Forex trading Singapore
Forex trading allows you to earn on fluctuations and differences in currency rates. For example, the SGD/MYR pair stands for Singapore dollar to Malaysian ringgit. A trader sells or buys Singaporean currency in ringgits.
At Forex, you find various options for trading pairs, which are divided into basic, minor and exotic ones. The main ones are dollar to euro, British pound to euro, dollar to yen and the like. The trader selects on what currency difference he will earn more money.
Advantages of trading Forex
Trading Forex is a great way to get to know the world's largest market. Daily trading turnover is over 5-7 trillion dollars. This amassed liquidity implies that orders are executed quickly and with minimal price slippage. Slippage means the difference between the price set in order and the actual cost of the currency.
Both large and individual small traders can quickly enter the market. Some brokers allow starting trading with only 1 dollar on balance.
At Forex, you rarely see gaps - breaks between prices, which are dangerous with the risk of more significant losses than previously predicted.
When to trade on the Forex market?
Forex market is open 24 hours 5 days a week. You have the option to open and close positions at any time of the day except weekends. However, the market behaves slightly differently at various hours. Forex trading Singapore operates in 4 sessions with varying opening and closing times:
Australian session - from 6 am to 3 pm in summer, from 5 am to 2 pm in winter.
Tokyo - from 7 am to 4 pm in summer and winter.
London - from 3 pm to midnight in summer, from 4 pm to 1 am in winter.
New York City - 8 pm to 5 am in summer, 9 pm to 6 am in winter.
The choice of time depends on a trader's strategy. If you are an intraday Forex trader (trades within 1 hour), the best time will be London session. Because at this period the market prices change the most, which means that you have the best chance of making good money. If you focus on long-term trading, then the session time does not matter.
How do you learn Forex trading?
What is Forex, and how do you learn to trade? Only practice will help you find the best strategies. Open a demo account with a virtual currency broker and practice your trading skills on it. That way, you will not waste money on learning how to trade the markets.
Next, you should open an account where you are allowed to trade micro-lots, i.e. the smallest amounts. In this case, errors will not cost you a lot of cash. Your goal is not to lose! Achieve the maximum of successful trades.