Currency trading (also known as Forex or FX) has been around for a very long time and is a great way to generate income. It is the largest trading market in the world and while trading digital assets isn’t the same as Forex-trading, it is similar in both terminology and functionality.
In order to generate income from trading you need to know the basic terminology, you need a lot of practice and some great insight into the market(s) you’re trading in.
While it is pretty easy to start trading, it is very hard to become a profitable and successful trader. It’s very easy to overlook all the things involved to turn a profit. Things like your personal emotions and time commitments are under estimated during the trading process. This is amongst the reasons that 90 percent (if not more) of all traders fail to make any money at all.
Trading strategies are very important, they are essential to becoming a successful trader. On this page we’ll tell you a bit more about the basic trading terminology, to get you on your way. If it’s trading strategies you want, find out more about forex trading and known strategies as they are similarly relevant to digit asset trading markets.
Always keep in mind that trading comes with financial risks and can cause emotional distress. Never invest or trade with money you cannot afford to lose. There are no take-backs on the market, all trades are final.
The order book is a list of all the real-time buy and sell orders placed on the market by traders. The order book can be used to fill orders.
The order book is made up of orders to buy or sell at a fixed price (these are called limit orders) and orders to buy or sell at the best available price (these are called market orders). The difference is that limit orders are all visible while market orders appear sporadically on the market as they are filled when needed/desired by a trader.
View order book
First thing you need to know:
* Bid is an order to buy in the order book
* Ask is an order to sell in the order book
The bid depth at a given price is the cumulative volume of current buy orders on the book at that specific price or higher. The ask depth at a given price is the cumulative volume of current sell orders on the book at that specific price or lower.
The bid depth at a given price indicates the volume that you can sell your currency for before the value goes below the given price. The ask depth at a given price indicates the volume that you can buy a currency for before the value goes above the given price.
Let’s talk spread
The spread is the difference in price between the highest bid and the lowest ask found in the order book.
Filling an order
Filling an order is done by selling into a bid or buying from an ask. In other words, buy orders are filled by matching it with sell orders and vice versa.
Minimize your losses
Trading for profit is more about minimizing your losses than it is about taking as much profit as you can per trade. Which may sound a little odd, but money management is the key to every trading strategy. Know how to use your money, to make money. Know the market you’re on, follow anything and everything that can be relevant to a currency’s market.
We can’t stress this enough. Always keep in mind that trading comes with financial risks and can cause emotional distress. Never invest or trade with money you cannot afford to lose. There are no take-backs on the market, all trades are final.
Get started today
Getting started is easy, use your Nocks account to get access to Nocks Trade. The best place to trade Gulden versus other currencies. We’re open 24/7, so whenever you’re ready – we are.
Nocks Trade – A way to make it your trade