In 2015, the Swiss National Bank did not provide a warning regarding the removal of the 1.200 euros cap. It was after this that retail foreign exchange trading became news. Compared with financial institutions and companies, the volume of the forex trades of retail investors is relatively low. But its fame is gradually rising. These investors leverage technical factors (price patterns, technical indicators, resistance, and support) and fundamentals (monetary policy expectations, inflation rates, and interest rate parity) to trade in currencies.
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Development of the Retail Forex Market
Previously, banks charged high amounts, which had repelled retail investors from the forex market. Retail forex trading blossomed when retail aggregators developed online trading platforms such as OANDA and FXCM. Such platforms had a provision to trade in smaller volumes. The principle was to add several smaller transactions and then lay them off in the inter-dealer market. It resulted in a larger size of the trades. So, dealers were inclined to offer liquidity to retail aggregators. These retail aggregators are institutions operating only on trading platforms on the Internet. They combine a broker model with the dealer model or act as forex brokers.
One can easily conclude that retailers cannot become forex trading experts within a short period. It is here that Pearl Lemon Invest provides its services. It aids forex trading for novice retail investors who want to start with a small amount of money and aspire to make a significant profit.
Features of Forex Trading for Retailers
Generally, you can ensure reasonable success by working for about 2 hours per day. It is obvious that the more you are engaged in this activity, the more your profit will be.
You can be active in forex trading from Sunday evening to Friday afternoon. If you are in the United States, the right time to begin is 5 p.m. ET because this is when the Australian and Asian markets open. The correct time of closure is about 4 p.m. ET on Friday.
If you compare forex with stocks, forex has a smaller variety of risk levels and options. But it needs less capital than stocks to commence trading. You can do forex trading for 24 hours a day, but stock trading time is much shorter.
Your win rate indicates the count of trades you win out of a specific total. An example is a 55 percent win rate, meaning you win 55 out of 100 trades. For most forex day traders, achieving a win rate of more than 50 percent is ideal. It is quite feasible to reach a win rate of 55 percent.
The capital being risked to gain a specific profit is termed risk/reward. If you have a higher win rate, this is indicative of more flexibility with the risk/reward. A higher value of the risk/reward implies that your win rate can be of a lesser value, and yet, you can make a profit.