Position trading is a strategy whereby a trader purchases and holds until a trend peaks. As with swing trading, this strategy is heavily reliant on technical analysis. It also relies on fundamental analysis and, sometimes, a combination of the two to inform decision making. Generally speaking, position trades don’t take very long to complete, though buy-and-hold investors buy for the long-term.
Is Forex Trading Profitable?
With Forex trading, the size of your trades can actually be a lot larger than your deposit, meaning you can trade more than you have. This can lead to high profits, but it all depends on your trading strategy, understanding of the market, and the risks you are willing to take.
Important Terms to Know in Forex Trading
There are many important terms to be aware of when it comes to Forex trading. To the layman, many of these terms might seem foreign and meaningless, but to the savvy trader, they can provide a lot of contexts. You’ll pick up these terms as you learn to trade with G7FX. We’ll ensure you understand each of these terms and precisely what they mean and why they are important. For a brief introduction of these terms, see below. The terms are as follows:
- Exchange Rate
In situations involving a currency pair in which neither is the USD, Forex traders use the term cross rate as a reference to price quotes between the pair. In virtually all transactions on the Forex market, major currency pairs are being traded. A major pair is where at least one of the currencies is the USD. So, if you ever see that, say, USD/CAD is quoted at 1.24, that means that currently, a single US dollar is worth the same as 1.24 Canadian dollars.