If you have ever been a part of stock market, forex or future market then “Spot Price” is not a new terminology for you. Whichever market you are relating with, more or less the core meaning of spot price is the current value of shares,commodity or currencies. In forex, spot price is an agreement where sell and purchase finish in just 2 days. In spot rates the payment and delivery of the product can't take more than 2 days.
Mostly regular trader and day trader trade in forex with the spot rates. Novice traders rarely choose spot fx rates to start trading with. There is a logical reason after this distinction of choices. Novice traders are the people who don't know much about forex thus they can't make quick decision, neither they trade regularly. Spot rates are the current rates and vulnerable to market fluctuations. Being a novice person in currency trading, they do not own any strategies or tactics to earn the profits. They are not prepared to afford the risk as well. Whereas regular traders have build up their own experience with forex and throughout this years they have defined their own strategies to win in forex market. They are able to forecast the market trend, understand the quotes and makes best use of trading platform to make quick decision in trading. In addition, experienced traders are able to take risk of money they've invested.
Using spot fx rates, you can trade with any size in forex. You can bid and ask on the minimal margins and earn profits gradually. Spot price is actually current price on the future contract of valuable assets. Spot rate and forward rate are different but there is one more option to trade in forex. It is currency swap where spot rate and forward rate conditions are combined.
Mostly regular trader and day trader trade in forex with the spot rates. Novice traders rarely choose spot fx rates to start trading with. There is a logical reason after this distinction of choices. Novice traders are the people who don't know much about forex thus they can't make quick decision, neither they trade regularly. Spot rates are the current rates and vulnerable to market fluctuations. Being a novice person in currency trading, they do not own any strategies or tactics to earn the profits. They are not prepared to afford the risk as well. Whereas regular traders have build up their own experience with forex and throughout this years they have defined their own strategies to win in forex market. They are able to forecast the market trend, understand the quotes and makes best use of trading platform to make quick decision in trading. In addition, experienced traders are able to take risk of money they've invested.
Using spot fx rates, you can trade with any size in forex. You can bid and ask on the minimal margins and earn profits gradually. Spot price is actually current price on the future contract of valuable assets. Spot rate and forward rate are different but there is one more option to trade in forex. It is currency swap where spot rate and forward rate conditions are combined.
No comments:
Post a Comment