Foreign exchange market is the only place in this whole universe where a person has no limit of earning provided he is able to choose the best currency trading platform among the number of platforms available in the forex market. Currency trading platform is an automated online software provided by the foreign exchange services provider company. Traders just need to get register themselves to access this software online and using this automated software or currency trading platform, they buy and sell foreign currency. I will be focusing more on the sale of foreign currency.
Why do we need currency trading platform to buy and sell foreign currency? Let’s understand its importance using one example. Suppose you have your home in one of the European country. You’ve shifted to United nations from last 2 years and staying here in rented flat. Now, you want to buy your own flat in USA and to afford this expense you want to sell your house located in an European country. You contacted few of your old friends and relatives over there and decided to sell your home in 30,000 Euro.
The moment when the buyer made a payment the currency exchange rate between euro and USD was 1.25 thus you receive 37500 USD when the buyer paid you 30000 Euro. Assume that payment is delayed by an hour and at that time the currency exchange rate decreases by 20% so now you received 31500 USD. This is a loss of 6000 USD in an hour only!!!?? Both the time buyer has paid the same amount buy because of the constant fluctuation in currency rates you received a loss of 6000 USD. Viceversa, it may happen that currency exchange rates are increased when you sell foreign currency or asset. And you may receive a large amount of profit.
Above was just one example, when a person is selling assets. But International traders often buy and sell foreign currency online. To avoid such money and time loss, one needs to opt for forex trading platform when he buy or sell foreign currency. This platform provides currency hedging service for each transaction you make. With the help of forex trading platform, you can sell currency at fixed rates within a specific time period decided by you and your service provider company. Once you have negotiated and locked the currency exchange rate to sell currency, you need not to worry about the fluctuations in currency rates. You are guaranteed a specific rate irrespective of any forex market changes. You will receive the money within 1 yr at any time but the amount you will receive will be exactly same as you calculated.
There are number of companies offering online trading platform services but you need to consider several points before you opt for such services and they are listed below :
1) Trading platform should allow to buy or sell currency in 2-3 clicks only
2) Charting application should not be inbuilt, it should be provided separately to get maximum usage of bandwidth
3) Opt for the automated trading software
4) Ask for the Demo and measure profit-loss ratio
5) Be attentive for any updates from the industry you are involved in