What is Forex Day Trading?

With Forex trading now accessible to all investors thanks to the advent of Internet technology, forex day trading has become one of the most popular types of currency trading. Some traders – professional traders – have made forex trading their day job. They engage in what is known as forex day trading. As its name suggests, forex day trading consists in opening and closing positions – buying and selling currencies – within the same day. Usually, forex day traders try to take advantage of the fast-fluctuating currency rates, even if their movements are often smaller on a shorter term.
The four major currency pairs have an average daily range of 104 pips, which represents $1,040 per lot – much more than other currency trading markets. With their longer “length of line”, they also offer more “swing trades” opportunities.
Forex day trading is time-consuming and can also be money-consuming if you are not properly educated and trained in currency trading. To help you understand the ins and outs of day trading forex, Finotec offers you free fundamental and technical analysis education (see our Forex Trading Videos Section) as well as all the tools you need to analyze market trends, including a free demo account. As with stocks day trading, forex day trading can be done over the entire day, but it also can be done over a few hours, a few minutes or even a few seconds! Part of the skills of day traders lies in their ability to react quickly to the markets and make fast decisions.