There may be people who want to try day trading with Forex and people who are actually doing day trading. Online forex trading requires a different perspective than a long-term investment.
The tools and information provided by each Forex company differ. It is necessary to compare technical analysis tools, company-specific tools, abundant market information, etc., and select the company that suits you based on the characteristics of each company. This time, we will consider services suitable for day trading and introduce companies that are easy to use in day trading.
Recently, it pretends to be a foreign exchange margin trading (FX trading) and sells automatic trading software that is sure to succeed, or remits the margin to the account of an overseas trader and pretends to have made a transaction. Techniques such as deception are increasing.
Day trading is a trading method that completes from entry to settlement in one day. Compared to long-term investments, day trading requires quick decisions and tends to settle multiple times during the day.
If you have a main business like an office worker, the hurdle will be high because daily transactions need to be concentrated for a long time. If you want to do day trading as a side business, you need to devise such as trading only for 3 to 4 hours from the time when the New York market opens.
In addition to online forex trading, stock markets and stock indexes are examples of markets where day trading is possible. Forex is available 24 hours a day and has high liquidity, so there is a certain demand.
Forex trading involves depositing margin (security deposit) to a trader and trading in foreign currencies that are many times the margin (up to 25 times the margin in India). At the end of the transaction, the opposite transaction from the start of the transaction (for example, if the rs is converted to dollars, the dollars are converted to rs) is performed, and the difference is settled as profit or loss (contract for difference).
For example, if you insert a margin of 1 million rs and set a magnification of 10 times, you can buy 10 million rs worth of foreign currency. At this time, if you buy 100,000 dollars per dollar, you can buy 100,000 dollars, and if you close the transaction at 105 rs per dollar, you will get a profit of 500,000 rs, but if you close the transaction at 95 rs per dollar, you will lose 500,000 rs.
In this way, in Online Forex trading, you can trade a larger amount than the original margin, but depending on exchange rate fluctuations etc., a large loss more than the deposited margin may occur in a short period of time.
Online Forex trading companies are required to register for the financial instruments and exchange business based on the Financial Instruments and Exchange Act. Registration is also required when overseas vendors do business with Indian residents. In addition, there are strict regulations on registered companies, such as not allowing solicitations unless requested by a customer.
In online forex trading, it is difficult to judge when to sell or buy in the rapidly changing exchange rate, and the mechanism for settlement of funds is also complicated. For this reason, the sale of automatic sales software that says “you can buy and sell at the optimal timing” is often used as a fraudulent method.
In this case, let alone online forex trading, victims who have never invested trust the sales talk of the seller who emphasizes only high returns, saying that difficult transactions can be left to the software. Because I want to increase my assets, I buy program software without thinking about it. Since the software itself is easy to operate, I feel like I can trade by myself, and I will remit the margin to the account of an overseas trader as instructed.
The transaction starts with a large amount of margin. It seems that profits are being made smoothly on the screen of the personal computer, but even if you try to withdraw, the trader responds to the withdrawal with a reason that sounds plausible to the victim who does not have knowledge of such transactions. Will not give me. Also, even if I contact the software distributor, they say, “I just sold the software, and I don’t know that much.”
Gradually, you will not be able to contact either vendor, and you will not be able to access the screen. Only then do you realize that everything is pretending to be a scam.
In this case, since the purchase of the purchased automatic trading software is a contract by telemarketing, the Consumer Contract Law and the Specified Commodity Transaction Law (Special Commercial Code) are applied, and it is possible to cancel by cooling off or misrepresentation. However, the actual situation is unknown even with overseas FX traders, and it isn’t easy to get back the money if you can not contact them.
To avoid such damage, collect information about the vendor as well as whether it is registered or not, and check whether it is a reliable vendor. Also, do not deal with transactions for which you do not understand the mechanism.
The list of registered financial instruments business operators and unregistered business operators located overseas (those who have been warned by the Financial Services Agency) are published on the website of the Financial Services Agency.
If you have any problems, please consult with your local consumer service centre immediately. When doing day trading, it is a good idea to choose a Forex company considering the low spread, ease of use of tools, and a large amount of market information. You can study fundamental analysis through market information, and there are several tools to obtain information on each company. If you are interested, why not consider using it?