What is Day Trading in Forex?
The term “day trading” often refers to the act of buying and selling securities within the same trading day. Any market may experience it, but it happens most often in the stock and foreign currency (Forex) markets. Most day traders are financially secure and well-educated. They use high levels of leverage and short-term trading tactics to profit from minor price changes that occur in highly liquid equities or currencies.
Day traders are aware of situations that lead to rapid changes in the market. A common strategy is trading in response to the news. Scheduled releases like economic data, business profits, or interest rates are susceptible to market psychology and expectations. Markets respond when such expectations are realized or surpassed, often with fast, significant changes, which may be advantageous for day traders.
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