FTT or Forex?

Now that you know the difference between Fixed Time and Forex trading modes, you might still be wondering which is best for you. Let’s go through some things to consider.

Available assets

The selection of assets you can trade in FTT and Forex is mostly the same. You can trade currency pairs, indices, stocks, cryptocurrencies and other assets in both modes depending on your trading strategy and risk tolerance. However, keep in mind that trading conditions for the same asset on FTT and Forex will likely differ because of the specifics of each trading mode.

Time horizon

In FTT mode, the trade expires after a certain period. If you have a good understanding of short-term market movements and can accurately predict price changes within a specific timeframe, FTT may be best for you.

In Forex trading, you can hold positions for as long as you want, provided you have enough balance to maintain the open position. This allows for more flexibility and the opportunity to profit from long-term trends.

Risk and reward

With FTT, you know exactly how much you can lose or gain before you open a position. This can make risk management simpler.

On Forex, you can customize your risk-reward ratio using Take Profit and Stop Loss, making your potential profit in a trade exceed the potential loss. The profit potential is theoretically unlimited. The more the price moves in your favor, the more profit you make. Moreover, Forex trading allows leverage with a multiplier, which can increase your profit potential.

Control over trading positions

With FTT, you can only close a trade with profit before the duration is up if the market price moves significantly away from the entry price of a trade. In Forex trading, if the price moves in the direction of your trade, the trade will become profitable as soon as the profit exceeds the broker’s commission. As a result, trading in Forex mode gives you more control and flexibility compared to FTT.

Trade examples

Let’s say you make an FTT trade of $10 with a one-minute duration and 82% profitability. You can gain $8.2 or lose $10 in a minute. If you make a Forex trade with these parameters, the trade will likely take longer to reach the target (unless the market becomes highly volatile due to a news release).

Still, you can close a trade earlier and get a smaller profit.

Alternatively, you can open a trade for $50 instead of $10 and still have the same Take Profit of $8.2. In this case, the price will likely reach your target faster:

As you can see, there are different paths you can take with Forex.

Recommendation for beginners

It’s usually recommended to start with fixed-time trading, as it offers a simpler trading experience with shorter-term trades and a clear understanding of the potential payout and risk before entering a trade. As you continue to develop as a trader, consider using Forex mode, as it can increase your potential profit. Remember that you can use a demo account to test strategies and practice both FTT and Forex trading without risking real money. Alternatively, if you feel that Forex is the best fit for your trading style and temperament, you can begin with this trading mode instead.

Overall, both FTT and Forex trading modes involve significant risk, and it’s possible to lose your entire investment. Start small, use appropriate risk management techniques, and gradually increase the trading amount as your experience and profits grow.

Next

In the next lesson, we’ll dive into chart analysis.