If you've just stumbled upon FOREX global trading then let me say first and foremost, Congratulations! FOREX global trading has been, since its inception in 1970, one of the most lucrative self start business opportunites available. I am still baffled as to how this wealth creating, trading system has not been spread to the masses. I suppose the answer to that question resides with the same reason you found this article. Starting your own business takes a certain kind of fortitude and dedication that most people just don't have. It takes a certain type of person to have the kind of ambition necessary for success. If you've discovered FOREX global trading recently then it wouldn't be so silly to assume you've tried other ways to make money on your own. After all, trying to learn more about FOREX global trading tells me off that bat that you want more out of life.
The fact that you've found this article tells me a number of things.
-You want to obtain more financial freedom without some get rich quick scheme.
-You want to have your own legitimate business that you won't be a slave to.
-You want the ability to work anywhere at any time according to your own schedule.
-You're an intelligent person who is not afraid to learn an analytical system.
-You're willing to learn how to work most efficiently, knowing that it will pay off in the long run.
-You've already got what it takes to make FOREX global trading work for you.
My last statement may seem like a bold one to make. The bottom line is, you've already taken the first step to achieving your goals through FOREX global trading by taking the time to LEARN before you EARN.
So let's get right into it. Let's learn what FOREX global trading is and how to MASTER it.
1. What is FOREX global trading?
FOREX stands for Foreign Exchange Market. It is based on an international marketplace where currencies are bought and sold. Only the participants in the FOREX market determine the price of one currency against another. In other words, the prices of currencies are based upon supply and demand. This is similar to the idea behind stock price determinations. The difference? Well you could call it a difference, but I call it an advantage. Currency prices can not be affected by large buyers in the FOREX marketplace. In the traditional stock market, when stocks are bought up by institutional buyers, stock prices fluctuate. This is not a factor in the FOREX global trading market place because it is the largest liquid financial market available. Between 1 and 1.5 Trillion dollars are traded everyday in the FOREX market. It's impossible for an institutional buyer to make a splash. This is a huge advantage for the "little guy" who doesn't have a huge budget. If you take the time to learn how to play the FOREX game, anyone can make a fortune. Success is based on following the rules of the market and knowing the signs to look for.
2. How does FOREX global trading work?
Currency transactions do not take place on a centralized exchange like the NYSE. It's a global market and therefore trades take place all over the world through telecommunications. You can trade on the FOREX global market 24 hours a day from Sunday afternoon untill friday afternoon. For GMT time, this is translated to 12am on Monday to 10:00pm on Friday. The process is a fairly simple one. You buy and sell currencies through dealers. The link I provide at the bottom of the article will steer you in the right direction for finding a qualified dealer. Think of a dealer as a broker. The dealers provide quotes for all major currencies and you decide which currently is a sound investment at any given time. A big advantage to working with dealers in FOREX global trading is the ability to obtain a line of credit off of a very small initial rate. You can get a line of credit off of a $500 payment with many dealers. This leverages your ability for huge gains in the FOREX marketplace. The tactic is called marginal trading, and although it can be risky, once you know how to play the game it is the ideal way to "take the house's money". The appeal of marginal trading is that investments can be made with relatively small startup capital. You don't need a big money supply to be a big winner in the FOREX global trading business. This also allows for bigger investments to be made with fewer money transfer costs.
Marginal trading is broken up into "lots". A "lot" is an amount close to $100,000 that can be financed with as little money as .5% down. This means for $500 you can leverage a $100,000 investment. - WOW! That is buying power. Unlike traditional investment methods like flipping real estate, it doesn't take time to build up your wealth. You can leverage your money to grow as quickly as you feel comfortable growing.
3. What are some investment strategies for FOREX global trading?
The investment strategies for FOREX trading don't differ too much from tradition stock market trading. Strategies are categorized into two divisions - Fundamental Analysis and Technical Analysis.
Funamental Analysis will look at a particular regions currency and take into consideration such things as their countries economy, their bank's current interest rate, inflation rates, unemployment levels and a host of other factors. It is important to keep in mind that any anticipations based on fundamental analysis, should be considered against the perceptions of other investors in the FOREX marketplace. Afterall, it is more than likely that the current currency price reflects all perceived knowledge of a country's economical situation.
Technical Analysis is based on graph reading and interpreting signals from financial statistics. The link I give at the bottom of this article gives great insight into this strategy of investing in the FOREX global market. I personally am a big believer in Technical Analysis over Fundamental Analysis. Numbers are open to only so much interpretation and perception. Technical Analysis is a much more black and white way for many investors to choose their winners in the FOREX global market. This is solely my opinion. You can read on through my link below for a far more granular, in depth look at numerous strategies that work and the most efficient ways to employ them.
Wednesday, December 24, 2008
10 reasons to trade with forex.com
10 REASON TO TRADE WITH FOREX.COM
1.Trade on spreads as low as 1-2 pips, commission-free
Trade on dealing spreads as low as 1-2 pips on the most widely traded currency pairs. As always, you pay no commissions at FOREX.com, only the bid/offer spread. And with our fractional pips, you gain an extra digit of precision so that you can take advantage of smaller price movements. Plus, you can enter orders at any price - even inside the spread - and trade around news events, major economic announcements and other times of high market volatility. For traders who prefer to trade in a fixed spreads environment, that option is also available.
2.FUlly automated click & deal trading, with instantaneous fills
At FOREX.com, we've always automated processing for all click & deal forex trades. When you click BUY or SELL, our systems perform a real time margin check and, if accepted, immediately respond with a trade confirmation. Why is this important to you? First, you benefit from an unbiased trading environment that is not subject to human intervention. Second, automated trade processing improves our efficiency, which lowers our overhead and allows us to pass along the saving to you in the form of tighter spreads
3.Flexible account types and leverage
» Standard accounts, with a default lot size of 100K and leverage of 100:1 (1%), are well suited for active forex traders. » Mini Accounts feature smaller, 10k contract sizes and leverage of up to 200:1. For traders new to the forex market, a mini account is a great way to get started trading in a live environment. Get Started Now.
Open a FOREX.com trading account.
Open a FOREX.com trading account.
4.Award-winning forex trading platform
We pioneered our signature "one-click" dealing in 2000 and have been nominated as Best Forex Brokerage by the readers of Technical Analysis of Stocks and Commodities for the past two years. Our proprietary trading platform, FOREXTrader, successfully combines ease-of-use with remarkable flexibility. FOREXTrader offers a highly intuitive user interface, advanced customization features, and a full suite of professional charting and order management tools. Take a closer look at FOREXTrader
5.Advanced tools & research
As a FOREX.com client, you'll have access to a variety of resources and unique trading tools that can help you make more informed trading decisions.
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Full suite of daily and weekly forex research. Whether you're interested in fundamental analysis or technical trading methods, you'll have access to a wide variety of institutional-grade Forex market analysis as a FOREX.com client. And, tune in to our Weekly Market Call for timely trading ideas and analysis from Brian Dolan, our Chief Currency Strategist.
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ForexInsider streaming market commentary: Our exclusive FOREXInsider delivers actionable analysis of news, events and technical levels that impact currency prices, in real-time, to your trading platform. Updates are published as often as 20 times an hour, so that you can act instantly on new market intelligence.
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FOREXCharts by eSignal: Access eSignal's professional level charting package with over 30 analytical tools and indicators, a complete selection of drawing tools, and choice of real-time data feed. Preview FOREXCharts by eSignal
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Full suite of daily and weekly forex research. Whether you're interested in fundamental analysis or technical trading methods, you'll have access to a wide variety of institutional-grade Forex market analysis as a FOREX.com client. And, tune in to our Weekly Market Call for timely trading ideas and analysis from Brian Dolan, our Chief Currency Strategist.
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ForexInsider streaming market commentary: Our exclusive FOREXInsider delivers actionable analysis of news, events and technical levels that impact currency prices, in real-time, to your trading platform. Updates are published as often as 20 times an hour, so that you can act instantly on new market intelligence.
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FOREXCharts by eSignal: Access eSignal's professional level charting package with over 30 analytical tools and indicators, a complete selection of drawing tools, and choice of real-time data feed. Preview FOREXCharts by eSignal
6.Guaranteed fills on stop loss and limit orders
During FOREX.com's trading hours, all stop and limit orders up to $2 million are guaranteed to be filled at your price. We understand that stop loss and limit orders are an important part of every trader's risk management strategy, and so we take this policy very seriously. This policy does not apply during major fundamental announcements, or outside FOREX.com's normal trading hours.
Negative account balance protection At FOREX.com, your risk is only limited to funds on deposit. Our margin policy eliminates concerns about debit balances by guaranteeing that you will never owe more than you have in your account.
Support for automated (API) trade executions For clients utilizing an algorithmic trading system or their own black box strategy, FOREXTrader supports fully automated trade execution via a standard FIX protocol or web-services API. The API provides users with the ability to receive a real-time rate feed, submit trade requests, set and modify stop-loss and take-profit orders, and receive automated confirmations of trade activity. Developers can request access to a testing environment in order to test their systems in real time before using the API in a production environment. Find out more about API trading.
Wireless trading and account access As a FOREX.com client or registered practice account user, you can access the currency markets via virtually any Internet-enabled wireless device. Keep on top of the market from anywhere – you can view real-time forex quotes, news and commentary, and charts and set rate alerts. You can also monitor your open positions, leave orders, even buy and sell at the market. There are no extra fees, and no special sign up. All you need is an Internet-enabled wireless device. Learn more about FOREXTrader.wireless.
Trader education, mentoring services, and more FOREX.com delivers hands-on forex training through a variety of educational programs and events. For traders just getting started in the Forex market, we offer one-on-one platform walkthroughs, online training courses, as well as live, introductory web-based seminars ("webinars"). Exclusive client-only events cover more in-depth trading techniques and strategies and include an interactive Q&A with our senior analysts and currency strategists. As a FOREX.com client, you can also take advantage of our professional mentoring services. During your one-on-one consultations with a senior forex specialist, you can discuss the latest market research report, ask for a second opinion about your trading plan, or just bounce ideas around. Contact us to learn more about our mentoring services.
Negative account balance protection At FOREX.com, your risk is only limited to funds on deposit. Our margin policy eliminates concerns about debit balances by guaranteeing that you will never owe more than you have in your account.
Support for automated (API) trade executions For clients utilizing an algorithmic trading system or their own black box strategy, FOREXTrader supports fully automated trade execution via a standard FIX protocol or web-services API. The API provides users with the ability to receive a real-time rate feed, submit trade requests, set and modify stop-loss and take-profit orders, and receive automated confirmations of trade activity. Developers can request access to a testing environment in order to test their systems in real time before using the API in a production environment. Find out more about API trading.
Wireless trading and account access As a FOREX.com client or registered practice account user, you can access the currency markets via virtually any Internet-enabled wireless device. Keep on top of the market from anywhere – you can view real-time forex quotes, news and commentary, and charts and set rate alerts. You can also monitor your open positions, leave orders, even buy and sell at the market. There are no extra fees, and no special sign up. All you need is an Internet-enabled wireless device. Learn more about FOREXTrader.wireless.
Trader education, mentoring services, and more FOREX.com delivers hands-on forex training through a variety of educational programs and events. For traders just getting started in the Forex market, we offer one-on-one platform walkthroughs, online training courses, as well as live, introductory web-based seminars ("webinars"). Exclusive client-only events cover more in-depth trading techniques and strategies and include an interactive Q&A with our senior analysts and currency strategists. As a FOREX.com client, you can also take advantage of our professional mentoring services. During your one-on-one consultations with a senior forex specialist, you can discuss the latest market research report, ask for a second opinion about your trading plan, or just bounce ideas around. Contact us to learn more about our mentoring services.
7.Negative account balance protection
At FOREX.com, your risk is only limited to funds on deposit. Our margin policy eliminates concerns about debit balances by guaranteeing that you will never owe more than you have in your account.
8.Support for automated (API) trade executions
For clients utilizing an algorithmic trading system or their own black box strategy, FOREXTrader supports fully automated trade execution via a standard FIX protocol or web-services API. The API provides users with the ability to receive a real-time rate feed, submit trade requests, set and modify stop-loss and take-profit orders, and receive automated confirmations of trade activity. Developers can request access to a testing environment in order to test their systems in real time before using the API in a production environment. Find out more about API trading.
9.Trader education, mentoring services, and more
FOREX.com delivers hands-on forex training through a variety of educational programs and events. For traders just getting started in the Forex market, we offer one-on-one platform walkthroughs, online training courses, as well as live, introductory web-based seminars ("webinars"). Exclusive client-only events cover more in-depth trading techniques and strategies and include an interactive Q&A with our senior analysts and currency strategists. As a FOREX.com client, you can also take advantage of our professional mentoring services. During your one-on-one consultations with a senior forex specialist, you can discuss the latest market research report, ask for a second opinion about your trading plan, or just bounce ideas around. Contact us to learn more about our mentoring services.
10.Wireless trading and account access
As a FOREX.com client or registered practice account user, you can access the currency markets via virtually any Internet-enabled wireless device. Keep on top of the market from anywhere – you can view real-time forex quotes, news and commentary, and charts and set rate alerts. You can also monitor your open positions, leave orders, even buy and sell at the market. There are no extra fees, and no special sign up. All you need is an Internet-enabled wireless device.
A Guide to Global FOREX trading
It's probably hard for some people to believe, but the global FOREX trading market dwarfs that of equities, even though the former gets little attention and the latter is talked about incessantly on the news.
The daily volume of global FOREX trading now exceeds $2 trillion dollars! To be sure, it is the leader in the competitive field of market exchange. Currently, London holds the title for the world’s largest foreign exchange center, accumulating 30% of the currency business.
Global FOREX trading is exciting for many reasons.
First, the markets are almost always open. One can trade 24/7 as currencies fluctuate all day and night. Compare that to equities where one can only effectively trade during market hours when the stock exchanges are open.
Second, the potential leverage in global FOREX trading is astounding.
In stock trading, one either trades with money they have or, at best, can open a margin account and trade with double leverage. A margin account funded with, for example, $25,000 can control $50,000 dollars worth of equity positions.
Now contrast that with global FOREX trading in which one can often obtain leverage of 20 times, 50 times, and even 100 times one's original capital.
For example, it's not uncommon to be able to open an account at an online FOREX brokerage with $5,000 and be able to control position sizes of $200,000 or more. (In FOREX, trading is realized in lots. 1 Lot = 100,000).
Think about that! If you funded an account with a mere $10,000 dollars you could control $500,000 worth of positions (10 lots). If your positions moved favorably giving you only a 5% gain you would be in profit $25,000 dollars. From an only $10,000 dollar initial capital!
Clearly the immense leverage in global FOREX trading is what lures a lot of players into the game. However, leverage can cut both ways and it's possible to get wiped out just as fast as one can make a veritable fortune.
Because such large sums of money can be made playing the FOREX markets, hobbyists and full time currency traders are quickly increasing in numbers.
For both amateur and pro alike, getting quality FOREX analysis of the markets -- both fundamental and techical -- is extremely important.
And for people who have yet to learn how to FOREX trade, taking an online course is paramount to get them off to a proper start.
Indeed, it can make the difference between being successful and getting wiped out, although there is no guarantee that even the best newsletter analysis service or FOREX training course will guarantee you profits or guard you against losses.
That's why global FOREX trading is considered a highly speculative endeavor.
The people who do best at it will be methodical, have strong control over their impulses and emotions, are analytical to a fault, and are all around disciplined individuals.
Ever since the speculator George Soros of the Quantum Hedge Fund realized a profit of over $1 billion dollars in a few short days by shorting the British pound in 1992, market players have become more and more drawn to the exciting game of global FOREX trading.
Make no mistake about it, FOREX trading will continue to grow over the years, especially with the advent of online FOREX brokerages that allow people to trade from the comfort of their own home office all night.
Dan Ho is an investor, trader, and speculator who enjoys studying economics, technical analysis and the markets. He has traded equities, options, and currencies.
The daily volume of global FOREX trading now exceeds $2 trillion dollars! To be sure, it is the leader in the competitive field of market exchange. Currently, London holds the title for the world’s largest foreign exchange center, accumulating 30% of the currency business.
Global FOREX trading is exciting for many reasons.
First, the markets are almost always open. One can trade 24/7 as currencies fluctuate all day and night. Compare that to equities where one can only effectively trade during market hours when the stock exchanges are open.
Second, the potential leverage in global FOREX trading is astounding.
In stock trading, one either trades with money they have or, at best, can open a margin account and trade with double leverage. A margin account funded with, for example, $25,000 can control $50,000 dollars worth of equity positions.
Now contrast that with global FOREX trading in which one can often obtain leverage of 20 times, 50 times, and even 100 times one's original capital.
For example, it's not uncommon to be able to open an account at an online FOREX brokerage with $5,000 and be able to control position sizes of $200,000 or more. (In FOREX, trading is realized in lots. 1 Lot = 100,000).
Think about that! If you funded an account with a mere $10,000 dollars you could control $500,000 worth of positions (10 lots). If your positions moved favorably giving you only a 5% gain you would be in profit $25,000 dollars. From an only $10,000 dollar initial capital!
Clearly the immense leverage in global FOREX trading is what lures a lot of players into the game. However, leverage can cut both ways and it's possible to get wiped out just as fast as one can make a veritable fortune.
Because such large sums of money can be made playing the FOREX markets, hobbyists and full time currency traders are quickly increasing in numbers.
For both amateur and pro alike, getting quality FOREX analysis of the markets -- both fundamental and techical -- is extremely important.
And for people who have yet to learn how to FOREX trade, taking an online course is paramount to get them off to a proper start.
Indeed, it can make the difference between being successful and getting wiped out, although there is no guarantee that even the best newsletter analysis service or FOREX training course will guarantee you profits or guard you against losses.
That's why global FOREX trading is considered a highly speculative endeavor.
The people who do best at it will be methodical, have strong control over their impulses and emotions, are analytical to a fault, and are all around disciplined individuals.
Ever since the speculator George Soros of the Quantum Hedge Fund realized a profit of over $1 billion dollars in a few short days by shorting the British pound in 1992, market players have become more and more drawn to the exciting game of global FOREX trading.
Make no mistake about it, FOREX trading will continue to grow over the years, especially with the advent of online FOREX brokerages that allow people to trade from the comfort of their own home office all night.
Dan Ho is an investor, trader, and speculator who enjoys studying economics, technical analysis and the markets. He has traded equities, options, and currencies.
Forex Global Trading - Is A Forex Demo Account Really Needed
Welcome to the wonderful world of forex global trading! It is here that you will find both riches and poverty. Joy and sorrow. Dreams fulfilled and hopes dashed. It may sound like an overly dramatic start to an article on forex global trading but to the trader that has been around a while it sounds too much like reality. The point that is being made is this: When it comes to forex global trading, the future is wide open and how you go about trading and what you put into it will largely determine what you get out of it (or lose from it for that matter). Personally, I can attest to the upside and downside of trading as I have been through all that you can imagine. When a move goes your way, there is not a better feeling in the whole world but the other side of things brings on the empty gnawing emotion that is equally powerful. The GOOD NEWS is that you can do something about it. It does not take a genius to make money on Forex Global Trading but is does take someone who is teachable. That is really all there is to it. If you can be taught then you can prosper and prosper greatly I might add. Let me explain a little further.
First, I would absolutely recommend a demo account to get started with. After you have opened up a demo account then you need to learn strategies, discipline, and confidence. Sounds easy? Well it is not and that is why 90% or more of all traders lose their entire nest egg within the first year. What a shame! It does not have to be that way. You can and will make a good consistent profit day in and day out IF you learn the strategies, discipline, and keep your confidence. How do you go about accomplishing this?
The absolute most effective way to accomplishing the goal of becoming a successful forex trader is to trade with a really good set of trading strategies. It may sound overly simplistic and basic but it is an absolute necessity! It does not matter if you have the most ardent discipline. If you go to trade without the best strategies it is like Barry Bonds stepping into the batter's box with a broom stick instead of a Louisville Slugger. Click on the link below to find the best forex trading strategies around.
First, I would absolutely recommend a demo account to get started with. After you have opened up a demo account then you need to learn strategies, discipline, and confidence. Sounds easy? Well it is not and that is why 90% or more of all traders lose their entire nest egg within the first year. What a shame! It does not have to be that way. You can and will make a good consistent profit day in and day out IF you learn the strategies, discipline, and keep your confidence. How do you go about accomplishing this?
The absolute most effective way to accomplishing the goal of becoming a successful forex trader is to trade with a really good set of trading strategies. It may sound overly simplistic and basic but it is an absolute necessity! It does not matter if you have the most ardent discipline. If you go to trade without the best strategies it is like Barry Bonds stepping into the batter's box with a broom stick instead of a Louisville Slugger. Click on the link below to find the best forex trading strategies around.
Global Forex Trading – The Easy Way to Make Money
Global forex trading was founded in 1997 and is today one of the world’s leading providers when it comes to forex real time trading. Global forex trading offer you the chance to deal in real time online currency trading that is making millions of forex brokers rich each day.
Global forex trading serves over 100 countries, using its DealBrook FX2 software and 24 hour market access with one of the highest levels of customer service available in the forex trading industry. With Global forex trading forex brokers have access to pricing for more than 60 currency pair and excellent analytical services from renowned experts. There are up to the minute currency news bulletins and advanced forex charts available. Global forex trading boasts that they provide the only forex trading platform that is suitable for both beginners and professionals.
Forex Trading Advantages
The forex trading market is open 24 hours a day and is today the most liquid market in the world. With forex and the available leverage strategy you can use 100 to 1 leverage which in turn reduces the need for large amounts of capital to be placed in your account. Forex trading is also commission free and trading is available on more than 60 currencies worldwide. Another advantage of forex trading is of course the fact that it is global and there are not restrictions placed on shorting which means that you can enjoy your profit opportunities no matter what the market condition.
Prior to reading this information you may have assumed that forex trading was only available for large investors but thanks to Global forex trading smaller transactions are now available which allows all traders to take part giving everyone the opportunity to profit from forex trading. Don’t you think it’s time you started profiting.
Global forex trading serves over 100 countries, using its DealBrook FX2 software and 24 hour market access with one of the highest levels of customer service available in the forex trading industry. With Global forex trading forex brokers have access to pricing for more than 60 currency pair and excellent analytical services from renowned experts. There are up to the minute currency news bulletins and advanced forex charts available. Global forex trading boasts that they provide the only forex trading platform that is suitable for both beginners and professionals.
Forex Trading Advantages
The forex trading market is open 24 hours a day and is today the most liquid market in the world. With forex and the available leverage strategy you can use 100 to 1 leverage which in turn reduces the need for large amounts of capital to be placed in your account. Forex trading is also commission free and trading is available on more than 60 currencies worldwide. Another advantage of forex trading is of course the fact that it is global and there are not restrictions placed on shorting which means that you can enjoy your profit opportunities no matter what the market condition.
Prior to reading this information you may have assumed that forex trading was only available for large investors but thanks to Global forex trading smaller transactions are now available which allows all traders to take part giving everyone the opportunity to profit from forex trading. Don’t you think it’s time you started profiting.
The Basics Of FOREX Trading
If you want the potential of making a lot of money in a short time, then FOREX (Foreign Exchange, or FX) may be just what you are looking for. It has long been the means of the ultra rich to use FOREX principles of gaining their wealth, and it has, until recently been out of reach for the average person. Now, though, many people are trying their hand at gaining wealth this way. Here are some basic thoughts about how FOREX works.
FOREX is based on the trading of one currency for another. Every day, due to international trade and business, as well as political events, one currency's value will fluctuate. Money can be gained in FX by being able to know when the currency of one country will fluctuate - and in which direction.
Although the information in FOREX uses the US dollar as its basis in most currencies, it is not always the case. Where a nation's currency is stronger than the dollar, such as in the case of the English pound, and the euro, that currency is listed first. You will see the listings of what is happening on the FOREX market using a listing such as USD/JPY 117.36. In this case, one dollar will buy 117.36 Japanese yen.
On the same chart, you will also usually see an arrow indicating whether the relationship between the two is changing - and in which direction - up or down. Most currencies are listed with 4 digits beyond the decimal (Japanese yen is the only exception). When your FOREX trading and selling results in a difference of .0001, you have gained a pip.
Trading in FOREX is actually done in units of $100,000, although you do not need to have anywhere near that much. Trades in FX can be made with as little as $50, or so. A FOREX broker, which you must have in order to trade in FOREX, will add to your purchase enough to bring the trade up to $100,000. This is called leverage. Even though you may have actually only used $1,000, the broker brings it up to the needed $100,000. In some cases your leverage advantage can be as high as 400:1. The nice thing about FX, though, is that you keep the winnings as if you had actually used $100,000.
FOREX trading actually provides you with several advantages over trading in the stock market. First, because you are actually trading in currency values, your money is always liquid. Secondly, winnings are often quick - taking place within a few hours. A third advantage is that there may not even be any cost - no broker's fee. Some will charge, however, but when they do, it still is considerably lower than in the stock market.
Learning FOREX is different than the stock market because there are different factors.
Everyone has the same data to predict those fluctuations and there is no insider information. You will also need to learn how to choose your own system of predicting when to invest - using a fundamental or a technical approach, and then refining your own methodology. Practice software is available and really is a necessity when it comes to investing safely in FOREX - once you think you are ready.
FOREX is based on the trading of one currency for another. Every day, due to international trade and business, as well as political events, one currency's value will fluctuate. Money can be gained in FX by being able to know when the currency of one country will fluctuate - and in which direction.
Although the information in FOREX uses the US dollar as its basis in most currencies, it is not always the case. Where a nation's currency is stronger than the dollar, such as in the case of the English pound, and the euro, that currency is listed first. You will see the listings of what is happening on the FOREX market using a listing such as USD/JPY 117.36. In this case, one dollar will buy 117.36 Japanese yen.
On the same chart, you will also usually see an arrow indicating whether the relationship between the two is changing - and in which direction - up or down. Most currencies are listed with 4 digits beyond the decimal (Japanese yen is the only exception). When your FOREX trading and selling results in a difference of .0001, you have gained a pip.
Trading in FOREX is actually done in units of $100,000, although you do not need to have anywhere near that much. Trades in FX can be made with as little as $50, or so. A FOREX broker, which you must have in order to trade in FOREX, will add to your purchase enough to bring the trade up to $100,000. This is called leverage. Even though you may have actually only used $1,000, the broker brings it up to the needed $100,000. In some cases your leverage advantage can be as high as 400:1. The nice thing about FX, though, is that you keep the winnings as if you had actually used $100,000.
FOREX trading actually provides you with several advantages over trading in the stock market. First, because you are actually trading in currency values, your money is always liquid. Secondly, winnings are often quick - taking place within a few hours. A third advantage is that there may not even be any cost - no broker's fee. Some will charge, however, but when they do, it still is considerably lower than in the stock market.
Learning FOREX is different than the stock market because there are different factors.
Everyone has the same data to predict those fluctuations and there is no insider information. You will also need to learn how to choose your own system of predicting when to invest - using a fundamental or a technical approach, and then refining your own methodology. Practice software is available and really is a necessity when it comes to investing safely in FOREX - once you think you are ready.
Understanding the Basics of Forex Trading
Forex trading or Foreign Exchange Trading refers to the simultaneous trading—that is, buying and selling—of two different currencies. It is done between and among major financial institutions, central banks, small retail currency traders or speculators, large international companies, government institutions, companies with overseas operations and the like.
Based on the amount of money being traded, the international forex trading market is the world’s biggest financial market. Everyday, forex trading market gets an average revenue of $US 1 trillion—an amount far greater than the total revenues produced by all the stock and bond markets in the world.
Characteristics
Forex trading is a kind of over-the-counter trading—it occurs directly between to financial institutions or currency traders. The trading markets may be interconnected but there is no single unified market. Hence, there is also no single or standard rate. Each rate or price depends on what is being traded. However, the traders traditionally use nearly similar rates.
Another characteristic of a forex trading is that it operates 24 hours; thus, one can trade any time of the day. Also, there is no need of an exchange floor, it operates through a global electronic network where trading occurs over the telephone and computer networks. This characteristic also prevents delays that consume a lot of time.
Forex trading market is also very competitive and is highly liquid. This allows the parties to get low dealing costs and better price.
Top Currency Traders and Major Currencies Traded
Wall Street Journal Europe says ten major currencies account for 73 percent of the total forex trading volume. Among them are Deutsche Bank, UBS, Citigroup, HSBC, Barclays, Merrill Lynch, J.P. Morgan Chase, Goldman Sachs, ABN Amro, and Morgan Stanley.
Among the currencies mostly traded are the US, Canadian, and Australian dollars; Euro; Yen; and Swiss France.
A study conducted by the Bank for International Settlements says that the most traded products are Euro/USD, USD/JPY, and GBP/USD. The study noted that in spite euro’s continuous growth, forex trading market remains to be concentrated in dollars.
The Trade
Trade happens when you accept the offered price and when the dealer confirms. Exchange floor is no longer required, as mentioned earlier.
In every trade, two currencies are always involved and the currencies traded serve as the products traded. Each currency has a price expressed in another currency such as 1 euro is equivalent to 1.204 dollar. In the said example, the euro trader sells the euro and buys the dollar. There are no further costs in the trade. There are no commissions and other fees as well.
Large multinational companies engage in forex trading when they are buying from and selling goods to other countries. However, this kind of forex trading encompass only a small portion of he daily activities in the foreign exchange market. Most of the trading activities are carried out by currency speculators who earn from the changes in value of a particular currency.
Key players in the Market
BIS study shows that more than 50%of the forex trading transactions are interbank transactions. Trading revenues of most commercial establishments and currency speculators are deposited in the bank.
Central banks also play a big role in the forex trading market. These banks control the supply of money, interest, inflation and target rates in order to stabilize the forex trading market.
Based on the amount of money being traded, the international forex trading market is the world’s biggest financial market. Everyday, forex trading market gets an average revenue of $US 1 trillion—an amount far greater than the total revenues produced by all the stock and bond markets in the world.
Characteristics
Forex trading is a kind of over-the-counter trading—it occurs directly between to financial institutions or currency traders. The trading markets may be interconnected but there is no single unified market. Hence, there is also no single or standard rate. Each rate or price depends on what is being traded. However, the traders traditionally use nearly similar rates.
Another characteristic of a forex trading is that it operates 24 hours; thus, one can trade any time of the day. Also, there is no need of an exchange floor, it operates through a global electronic network where trading occurs over the telephone and computer networks. This characteristic also prevents delays that consume a lot of time.
Forex trading market is also very competitive and is highly liquid. This allows the parties to get low dealing costs and better price.
Top Currency Traders and Major Currencies Traded
Wall Street Journal Europe says ten major currencies account for 73 percent of the total forex trading volume. Among them are Deutsche Bank, UBS, Citigroup, HSBC, Barclays, Merrill Lynch, J.P. Morgan Chase, Goldman Sachs, ABN Amro, and Morgan Stanley.
Among the currencies mostly traded are the US, Canadian, and Australian dollars; Euro; Yen; and Swiss France.
A study conducted by the Bank for International Settlements says that the most traded products are Euro/USD, USD/JPY, and GBP/USD. The study noted that in spite euro’s continuous growth, forex trading market remains to be concentrated in dollars.
The Trade
Trade happens when you accept the offered price and when the dealer confirms. Exchange floor is no longer required, as mentioned earlier.
In every trade, two currencies are always involved and the currencies traded serve as the products traded. Each currency has a price expressed in another currency such as 1 euro is equivalent to 1.204 dollar. In the said example, the euro trader sells the euro and buys the dollar. There are no further costs in the trade. There are no commissions and other fees as well.
Large multinational companies engage in forex trading when they are buying from and selling goods to other countries. However, this kind of forex trading encompass only a small portion of he daily activities in the foreign exchange market. Most of the trading activities are carried out by currency speculators who earn from the changes in value of a particular currency.
Key players in the Market
BIS study shows that more than 50%of the forex trading transactions are interbank transactions. Trading revenues of most commercial establishments and currency speculators are deposited in the bank.
Central banks also play a big role in the forex trading market. These banks control the supply of money, interest, inflation and target rates in order to stabilize the forex trading market.
Brief Summary of Forex Trading
The foreign exchange market is widely known as "Forex". Here brokerage firms and banks are linked over an electronic network. This network enables them to convert the currencies of countries all over the world. It is the largest and the chief liquid financial market in the world. Dollar volume of dealing of currencies daily goes beyond $1.9 trillion dollars in the currency market. Sometimes it goes beyond even the total volume of all U.S. equities and future markets.
The Forex is often considered as being dominated by the government central banks, and commercial and investment banks. That is why private investors prefer to deal on the currency exchanges. It is easy for them to access via various technological innovations like the Internet.
Widely traded currencies include US Dollar, British Pound, Swiss Franc, Japanese Yen, Canadian Dollar and Australian Dollar. Trade in Forex is done for five days a week, round the clock with constant access to dealers throughout the world. It is not centered on any physical location or any exchange, as it is with the stock or future markets. Transactions take place between two corresponding persons over a phone line or through an electronic network.
Background
In the very beginning, there was a barter system i.e. exchange of goods with one another as per individual requirement. But its obvious limitations led to the establishment of mostly accepted channels of exchange.
Consequently, metal coins came to the scenario. However, paper form of governmental IOUs required approval in political administrations during the Middle Ages.
Prior to the First World War, most of the central banks moved ahead to support their currencies with convertibility to gold. But at times, this resulted in political instability due to devastating inflation. This was due to the expanding supply of paper money with no gold coverage. Therefore, Forex controls were initiated to protect local national interest.
Later on, during the Second World War, the USA introduced the Bretton Woods agreement in July 1944. As a result, this agreement led to a system of fixed exchange rates that re-established the gold standard to an extent and also stabilized the dollar at USD 35/oz. It also fixed the other prominent currencies to the dollar and thus made it permanent.
The last few decades have witnessed the developing of Forex trading into the largest global market. By now, all the restrictions from the capital flows have been put off in several countries. It has resulted in the independency of the markets to settle Forex rates as per their perceived values.
There are a number of reasons due to which Forex trading has gained popularity. The most prominent include available leverage, utmost liquidity round the clock a day and extremely low dealing cost, which relate to trading. Certain basics of Forex trading are as follows:
Margin Trading: Here trading is done generally on a margin basis. A larger position in the market can be acquired by a relatively small deposit.
Base and Variable Currency: Trading is done with the combination of two currencies. But two sides of trade are always there i.e. long (bought) and short (sold). Not always, but generally, the trade currency is with the highest value.
Spot and Forward Trading: This means that if no further step is taken, then, dealing will be settled after two business days.
Interest Rates Differentials: Different interest rates are paid by different currencies.
There are also other basics of Forex trading, but one thing is definite - the size of Forex has now made any other investment market smaller to a great extent.
The Forex is often considered as being dominated by the government central banks, and commercial and investment banks. That is why private investors prefer to deal on the currency exchanges. It is easy for them to access via various technological innovations like the Internet.
Widely traded currencies include US Dollar, British Pound, Swiss Franc, Japanese Yen, Canadian Dollar and Australian Dollar. Trade in Forex is done for five days a week, round the clock with constant access to dealers throughout the world. It is not centered on any physical location or any exchange, as it is with the stock or future markets. Transactions take place between two corresponding persons over a phone line or through an electronic network.
Background
In the very beginning, there was a barter system i.e. exchange of goods with one another as per individual requirement. But its obvious limitations led to the establishment of mostly accepted channels of exchange.
Consequently, metal coins came to the scenario. However, paper form of governmental IOUs required approval in political administrations during the Middle Ages.
Prior to the First World War, most of the central banks moved ahead to support their currencies with convertibility to gold. But at times, this resulted in political instability due to devastating inflation. This was due to the expanding supply of paper money with no gold coverage. Therefore, Forex controls were initiated to protect local national interest.
Later on, during the Second World War, the USA introduced the Bretton Woods agreement in July 1944. As a result, this agreement led to a system of fixed exchange rates that re-established the gold standard to an extent and also stabilized the dollar at USD 35/oz. It also fixed the other prominent currencies to the dollar and thus made it permanent.
The last few decades have witnessed the developing of Forex trading into the largest global market. By now, all the restrictions from the capital flows have been put off in several countries. It has resulted in the independency of the markets to settle Forex rates as per their perceived values.
There are a number of reasons due to which Forex trading has gained popularity. The most prominent include available leverage, utmost liquidity round the clock a day and extremely low dealing cost, which relate to trading. Certain basics of Forex trading are as follows:
Margin Trading: Here trading is done generally on a margin basis. A larger position in the market can be acquired by a relatively small deposit.
Base and Variable Currency: Trading is done with the combination of two currencies. But two sides of trade are always there i.e. long (bought) and short (sold). Not always, but generally, the trade currency is with the highest value.
Spot and Forward Trading: This means that if no further step is taken, then, dealing will be settled after two business days.
Interest Rates Differentials: Different interest rates are paid by different currencies.
There are also other basics of Forex trading, but one thing is definite - the size of Forex has now made any other investment market smaller to a great extent.
FX Currency Trading For Beginners
Foreign currency trading or FX currency trading is the new age buzzword for the smart investors. In the global market of foreign currencies, prices fluctuate against one another and change value over time. This creates the opportunity for investment by trading one currency against the other. The dramatic evolution of communication technologies in recent years made it possible for millions of small individual investors to trade forex which was not open to them earlier.
According to a recent study, currencies worth more than $1 trillion are traded daily in the global forex market. Global political and economic events influence forex currency trading. The rates of currencies are determined by the investors’ attitude influencing the market. So if you were capable of foreseeing these developments, you can make profits in FX currency trading. On the other hand, if your assumptions are not correct, you may suffer huge losses. So the key to successful forex currency trading is knowledge.
Forex trading involves currency transactions between banks, investment funds, forex brokers and traders. The demand and supply of a particular currency and investors' expectations determine the market price of that currency. There is no physical location of the market and it is a virtual market.
Four “currency pairs” dominate the global forex currency trading market. These are Euro versus U.S. Dollar, US Dollar versus Japanese Yen, US Dollar versus Swiss Franc, and US Dollar versus British Pound. So for any investor, it will be wise to hold a currency that appreciates in value in relation to the other currencies. For example, you may buy 50 British Pounds for US$100 and hold the Pounds for a while. When the value of Pounds increases in relation to US Dollars, you may sell those Pounds to earn $120.
Analyzing forex currency trading market is also equally important. There are two types of analysis: “fundamental” and “technical”. Fundamental analysis takes into account the economic conditions, political events, situation of emergency, etc. to derive the trend. Technical analysis, on the other hand predicts the future trend on the basis of past prices and trends. Fundamental analysis explains the reasons behind price movements and attempts to predict changes in price and market trends. Traders and investors adopt a hybrid method of analysis based on both technical and fundamental analysis for their Fx currency trading.
Forex currency trading is sometimes described as one of the riskiest financial markets. However, by choosing the reasonable leverage size, traders can minimize their risks. The Forex market is a highly speculative in nature and the ability to analyze price behavior becomes an invaluable asset for any trader or investor.
Since every country is involved in forex currency trading, the market is open round the clock. Irrespective of geographical location, any investor can open an account and buy and sell in any quantity of forex currencies from anywhere in the world. The FX currency trading offers fantastic opportunity for wealth provided you know the basic rules and regulations of the market. Therefore, before starting FX currency trading, do your homework and read as much as to maximize your knowledge hence profits.
According to a recent study, currencies worth more than $1 trillion are traded daily in the global forex market. Global political and economic events influence forex currency trading. The rates of currencies are determined by the investors’ attitude influencing the market. So if you were capable of foreseeing these developments, you can make profits in FX currency trading. On the other hand, if your assumptions are not correct, you may suffer huge losses. So the key to successful forex currency trading is knowledge.
Forex trading involves currency transactions between banks, investment funds, forex brokers and traders. The demand and supply of a particular currency and investors' expectations determine the market price of that currency. There is no physical location of the market and it is a virtual market.
Four “currency pairs” dominate the global forex currency trading market. These are Euro versus U.S. Dollar, US Dollar versus Japanese Yen, US Dollar versus Swiss Franc, and US Dollar versus British Pound. So for any investor, it will be wise to hold a currency that appreciates in value in relation to the other currencies. For example, you may buy 50 British Pounds for US$100 and hold the Pounds for a while. When the value of Pounds increases in relation to US Dollars, you may sell those Pounds to earn $120.
Analyzing forex currency trading market is also equally important. There are two types of analysis: “fundamental” and “technical”. Fundamental analysis takes into account the economic conditions, political events, situation of emergency, etc. to derive the trend. Technical analysis, on the other hand predicts the future trend on the basis of past prices and trends. Fundamental analysis explains the reasons behind price movements and attempts to predict changes in price and market trends. Traders and investors adopt a hybrid method of analysis based on both technical and fundamental analysis for their Fx currency trading.
Forex currency trading is sometimes described as one of the riskiest financial markets. However, by choosing the reasonable leverage size, traders can minimize their risks. The Forex market is a highly speculative in nature and the ability to analyze price behavior becomes an invaluable asset for any trader or investor.
Since every country is involved in forex currency trading, the market is open round the clock. Irrespective of geographical location, any investor can open an account and buy and sell in any quantity of forex currencies from anywhere in the world. The FX currency trading offers fantastic opportunity for wealth provided you know the basic rules and regulations of the market. Therefore, before starting FX currency trading, do your homework and read as much as to maximize your knowledge hence profits.
No Short Selling Restrictions
Forex trading always involves buying one currency and selling another, so traders can easily trade in a rising or falling market. There is no Zero Uptick rule or any other restriction against shorting a currency.At $1.9 Trillion Per Day, Forex is the Most Traded Market in the WorldThe sheer volume of Forex helps to facilitates price stability in most market conditions. What's more, almost 85% of all currency transactions involve the 7 major currency pairs.Trade on Your Schedule; Respond to Changes in the MarketForex is a true 24-hour market, open continuously from 5:00pm ET on Sunday to 5:00 pm on Friday.
With three distinct trading sessions in the US, Europe and Asia, you can trade on your own schedule and respond to breaking news.Keep 100% of Your Trading ProfitsFOREX.com charges no commissions or transaction fees, while still offering free access to real-time quotes, news, charts, research, and more. The cost of trading is built into the bid/ask spread. Also, dealing spreads as low as 3 pips (.0003) are available in currency trading.
Even at a penny ($.01), the bid/ask on a stock trade is 30x wider, in addition to the brokerage commission.Up to 200:1 LeverageWith more buying power, you can increase your total return on investment with less cash outlay. Of course, increasing leverage increases risk. With $1,000 cash in a margin account that allows 200:1 leverage (.5%), you can trade up to $200,000 in notional value.
With three distinct trading sessions in the US, Europe and Asia, you can trade on your own schedule and respond to breaking news.Keep 100% of Your Trading ProfitsFOREX.com charges no commissions or transaction fees, while still offering free access to real-time quotes, news, charts, research, and more. The cost of trading is built into the bid/ask spread. Also, dealing spreads as low as 3 pips (.0003) are available in currency trading.
Even at a penny ($.01), the bid/ask on a stock trade is 30x wider, in addition to the brokerage commission.Up to 200:1 LeverageWith more buying power, you can increase your total return on investment with less cash outlay. Of course, increasing leverage increases risk. With $1,000 cash in a margin account that allows 200:1 leverage (.5%), you can trade up to $200,000 in notional value.
ONLINE FOREX TRADING
« How do I get started in Forex?
Whither the dollar? »
The Foreign Exchange
The Foreign Exchange is the largest financial market in the world, with trillions of dollars traded each and every day. Initially utilized just by large banks, multinational corporations and extremely wealthy currency speculators, the influx of online brokerages tailored to the retail market has created a vibrant retail foreign exchange market! Now, with a relatively small initial investment, anyone with an internet connection can take advantage of the online Forex market.
While banks and large multinational corporations generally execute foreign exchange transactions simply as a function of doing international business or to hedge their base currency to protect against devaluation, currency speculators exploit fluctuations in the foreign exchange market exclusively for profit. While trading currencies is a bit riskier than trading other instruments, like stocks and commodities, the potential for profit is unparalleled. For example George Soros, perhaps the most successful Forex trader, made $1 billion in a single day when he sold the pound against the dollar in 1992.
The major currencies traded on the foreign exchange are the US dollar, the Eurodollar, the Japanese Yen, the Swiss Franc, and the British Pound. These different currencies are expressed as pairs. When these pairs are traded, one of the currencies is bought and the other currency is sold concurrently. Today, anyone with an internet connection can trade these pairs under the same conditions once reserved for high value individuals and corporations. Most retail brokerages offer real time currency prices, instant execution, advanced charting features and extensive real time news and analysis feeds.
If you are interested in trying out the foreign exchange, we have assembled a list of quality brokerages that offer free “fake money” accounts where one may trade in real market conditions. Not only is their immense profit potential in the Foreign Exchange market, it is quite exhilarating as well. Why not give it a shot?
Whither the dollar? »
The Foreign Exchange
The Foreign Exchange is the largest financial market in the world, with trillions of dollars traded each and every day. Initially utilized just by large banks, multinational corporations and extremely wealthy currency speculators, the influx of online brokerages tailored to the retail market has created a vibrant retail foreign exchange market! Now, with a relatively small initial investment, anyone with an internet connection can take advantage of the online Forex market.
While banks and large multinational corporations generally execute foreign exchange transactions simply as a function of doing international business or to hedge their base currency to protect against devaluation, currency speculators exploit fluctuations in the foreign exchange market exclusively for profit. While trading currencies is a bit riskier than trading other instruments, like stocks and commodities, the potential for profit is unparalleled. For example George Soros, perhaps the most successful Forex trader, made $1 billion in a single day when he sold the pound against the dollar in 1992.
The major currencies traded on the foreign exchange are the US dollar, the Eurodollar, the Japanese Yen, the Swiss Franc, and the British Pound. These different currencies are expressed as pairs. When these pairs are traded, one of the currencies is bought and the other currency is sold concurrently. Today, anyone with an internet connection can trade these pairs under the same conditions once reserved for high value individuals and corporations. Most retail brokerages offer real time currency prices, instant execution, advanced charting features and extensive real time news and analysis feeds.
If you are interested in trying out the foreign exchange, we have assembled a list of quality brokerages that offer free “fake money” accounts where one may trade in real market conditions. Not only is their immense profit potential in the Foreign Exchange market, it is quite exhilarating as well. Why not give it a shot?
Are You Ready To Trade The Forex Markets
Today forex currency trading is a form of trading that working men choose as this can be traded at your convenience, 24 hours a day. Trading here is done on the basis of trading of liquid currencies which are currencies of different countries that can back their currencies with commodities like gold and silver.Because of the backing of the leading banks this market became very popular. When trading forex you try to make profits based on supply and demand by using cash. You buy one currency against another hoping that the exchange rate will go in your favor and you make a profit.The forex market reacts to several variables as the stock market does. When there is political or economic news coming out this can reflect on the strength of that particular currency causing major losses when you hold that currency when this happens.Similarly, if there is an economical gain in the company through new routes or commodities involved in international trade, the cost of the currency exchange for their currency increases. This leaves you in a profit for your currency, than the previous day. And coincidently, inflation in the country proves to be profitable to you if you sell your currency at a high rate. This is because just like in the stock market, you have to buy low and sell high in the forex currency market.Most forex traders are daytraders meaning they get in and out as fast as possible. They do this because when there is any economic or political news coming out this will reflect on the currency rates. Rumours can be sufficient to make the market move. They get in and out of a trade quickly trying to maximize their profits and keep the losses to a minimum.This is the reason why success when investing in the currency exchange market lies in understanding and keeping up with the constant fluctuations of the currency market. With close monitoring on forex currency markets, you can realize when to change money to make the maximum profit in your currency market.When you want to invest a large sum of money in to the currency market it's better to use an investment fund that trades currencies as they are more experienced at this and the change of making profits is much bigger. But if you feel comfortable doing it yourself after studying these markets you can always do it yourself using a currency broker.Like everything in life,checking up on several brokerage firms before deciding which one to use is a wise thing to do. There are several experienced and trustworthy forex brokers out there. The internet can be used as a valuable source of information when studying the forex markets and it's brokerages. Educating yourselves is the most important aspect before investing your funds in these markets.
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