The term day trading or day trading in Forex defines trading in any market (but most often in the foreign exchange or stock market) that takes place within one day. In order to be successful with an intraday strategy, you need to have impressive capital and in-depth knowledge of the market.
But, of course, sometimes even this will not save you from the unpredictable effects of the “invisible hand” of the market when price fluctuations in intraday Forex trading exceed all expectations.
Intraday Forex trading is a job designed for the almost constant presence of a trader at the terminal.
It is no secret that, on average, the shorter the time intervals for trading, the riskier they are considered. It's about the reliability of the signals.
That is why, in conjunction with high-volume trading on leveraged accounts, intraday trading in the most volatile financial market in the world – Forex – is considered risky, to put it mildly.
In such conditions, traders' mistakes cost them more, but correct decisions are rewarded many times over.
If you are wondering what day trading or Forex intraday trading is, we invite you to read our article.
Trading Day Trading – Background
The era of information technology has greatly changed currency trading in the Forex market. Today, anyone can trade right from home thanks to the Internet, margin trading systems, and electronic money.
Decades earlier, this was not quite the case: only financial institutions and professional traders had access to daytime Forex trading. Only the employees of the bank or investment company that managed the funds were day traders.
In day trading, the trader must pay additional overnight costs if the position is left open overnight. This fact has become the reason for such popularity of day trading, and it still attracts a large number of those who wish to join its ranks.
Everything about Daytrading in the Forex market
Day trading is buying and selling assets, but only within one day. Trading during this day can take place in any market, but this term is often used in the context of the Forex market – trading currency pairs or indices on the Stock Market.
To succeed as an intraday Forex trader, you must have good capital and an understanding of the market you are trading in. However, this does not necessarily guarantee success.
This is especially true when prices fluctuate sharply in time for intra-day Forex trading. The phenomenon used by Forex day traders is to use up and down moves.
Intraday trading usually involves trading the most liquid currencies and indices.
Which currency pairs to choose for day trading style
Major pairs are often considered the best choice because they have the highest Forex trading volume.
Obviously, day traders are looking for the most liquid asset or currency pair possible. You may ask which pairs are the best for day trading in Forex.
As trivial as the answer is, major pairs perform best in day trading for newcomers to Forex.
first try to make several trades on the EUR / USD pair, as the amplitude of this pair is usually significant and the terms of the trade are the most favorable.
What is Forex day trading?
What is day trading?
Day trading strategies are commonly used to eliminate the need to pay fees to maintain a position overnight. These fees are called Swaps. In some cases, Swaps can be positive.
Day trading Forex traders are extremely important to the Forex market.
Intraday trading on the exchange is a highly speculative activity, but it keeps the market running smoothly.
Day trading in Forex is often an alternative to any other trading with longer trades, as it helps to avoid the commission for holding a trading position for more than one day, the so-called swap.
This is a certain amount charged to the trader every time at midnight in an amount depending on the size and nature of his trade. It is possible to conduct a positive swap trade, this technique is called Carry Trade, but it is not the subject of this article.
Interestingly, day traders themselves are very important representatives of the Forex market and its irreplaceable mechanism. Day trading in Forex is pure speculative activity and it is it that determines liquidity in the foreign exchange market.