Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home Focus Know the different types of trading in Forex

Know the different types of trading in Forex

18 May 2018, 12:12 CET

There are many traders in this industry and you will do a mistake if you try to follow their trading style. Every trader has their own trading style and if you are new to currency trading, you should know what the different trading types of this market are. This article will give you a brief idea of some of the popular trading styles.

Keep in mind that these styles are only popular among the people but they are not the only types. You can make your own types if you like and also there are many brokers who offer different types of trading suited to their trading platforms. Most of these trading is a scam and it is better if you trade the industry with the popular styles. You can get helps form the traders if you do not understand the trading style.

In order to maximize your profit factors, you must choose the perfect trading environment very wisely. The retail traders are always taking huge and trading with the low-grade broker. You might think low-grade brokerage firm will save a huge amount of your cost but considering the long-term scenario. Most of the elite class broker will offer you customized trading account which will eventually provide you the best experience in the retail trading industry. Those who are scalpers should always trade with the robust trading environment. Without having access to the robust trading platform things will become very hard for you.

Some experienced traders in Australia often trade the market with the paid trading platform. The paid trading platform is always updated with the latest technological features which allow the traders to do the precise market analysis. In the CFD trading industry, you have very little room to make mistake. So if you fail to trade with managed risk, it won't take much time to lose your investment. Try to learn the proper art of trade management so that you can embrace few consecutive losing trades. Stop taking excessive risk to make a huge profit on a single trade. Use rational logic and trade with discipline.

The Scalping

We will begin our article by telling you about the scalping style. We have chosen this first because we know people do not want to wait to make their money. They want a fast result and this is what scalping trading is all about. If you are scalping, you will be placing your trades and closing them within the next seconds. It will happen in the blink of an eye and you will not have a moment to spare. Though it sounds very profitable to keep in mind that the scalpers take the highest risks. They set big position sizes and also take leverages and if you lost the trade, your investment can also go away with your money. Only experienced traders who can accept the risks scalp the industry.

The Day trading

It is the big brother of scalping. In scalping, you keep your trades open only for seconds but in day trading, you have got one day. Thus, the name of this trading style has become "day trading" hence the day traders close their trades within the day. If you want to trade but do not want to hurry like the scalpers, you can trade with this strategy.

Positional trading

All of the stated trading types are short terms. These short terms trading styles are risky but if you want to get results but without the hurry, you can try the long-term trading styles. One of the popular long-term trading types is the positional trading strategy. It is when you place your trades and keep it open even for days and weeks and even for months. The volatility cannot affect your profit as the trades are always open. If placed right, you can make a profit from this long-term strategy.

Document Actions
Weekly Diary

The Week Ahead no. 623
Waste framework directive - microplastic pollution - agriculture situation and Ukraine - Multilateral Investment Court

→ EUbusiness Week archive

Subscription options