. CHTrader converts the short term roller coaster ride of the raw forex markets into an orderly risk controlled longer term investment approach. CHTrader is flexible enough to be either a sophisticated tool for the experienced trader or a marvellous platform for the total novice to learn trading.
1. Triennial Central Bank Survey (December 2007), Bank for International Settlements. |