Jayden Forex trading contract spot trading, also known as forex margin trading, gold trading, or virtual trading, refers to the investor and professional engaged in forex trading financial companies (banks, dealers or brokers) sign a commission to buy and sell forex trading contracts, pay a specific rate (generally not more than 10%) of the transaction margin, you can get according to certain financing multiple to buy and sell 100,000 U.S. dollars, hundreds of thousands of dollars or even millions of dollars of forex trading.
This contract form of buying and selling is only a specific price of forex trading to make a written or oral commitment, and then wait for the price to rise or fall, and then do the settlement of the sale, from the change in the price difference in the profit, of course, also bear the risk of loss. As the amount of capital required for this type of investment can be more or less, it has attracted many investors in recent years.
Forex trading contracts spot trading and forex trading futures trading have a lot in common, such as the amount of forex currency agreed in the contract are 62,500 pounds, 125,000 euros, 100,000 Canadian dollars, 12,500,000 yen, 125,000 Swiss francs; the implementation of margin trading; can end the transaction by hedging; can buy first and then sell, can also sell first and then buy, etc. The biggest difference between spot trading of forex trading contracts and forex trading futures trading is that spot trading of forex trading contracts does not require final delivery and there is no restriction that delivery must be made at expiry.
Forex futures trading has to be conducted on a dedicated futures exchange, whereas spot trading of forex trading contracts does not have a dedicated trading venue. Spot forex trading contracts are traded on a market maker basis. Financial companies (banks, dealers or economic dealers) specializing in forex trading are market makers in the spot forex trading contracts market.
After an investor opens a forex trading account with a financial company, this financial company becomes the counterparty to the investor’s forex trading in the form of a market maker. The investor buys and sells forex trading contracts in accordance with the buy and sell prices announced by the market maker of the spot forex trading contract, and the market maker must ensure that the transaction is achieved.
Forex trading market is a global decentralized or over-the-counter (OTC) market and is open 24 hours a day from Sunday night through to Friday night. A wide range of currencies is constantly being exchanged as individuals, companies and organizations conduct global business and attempt to take advantage of rate fluctuations.
There is no physical place in the Forex market, Forex trading is done over the internet or by phone, but this market consists of close to 4500 large international banks and Forex retailers.
Investors can buy and sell several or dozens of contracts depending on the amount of their deposit or margin. Typically, an investor can buy or sell one contract using a margin of US$1,000. When the foreign currency rises or falls, the investor’s profit and loss are calculated on the amount of the contract, i.e. US$100,000.
In conclusion, for all investors, no matter how large or small, there is a way to take advantage of developments in the world to make money and secure a financial future. Everyone can participate in the forex trading market.
Individual traders who wish to profit from the movements of the exchange rate can only participate in the forex market through forex brokers, such as the IC Markets. For speculative traders, it is wise to choose those regular forex brokers that are regulated by their respective governments.
