Trading in Forex market is perhaps one of the most challenging opportunities where everyone has the potential of making a large amount of money. Forex, an acronym for Foreign Exchange, is yet one of the most popular financial markets across the globe, where people exchange the currency of one country for the currency of another, thus executing trading transactions. Since Forex has no physical location, trading transactions are conducted mainly via FX trading brokers online on the platforms provided or by giving a call and making a deal. However, before starting trading in Forex Market, traders should attentively consider their investment objectives, their level of experience and, of course, the possible risks in order to achieve success in Forex trading.
Trading in Forex market: Types of FX currency traders
Basically, there are four types of FX currency traders and the only difference between these traders is the timeframe that a position is held open. Generally, FX currency traders fall into the following categories: day trader, scalper, swing trader and position trader.
- Day trader
Day traders are the ones, who trade for the day and try to make a profit from the daily price movements of the asset they are trading. Usually, they open positions at the beginning of the day and close it at the end of the day, since they do not like to hold positions open overnight.
- Scalper
Scalpers are those traders, who enter the market for multiple times a day and the positions they open last only a few seconds or minutes. Scalpers try to profit in small price movements of the financial instruments they are trading.
- Swing trader
Swing traders open and hold positions for more than a day but never for more than a week. Unlike day traders or scalpers, swing traders try to take advantage of a longer time frame with the expectation that the market will move in favor of their opened position.
- Position trader
Position traders, also known as trend traders or long-term traders, are the ones who can hold a position open for weeks or months or even for years. These traders are not concerned with short-term price movements since they believe their long-term investment will give the desired results. To make the right trading decisions, positions traders take into consideration and analyze various fundamental factors such as governmental decisions, various economic and financial news, etc.
Forex trading with IFC Markets
Today the market is full with brokers providing various trading services and conditions, currency trading programs, trading platforms, etc., but the thing is to find the right brokerage company because it has a direct influence on the further outcome of trading.
IFC Markets is a leading FX and CFD broker, which has been steadily operating in the international financial markets since 2006. The company has already gained much popularity among traders due to the high quality of the trading services provided. Tight fixed spread, leverage of up to 1:400 for currency pairs and 1:40 for stocks, alongside with the famous MetaTrader trading platform, a unique trading-analytical platform NetTradeX developed by IFC Markets itself, the opportunity of creating and trading your own financial instruments through the PCI (Personal Composite Instrument) technology and these are only a couple of examples of the advantages the company offers to its customers. IFC Markets does its best to meet all traders’ expectations and needs.
