Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. This is what makes Forex trading such an exciting ride.
Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted.When a trader locks in a rate and executes a transaction, that transaction is processed with immediate effect and the trade is completed for whatever profit (or loss) the user has made.
As rates change so rapidly, any Forex software must display the most up-to date rates otherwise the user may not achieve the level of profit they were expecting. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current rates.
The rates quoted, unlike traditional bank exchange rates, are actual tradable rates. A trader may choose to “lock in” to a rate (called the “freeze rate”) only as long as it is displayed. This means that if you see a rate on-screen that you want to trade at, once you hit the button to commence the transaction you will receive that very rate that was on-screen.
The Internet revolution caused a major change in the way Forex trading is conducted throughout the world.
Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. Additionally it was only major players such as banks and governments that were able to get involved, it was a highly lucrative but highly time-consuming business.
The Internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits. The Internet has also opened the door for the average person to be able to join in the fun. Previously it took thousands of dollars just to open an account, not it needs less than $100 to start trading.
