The Different Types of Forex Trading Systems
I’ll admit that I’m pretty new to the forex world. I’ve been trading CFDs on my own account for just over a year now, which means that I’m quite green. I got into it because I like to be in control of my money, so if there was any type of trading that could keep me on top of the markets without me having to spend all day and night doing it, it had to be forex trading.
I used to trade in all kinds of stocks and shares, and it was pretty simple. You opened a trade, you bought a certain amount of shares or a currency and you closed the trade. But the forex is a bit different, mainly because of the high volatility of the markets.
So, let’s get into the different types of forex trading systems.
Today I’ll be talking about four different types of trading systems. I’ll be highlighting what each one is, when and how you can start using them and also how to make money when trading with them.
Hopefully, this will help you to understand more about how to get started trading with forex.
The Types of Forex Trading Systems
A few years ago, there were only two types of trading system out there, but now, there are four.
One is called the traditional forex trading system. That’s the one where you trade with forex brokers or forex trading accounts. The other three are the fxcess no deposit bonus systems that use the value of the currency pair to create your signals. So, if you want to start trading with forex, you should definitely check out these types of forex trading systems.
Traditional Forex Trading System
This type of trading system is the most traditional and simplest to understand. It is also the most widely used. But, it has a few disadvantages, for example, the high spread.
The traditional forex trading system uses a forex broker or an online forex trading account. With these types of accounts, you don’t have any sort of margin which means that the leverage is lower.
You open your forex trading account at a forex broker and trade in the forex markets. You buy forex, and you close the trade when the market moves in your favour. The traditional forex trading system is highly leveraged, which means that you can lose all of your money very easily.
For example, if your forex trading account has a leverage of 1:100, which means that if you are trading with $100 of forex, you can lose $1,000.
In addition, there’s also a high spread in the traditional forex trading system. In most cases, this is around 0.30 pips, which means that you have to buy $100 worth of forex in order to make just $30, which means you have to sell $700 worth of forex. This makes the traditional forex trading system very risky.
Forex Systems Using the Value of the Currency Pair
The second type of forex trading system is the one that trades with the value of the currency pair.
Now, these systems are very popular. They can be found at the majority of forex brokers, like brokers that deal with stocks and shares, or other online forex brokers that use the value of the currency pair as a trading system. This is because the value of the currency pair is much more stable than the price of the forex or the currency. The value of a currency is based on things such as the supply and demand.