Introduction: Introduction Forex trading has probably become one of the most popular ways of making money from the comfort of your home. However, there are different types of forex trading and each type of trading will mainly depend on what suits your style the best. Forex trading sites today are a dime a dozen and there are hundreds of new traders who join the market almost every day. To the untrained eye of a new trader, all types of forex trading will look the same, but they are not. Some of the most common forex trading types include: traditional trading, auto trading, day trading, and spread betting .
Traditional forms of forex trading : Traditional forms of forex trading The traditional type of forex trading is mainly buying a currency pair at a low rate and then later selling it off at a higher profitable price or probably exchanging it for another currency when the prices go up. Traditional forex trading is still the most predominant form of trading in the world.
Forex Spread betting : Forex Spread betting Spread betting mainly does not involve the purchase or the selling of any currency pair but rather a trader or a better will bet on a currency and chose to state if it will depreciate or appreciate. Each time the better is right about a currency he will win and earn money. Many people regard this type of trading as gambling since it has either a ‘yes’ or ‘no’ outcome but for many people it is a great way of earning money in the forex market without really risking a lot.
Auto forex trading : Auto forex trading Auto forex trading as the name suggests is trading, which is carried out automatically and is often referred to as bot trading. A person using this type of trading method will buy an automatic trading platform also called a bot which will trade automatically based on pre defined variables, which have been programmed into it. A bot as it is called can analyze the market and execute several trades at the same time. Since using a bot does not require any training or knowledge of the market many people and businesses willingly entrust their money to these bots. Before deciding to invest in a piece of trading software though, it is highly recommended to look it up at http:// www.forexblacklist.com
Day Trading: Day Trading This is a very well known form of trading and usually represents the majority of forex trading types. However, the big difference between a day trader and all other types of traders is that they will purchase a currency pair and not hold it for over a day. Many people see this as risky but these traders can make good money on a good day, but it is still not preferred by many expert traders in the industry.