In this section, LiteForex will introduce you to its trading tools and describe possible transaction types.

The Canadian Dollar (CAD) is one of the leading currencies traded in the foreign exchange market along with the U.S. Dollar (USD), E.U. Euro (EUR), Swiss Franc (CHF), and Japanese Yen (JPY). Fluctuation in the value of the CAD is due to the considerable influence of the USD, while the EUR and the JPY are less influential.

The main Forex trading tools (do not forget the new mt5 forex platform) are currency pairs, in which a currency is recorded as a three-letter code. The base currency is written first and the quote currency is written second. For instance, EURUSD, GBPUSD, USDCHF, etc. There is a quote for each currency pair: it shows the base currency price expressed in the quote currency units. A quote has 2 prices: Ask and Bid. A broker offers to buy currency at an Ask price and offers to sell currency at a Bid price.

Receiving profits from currency price changes after some period is called “temporary arbitrage”.
There can be 2 types of arbitrage transactions:

• «Buying-selling» transaction - a long position.
• «Selling-buying» transaction - a short position.

By opening a long position, a trader buys a currency at a low price with a view to selling it at a higher price later.
By opening a short position, a trader sells a currency at a high price with a view to buying it at a lower price later.

According to the transaction type they prefer, traders are subdivided into “bulls”, who expect the currency price to rise, and “bears” who expect the currency price to fall. One can benefit from both uptrends and downtrends in the foreign exchange market.

LiteForex offers its forex traders new amazing forex platform (MT5) and invites you to open a demo-account so that you can experience market movements and learn how to enter the market. Detailed information about how to open a demo account is available at LiteForex.