NetPicks is an online trading strategy company. The company discussed forex or FX trading. This is based on speculating if the currency prices for the pairs will increase or decrease. Forex trading is an electronic financial exchange for currency pair trades in a decentralized market. This occurs in major cities including New York, London, Paris, Sydney and Tokyo. NetPicks provides traders with a live signal service and charts. Most traders prefer trading on the spot or spot trading. Trading can also be done through the futures and forward markets.
NetPicks believes so many traders prefer currency pairs due to the substantial liquidity of the market. The trading volume of FX on the average day is $5.2 trillion. There are only a few options available in the forex market. The currency pairs traded most often include the U.S. dollar versus the yen, the pound sterling versus the U.S. dollar, the euro versus the yen and the U.S. dollar versus the Canadian dollar. Exotic currency pairs are available but the financial gains are outweighed by the risks.
A forex trader must understand the common terms. Leveraging is using a margin account to spend a small portion of the investment. The PIP or price interest point is the gain or the loss. The fourth decimal is used to price currency pairs. A pip is one basis point. The bid price is the amount buyers will pay for each pair. The ask price is the price currently being asked for a currency pair. The spread is the difference between the ask price and the bid price. This is measured in pips. NetPicks advises determining the risk factors prior to making a trade.
Pairs are selected when the trader believes the base currency will become stronger than the quote currency. The pair is sold when the trader feels the quote currency will become weaker than the base currency. The trader can observe the market prior to placing an order or selling. NetPicks advises all new traders to research and study the forex marketing prior to trading, refer to (Crunchbase.com). A good education will improve the chances of success.