Foreign exchange markets offer one of the best earning possibilities across the entire universe in the event that a trader has the option of choosing from among numerous platforms available for sale. Currency trading platforms are an automated software provided online by a foreign exchange services provider. Traders just need to get registered to use this software online and using this software, which is automated or trading platforms, they buy and sell foreign currency. The focus of my presentation will be on the sale of foreign currency. Article source!
What is the reason we require a currency trading platforms that allow us to buy and sell foreign currency? The following example will help to comprehend the significance of these platforms. Imagine you own a home in an European country. Since last two years, you’ve been living in United Nations and renting one of the apartments. Now, you want to buy your own flat in USA and to afford this expense you want to sell your house located in an European nation. You contacted few of your old friends and relatives over in the United States and made a decision to sell your home in 30,000 Euro.
In the moment that the buyer paid, the currency exchange rate between euros to USD stood at 1.25 which means you will receive 37500 USD when your buyer gave you 30000 Euro. Consider that your payment has been delayed for an hour, and then the currency exchange rate decreases by 20% so now you receive 31500 USD. This is a loss of 6000 USD in an hour only !!!?? This time, the seller has paid the same amount however due to the fluctuating currency rate, you’ve made an amount that is a loss. Viceversa, it may happen that rates for exchange of currency increase when you are selling assets or foreign currencies. And you may receive a large amount of profit.