There are more than a few things which come into the picture when it comes to trading in Foreign exchange. As the budding trader, it’s only basic to know about trading and about the market diving right in with a couple of investments. You obviously know by now that you need both past and present real-time market data to come up with a proper forecast. In short, a Forex real time data feed is not just necessary but mandatory. Read on to get an introductory idea about how to engage some real-time ideas about the topic.
Real-Time Data and Trading:
These two things go hand-in-hand without a shadow of a doubt. Foreign exchange is a continually changing and evolving market. Every single trader out there trades as per price changes, forecasting on future ones and investing accordingly in the present. The motive is simply to make some proper profits.
Explaining on the previous pointer, profits are directly relative to the market forecasts you make basing on a real time Forex data feed free or not. These feeds are just like your news feeds. The only exception is that these feeds are all about Foreign exchange and nothing else. Things you’re more obviously going to get in these feeds include:
• Pair-Specific Price Action
You need to do a thorough research on the currency pair you’re about to trade. Every single pair comes with its own set of pre-requisites and pointers which will play a big part in future trades. In short, you can consider price action as the first determinate of probable profits.
• Basic Market Data
Transaction volume, price action history, market sentiment – these are just some of the data which come into play before even choosing a pair for trading. Other than real time price action, these are just some of the basic market data which the best data feed Forex simply must show.
• News Events
Consider this – the Federal Bank decides to lower its interest rates by .5 basis points. This will obviously make USD and easier currency to buy into resulting in high transaction volumes and an increasing price action. With prior knowledge of such events, you’ll be able to invest accordingly and with a high chance, positively too.
These are some of the most important pointers which a data feed should provide. Conclusively, every single bit of these real-time data can be a positive additive to your overall market forecast.
Why should you integrate Additional Real Time Data to your trading?
If you think that data feeds are an alternative to market charts or vice versa, that’s as far from the point as it can be.
Instead, the point is, a proper data feed is a mandatory addition to your daily trading itinerary. If you’re already investing in say, AUD USD, you’re more than likely to miss out on an opportunity to trade in GBP USD.
Here is the intrinsic advantage of having a proper Forex real time data feed in your trading routine. These feeds simply ensure that you get the right news at the right time. Stay on the heels of profits in foreign exchange.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.