Real Time Forex Trading

DEFINITION of 'Real Time Forex Trading'

A form of speculation in which a trader bets on the movement in the exchange rates of foreign currency pairs. Real-time forex trading involves placing an order to buy or sell a specific currency pair at the current exchange rate.

BREAKING DOWN 'Real Time Forex Trading'

Electronic currency traders, or forex traders, use analysis based on technical and fundamental indicators to help them forecast the movement of the currency pair being traded. Because real-time currency trading is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies to cut losses and take profit.

RELATED TERMS
  1. Electronic Currency Trading

    A method of trading currencies through an online brokerage account. ...
  2. Currency Pairs

    Two currencies with exchange rates that are traded in the retail ...
  3. Forex Spot Rate

    The current exchange rate at which a currency pair can be bought ...
  4. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  5. Forex Hedge

    A transaction implemented by a forex trader to protect an existing ...
  6. Historical Currency Exchange Rates

    A collection of historical exchange rates that are used to provide ...
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RELATED FAQS
  1. How can I invest in a foreign exchange market?

    The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market, accounting ... Read Answer >>
  2. How is the value of a pip determined?

    Learn how the pip is used in the pricing of a currency pair in forex trading, and see how the foreign exchange market is ... Read Answer >>
  3. Why do forex traders use a currency converter?

    All currencies are quoted in pairs - one country's currency against another country's currency. A currency converter is used ... Read Answer >>
  4. What is hedging as it relates to forex trading?

    When a currency trader enters into a trade with the intent of protecting an existing or anticipated position from an unwanted ... Read Answer >>
  5. Can I trade a currency when its main market is closed?

    In the forex market, currencies from all over the world can be traded at all times of the day. The forex market is very liquid, ... Read Answer >>
  6. How is spread calculated when trading in the forex market?

    First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms ... Read Answer >>
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