The foreign exchange market trades with around $5.3 trillion every day. With this much money in your hand, even if you spend one dollar every second around the clock, it would take you 1,26,118.24 years to spend the entire amount. Also, you can claim world dominance by hiring 301 million soldiers at your disposal. No physical bank can hold that much amount of money in their vaults. Hence all transactions in forex are carried out electronically. The electronic platform is known as forex terminal.
A trading terminal, in a general sense, is an interface between your desktop (or other similar devices) and the internet. It will allow you to place buy-sell orders of currency and manage your forex account. In simple words, it can be treated as a link between you and your broker. Expect the following services from a decent forex terminal platform.
Place your order online
You will have a personal account with your own login id. Previously, traders were required to place their orders via a telephonic call to the broker. This would have required the trader to check the market quote, place the call and then the transaction would have ensued.
With forex terminal platform, real-time quotes will be available with options of instantaneous buy/sell option; all can be done with the click of a button.
View multiple currency pairs
The software allows you to keep a check on multiple currency pairs at the same time. Earlier, a trader had to go through each quote at a time and then place an order. If he had seen EUR/USD at 1.38 (say), by the time he finished checking other five currency pairs, the quote might have changed to 1.35.
With the software, you can see multiple currency pair quotes at the same time and decide instantaneously, avoiding rapid fluctuations. Also, few platforms will allow you to open up to 10 charts simultaneously.
Charts and statistics are readily available
The forex market shifts based on some trend and shows similar historical behaviour. Charts and plots of currency pair behaviour are available in the forex terminal. You can now decide whether you are placing an order at the peak market quote or if the market is expected to rise.
Also, you can compare the behaviour of two or more plots simultaneously and then go on with a trade.
Notifications regarding market shifts
Currency valuation is dependent on a number of issues. A country’s GDP, employment rate, international relations and also its domestic political situation determine its currency valuation. So, if a country signs a trade pact with a more economically developed country, expect their currency valuations to increase.
All these notifications and other factors will be conveyed to you. Also, suggestions will be put up as to which currency to buy when based on these factors.
Apart from these four features, a forex terminal also allows you to place your buy and sell orders automatically when the market quote reaches your set value. With these, a large number of orders can be placed in a short duration of time and transaction downtime is also reduced considerably. Get one before you start trading.