Advantages of an Automated Trading Platform

There are various advantages of choosing a good trading platform. The ones that have been developed of late are the ones that are automated. While some people fret about the efficacy of automated trading platforms, these can be immensely convenient.

The first thing that you can accomplish by using an automated trading platform is to reduce the level of emotion involved in trading. Once you have decided on a plan, the automated trading platform carried out the instructions without human emotion. Sometimes you may be a bit hesitant to pull the trigger even when you have thought through various decisions. An automated system allows these decisions to be carried out easily.

The backtest feature that most of the automated trading platforms offer ensure that historical data can be applied to determine whether an order is likely to be successful or not. Such an automated trading platform helps in maintaining discipline too; something that is extremely helpful in volatile markets.

Sticking to the trading plan is not something everyone can do. Various thoughts and opinions tend to shade them; something that is not a great idea especially when you have a thought out plan. You can maintain consistency by using an automated trading platform.

The ease of use and convenience outweighs every other benefit. Automated trading systems can carry out orders and trades based on specific instructions about the price of a specific share or stock. You may not need to monitor the stocks that you are looking to buy every day and you can be sure that they will be picked up once they reach the desired rate.

Choosing from the Various Trading Courses Available

There are various kinds of trading courses that are available and the more you research the larger the options seem to get. However, the whole idea is not to jump and choose from the trading courses that you see online without really understanding what each one has to offer. Here are some pointers about how you can go about evaluating trading courses and choose the one that is most apt for you.

The first thing that you need to remember is that there are various kinds of options in trading. You can try your hand at traditional trading, binary options and futures, forex markets or CFD. It is best to first get a preliminary understanding of the specific aspects of what each of these involve before starting to research trading courses.

Make a decision about the trading niche that you want to participate in and then commence your research on trading courses available in that niche. Make sure that the ones that you shortlist are the trading courses that are meant specifically for that niche alone.

If you choose trading courses that are not specific you are likely to get an overview of all the kinds of trading methods without really getting a complete workable understanding of how to go about the process. The basic information that you get is something that you can obtain without paying a penny on many of the trading websites. So do make sure that you choose something specific that gives you the knowledge and the expertise to trade.

CFD Trading in Singapore: Short Selling

The increasing popularity of CFD trading in Singapore can be attributed to the ability to sell in financial markets without prior ownership.

It is like selling something you borrow from a friend and then buy at a lower price and return it. Open an account for CFD trading in Singapore and you will be able to the same with any financial instrument. In financial markets this is known as short selling.

CFD Trading in Singapore: What Does Short Selling Mean

Short selling means selling without prior ownership. CFD trading Singapore is a system of trading in financial instruments involving settlement of positions on the basis of price difference. There is no physical ownership involved. The contract is between the trader and the CFD provider which stipulates that the seller will pay the buyer the difference between the opening and closing values of the contract. If the outcome is negative, the buyer pays the sellers.

Each CFD has an underlying asset, which may be a share or currency pair or a commodity or a market index. CFD trading does not imply trading in the underlying asset. It is trading in a financial derivative product, which you can sell without buying it first.

CFD Trading in Singapore: Why Go Short

When you sell a CFD, you are actually betting on the price of the underlying asset going down. In traditional trading, traders have no choice when they see that markets are falling. If the downturn continues over a long period, it is like a long holiday. Traders can either refrain from trading or sell whatever they have in their portfolio. CFD trading Singapore offers an opportunity for benefiting from a falling market as well. The idea is to sell now and hope to buy later at a lower price.

Tips for Trading in FX in Singapore

Singapore is one of the leading exchanges where FX trading is very popular. FX in Singapore has become extremely popular due to the value of the currency and the time zone specifics too. When you are looking at FX in Singapore, there are a few things that you should keep in mind.

Research and analysis is the one thing that you cannot do without if you are trading in FX in Singapore. It is necessary that you learn to use the proper technical analysis to be able to make better predictions in FX in Singapore.

There are also various kinds of tools and plans that are available when you trade in FX in Singapore. These tools can be found on the various trading platforms that are available. These trading platforms have charts and analysis data that can be created easily at the click of a button. Some of the features that you may get include indicators, customizable charts and price alerts.

The other thing that is extremely important for FX in Singapore is to be able to manage risk and stop loss when you have to. Discipline and planning is the best way to ensure that you do not make decisions that are based on emotions; something that leads to maximum mistakes made in FX in Singapore.

Following the news is also very essential if you want to be able to understand fundamental analysis and create some of your own as you go along. This is the kind of analysis that will help you in making great long term investment plans too.

Setting up a Forex Singapore Account

Forex trading involves buying and selling currencies. The forex market is among the most liquid markets in the world and offers great opportunities for making good profits with little investment. If you want to join the bandwagon, the first step is to open a forex Singapore account.

There are three types of accounts that you can choose to open with a forex Singapore broker – mini, standard and managed. The factors that can influence you decision are:

- Risk appetite.
- Initial investment.
- The amount of time that you can afford to devote on daily basis.

When we talk of standard and mini accounts, the reference is to lot size. Lot size in turn refers to units of currency. A standard lot is worth $100,000. However, that does not mean that you have to deposit SGD100, 000 in your account to be able to trade. Forex trading is done on the basis of leverage and margin. A typical forex Singapore broker offers 100:1 leverage, which means that your initial investment in the margin account is only SGD1, 000 for trading one standard lot.

A stand account with forex Singapore broker gets you better service and perks and also increases the profit potential. Each pip is worth 10 dollars and if the position moves up by 100 pips, you stand to gain SGD1, 000, something that is not possible in other accounts unless you trade more than one lot.

A mini lot is worth is worth 10, 000. It is one-tenth of a standard lot and so is the gain potential. In a managed forex Singapore account you simply put up the money and the trading is done by the broker on your behalf.

Useful Tips for Choosing the Right Forex Broker

You can never be too careful while selecting a forex broker. There have been a number of scams in the forex market and there is an express need of separating fact from fiction. It is all the more important to choose the right broker because the forex market is not regulated the way stock markets are. There is also no centralised exchange system.

While selecting a forex broker it is important to check whether the broker is registered with the local broker’s association. Avoid getting carried away by a flashy and well designed website, if the broker is registered there should be a prominent message displayed on the landing page.

Absence of a central exchange system means that accounts vary with each forex broker. The most important things that you need to check and compare are the level of leverage and margins. Brokers are known to offer leverage up to 200:1. Leverage refers to a loan extended by the forex broker to a margin account holder. A 200:1 leverage means that with $1,000 in the account, the account holder can hold positions up to $200,000.

Check the commission that the broker charges. Most brokers do not charge any commission but make money with spreads. Spread is the difference between ask and bid prices. A forex broker will sell a currency pair at a price higher than the price at which he will buy the same pair. A spread could be fixed or it may vary depending up market volatility. The difference reflects that when you buy a currency pair, it immediately falls in value as the broker will buy it at a lower (bid) price. Wider spreads translate into higher profit for the forex broker.

Foreign Exchange Market: An Introduction

The foreign exchange market is the biggest market in the world, where daily turnover in spot trading exceeds 4 trillion US dollars. While the US dollar is the most widely traded currency the biggest foreign exchange market is London. 

Trading in foreign exchange refers to currency trading. While the basic principles are the same, trading in currencies is a little different from other markets. While in other markets you trade a specific share, commodity or index, in currency market you trade currency pairs.

Trading involves buying or selling but how does one buy a currency? There has to be a different currency in which one can pay for the currency one buys. It is because of this that currencies are traded in pairs. It is also the reason why the currency market is known as foreign exchange market; the rates reflected are exchange rates. An exchange rate is the rate at which one currency can be exchanged for another. 

In the foreign exchange market, the big banks are the ultimate market makers. In fact, not very long ago, currency trading was only in the domain of large banks that bought and sold currencies for themselves and for their clients. The bid and ask prices of currency pairs are also set by banks after considering the demand and supply situation. However, brokers in the retail market have varying rates as there is no centralised exchange. 

The difference between bid and ask prices is known as a spread, which represents the profit of the broker. Historically, the narrowest spread is reserved for participants in the interbank foreign exchange market. In the retail market, brokers do not charge a commission on trades but derive their profit from the spread. 

CFD Forex: Exploit Full Profit Potential by Managing Risks

CFD Forex is a highly leveraged system of trading in currency pairs that has the potential for huge profits. CFD is short for contract for difference, a contract between two parties; a buyer and seller, where both agree to pay or receive (as the case may be) the difference between the current exchange rate of the underlying currency pair and the rate at the time of the contract.

Being a leveraged derivative product that is traded using margins, traders can get the benefits of the full value of the contract by investing only a fraction of contract value. However, CFD Forex is double-edged sword that cuts both ways. It is thus extremely important that traders understand the risks involved and exercise care while initiating trades.

The two most common factors why new and inexperienced traders make losses while trading in financial markets are greed and fear. A successful CFD Forex trader determines entry and exit level before initiating a trade. After that it should be a matter of waiting only. Regardless of whether the markets move favourably or against your prediction, you should exit the trade at predetermined levels.

This is possible only if the CFD Forex trading platform offers the facility of guaranteed stop losses. If the stop loss is triggered, the system automatically closes the trade. This way a trader knows beforehand the maximum amount that can be lost in a particular trade.

Placing stop losses is just a simple method of minimizing risk in CFD Forex trading. There are also other trading strategies that can be used to mitigate risks.

Characteristics of a CFD Tracker that Ensure Success

A CFD trader is someone who trades in the CFD markets. The CFD markets have been seeing a surge in the number of people who intend to take it on and try their hand in CFD trading. However, there are some things that you need to check about yourself, your personality and your abilities to see if you are likely to become a great CFD trader or not. These traits are signs of a great CFD trader.

A successful CFD trader needs to have a mind that is analytical with regards to numbers. He is one who can look at numbers, create trends and understand the import of the data. Being able to make decisions quickly based on the numbers that you have seen is another important characteristic of a good CFD trader.

Confidence against all odds is another aspect of a CFD trader that can lead to ultimate success. This means that you need to have the confidence about the decisions that you have made with regards to CFD and stick with them. Giving up and calling for stop loss too early is the biggest mistake that a CFD trader can make.

However, it is also an important aspect that the CFD trader understands when he has made a mistake. Calling stop loss at the right time and reducing losses is important because a CFD trader knows that he needs to live to fight another day.

The keen balance of knowing when to hold on and when to quit is of utmost importance for a CFD trader.