The purpose of any trade is to make a profit; else there is no point in investing in a trade.
As Forex is the biggest currency trading market with immense cash transactions, the investor has to be really prepared how and when to invest to taste the profit.
Foreign exchange market known as Forex, It is otherwise called as Fx and Currency too. The participants who trade in this arena are Government, Commercial companies, banks.
In Forex, the transactions are made, when one participant buys a quantity of a currency and exchanging for paying the quantity of another. It is nothing but a buy and sell market, with mammoth transactions.
The Forex trading happens usually in pairs, for example USD and EURO exchange.
The fluctuations in the currency value in accordance with the foreign exchange rate make the trade.
So, the investor at the time of trade, have to be aware of the factor which currency value is going to increase compared to foreign exchange rate and has to buy it , after doing so instantly has to sell the other quantity of currency in exchange, in order to get a low margin profit. As the transactions are huge even a small margin profit would be enormous.
Forex is speculated for its Liquidity, Large volumes of trading, round the clock working format and low margin profit on contrary to other markets fixed income.
Since the Forex is working round the clock, no human can look after the investor’s money and manage it properly. It is for this reason the Forex Robots are designed to safeguard the investor’s money. The software robots are nothing but a software program to handle the currency transactions of the investor.
There are so many Forex robots employed for this purpose, out of them a special robot called Forex megadroid has a unique feature to foresee future trading conditions, and proves to be a handful to the investors.
Over the counter trading is possible with individuals or organizations hit a bilateral agreement against whom they opt to trade at that time. The most common trade assets are commodities, derivatives and stocks. To benefit a gain in the OTC market, the investor should have a thorough knowledge of the company, its financial statements, and its management before trading commences. Else he may suffer a loss.
Source by Anand Kannan www.positivestocks.com