Forex Secret Tips No 38 — Grasp The Basic Order Types For Your Forex Trades

The forex robot world cup Recently a large and well-respected Forex broker hosted the Forex robot world cup (FRWC). The supposed idea was to get all the “top” Forex automated trading systems (robots) competing with each other to find the cream of the crop so that you, the retail Forex trader could benefit by buying one of these ‘top’ systems.

Assume that you open an account with FXCM which is one of the most reputable forex metatrader brokers, which offers 0.6 pip discount per roundtrip lot traded. One pip equals about $10 on average if you trade EURUSD, EURCHF and EURGBP. Lets say that you deposit $2000 on the account. Our estimate is that you will turn over about 10-15 Lots per $1000 per month on your account when using FAPTurbo and Megadroid. Assume that your turnover is 24 lots per month on your $2000 account.

These days just about every forex broker is claiming to have the tightest spreads in the industry. But marketing does have the ability to be deceiving. The topic of spreads in the forex spot market is very complicated and often not easy to understand. However, nothing affects your trading profitability more.

One of these is trading the forex or the foreign exchange. The forex is where you buy and sell world currencies and make a profit with their constant fluctuations in value against each other. The currency market is by far the largest market in the world. With over 2 trillion dollars per day is exchanged it dwarfs the US stock market. Before you start to think this sounds complicated it’s really not. This may actually be the most simple business there is to operate.

The great thing about this is that FOREX brokers will be able to advise you on what trades you should make and when to trade. This is why you have to remember to go with a broker that has a lot of experience in the market. By doing so, you will be able to make sure that you will make some money and minimize the risks of losing money.

You as a forex trader should know that there is always spread between pairs, when you trade the market (either shorting or longing) the broker gets their profit, say for eurusd the spread is 2pips, so when you open a position for the pair, it generate profits for the broker, and the profit should be around 2pips, if you put 1 full lot($100,000), then the broker should gain ~$20 from the trade it self, whether the trade goes profit or goes losses.

The problem with automated robots if the fact that they almost never stand the test of time. Whilst many of them will be successful in the short term, they ultimately fail in the end. Why? Check it out at this link.

Automated currency trading is possible. The problem is most forex robot buyers have “get the robot today and fill my bank acount tomorrow” midset. These people are the one who fall to the scam forex robot provider promises and end up yelling in every forex forum “I’ve been scammed!”. You have to devote some efforts and time to get yourself a real winning robot, but the end result will really worth it.