The Forex auto trade is to trade currencies it is possible to buy or sell in order to make a profit for investors. For this, they must take into account market developments and the events taking place around the world, as they have a direct impact on foreign currency fluctuations. Transactions can be made every day and that 24/24 in all financial institutions. The Forex auto trade requires the establishment of rules and transactions also require a certain cost. You should know that all currencies are sides by a pair system. The investor can see that on the left there is available the "base currency" which is the second on the right is called "currency exchange".
In the market, the quotations are made with a dial up to 5 digits . The last digit of the number is called in the middle "pip" or "a point". The system then works like all financial instruments since there is a system to "buy" and "sell" currencies. The brokers will therefore ensure that investors benefit from a price that will match the market reality and that for all transactions should be done in real time. So this has a cost since there is a gap between "demand price" and the "Offer Price", which is called "Spread". To know this difference, it is enough to observe the last decimal place (PIP), which corresponds to the cost of the transaction, but it is possible to recover if the investor gets some benefit.
The financial market therefore two possibilities for investors to exchange currency they possess. This system must also take into account the different currencies present in the world since the objective is to play with the capital markets for profit. So they will observe accurately evolution, because if the base currency loses value then the investor's interest to sell for a currency for.Otherwise, they can make a purchase with an example of the pair.
A little more about online trading
Margins are also implemented in the form of capital that serves as a guarantee in case of losses. The operation is different from the stock market , the Forex industry margin calls this "Good faith deposit" which can be translated as a guarantee of good faith. Some investors also speak of "leverage" which gives them an advantage such as maintaining a higher position than their accounts. In some cases, the table "negotiations trading desk "can be below this margin so the brokers are such close all positions in order to avoid negative balances for different accounts. At 17 hours ago a renewal of the positions that generates an interest rate that an investor can earn or pay. This will depend essentially on the margin and position, if the investor does not wish to receive this renewal must close all positions before 17 hours, which marks the end of trading in the Forex market .