Trading online is full of exciting opportunities but one must learn about the risks too. Apart from that, one can use an array of online tools to analyse the market trend and use it for making a wise investment. If one has a demat account already, the chances are you are trading actively and want to make more money.
Simple to make trades
The best thing about Forex trading is that you need no experience. Many of the traders make their money by copying the other traders in their trading house. In fact, the trading houses encourage this behaviour since it lends authenticity to the expert trader to see others copying his trade.
Since it is easy to lose money as easy as it is to make them, one must only trade with money they can afford to lose. This means, the money the use for their trades is not needed for paying for the rent, the family expenses, or food. That said, one must know about the market highs and lows. This happens regularly, often at least once a day and for the season. However, there is no steady pattern that one can use to make a prediction and this makes the trade very exciting.
Margin and brokerage calculators
The Brokerage Calculator helps you understand the amount of money you would save with a specific brokerage house for making the trades. You can use this calculator to make an estimate of the savings and profit zones. You get an idea of your earnings over some period. Alongside this, you can use the Margin Calculator to calculate the amount of money you need to invest to build a portfolio. It helps you differentiate the different margins such as VaR, exposure, SPAN, Net Premium, and ELM. It is merely the amount you get from your broker as loan towards making the investment.
Understand the fees that each will charge
The different brokerage houses charge your different amounts for making the trade. This means the discount broker will charge a different from that of the full-service broker. The Full-Service broker will take a percentage of the amount you transact. The discount broker needs a flat fee for allowing you to make the trade. This amount is usually low, about Rs 20. The percentage of the transaction amount will run into hundreds of rupees. This is arrived at by multiplying the number of shares you deal in for the trade by the brokerage percentage and the total amount you deal in.
You must check that the broker will offer good support. This is needed at times when you have made some error or need a clarification. You call up Customer Support and they immediately clarify your doubt. This helps you make an informed trade in which you know how to play.
The pricing plan must within your budget. They must have enough technology on the trading platform so that you can make good and profitable trades. They must provide you with the best intraday exposures so you stand a good chance to make profitable trades. Moreover, the trading house must allow you to trade on the move using any platform you choose.
