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    The bid price is the price at which you can sell the base currency — in other words, the price the dealer will “bid,” or pay, for it. The ask price is the price at which you can buy the base currency — the price at which the dealer will sell it, or “ask” for it. As a leading global broker, FXTM are committed to providing flexible services tailored to the needs of our clients. As such, we are proud to offer the most popular trading platforms in the world – MetaTrader 4 and MetaTrader 5 . When connected, it is simple to identify a price movement of a currency pair through a specific time period and determine currency patterns. The aim of technical analysis is to interpret patterns seen in charts that will help you find the right time and price level to both enter and exit the market. Forex traders who use technical analysis study price action and trends on the price charts.

    Instead of executing a trade now, forex traders can also enter into a binding contract with another trader and lock in an exchange rate for an agreed upon amount of currency on a future date. Currency carry trade refers to the act of borrowing one currency that has a low interest rate in order to purchase another with a higher interest rate. A large difference in rates can be highly profitable for the trader, especially if high leverage is used.

    They can use their substantial foreign exchange reserves to try and stabilize the market. In the end, it’s up to you to decide whether or not you can afford to take the high risk of losing money in pursuit of a big payday, especially in the case of CFDs. If you decide to proceed in trading forex currency pairs, we hope our reviews will help you find the best forex broker for your needs. Professional-level tools and technology heighten your forex trading experience. Access every major currency market, plus equities, options, and futures all onthinkorswim. An online forex broker acts as an intermediary, enabling retail traders to access online trading platforms to speculate on currencies and their price movements. The foreign exchange market, also known as the forex market, is the world’s most traded financial market.

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