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What is day trading?


Day trading is a way to make trade exchange. In general, the commercial offer will be opened and closed the day at the same day – it is possible to carry out daily, as desired. It ‘s your decision.

It is possible for a day of trading agreement for longer than one day. When this happens, the contract is automatically renewed at 22:00 GMT each night until the transaction ends. Upon renewal you will be charged a fee for equipment contract for a further period of 24 hours. You need to use VPS for 24 hours trading online. 

These fees will be collected once a day when trade is renewed. The amount will be collected as your available balance in your trading account and if there is sufficient available balance, then your credit card will be charged. 

If no credit card the next time you have an available balance and withdraw funds from your account, the amount due because of non-fee-bearing will be deducted from the amount you withdrew.

Forex day trading in 4 Steps

Day trading is becoming more popular now that more people use the Internet. And ‘one means of Forex (or products) to provide easy Forex.

A day trading deal with forex involves four main steps:

1.     Decide to perform a Forex deal.

2.     Decide the deal you want to make and build it in your online account.

3.     Monitor the deal in your account.

4.     Close the deal.

Here is an example using the four steps in detail:

Step 1: You decide to perform a Forex deal.

You believe USD will rise in value because you have followed the market and you think a rise is most possible in the near future. You decide to buy USD before the rise and sell after the rise. This way you will make a profit if indeed USD rises.

Step 2: Decide the deal you want to make

You choose the currency pair to trade. You might choose to trade EUR/USD, which means you buy or sell USD against the EUR. Once the USD increases to the level you expect, you close the deal. You then get more EUR for the amount of USD you bought.

Here is an example, putting aside the spread issue: assuming the rate for EUR/USD is 1.2600. This would mean 1 EUR costs 1.2600 USD. It also means you receive 1.2600 USD if you sell 1 euro. If EUR strengthens (i.e. the rate increases), and goes to 1.2700, you will pay 1.2700 USD to buy one euro (USD is now worth less), so selling back the EUR at 1.2700 in exchange for USD again will get you 1.2700 USD at a profit of 0.0100 USD. 

In this example, assuming you purchased 10,000 EUR, you have made 100 USD profit. Buying 10,000 EUR only requires 100 USD security deposit if you are using a 1:100 leverage. So in this hypothetical case, by investing 100 USD you made 100 USD profit. However, if the EUR would have decreased to 1.2500, you would have lost your 100 USD security deposit.

In real life, however, the market maker is charging widespread, what is the difference between the bid and offer price at a given time. However, the idea is that a change in the exchange rate exceeds the value of the spread (typically 3-5 points), which still allows non-profit investor.

Then choose the amount you want to trade. No need to buy the entire amount, because you can use a commercial lever. The most common leverage 1:100.

Then, you choose how you want to risk. This is your investment.

You can set the type of Stop-Loss follows. The speed at which your case will automatically close if it goes against what you expect. If your offer is still open, you can change this rate at any time. Easy-Forex, we ask that you set a stop-loss type to ensure you do not lose more than they’re ready to go. Do not risk more than you can accept losing.

Easy-Forex offers a unique Freeze rates. A gel will set a rate for a short period of time if you need a few seconds to think about your position. It gives you more time to accept or reject the offer.

When you make these decisions, so you press the Accept button and your case is open.

Step 3: Manage your account

Log in to your online forex account at forex broker, you can see how it progresses your account 24 hours a day, seven days a week. This gives you the ability to open and close packages or change your bid if you wish.

Step 4: Closing the deal

You can choose to close the deal when you decide. If you define a rate of Stop-Loss, and the agreement if this rate, it closes automatically. Some traders find rates Stop-Loss is a good way to ensure they do not lose more than the limit they set. 

The transaction may also close automatically if you set a profit taking. You do not have to set a rate of profit taking, but it means you are freed from the constant supervision of your positions.

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