It is the real time forex rates that provide some sanity in the highly volatile forex markets. They allow a trader to lock a trade with full confidence because the trader knows that the rate at which the foreign currency has been bought or sold is the tradable rate that prevails at that particular point of time at any place in the world. This brings in uniformity and equality in trading.
For a trader, the forex rates are the base on which all trading decisions are made. It is therefore essential that the forex software used by the trader display the latest rates. It is equally important that the rates are updated constantly in the forex server because each trade, be it a purchase or a sale, affects the forex rates.
Further, these rates must be instantly communicated to forex servers located across the world so that there is no discrepancy in forex rates. These are critical operations and are performed in real time by highly sophisticated trading applications that have been written by specialist programmers to make this trading possible.
The real time availability of forex rates makes a trader independent. He does not have to depend upon brokerages or foreign exchange bureaus to learn about market movements but can monitor all changes second by second sitting in his office or at home.
Another advantage of online trading is the 24 hours availability of rates. Unlike the shares or stock markets, the forex market never sleeps. A trader can log in to the forex market in the night, and obtain the forex rates prevailing at that point of time.
The trader can also obtain these rates in different cities, and conduct high value trades. All that a trader needs is a computer, a high speed Internet connection, a forex trading account and knowledge of the way the forex markets work.