Foreign exchange market is the only market on earth where an individual has unlimited possibilities of earning provided he is in a position to select the right forex trading platform from the number of platforms available on the market for forex. Currency trading platform is an online, automated software supplied by the foreign exchange services provider. The traders need to register themselves to access this software online and using the automated program or trading platform are able to buy and sell foreign currency. The focus of my work will be the sale of foreign currency. Get the facts!
Why is it that we require a trading platforms to purchase and sell foreign currency? We will use an example to help us understand the importance of trading platforms that trade currencies. If you own a home in a European country. Since last two years, you’ve resided in the United Nations, and rented one of the apartments. In the near future, you’d like to buy your own home in USA and to afford this cost you’re looking to sell your house located in the European country. You contacted few of your family members and friends there and have decided to dispose of your house for 30,000 euros.
At the time of payment, the rate of exchange between euros and USD was 1.25. It was 37500 dollars to pay the 30000 euros the purchaser had to pay. If the purchase was held up by one hour then at that point currency rates dropped by 20%, and you now get 31500 USD. It’s a loss of $6,000 in a single hour. !!!?? It was the time that seller made payment for the same amount however due to the fluctuating currency rate, you’ve suffered a loss. The reverse could be the case, in that exchange rates for currencies are increased when you sell an asset or currency. There is also the possibility of gaining a substantial gain.