Exchange Traded or Over-the-counter Forex: Best select the best trading style

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<h1>Exchange Traded or Over-the-counter Forex: Best select the best trading style</h1><strong> Author: <a href='http://www.articleseen.com/profile_Linda .aspx'>Linda </a></strong><br /><p>The trading strategy can make a big difference in your trading outcomes if it is applied in an authentic manner. Forex involves implementation of strategy to buy a selected currency pair and then holding the trade position on that currency pair at the Forex trading platform for a short period of time with the motive to earn profits. There are two types of methods in which traders can make their Forex trading moves at the market depending upon the market condition. Over the counter market is the market place where both buyers and sellers transact their currency pair exchange deals live at the Forex trading platform. Forex market is useful because it helps to transact in between the countries and also provide various investment opportunities to the risk seeking investors who are making speculation to work out the things so that they can find some more ways of earning good returns. Over the counter Forex trading is the live transaction of the trading deals at the market where transactions are carried out in between the buyer and seller. Exchange traded Forex moves involve no centralized market where direct transaction does not occur instead it takes place through a medium and that medium is exchange. Like if you are buying a currency and someone is selling it then this deal is not conducted in between the buyer and seller instead the traded currency is bought or sold from the exchange. The advantage of exchange trade is that it removes the counterparty risk element from your trade moves or the chance that the individual who you are trading with will evade on their commitment concerning to the trade and this would make you loose. Another advantage is that the exchange traded Forex market is that all the transactions occur at one place and the quotation price once set for a particular instrument remains same regardless of the trade size and the trading will be done in accordance to the rules relating to the trading. The drawback that is linked with these exchanges traded moves is the cost that the firms registered in the exchange charge some amount for their trade offers n order to meet the trading requirements. The main advantage to over the counter Forex markets is that as there is no centralized exchange and modest regulation, traders have serious competition amid different providers to magnetize the most traders and Forex trading volume to their firm. The transaction costs are usually lesser in over the counter markets as compared to similar offers that trade on an exchange. </p><strong>About the Author:</strong><br /> The main advantage to over the counter <a rel="nofollow" href="http://www.finexo.com">Forex</a> markets is that as there is no centralized exchange and modest regulation, traders have serious competition amid different providers to magnetize the most traders and Forex trading volume to their firm. <p> Article Source: <a href='http://www.articleseen.com/Article_Exchange-Traded-or-Over-the-counter-Forex-Best-select-the-best-trading-style_11245.aspx'> http://www.articleseen.com/Article_Exchange Traded or Over-the-counter Forex: Best select the best trading style_11245.aspx</a></p>

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Keywords : Forex, Forex trading, Forex trading paltform, currency pair,

Category : Finance : Investing