What Are The Different Types Of Forex Trading Strategies?
InterTrader provides two
different vehicles for trading forex: spread
betting and CFDs. Both of these products allow you to speculate on
the movements of currency markets without making a physical trade, but they
operate in slightly different ways. With spread betting you stake a certain
amount (in your account currency) per pip movement in the price of the forex
pair. So for instance you might buy (or sell) £10 per pip on USD/JPY, to make
£10 for every pip the US dollar rises (or falls) against the Japanese yen.
Forex traders have been using spread betting to capitalise on short-term
movements for many years now. Find out more about spread betting. With
CFDs you buy or sell contracts representing a given size of trade. So you might
decide to buy 1 contract of GBP/USD, which (with InterTrader) represents a
trade of £10,000. Your profit or loss is calculated in the second currency, in
this case US dollars, and then converted (if necessary) into your account
currency. Find out more about CFDs.
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