This global platform for spot FX trading was not really accessible until very recently. Only banks and larger financial institutions could take advantage of this bustling market place. Since the advance of the internet and the ability of larger brokerage houses to share their platforms with the small speculator, we can now all try our hand trading foreign currencies.

Unlike the currency futures markets, the spot FX trading platform is actual prices being paid for currencies. There is no delay on the quotes and because of the liquidity of the market place, what you see tends to be what you get in terms of buying and selling prices. This makes it easy to buy and sell, to get in and out of a position.

There were two important things I learned when spot FX trading. Number one is pay attention to the interest charged by the bank. Ultimately, that's how they make money. The interest amount may seem very small, but when multiplied by a leveraged number of dollars or euros, this amount can become a little more significant, and I found it was higher on a Wednesday, than any other day. Secondly, remember to get out of your position before the market closes Friday afternoon, otherwise you will be at the mercy of any abrupt changes in global events over the weekend.

Learning about Spot FX Trading

Open a simulated account. Or if you don't have time to play with that yourself, hire a broker. A broker will teach you the ropes as you go, and you might discover a new hobby.