Saturday, 28 September 2019

Some advantages of Passive and active trading

Definition of Active Trading (Trader) Traders are part of market participants who focus on transactions that have to do with sentiment and market conditions at the time. A trader usually does short-term trading with a much greater frequency. In general, traders have a variety of methods, strategies and trading plans that are clear and directed, because they may not want to hold trading positions for too long.
Active traders, both beginners and professionals, naturally use intermediaries to carry out every transaction they make. This intermediary, who else if not a broker or a particular trading platform

Definition of Passive Trading (Market Maker) Passive trading or Market Maker is one of the many market participants who conduct trade transactions. Examples of well-known Market Makers include: brokers, banks, hegde funds, and even central banks. Market makers here aim to provide liquidity on currency transactions.

Also read  : 5 The Best Habits Of a Successful Forex Trader

After understanding the difference between active and passive trading, now is the time to explore the advantages and disadvantages of both. What are those? Advantages of Active Trading The advantages of active trading are that it can be carried out anywhere and can carry out trade transactions at any time. Active trading presents two-way profit opportunities. Both in conditions of opening buy and sell positions, traders can use it to profit. The third advantage is active trading can run with affordable capital and supported by low costs. Disadvantages of Active Trading High risk experienced personally.

Traders who carry out active transactions run the risk of trading pressure if their psychological condition is not maintained properly. Advantages of Passive Trading The advantage of being a Market Maker is that it can accommodate all orders sent from the trading platform. One of the strengths of Market Maker on the GICTrade Platform is that it is relatively affordable and effective capital. If you become a Market Maker, updates about market liquidity will be faster. Disadvantages of Passive Trading, basically all activities that take place on the financial market are risky and have shortcomings. As is the case with Market Maker, which usually cannot be resistant to drastic changes in conditions.

Benefits of Active Trading on the GICtrade Platform 1. Free of commissions, please be aware that if you decide to become an active trader and carry out trading on GICtrade, you don't need to pay any commission.

Because GICTrade gives commission free which means that all forms of transactions that take place will not be charged a commission at all. 2. Low spreads offered by the GICTrade Platform, will greatly help you if you decide to become an active trader. Looking at the role of GICTrade which is only as a provider of transactions, so the spread costs are very minimal. With a low spread, of course, can help traders to maximize profitability. You only need to reimburse the administration fee of 1 GICT per transaction for 1 lot settled.

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