Time Consideration

Active trading in EUR, JPY or any other currency depends on location. For example, the “fiercest” or the moments with the greatest swing in EUR and USD is the four hour period where the London currency trading market is about to close while the US currency market has just opened.

That means; active trading in EUR and USD will only happen every four hours a day. You can still trade the rest of the day with EUR but the price has already been set in London and it will only change once the currency market in London opens again.

There are three major currency sessions that affects the global currency market: the London, Tokyo and New York market. These represent the European, Asian and the North and South American currency trading market. The Tokyo session starts first and taken up by London which ends in New York for another circle that will start in Tokyo in a few hours.

Commissions and Taxes

Commissions will always be part of most business transactions especially in trading. Fortunately, the most basic trading practice (on the spot trading) doesn’t have commissions but will only have subscription fees. Your software should provide you with data from different markets and if you’re paying a higher subscription, you should be able to increase your access to different markets and currencies.

Commission will happen when you opt for other types of Forex transactions. Transactions such as options, SPOT, forward, swap and other types Forex transactions that will require additional documents and people will require commissions.

Lastly, taxes should not be disregarded. Most of the software you will be working with will have a built-in calculator that will help you determine the taxes that you have to pay from the earnings and business transactions that you have just made.

Getting to know the bigger market for Forex trading will take time but if you start small and be patient, you will learn a lot and use that knowledge to succeed in this industry.

First Page: Forex Trading Basics