Netpicks: Forex Trading
Forex trading is a platform that enables buyers and sellers to trade different currencies. Exchanging currencies is important for businesses that carry out trading with other countries. The platform used is referred to as electronically over-the-counter (OTC). The platform –OTC is decentralized and can be accessed by various foreign exchanges in the world. Netpicks is an online forex trading company that offers strategies to traders to help them make wise choices.
Netpicks provides live charts, forex, stocks, futures, options, signals and ETFs on its platform for traders throughout the day. When one city closes its exchange traders can move the trading to another city that is still trading. Traders can trade in the forex trading through; spot market, forward and future market. The spot market is common among individual investors while the forward and future trading is used by corporations that want to hedge their risks. The settlements of a spot market takes on average two days while forward and future markets have a future date.
What determines the price of a currency?
According to Netpicks, the price of a currency is determined by a number of things such as the political temperatures in the country, demand and supply of the currency, interest rates, and economic performance.
The currencies available on the forex trade are fewer than those of a stock market. Some of the most common traded currency pairs are; the US Dollar versus the Swiss Franc (USD/CHF), the Sterling pound versus the US Dollar (GBP/USD), the euro versus the Japanese Yen (EUR/JPY), the US Dollar versus the Japanese Yen (USD/JPY) and the US Dollar versus the Canadian Dollar (USD/CAD).
Traders prefer to trade using the above established currencies to ensure financial gain and minimize risks. The abrupt change in pricing of a currency is what benefits the forex traders.
Common terminologies used in forex trading
Ask price – this is the purchase price of a particular currency
Bid price – the price of the forex traders selling their pairs
PIP – means a gain or a loss
Spread – means the bid price minus the ask price
Netpicks advises forex traders on how to observe the market before trading (netpicks.com). Not just the currency itself but the other factors that determine the rise and fall of a currency value. Traders are also discouraged from trading when emotionally unstable and using money meant for bills.
Headquartered in Irving Texas, Netpicks has been in the market for more than twenty years. It was founded by investors who wanted to trade on online trading businesses.
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