TRADING ONLINE GUIDE
Trading online is a term of Anglo-Saxon origin that can be translated by "negotiation digitized". This activity is the negotiation (or exchange) of financial stocks, currencies, commodities and other assets electronically. Essential for the online trading is the service provided by intermediaries, called brokers, who offer their sofwtare or online trading platforms that allow materially trading in financial markets. The only requirement really critical to trading online, then it is possible to make use of an internet connection.
Trading online Brokers
The role of the broker may be held by banks, through online banking services, and in this case it is necessary to hold a current account with the bank that, in fact, acts as a broker.
This role Broker can be covered also by specialized companies that do not belong to any bank. In this case we speak of online brokers. The brokers of both types must have a license delivered by any of the regulatory bodies (Cysec, Consob, FCA) and comply with the European regulations such as MiFID. For example:
CFD and Forex XM Broker
|Go to XM|
CFD e Forex GKFX Broker
|Go to GKFX|
other brokers reviews here: http://guidetrading.net/category/forex-broker-review/
There are various types of trading. The main discriminant is represented by the Asset, that the object of negotiation. Very practiced is the Forex. This term comes from a portmanteau. The long form is "Foreign Exchange Market". The name is intuitive: the asset are the currency of reference. These – with some differences – are treated like any other commodity. For example, they buy euro and sell dollars. Or vice versa. The aim is always the same: generate a surplus. This is possible because the value of the currencies changes, just like any other commodity. It could not be otherwise, given that it is now rare to find a coin that is bound by the regime of fixed exchange rates.
The system by which the forex trading is based on so-called lots. A batch is defined as a certain amount of currency being transferred. The amount is standardized, as if it were a package. Here are the specs:
- 1 standard lot is worth $ 100,000 of the base currency
- 1 mini lot is worth $ 10,000
- 1 micro lot is worth $ 1,000
- then there are the so-called NANO lots worth 10 USD base currency. These special trading accounts are very useful for those with small capital and want to try trading strategies on a real account (and not on a demo account) in order to test other variables such as psychology and stress of the human mind. The nano lots are only offered by some brokers, for example by the broker XM.
Thanks to leverage, however, you can buy a lot even if you do not have the amount in full. The lever, it allows you to multiply the effectiveness of their investment. E 'therefore a kind of multiplier. The lever is the more balanced 50: 1, but some brokers offer up to ten times as much.
The presence of important levers is not the prerogative of the forex. It is, however, the particular setting of the assets. And 'one of the few types of trading, if not the only one to offer a very limited number of assets. Currencies are few, those "tradabili" (offering opportunities) are even less: euro, dollar, yen and pound produce most of the turnover.
CFD trading is an innovative system of trading with financial derivatives but accessible to all. Normally the trading of futures on indexes or commodities like oil is very expensive and economically challenging (you may also need an account of 50,000 euro). With CFD instead you can trade oil, gold or stock indexes like the DAX with only 100 euro. For example, when you trada in CFD on Oil, does not enter into possession of the future but of the Petroleum CFDs, which are financial instruments whose value depends on the value of the underlying asset (in this case oil). Their mechanism is therefore very similar to that of futures but are less burdensome and fall within the family of derivatives.
Forex broker Market Maker and ECN Brokers
The view of forex broker is very crowded. Choose, then, is not easy. And 'necessary, to this end, to know the types of brokers. Essentially, there are two. On the one hand we have the market maker and the other the ECN.
The broker Market Maker always cover the orders of traders, which comes in handy especially when the market does not generate an order suitable for the purpose. Market Makers are called just that: offering orders of coverage, it is as if would create an internal market. The advantages of this type are represented by the absence of commission costs and guaranteed execution of orders. The defects consist in a certain slowness and the fact that the quotes, at times, may differ slightly from actual ones.
The ECN brokers direct access to the market, simply because they act as intermediaries and not as "market makers". Prices are always real ones, then, and this is an advantage. In contrast it is noted an interface more complicated and the possibility that the orders do not go running. They pay commissions.
Safe and Reliable Brokers
The main question that revolves around the broker to the reliability, integrity and security. Some criteria, however, help to choose on an informed basis. The first criterion is represented by the license. If the broker has a license provided by a guarantor and regulator body, then it is reliable. In Italy we have the Consob, the international signatures more famous are the Cysec and the FSA. The second criterion is the completeness of the information if the site is clear, easy to read and full of information is a sign of reliability. Finally, the contact: a broker must have a physical recognizable. Otherwise, increase the chances of being in front of a broker scam as those we reported in this article: http://guidatrading.com/2014/05/truffa-agf-markets-conto-gestito-opzioni-binarie-altri -sviluppi