If you want to trade forex on an intraday basis, you will have to select your trades carefully and be very precise. The global forex market is value as a trillion dollar industry which works 24 hours a day. This means that there are enough opportunities for an intraday trader to make money. However, a day trader has to aware of what factors he must overcome in order to be successful.

A day trader should look for the best intraday forex trading strategies to come out a winner.

The bid ask spread in the forex market makes trading in a short span of time extremely difficult. The usual bid ask spread in the forex market is at least 3 pips and sometimes trading takes place within seconds. The daily range for a currency pair can be quite wide and this gives many opportunities to a day trader. However, intraday forex trader should keep a look out for specific technical and fundamental conditions before executing a trade.

In addition, there is no centralized exchange for forex trading and this means that day traders do not have the necessary data on volume and open interest, which are important sources of information for traders who are trading in other markets. This results in the intraday trader focusing more on other technical and fundamental factors. Although interbank forex traders have the benefit of seeing the order book at the workplace and using it to their advantage, retail forex traders have to react faster than the interbank traders. Also, the trade that is executed by intraday traders will not move the market like the trades done by larger institutions.

However, it goes without saying that technical and fundamental analyses are a must for any intraday forex trader.

By: Pauline Go

About the Author:

melgonz@sbcglobal.net asked:


I would like to learn how to perform correlated/hedge trades…such as the EUR/USD + USD/CHF. Can anyone recommend some books on the subject? Thanks.

mellie asked:


I am planning to run an automated forex trading platform hosted on a server outside Singapore. Client’s trading platform will be hosted on the server and trades will be executed on their behalf. Do I need a license and how do I obtain the license?

Prawx asked:


What’s a decent forex broker which is not a seedy bucket shop but still not to high priced?

I want something that I can start off with with around $500 or so just so I can learn the ropes and make my little trades. I’ve read warnings about certain forex brokers which are unregulated bucket shops and aren’t insured properly either. But are there any decent forex brokers which don’t charge terribly high fees but still are decent?