Buying and selling online in the forex market is as easy as a few clicks of the mouse. Online trading allows for easy, rapid access to the forex market. A trader can enter and exit a trade with little interference. However, reliance on technology can introduce its own set of problems if it malfunctions.
The internet connection may become disrupted, the power may go out, or the cellphone can fail. Having a backup plan in place can prevent these technicalities from truly costing the trader. Being able to access the broker by phone if the computer isn’t functioning is crucial. A trader should also have a stop-loss order in place for any open positions. In addition, having a hard copy of all trades and orders will come in handy if the broker’s trading platform can’t be accessed by computer.
The majority of online trading brokerages provide click-and-deal trades. This means the investor can trade on the current market price by clicking either the “buy” button or the “sell” button in the trading platform.
Executing a Click and Deal Trade
Step 1: Select the right currency pair
Trading occurs at a rapid pace. Traders must double check they’ve selected the currency pair they intend to trade. It is easy to make mistakes.
Step 2: Select the correct trade amount
Different platforms have various ways of inputting the trade amounts. With some, traders enter the amount manually. With others, scroll-down menus are used or radio buttons. Traders must ensure the intended amount is properly registered.
Step 3: Double-check every selection
Everyone makes mistakes. Even experienced forex trader continue to verify every trade to avoid costly errors.
Step 4: Click Buy or Sell
If the trader wants to buy, the higher price must be clicked which is the trading platform’s offer. If the trader wants to sell, the lower price must be clicked with is the platform’s bid.