How to execute a forex trade
In forex trading, you can either buy (go long) or sell (go short). However, when you trade forex currency pairs online, you’re not buying or selling actual currency. You’re essentially betting on the rise or fall of a currency pair. The price fluctuations of various commodities and stocks are paralleled by the value of alternative currencies; the rise or fall of one currency is actually the rise or fall of another currency relative to another.
Unlike other financial markets, the forex market lacks a central exchange or physical location. Instead, a global network of banks, large corporations, and individual traders operates 24/7. This means that forex exchange rates fluctuate around the clock, providing numerous trading opportunities.
Buy-Long
If the market trend is upward, buy financial products and hold them, then sell them after they rise and earn the price difference.
Sell-Short
If you expect the market to fall, you sell your stocks and buy them back after the price drops. In simple terms, you sell first and buy later.
Start Forex Trading in Five Simple Steps
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1. Select a Forex currency pair
The first decision you need to make as a forex trader is choosing the currency pairs you want to trade.
At GF, we offer a wide range of currency pairs, including both direct and cross pairs. New traders often start with the currency pairs they are most familiar with and then explore trading opportunities in less familiar pairs.
2. Determine the buying and selling direction
After choosing your trading partner, you should next decide whether to buy or sell based on your speculation about future market trends. A forex currency pair consists of two currencies: the base currency and the quote currency. Therefore:
– If you believe the base currency is stronger than the quote currency, or the quote currency is weaker than the base currency, buy the currency pair.
– If you believe the base currency is weaker than the quote currency, or the quote currency is stronger than the base currency, sell the currency pair.
At the same time, each currency pair has two prices at any given moment: one is the sell price, and the other is the buy price. The difference between these two prices is called the spread, which is your transaction cost.
3. Set Stop Loss/Take Profit
A stop-loss/take-profit (SLP) is a pre-set price level. When the exchange rate reaches this level, the corresponding position is automatically closed.
The purpose of setting a stop-loss/take-profit is to lock in the profit or loss of a position.
4. Monitor your trading positions
Before you close a position, your profits and losses (P&L) will fluctuate with price fluctuations.
Therefore, it’s crucial to monitor your P&L in real time. By monitoring your P&L, you can add to or close your position immediately when necessary.
5. Close your position
Identifying favorable market trends and closing your positions promptly is crucial for forex investors.
This allows you to realize arbitrage profits or avoid losses when the market moves in the opposite direction.
外汇报价一般有五位小数。其中第四位小数是最需要留心的，也就是人们常说的「点」。我们常用点数来计算盈亏。外汇交易量一般用「手」来统计，1手等于100,000基础货币单位。您也可以交易比1手更小的单位，例如迷你手或微型手，迷你手对应了10,000货币单位（0.1手），微型手对应1000货币单位（0.01手）。
支持杠杆
您可以通过杠杆来开设比您资金量更大的仓位。这种做法可能导致更多盈利或亏损。因此，在进行外汇交易时，管理风险十分重要。
资金门槛
在线交易外汇时，您可以自行决定持仓量的大小。根据自身情况存入适合的资金量来参与交易
全日交易
从周一早上到周六早上，外汇市场始终开放交易。这使得外汇市场成为业余交易者理想的交易市场。