The most important investment strategy for long term success in the Forex market is to determine how much risk you are comfortable handling. You don't want to invest an amount of money that will keep you awake at night fearing a potential loss. In any type of investment, only use capital that you can afford to lose. Your personality and lifestyle play a big role on how much risk you are comfortable with.
The Forex market is considered a high risk investment vehicle because of the volume of daily price movements and the leverage that is available in the Forex market. Investments with greater risk must promise higher expected yields to warrant taking on the additional risk. Of course, the higher risk not only means higher returns, it also means higher potential losses. However a high potential for return doesn't always mean there is a high degree of risk. Learn and use proper money management skills to minimize your risk in the Forex market.
Before investing in the Forex market, research and choose your Forex broker carefully. This research will minimize the risk of becoming involved with a broker that will be unable to pay a withdrawal request. This has happened in the past where the broker has filed for bankruptcy protection and their clients were unable to withdraw profits and initial capital until the bankruptcy was settled. Remember, choosing a stable broker is more than choosing the biggest.
There is no right level of risk for everybody. Each of us has a different tolerance for risk. Only you can determine what level of risk is right for you. Investing in the Forex market should be viewed as a long term strategy because than the market can work for you over the long run.
Saturday, December 27, 2008
Thursday, November 27, 2008
Forex Trading Forums
Forex trading forums are online discussion sites where you can ask questions and receive answers. People participating in Forex trading forums can build bonds with each other and typically groups will form around a specific topic discussion.
Most forums are going to require you to register in order to post to other members of the board. However some Forex trading forums will allow you to have access to their forums as a guest. You can view the forum posts but will not be allowed to actually post any responses or questions until you have registered. Usually registration involves verification of your age and agreement of the terms of service that the Forex trading forum has established. Most forums will specialize in a particular subject, such as Forex trading, dog training, home improvement tips. It is not appropriate to post a home improvement tip in a Forex trading forum. After you have registered for a forum, look for the FAQ section which will contain basic information for it's new members and individuals not yet familiar with the use and principles of a forum.
Once you are a member of a Forex trading forum, it is never appropriate to spam, post derogatory or otherwise inflammatory messages. Such behavior will typically get you banned from the forum. Double or multiple posting is also frowned upon. This is when the user posts the same or nearly the same post to multiple areas of the forum, which artificially inflates a user's post count.
One major difference between Forex trading forums and Forex electronic mailing lists is that mailing lists are set up to automatically deliver new messages to their subscribers while forums require the member to visit the website and check for new posts. Most Forex trading forums today will allow members to set up an email notification feature that will alert members when new posts in a thread have been posted.
Most online Forex brokers provide their members with an area that provides either a forum or a support center where members can view previously asked questions and answers.
Most forums are going to require you to register in order to post to other members of the board. However some Forex trading forums will allow you to have access to their forums as a guest. You can view the forum posts but will not be allowed to actually post any responses or questions until you have registered. Usually registration involves verification of your age and agreement of the terms of service that the Forex trading forum has established. Most forums will specialize in a particular subject, such as Forex trading, dog training, home improvement tips. It is not appropriate to post a home improvement tip in a Forex trading forum. After you have registered for a forum, look for the FAQ section which will contain basic information for it's new members and individuals not yet familiar with the use and principles of a forum.
Once you are a member of a Forex trading forum, it is never appropriate to spam, post derogatory or otherwise inflammatory messages. Such behavior will typically get you banned from the forum. Double or multiple posting is also frowned upon. This is when the user posts the same or nearly the same post to multiple areas of the forum, which artificially inflates a user's post count.
One major difference between Forex trading forums and Forex electronic mailing lists is that mailing lists are set up to automatically deliver new messages to their subscribers while forums require the member to visit the website and check for new posts. Most Forex trading forums today will allow members to set up an email notification feature that will alert members when new posts in a thread have been posted.
Most online Forex brokers provide their members with an area that provides either a forum or a support center where members can view previously asked questions and answers.
Saturday, September 27, 2008
Forex Trading Hours
The Forex or foreign exchange market is known for being open 5 days a week, 24 hours a day. The reality of trading on the Forex market is that it is open five and half days a week and as long as the market is open you have the ability to place a trade. The Forex market is a network of computers and large banking institutions. Trading for the week begins at Sunday 5:00 p.m. Eastern Standard Time (EST) and runs through Friday 4:00 p.m. EST. You need to remember that you are trading worldwide and not just in the United States. Forex trading hours begin in New Zealand, followed by Australia, Asia, the Middle East, Europe, and then the United States.
Here is a breakdown of the open Forex trading hours:
New York Market times: 8:00 a.m. – 5:00 p.m. EST
London Market times: 3:00 a.m. – 12:00 p.m. EST
Tokyo Market times: 7:00 p.m. – 4:00 a.m. EST
Sydney Market times: 5:00 p.m. – 2:00 a.m. EST
Transactions on the Forex market remain high during the day, but peaks highest when the Asian market (which includes Australia and New Zealand), the European market and the United State market are open simultaneously. During these Forex trading hours are when you will want to make most of your trades to receive the most profitable trades. During each trading day, the total Forex
If you are watching the Forex trading hours, you will notice that two of the major markets overlap each other during trading hours; the Asian/European market from 2:00 a.m. and 4:00 a.m. EST and the European/United States from 8:00 a.m. to 12:00 p.m EST. Typically the best time to trade is during the Forex trading hours when the markets overlap each other.
Before you sign up with a Forex broker or a Forex trading
Saturday, August 23, 2008
Forex Basics
Foreign exchange or Forex investing involves buying and selling different currencies. It works on the theory that is similar with the stock market. As with the stock market to make the profit, you have to buy at a lower price and sell at a higher price, or we can also sell at a higher price first and buy at a lower price. By analyzing market conditions, you can actually make a profit in foreign exchange. All you have to do is to analyze the foreign exchange in the correct way and make the correct trade.
Why Foreign exchange investing? You have the option to invest in the stock demand, but here are a few absolute advantages of currency trading over the stock market.
24-hour Investing
Forex investing is done on 24-hours basis. The Foreign exchange market is open most of the day and night because one marketplace or the other is open, with the exception of weekends. Investors involved in foreign exchange trading strategy can get first hand information by viewing the world news or charting a country's economic well-being and than act appropriately. The currency rate is an electronic transaction involving a network of banks 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.
Greater Liquidity
There is a superior liquidity in the market as there are always traders you might want to buy and sell foreign currencies. The foreign exchange trading market size is 50 times bigger than the New York Stock Exchange and liquidity of such a large demand ensures price stability. Foreign exchange investing makes investing more liquid and permits foreign exchange investors to take benefit of investing opportunities as they happen throughout the day rather than waiting for the open that day.
High Leverage
In foreign exchange investing a 100:1 ratio leverage is commonly available from online forex brokers, which substantially exceeds the common 2:1 margin offered by stock brokers in the stock demand. This gives Foreign exchange traders a huge control in their investing and presents the potential for extraordinary profits with relative small investments. Control can also go the opposite way and may lead to huge losses if you are not careful.
Foreign exchange trading transactions have no commissions.
Foreign exchange brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at. The foreign exchange market is so large-scale that no one individual, bank, fund or government body can influence it for a long period of time.
There are certain investing signals that give indications to which way the market is moving and therefore giving the investor a heads up on which way to trade. These foreign exchange indices are delivered by email, instant messenger or direct to your desktop. Some forex brokers even offer auto-trading, allowing you to auto-execute the trading signals direct into your broker account.
Why Foreign exchange investing? You have the option to invest in the stock demand, but here are a few absolute advantages of currency trading over the stock market.
24-hour Investing
Forex investing is done on 24-hours basis. The Foreign exchange market is open most of the day and night because one marketplace or the other is open, with the exception of weekends. Investors involved in foreign exchange trading strategy can get first hand information by viewing the world news or charting a country's economic well-being and than act appropriately. The currency rate is an electronic transaction involving a network of banks 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.
Greater Liquidity
There is a superior liquidity in the market as there are always traders you might want to buy and sell foreign currencies. The foreign exchange trading market size is 50 times bigger than the New York Stock Exchange and liquidity of such a large demand ensures price stability. Foreign exchange investing makes investing more liquid and permits foreign exchange investors to take benefit of investing opportunities as they happen throughout the day rather than waiting for the open that day.
High Leverage
In foreign exchange investing a 100:1 ratio leverage is commonly available from online forex brokers, which substantially exceeds the common 2:1 margin offered by stock brokers in the stock demand. This gives Foreign exchange traders a huge control in their investing and presents the potential for extraordinary profits with relative small investments. Control can also go the opposite way and may lead to huge losses if you are not careful.
Foreign exchange trading transactions have no commissions.
Foreign exchange brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at. The foreign exchange market is so large-scale that no one individual, bank, fund or government body can influence it for a long period of time.
There are certain investing signals that give indications to which way the market is moving and therefore giving the investor a heads up on which way to trade. These foreign exchange indices are delivered by email, instant messenger or direct to your desktop. Some forex brokers even offer auto-trading, allowing you to auto-execute the trading signals direct into your broker account.
Sunday, August 17, 2008
Free Forex Charts
Investing in the Forex market can be confusing. Forex brokers will provide you with free Forex charts that you can use to analyze data and assist you in placing your trades. You need to understand that not all free Forex charts are created equally.
Most Forex brokers will provide you with free Forex charts that cover anywhere from a one minute timeframe to a monthly timeframe. A couple of brokers also offer charts that cover timeframe's smaller than an one minute interval, which is known as a tick.
Forex brokers also provide free Forex charts with indicators. Some of the more common indicators are Standard Deviation, Moving Averages and Bollinger Bands. Even if you don't fully understand the different types of indicators you can still successfully trade in the Forex market.
The Forex brokers I am associated with provide you with excellent training and technical support. The training and support is typically included with your account at no additional charge. There are a number of good resources available on the Internet to help you understand the information that is provided on the free Forex charts.
Most Forex brokers will provide you with free Forex charts that cover anywhere from a one minute timeframe to a monthly timeframe. A couple of brokers also offer charts that cover timeframe's smaller than an one minute interval, which is known as a tick.
Forex brokers also provide free Forex charts with indicators. Some of the more common indicators are Standard Deviation, Moving Averages and Bollinger Bands. Even if you don't fully understand the different types of indicators you can still successfully trade in the Forex market.
The Forex brokers I am associated with provide you with excellent training and technical support. The training and support is typically included with your account at no additional charge. There are a number of good resources available on the Internet to help you understand the information that is provided on the free Forex charts.
Thursday, July 17, 2008
Forex Signals
A Forex or Foreign Exchange signal is a technical indicator that is a series of data points that result from the application of a formula and then applied to the price data of a currency pair. A technical indicator or signal is a different perspective in which to analyze price movement and hope that the signal is accurately predicting the price of a given currency pair.
There are a number of automated trading platforms that provide a system that allows buy and sell signals to be executed by a brokerage account automatically. Some of these automated trading platforms can interface with almost any Forex brokerage firm. Investors believe that these systems that produce Forex signals allow them insight into currency trading and in therefore outperform the market. Traders will typically subscribe to one of these automated trading systems and then the system will execute their trades automatically in their brokerage account. As with any type of investing, there will be trades that are executed for a profit and there will be trades that are executed that result in a loss.
When using an automated trading platform for Forex signals, the investor or trader will give up some control over their trades, but the automated system will allow these same traders to spend more time on strategy and on studing trends, rather than manually executing those strategies.
There are a number of automated trading platforms that provide a system that allows buy and sell signals to be executed by a brokerage account automatically. Some of these automated trading platforms can interface with almost any Forex brokerage firm. Investors believe that these systems that produce Forex signals allow them insight into currency trading and in therefore outperform the market. Traders will typically subscribe to one of these automated trading systems and then the system will execute their trades automatically in their brokerage account. As with any type of investing, there will be trades that are executed for a profit and there will be trades that are executed that result in a loss.
When using an automated trading platform for Forex signals, the investor or trader will give up some control over their trades, but the automated system will allow these same traders to spend more time on strategy and on studing trends, rather than manually executing those strategies.
Saturday, June 21, 2008
Forex Trading Sessions
Compared to the London and New York Forex sessions, the Asian session usually experiences less volatility in the demand. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.
Technical analysis in the Foreign exchange market is that price is assumed to reflect all news and the charts provided by the Forex brokers are the objects of analysis. A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time.
If you've started using a company's trading platform on a frequent basis, then you need it to be easy to use and user-friendly in general so test drive the demo platform if they offer one. If you're going to be sending money to a broker in order to start trading, make sure you know the location of the broker and be sure that you'll be able to successfully withdraw money when the time comes. All the broker companies require you to invest an initial sum of money.
Trade flows are an absolute factor in the long-term direction of a currency's exchange rate. The main trading centers are in London, New York, Tokyo, Hong Kong and Singapore, but banks throughout the world participate.
sessions, the Asian session usually experiences less volatility in the demand. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.Technical analysis in the Foreign exchange
market is that price is assumed to reflect all news and the charts provided by the Forex brokers are the objects of analysis. A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time.If you've started using a company's trading platform on a frequent basis, then you need it to be easy to use and user-friendly in general so test drive the demo platform if they offer one. If you're going to be sending money to a broker in order to start trading, make sure you know the location of the broker and be sure that you'll be able to successfully withdraw money when the time comes. All the broker companies require you to invest an initial sum of money.
Trade flows are an absolute factor in the long-term direction of a currency's exchange rate
. The main trading centers are in London, New York, Tokyo, Hong Kong and Singapore, but banks throughout the world participate.
Monday, June 9, 2008
Forex Brokers
If you are starting to trade the Forex market, pick a Forex broker that offers a demo account that you can trade with prior to opening a live account. This will give you time to learn the Forex software that particular broker is using.
You will also want to make sure your broker has the best and most up to date tools at their fingertips. If you are trading in the United States, make sure your Foreign exchange brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). If you are trading in the United Kingdom the Forex broker will need to follow the Financial Services Authority (FSA) regulations.
Do a search with your favorite search engine for a broker and research, research, research. Find out what other customers or clients have to say about them. Make sure the broker can provide you with all the tools and training that you might require. It's your money that you are investing so make sure you check out your selected Forex broker prior to depositing any funds with them.
You will also want to make sure your broker has the best and most up to date tools at their fingertips. If you are trading in the United States, make sure your Foreign exchange brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). If you are trading in the United Kingdom the Forex broker will need to follow the Financial Services Authority (FSA) regulations.
Do a search with your favorite search engine for a broker and research, research, research. Find out what other customers or clients have to say about them. Make sure the broker can provide you with all the tools and training that you might require. It's your money that you are investing so make sure you check out your selected Forex broker prior to depositing any funds with them.
Saturday, May 31, 2008
Currency Trading
Currency trading involves the "majors" which are the British Pound (GBP), Euro (EUR), Japanese Yen (JPY), Swiss Franc (CHF) and the US Dollar (USD). The Canadian Dollar (CAD) and the Australian Dollar (AUD) are beginning to be added to the majors category by many traders.
Why are currencies trading in pairs?
The simple answer is, the currency on the right side of the pair (ie., EUR/USD) establishes the comparative value for the base currency (the currency on the left side of the pair). By pairing two currencies a fluctuating value can be established for the one versus the other. In other words, how is the Euro doing against the dollar or how many dollars does it take to buy one Euro.
Cross Currency Pairs
Cross Currency Pairs are any currency pairs that don't include the US dollar. Some cross currency pairs move very slowly and trend well which makes them ideal for the beginning Forex trader. However, some cross currency pairs move very quickly and are extremely volatile.
Traders might consider utilizing cross currency pairs as a way to diversify their portfolio. Many cross currency pairs offer greater return potential with enhanced interest (also referred to as swap, rollover interest or carry forward interest) that is paid on open positions. Swap is a credit or debit as a result of daily interest rates. A lot of the time cross currencies yield higher interest rates that the major currencies and are traded for the purpose of collecting the interest on the trade.
involves the "majors" which are the British Pound (GBP), Euro (EUR), Japanese Yen (JPY), Swiss Franc (CHF) and the US Dollar (USD). The Canadian Dollar (CAD) and the Australian Dollar (AUD) are beginning to be added to the majors category by many traders.Why are currencies trading in pairs?
The simple answer is, the currency on the right side of the pair (ie., EUR/USD) establishes the comparative value for the base currency (the currency on the left side of the pair). By pairing two currencies a fluctuating value can be established for the one versus the other. In other words, how is the Euro doing against the dollar or how many dollars does it take to buy one Euro.
Cross Currency Pairs
Cross Currency Pairs are any currency pairs that don't include the US dollar. Some cross currency pairs move very slowly and trend well which makes them ideal for the beginning Forex trader. However, some cross currency pairs move very quickly and are extremely volatile.
Traders might consider utilizing cross currency pairs as a way to diversify their portfolio. Many cross currency pairs
offer greater return potential with enhanced interest (also referred to as swap, rollover interest or carry forward interest) that is paid on open positions. Swap is a credit or debit as a result of daily interest rates. A lot of the time cross currencies yield higher interest rates that the major currencies and are traded for the purpose of collecting the interest on the trade.
Wednesday, May 28, 2008
Forex Basic Information
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. What other amateur Forex traders fail you might want to remember is that not every single hour of the day is a good time to trade.
Most people are basically "guessing" which way the price will move. Some have more sophisticated methods of guessing, but it is still guessing. The average person who tries to guess which way the price will go usually gets frustrated and unfortunately, most of these traders will lose all of their money and quit trading in the Forex need. When you think about a pair, it consists of two things: a pair of shoes or a pair of tickets - two shoes or two tickets; with a currency pair, there are two currencies. The first currency listed is known as the base currency and the second one listed is called the counter or quote currency. When a country raises its interest rate, that country’s currency strengthens relative to other currencies.
You need to manage your account with the Forex broker you have choosen and watch the industry and trade at the right time. Before you sign up with any broker, check to see what extras your broker offers such as charting facilities and news updates. If you're going to be using a company's trading platform on a complete basis, then you need it to be easy and user-friendly in general so test drive the demo platform if they offer one.
Every Forex trader should have a reasonable understanding of interest rates, international trade and the economy in order to predict movements in the current marketplace. Because Forex is an Over The Counter (OTC) market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
traders fail you might want to remember is that not every single hour of the day is a good time to trade.Most people are basically "guessing" which way the price will move. Some have more sophisticated methods of guessing, but it is still guessing. The average person who tries to guess which way the price will go usually gets frustrated and unfortunately, most of these traders will lose all of their money and quit trading in the Forex need. When you think about a pair, it consists of two things: a pair of shoes or a pair of tickets - two shoes or two tickets; with a currency pair, there are two currencies. The first currency listed is known as the base currency and the second one listed is called the counter or quote currency. When a country raises its interest rate, that country’s currency strengthens relative to other currencies.
You need to manage your account with the Forex broker you have choosen and watch the industry and trade at the right time. Before you sign up with any broker, check to see what extras your broker offers such as charting facilities and news updates. If you're going to be using a company's trading platform on a complete basis, then you need it to be easy and user-friendly in general so test drive the demo platform if they offer one.
Every Forex
trader should have a reasonable understanding of interest rates, international trade and the economy in order to predict movements in the current marketplace. Because Forex is an Over The Counter (OTC) market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
Tuesday, May 20, 2008
Forex Trading Basics and Brokers
Forex Basics
In the Forex, there are six major currency pairs. With the advent of internet anybody can step into the foreign currency exchange market. There are economic indicators that can be used to evaluate the fundamentals of the Foreign exchange. Interest rate news has a direct impact on the international financial markets. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. The foreign exchange market is a cash interbank/interdealer demand. Generally, the more healthy and robust a country's economy, the better its currency will perform.
Forex Brokers
The Forex brokers benefit by helping their clients buy and sell currencies. You'll want to research the reputation of the broker that you will be investing with. Most of the online Forex brokers insist on investing a minimum if $1000. A good Foreign exchange brokerage firm should offer real-time charts, technical analysis tools, real-time trade alerts and website support. You need it make sure your broker’s trading platform is easy to use and user-friendly in general so test drive the demo platform before you start trading a live account. Your Forex broker must be registered with the Commodity Futures Trading Commission if you are trading in the US. Most large brokerage firms are in some way connected you might want to a bank or financial institution. A realistic trading strategy means knowing how much money you are willing you might want to risk.
Forex Trading
The New York marketplace is the second biggest trading period in terms of transaction volume. Basically, you can trade 24-hours a day in the biggest and most fluid marketplace in the world. Forex trading starts on Sunday at 5:00 p.m. Eastern Standard Time (EST) and closes on Fridays. Fridays, Sundays and holidays are not good days to trade. The best days to trade in the Forex market is Tuesdays and Wednesdays.
In the Forex
, there are six major currency pairs. With the advent of internet anybody can step into the foreign currency exchange market. There are economic indicators that can be used to evaluate the fundamentals of the Foreign exchange. Interest rate news has a direct impact on the international financial markets. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. The foreign exchange market is a cash interbank/interdealer demand. Generally, the more healthy and robust a country's economy, the better its currency will perform.Forex Brokers
The Forex brokers benefit by helping their clients buy and sell currencies. You'll want to research the reputation of the broker that you will be investing with. Most of the online Forex brokers insist on investing a minimum if $1000. A good Foreign exchange brokerage firm should offer real-time charts, technical analysis tools, real-time trade alerts and website support. You need it make sure your broker’s trading platform is easy to use and user-friendly in general so test drive the demo platform before you start trading a live account. Your Forex
broker must be registered with the Commodity Futures Trading Commission if you are trading in the US. Most large brokerage firms are in some way connected you might want to a bank or financial institution. A realistic trading strategy means knowing how much money you are willing you might want to risk.Forex Trading
The New York marketplace is the second biggest trading period in terms of transaction volume. Basically, you can trade 24-hours a day in the biggest and most fluid marketplace in the world. Forex trading starts on Sunday at 5:00 p.m. Eastern Standard Time (EST) and closes on Fridays. Fridays, Sundays and holidays are not good days to trade. The best days to trade in the Forex market is Tuesdays and Wednesdays.
Thursday, May 8, 2008
Forex Trading Basic Tips
Whether you plan to trade on the forex (Foreign exchange) market or in the stock market you will need to have some knowledge on two basic forms of analysis: fundamental analysis and technical analysis. Traders of foreign exchange commonly favor Forex trading systems. Interest rate news has a direct impact on the international financial markets. Forex trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001.
A market order is an order to buy or sell at the current marketplace price. Forex has no central market place for traders and no standard in foreign currency exchanges. Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency. A country's economic fitness is directly measured by economic reports.
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. It is recommended that traders who wish to trade in the Forex market only deal with authorized currency traders. There is little or no 'inside information' in the forex markets.
A Foreign exchange broker is paid according to the spread or the difference between the trader's bid for a currency, and the seller's asking price for that currency. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. Different dealers offer very different deals to their customers. A good Forex brokerage firm should offer real-time charts, technical analysis tools, real-time trade alerts and website support.
The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. You can trade 24-hours a day in the largest and most liquid marketplace in the world.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. When a country raises its interest rate, that country’s currency strengthens relative to other currencies. Interest rate news has a direct impact on the international financial markets.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. A currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation.
A market order is an order to buy or sell at the current marketplace price. Forex has no central market place for traders and no standard in foreign currency exchanges. Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency. A country's economic fitness is directly measured by economic reports.
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. It is recommended that traders who wish to trade in the Forex market only deal with authorized currency traders. There is little or no 'inside information' in the forex markets.
A Foreign exchange broker is paid according to the spread or the difference between the trader's bid for a currency, and the seller's asking price for that currency. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. Different dealers offer very different deals to their customers. A good Forex brokerage firm should offer real-time charts, technical analysis tools, real-time trade alerts and website support.
The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. You can trade 24-hours a day in the largest and most liquid marketplace in the world.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. When a country raises its interest rate, that country’s currency strengthens relative to other currencies. Interest rate news has a direct impact on the international financial markets.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. A currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation.
Monday, April 28, 2008
Benefits of Forex Investing
Foreign exchange trading involves buying and selling different currencies. It works on the theory that is similar with the stock marketplace. As we know that to make a profit, you have to buy at a lower price and sell at a higher price, or we can also sell at a higher price first and buy at a lower price. By analyzing market conditions, you can actually make a profit in foreign exchange. All you have to do is to analyze the foreign exchange in the correct way and make the correct trade.
Why to go for Forex investing?
You have the option to invest in the stock market, but here are a few benefits of currency trading over the stock market.
24-hour Investing
Foreign exchange investing is done on 24-hours basis. The Foreign exchange marketplace is open most of the day and night because one market or the other is open, with the exception of weekends. Traders involved in foreign exchange trading strategy can get first hand information by viewing the world news or charting a country's economic fitness and than act appropriately. The currency rate is an electronic transaction involving a network of banks 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.
Greater Liquidity
There is a superior liquidity in the market as there are always buyers and sellers to purchase and sell currencies. The foreign exchange trading market size is 50 times bigger than the New York Stock Exchange and liquidity of such a large market ensures price consistency. Foreign exchange investing makes investing more fluid and permits foreign exchange traders to take advantage of investing opportunities as they happen throughout the day rather than waiting for the marketplace to open the next day.
High Margins
In foreign exchange investing 100 to 1 margins is commonly available from online forex dealers, which substantially exceeds the common 2:1 margin offered by forex brokers in the stock market. This gives Foreign exchange investors a huge control in their trading and presents the potential for extraordinary profits with relative small investments. Leverage can also go the opposite way and may lead to huge losses if you are not careful.
Foreign exchange investing transactions have no commissions. Foreign exchange brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at.
The foreign exchange market is so large-scale that no one individual, bank, fund or government body can influence it for a long period of time.
There are certain investing signals that give indications to which way the demand is moving and therefore giving the investor a heads up on which way to trade. These foreign exchange indices are delivered by email, instant messenger or direct to your desktop. Some brokers even offer auto-trading, allowing you to auto-execute the investing indices direct into your broker account.
Why to go for Forex investing?
You have the option to invest in the stock market, but here are a few benefits of currency trading over the stock market.
24-hour Investing
Foreign exchange investing is done on 24-hours basis. The Foreign exchange marketplace is open most of the day and night because one market or the other is open, with the exception of weekends. Traders involved in foreign exchange trading strategy can get first hand information by viewing the world news or charting a country's economic fitness and than act appropriately. The currency rate is an electronic transaction involving a network of banks 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.
Greater Liquidity
There is a superior liquidity in the market as there are always buyers and sellers to purchase and sell currencies. The foreign exchange trading market size is 50 times bigger than the New York Stock Exchange and liquidity of such a large market ensures price consistency. Foreign exchange investing makes investing more fluid and permits foreign exchange traders to take advantage of investing opportunities as they happen throughout the day rather than waiting for the marketplace to open the next day.
High Margins
In foreign exchange investing 100 to 1 margins is commonly available from online forex dealers, which substantially exceeds the common 2:1 margin offered by forex brokers in the stock market. This gives Foreign exchange investors a huge control in their trading and presents the potential for extraordinary profits with relative small investments. Leverage can also go the opposite way and may lead to huge losses if you are not careful.
Foreign exchange investing transactions have no commissions. Foreign exchange brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at.
The foreign exchange market is so large-scale that no one individual, bank, fund or government body can influence it for a long period of time.
There are certain investing signals that give indications to which way the demand is moving and therefore giving the investor a heads up on which way to trade. These foreign exchange indices are delivered by email, instant messenger or direct to your desktop. Some brokers even offer auto-trading, allowing you to auto-execute the investing indices direct into your broker account.
Sunday, April 20, 2008
Currency Trading Market
At any time in the currency or Forex market there are two markets open at the same time except weekends and some holidays. The best days of the week to trade in the Forex market are Tuesdays and Wednesday. Fridays, Sundays and holidays are not very good days to trade.
There is an enormous scope of trade in Foreign exchange because it is global, and is open basically twenty-four hours a day, making the presence of buyers and sellers constant, and the fluidity of the need, grand. In recent years, for instance, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight. As in the stock market, any deviation from the norm can cause large price and volume movements.
The more access to Forex advice that your broker can give the better your chances are of profiting for your currency trades. When you are getting started in Forex trading it's important you might want to choose the best Foreign exchange broker for your situation. If the broker is based in the United States or United Kingdom check that they're fully registered with the relevant regulators, such as the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) in the United States and the Financial Services Authority (FSA) in the United Kingdom.
Most large-scale brokerage firms are in some way connected to a bank or financial institution. With the advent of the Internet anybody can step into the foreign currency trading market. The Forex market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the United States Equity markets.
There is an enormous scope of trade in Foreign exchange because it is global, and is open basically twenty-four hours a day, making the presence of buyers and sellers constant, and the fluidity of the need, grand. In recent years, for instance, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight. As in the stock market, any deviation from the norm can cause large price and volume movements.
The more access to Forex advice that your broker can give the better your chances are of profiting for your currency trades
. When you are getting started in Forex trading it's important you might want to choose the best Foreign exchange broker for your situation. If the broker is based in the United States or United Kingdom check that they're fully registered with the relevant regulators, such as the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) in the United States and the Financial Services Authority (FSA) in the United Kingdom.Most large-scale brokerage firms are in some way connected to a bank or financial institution. With the advent of the Internet anybody can step into the foreign currency trading
market. The Forex market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the United States Equity markets.
Tuesday, April 15, 2008
Currency Trading
In the Forex or Foreign exchange market, the bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a marketplace-maker will buy ("bid") from a wholesale customer. When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering.
There is no unified or centrally cleared marketplace for the majority of Forex trades, and there is very little cross-border regulation. There are many economic indicators that can be used to evaluate the fundamentals of the Foreign exchange. In recent years, for instance, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange marketplace is thus far still largely dollar-centered. When a country raises its interest rate, that country’s currency strengthens relative to other currencies.
The diverse selection of execution venues such as internet trading platforms has made it easier for retail traders to trade in the forex market. There is the potential for profit in the currencies market regardless of which way the marketplace moves. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in comparison to another shifts accordingly. There will be a greater demand, thus a higher price, for currencies perceived as stronger over their comparably weaker counterparts.
A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading.
Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. Interest rate news has a direct impact on the international financial markets. It is the tendency for the price of a currency to reflect the impact of a certain action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction.
Currency trading is risky but not any riskier than other investment trading (such as the stock market). Foreign currencies traded in the forex market are bought and sold directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. Interest rate news has a direct impact on the international financial markets. The Foreign exchange market is a worldwide marketplace and according to some estimates is almost as big as thirty times the turnover of the US Equity markets.
or Foreign exchange market, the bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a marketplace-maker will buy ("bid") from a wholesale customer. When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering.There is no unified or centrally cleared marketplace for the majority of Forex trades, and there is very little cross-border regulation. There are many economic indicators that can be used to evaluate the fundamentals of the Foreign exchange. In recent years, for instance, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange marketplace is thus far still largely dollar-centered. When a country raises its interest rate, that country’s currency strengthens relative to other currencies.
The diverse selection of execution venues such as internet trading platforms has made it easier for retail traders to trade in the forex market. There is the potential for profit in the currencies market regardless of which way the marketplace moves. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in comparison to another shifts accordingly. There will be a greater demand, thus a higher price, for currencies perceived as stronger over their comparably weaker counterparts.
A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading.
Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. Interest rate news has a direct impact on the international financial markets. It is the tendency for the price of a currency to reflect the impact of a certain action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction.
Currency trading
is risky but not any riskier than other investment trading (such as the stock market). Foreign currencies traded in the forex market are bought and sold directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. Interest rate news has a direct impact on the international financial markets. The Foreign exchange market is a worldwide marketplace and according to some estimates is almost as big as thirty times the turnover of the US Equity markets.
Saturday, April 12, 2008
Trading On The Forex Market
The Forex or foreign exchange market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. The marketplace is ever present because it does not have a central venue like Wall Street or Tokyo. Currency trading is risky but not any riskier than other investment trading (such as the stock marketplace).
When a country raises its interest rate, that country’s currency strengthens relative to other currencies. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are bought and sold. Depending on your market position, an investor always has the opportunity to profit in a fluctuating market because Foreign exchange trading involves selling one currency to buy another. If you are trading in the United States, make sure your Foreign exchange brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC).
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. The Forex marketplace is the deepest, biggest and most liquid marketplace for options of any kind in the world. Reports released by the government that detail a country’s economic performance are economic indicators.
A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers.
You can trade 24-hours a day in the largest and most liquid marketplace in the world, the Forex. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends. Foreign exchange trading starts on Sunday at 5:00 p.m. eastern standard time (EST).
Closing your open positions will prevent your account from falling into a negative balance. A margined account is a leverageable account in which Foreign exchange can be purchased for a combination of cash or collateral depending what your brokers will accept. Increasing interest rates are usually bad news for the stock markets. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis.
As a person who wants to invest in the Forex marketplace, one should understand the basics of how a country's currency market operates. A country’s economic well-being is directly measured by economic reports. A market order is an order to buy or sell at the current market price.
When a country raises its interest rate, that country’s currency strengthens relative to other currencies. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are bought and sold. Depending on your market position, an investor always has the opportunity to profit in a fluctuating market because Foreign exchange trading involves selling one currency to buy another. If you are trading in the United States, make sure your Foreign exchange brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC).
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. The Forex marketplace is the deepest, biggest and most liquid marketplace for options of any kind in the world. Reports released by the government that detail a country’s economic performance are economic indicators.
A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers.
You can trade 24-hours a day in the largest and most liquid marketplace in the world, the Forex. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends. Foreign exchange trading starts on Sunday at 5:00 p.m. eastern standard time (EST).
Closing your open positions will prevent your account from falling into a negative balance. A margined account is a leverageable account in which Foreign exchange can be purchased for a combination of cash or collateral depending what your brokers will accept. Increasing interest rates are usually bad news for the stock markets. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis.
As a person who wants to invest in the Forex
marketplace, one should understand the basics of how a country's currency market operates. A country’s economic well-being is directly measured by economic reports. A market order is an order to buy or sell at the current market price.
Wednesday, April 9, 2008
Foreign Exchange Marketplace
Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion daily. The Foreign exchange marketplace is a cash interbank/interdealer market. In other words, this means the foreign currencies bought and sold in the Foreign exchange market are bought and sold directly between banks, foreign currency dealers and Forex traders. It is the tendency for the price of a currency to reflect the impact of a specific action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction.
The Foreign exchange marketplace is not a traditional "marketplace" due to the fact that there is no centralized location for Foreign exchange trading activity and, therefore, trades placed in the Foreign exchange marketplace are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Forex trading platforms and/or over the telephone directly with a Forex broker on our trading desk. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange marketplace volume, according to The Wall Street Journal Europe (during 2006).
Until recently the Foreign exchange market has not been available to the small trader. The large minimum foreign currency transaction sizes and financial requirements left this marketplace in the hands of banks, major foreign currency dealers and the occasional large-scale Foreign exchange speculator. Now, with the ability to influence large-scale positions with a fairly small amount of money (or margin), the Foreign exchange marketplace is now more fluid than ever and available to most investors.
Five major currencies dominate trading in the Forex marketplaces: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The currencies are bought and sold in pairs in the Foreign exchange spot market. For instance, buying the EUR/USD in the Forex spot market just means the purchaser is buying the Euro and selling the U.S. Dollar in anticipation of the Euro gaining value in comparison to the U.S. Dollar. Similarly, the seller of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an increase in international trade and foreign investment has made the economies of the world more interconnected. New opportunities for traders have been created with the dramatic growth of the Asian and Latin American economies. Today, supply and demand for a particular currency is the driving factor in determining exchange rates. Many factors such as routinely reported economic figures and unpredicted news reports, such as disasters or political instabilities, could also change the attractiveness of holding a certain currency, thus determing international supply and demand for that currency.
The Foreign exchange marketplace is not a traditional "marketplace" due to the fact that there is no centralized location for Foreign exchange trading activity and, therefore, trades placed in the Foreign exchange marketplace are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Forex trading platforms and/or over the telephone directly with a Forex broker on our trading desk. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange marketplace volume, according to The Wall Street Journal Europe (during 2006).
Until recently the Foreign exchange market has not been available to the small trader. The large minimum foreign currency transaction sizes and financial requirements left this marketplace in the hands of banks, major foreign currency dealers and the occasional large-scale Foreign exchange speculator. Now, with the ability to influence large-scale positions with a fairly small amount of money (or margin), the Foreign exchange marketplace is now more fluid than ever and available to most investors.
Five major currencies dominate trading in the Forex marketplaces: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The currencies are bought and sold in pairs in the Foreign exchange spot market. For instance, buying the EUR/USD in the Forex spot market just means the purchaser is buying the Euro and selling the U.S. Dollar in anticipation of the Euro gaining value in comparison to the U.S. Dollar. Similarly, the seller of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an increase in international trade and foreign investment has made the economies of the world more interconnected. New opportunities for traders have been created with the dramatic growth of the Asian and Latin American economies. Today, supply and demand for a particular currency is the driving factor in determining exchange rates. Many factors such as routinely reported economic figures and unpredicted news reports, such as disasters or political instabilities, could also change the attractiveness of holding a certain currency, thus determing international supply and demand for that currency.
Monday, April 7, 2008
Trading The Foreign Exchange Market
Forex is the largest and most liquid market in the world trading approximately $2 trillion daily. The Foreign exchange market is a cash interbank/interdealer market. In other words, this means the currencies traded in the Foreign exchange market are traded directly between banks, foreign currency dealers and Forex investors. Carefully research the Forex dealers before you sign up with their company.
The Forex market is not a traditional "marketplace" due to the fact that there is no centralized location for Foreign exchange trading activity and, therefore, trades placed in the Forex market are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Forex trading platforms and/or over the telephone directly with a Forex broker on their trading desk. Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house.
Until lately the Forex market has not been available to the small trader. The large minimum foreign currency transaction sizes and financial requirements left this market open only to banks, major foreign currency dealers and the occasional large Forex speculator. Now, with the option to leverage large positions with a relatively small amount of money (margin), the Foreign exchange market is now more liquid than ever and available to most traders.
Five major currencies dominate trading in the Foreign exchange markets: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The currencies are traded in pairs in the Foreign exchange spot market. For instance, buying the EUR/USD in the Foreign exchange spot marketplace just means the purchaser is buying the Euro and selling the U.S. Dollar in hope of the Euro gaining value in relation to the U.S. Dollar. Similarly, the client of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an escalation in international trade and foreign investment has made the economies of the world more interrelated. New opportunities for traders have been created with the considerable economic growth of the Asian and Latin American economies. Today, supply and demand for a specific currency is the motivating cause in determining exchange rates. Other factors such as intermittently reported economic figures and unexpected news reports, such as disasters or political instabilities, could also change the attractiveness of holding a particular currency, thus determing international supply and demand for that currency.
The Forex market is not a traditional "marketplace" due to the fact that there is no centralized location for Foreign exchange trading activity and, therefore, trades placed in the Forex market are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Forex trading platforms and/or over the telephone directly with a Forex broker on their trading desk. Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house.
Until lately the Forex market has not been available to the small trader. The large minimum foreign currency transaction sizes and financial requirements left this market open only to banks, major foreign currency dealers and the occasional large Forex speculator. Now, with the option to leverage large positions with a relatively small amount of money (margin), the Foreign exchange market is now more liquid than ever and available to most traders.
Five major currencies dominate trading in the Foreign exchange markets: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The currencies are traded in pairs in the Foreign exchange spot market. For instance, buying the EUR/USD in the Foreign exchange spot marketplace just means the purchaser is buying the Euro and selling the U.S. Dollar in hope of the Euro gaining value in relation to the U.S. Dollar. Similarly, the client of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an escalation in international trade and foreign investment has made the economies of the world more interrelated. New opportunities for traders have been created with the considerable economic growth of the Asian and Latin American economies. Today, supply and demand for a specific currency is the motivating cause in determining exchange rates. Other factors such as intermittently reported economic figures and unexpected news reports, such as disasters or political instabilities, could also change the attractiveness of holding a particular currency, thus determing international supply and demand for that currency.
Friday, April 4, 2008
Foreign Exchange or Forex Trading
Different foreign exchange brokers will offer different trading suggestions and tools. Out of convention, the first currency in the pair, the base currency, was the stronger currency at the creation of the pair. If you are trading in the United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Traders of foreign exchange commonly favor foreign exchange trading systems.
Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency. Technical analysis in the Forex is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. The forex (currency or forex or FX) market exists wherever one currency is bought and sold for another. Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits.
Interest rate news has a direct impact on the international financial markets. A marketplace order is an order to buy or sell at the current market price. The forex is by far the largest financial marketplace in the world, and includes trading between large-scale banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. There will be a greater demand, thus a higher price, for a country's currencies perceived as stronger over their rather weaker counterparts.
A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers.
There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading.
Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. A Good For The Day (GFD) order remains active in the Forex market until the end of the trading day.
The duration of the trade can be a few days, months or years. Foreign exchange futures volume has grown rapidly in recent years, and accounts for about 7% of the total forex market volume. Foreign exchange has no central market place for traders and no standard in foreign currency exchanges.
Reports released by the government that detail a country’s economic performance are economic indicators. A market order is an order to buy or sell at the current market price. Many individuals consider the Forex market risky.
Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency. Technical analysis in the Forex is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. The forex (currency or forex or FX) market exists wherever one currency is bought and sold for another. Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits.
Interest rate news has a direct impact on the international financial markets. A marketplace order is an order to buy or sell at the current market price. The forex is by far the largest financial marketplace in the world, and includes trading between large-scale banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. There will be a greater demand, thus a higher price, for a country's currencies perceived as stronger over their rather weaker counterparts.
A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers.
There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading.
Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. A Good For The Day (GFD) order remains active in the Forex market until the end of the trading day.
The duration of the trade can be a few days, months or years. Foreign exchange futures volume has grown rapidly in recent years, and accounts for about 7% of the total forex market volume. Foreign exchange has no central market place for traders and no standard in foreign currency exchanges.
Reports released by the government that detail a country’s economic performance are economic indicators. A market order is an order to buy or sell at the current market price. Many individuals consider the Forex market risky.
Monday, March 31, 2008
Foreign Currency Trading
Forex is the biggest and most fluid market in the world trading approximately $2 trillion every day. The Foreign exchange marketplace is a cash interbank/interdealer marketplace. In simplest terms, this means the currencies traded in the Foreign exchange market are traded directly between banks, foreign currency dealers and Forex traders. Trade flows are an important cause in the long-term direction of a currency's exchange rate.
The Forex marketplace is not a traditional "market" due to the fact that there is no centralized bank for Forex trading activity and, therefore, trades placed in the Foreign exchange market are considered over-the-counter (OTC). Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Foreign exchange trading platforms and/or over the telephone directly with a Foreign exchange broker on our trading desk. Due to the over-the-counter (OTC) nature of currency markets, there are a number of interconnected marketplaces, where different currency instruments are bought and sold.
Until recently the Foreign exchange market has not been available to the small trader. The large-scale bare minimum foreign currency transaction sizes and financial contributions left this marketplace open only to banks, major foreign currency dealers and the occasional large-scale Foreign exchange speculator. Now, with the option to control large positions with a relatively small amount of capital (margin), the Forex market is now more fluid than ever and available to most investors.
Five major currencies dominate trading in the Foreign exchange marketplaces: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs in the Forex spot market. For instance, buying the EUR/USD in the Foreign exchange spot marketplace simply means the purchaser is buying the Euro and selling the U.S. Dollar in anticipation of the Euro gaining value in comparison to the U.S. Dollar. Likewise, the seller of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an escalation in international trade and foreign investment has made the economies of the world more interconnected. New opportunities for traders have been created with the dramatic economic growth of the Asian and Latin American economies. Today, supply and demand for a specific currency is the driving factor in determining exchange rates. Other factors such as routinely reported economic figures and unpredicted news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus determing international supply and demand for that currency.
The Forex marketplace is not a traditional "market" due to the fact that there is no centralized bank for Forex trading activity and, therefore, trades placed in the Foreign exchange market are considered over-the-counter (OTC). Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Foreign exchange trading platforms and/or over the telephone directly with a Foreign exchange broker on our trading desk. Due to the over-the-counter (OTC) nature of currency markets, there are a number of interconnected marketplaces, where different currency instruments are bought and sold.
Until recently the Foreign exchange market has not been available to the small trader. The large-scale bare minimum foreign currency transaction sizes and financial contributions left this marketplace open only to banks, major foreign currency dealers and the occasional large-scale Foreign exchange speculator. Now, with the option to control large positions with a relatively small amount of capital (margin), the Forex market is now more fluid than ever and available to most investors.
Five major currencies dominate trading in the Foreign exchange marketplaces: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs in the Forex spot market. For instance, buying the EUR/USD in the Foreign exchange spot marketplace simply means the purchaser is buying the Euro and selling the U.S. Dollar in anticipation of the Euro gaining value in comparison to the U.S. Dollar. Likewise, the seller of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an escalation in international trade and foreign investment has made the economies of the world more interconnected. New opportunities for traders have been created with the dramatic economic growth of the Asian and Latin American economies. Today, supply and demand for a specific currency is the driving factor in determining exchange rates. Other factors such as routinely reported economic figures and unpredicted news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus determing international supply and demand for that currency.
Thursday, March 27, 2008
Forex - Economic Factors
Government budget deficits or surpluses: The marketplace usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. Interest rate news has a direct impact on the international financial markets. Reports released by the government that detail a country’s economic performance are economic indicators.
Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session.
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators.
There are other economic indicators that can be used to evaluate the fundamentals of the Forex. There is little or no 'inside information' in the forex markets. The retail sales report measures the total receipts of all retail stores in a given country. The duration of the trade can be a few days, months or years.
A broker, in the forex market, is any person or firm that charges a fee in exchange for executing trades for a trader. Different dealers offer very different deals to their customers. A forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. Other traders study price charts in order to identify such patterns.
"FX" is an abbreviation of "foreign exchange" or "forex". In the foreign exchange market and international finance, a world currency or global currency refers to a currency in which the vast majority of international transactions take place and which serves as the world's primary reserve currency. Although exchange rates are affected by many causes, in the end, currency prices are a result of supply and demand forces.
No other marketplace encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange. Traders of forex commonly favor forex trading systems. The forex market is a worldwide marketplace and according to some estimates is almost as big as thirty times the turnover of the US Equity markets.
Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session.
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators.
There are other economic indicators that can be used to evaluate the fundamentals of the Forex. There is little or no 'inside information' in the forex markets. The retail sales report measures the total receipts of all retail stores in a given country. The duration of the trade can be a few days, months or years.
A broker, in the forex market, is any person or firm that charges a fee in exchange for executing trades for a trader. Different dealers offer very different deals to their customers. A forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. Other traders study price charts in order to identify such patterns.
"FX" is an abbreviation of "foreign exchange" or "forex". In the foreign exchange market and international finance, a world currency or global currency refers to a currency in which the vast majority of international transactions take place and which serves as the world's primary reserve currency. Although exchange rates are affected by many causes, in the end, currency prices are a result of supply and demand forces.
No other marketplace encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange. Traders of forex commonly favor forex trading systems. The forex market is a worldwide marketplace and according to some estimates is almost as big as thirty times the turnover of the US Equity markets.
Tuesday, March 25, 2008
Forex Trading - Economic Conditions
Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. Just like in the stock market, better returns are provided by country’s that demonstrate faster economic growth and better economic conditions compared to other countries. There is the potential for profit in the currencies marketplace regardless of which way the market moves. Interest rate news has a direct impact on the international financial markets.
Although exchange rates are affected by many causes, in the end, currency prices are a result of supply and demand forces. Reports released by the government that detail a country’s economic performance are economic indicators. If you are trading in the United States, make sure your Foreign exchange brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators.
The Foreign exchange Marketplace better known as Foreign exchange - is a world wide marketplace for buying and selling currencies. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. A market order is an order to buy or sell at the current market price. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the forex marketplace.
Different dealers offer very different deals to their customers. A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. Forex trading starts on Sunday at 5:00 p.m. eastern standard time (EST). A couple of hours later, the Tokyo market opens. The forex is a 24-hour market.
Closing your open positions will prevent your account from falling into a negative balance. Increasing interest rates are usually bad news for the stock markets but could be good news for the forex trader. It is difficult to determine what type of an impact a rate change will have in the marketplace.
As in the stock market, any deviation from the norm can cause large price and volume movements. Depending on your market position, an investor always has the opportunity to profit in a fluctuating market because Forex trading involves selling one currency to buy another. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates). Fundamental analysis in the Forex is the economic conditions and the affect those conditions have on a nation’s currency. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.
Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus far still largely dollar-centered.
Although exchange rates are affected by many causes, in the end, currency prices are a result of supply and demand forces. Reports released by the government that detail a country’s economic performance are economic indicators. If you are trading in the United States, make sure your Foreign exchange brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators.
The Foreign exchange Marketplace better known as Foreign exchange - is a world wide marketplace for buying and selling currencies. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. A market order is an order to buy or sell at the current market price. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the forex marketplace.
Different dealers offer very different deals to their customers. A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. Forex trading starts on Sunday at 5:00 p.m. eastern standard time (EST). A couple of hours later, the Tokyo market opens. The forex is a 24-hour market.
Closing your open positions will prevent your account from falling into a negative balance. Increasing interest rates are usually bad news for the stock markets but could be good news for the forex trader. It is difficult to determine what type of an impact a rate change will have in the marketplace.
As in the stock market, any deviation from the norm can cause large price and volume movements. Depending on your market position, an investor always has the opportunity to profit in a fluctuating market because Forex trading involves selling one currency to buy another. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates). Fundamental analysis in the Forex is the economic conditions and the affect those conditions have on a nation’s currency. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.
Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus far still largely dollar-centered.
Wednesday, March 19, 2008
Forex Investing
Foreign exchange investing involves buying and selling different currencies. It works on a theory that is similar to the stock market. As we know that to make a profit, you have to buy at a lower price and sell at a higher price, or we can also sell at a higher price first and buy at a lower price. By analyzing demand conditions, you can actually make a profit in foreign exchange. All you have to do is analyze the foreign exchange in the correct way and make the correct trade.
Why to go for Forex trading?
You have the option to invest in the stock market, but here are a few important advantages of currency investing over the stock marketplace.
24-hour trading
Foreign exchange investing is done on a 24-hours basis. The Foreign exchange market is open most of the day and night because one market or the other is open, with the exception of weekends. Traders involved in the foreign exchange trading game plan can get first hand knowledge by viewing the world news or charting a country's economic health and than act accordingly.
The currency rate is an electronic transaction involving a network of banks 24 hours a day from 00:00 GMT on Monday until 10:00 pm GMT on Friday.
Greater Liquidity
There is superior liquidity in the foreign exchange marketplace as there are always traders to buy and sell foreign currencies. The foreign exchange trading market is 50 times bigger than the New York Stock Exchange and liquidity of such a large market ensures price consistency.
Foreign exchange trading makes investing more fluid and permits foreign exchange investors to take part in investing opportunities as they happen throughout the day rather than waiting for the market to open the next day.
High Control in forex trading
100 to 1 leverage is frequently available from online foreign exchange brokers, which substantially exceeds the common 2:1 margin offered by brokers in the stock market. This gives Foreign exchange investors a huge control in their investing and presents the potential for extraordinary profits with relative small investments. Leverage can also go the opposite way and may lead you to huge losses if you are not careful.
Foreign exchange investing transactions have no commissions. Forex brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at. The foreign exchange marketplace is so large that no one individual, bank, fund or government body can influence it for a long period of time.
There are certain trading indices that give indications to which way the demand is moving and therefore giving the investor a heads up on which way to trade. These foreign exchange indices are delivered by email, instant messenger or direct to your desktop. Some forex brokers even offer auto-trading, allowing you to auto-execute the investing indices direct into your broker account.
Why to go for Forex trading?
You have the option to invest in the stock market, but here are a few important advantages of currency investing over the stock marketplace.
24-hour trading
Foreign exchange investing is done on a 24-hours basis. The Foreign exchange market is open most of the day and night because one market or the other is open, with the exception of weekends. Traders involved in the foreign exchange trading game plan can get first hand knowledge by viewing the world news or charting a country's economic health and than act accordingly.
The currency rate is an electronic transaction involving a network of banks 24 hours a day from 00:00 GMT on Monday until 10:00 pm GMT on Friday.
Greater Liquidity
There is superior liquidity in the foreign exchange marketplace as there are always traders to buy and sell foreign currencies. The foreign exchange trading market is 50 times bigger than the New York Stock Exchange and liquidity of such a large market ensures price consistency.
Foreign exchange trading makes investing more fluid and permits foreign exchange investors to take part in investing opportunities as they happen throughout the day rather than waiting for the market to open the next day.
High Control in forex trading
100 to 1 leverage is frequently available from online foreign exchange brokers, which substantially exceeds the common 2:1 margin offered by brokers in the stock market. This gives Foreign exchange investors a huge control in their investing and presents the potential for extraordinary profits with relative small investments. Leverage can also go the opposite way and may lead you to huge losses if you are not careful.
Foreign exchange investing transactions have no commissions. Forex brokers can earn money by fixing their own speculation between what a currency could be bought at and what it could be sold at. The foreign exchange marketplace is so large that no one individual, bank, fund or government body can influence it for a long period of time.
There are certain trading indices that give indications to which way the demand is moving and therefore giving the investor a heads up on which way to trade. These foreign exchange indices are delivered by email, instant messenger or direct to your desktop. Some forex brokers even offer auto-trading, allowing you to auto-execute the investing indices direct into your broker account.
Saturday, March 8, 2008
Forex - Currency Pairs
When you think of a pair, it usually consists of two things: a pair of shoes or a pair of tickets...two shoes or two tickets. With a currency pair, there are two currencies.
In the Forex market, a currency pair consists of a "base" currency (the first currency in the pair) and a "cross" currency (the second currency in the pair) and is displayed as a symbol. For example, the symbol EUR/USD is for the Euro/US dollar. In this example, the Euro is the "base" currency and the US dollar is the "cross" currency.
In the Forex, there are six major currency pairs. They are:
EUR/USD - Euro/US Dollar
GBP/USD - Great British Pound/US Dollar
USD/CHF - US Dollar/Swiss Franc
USD/JPY - US Dollar/Japanese Yen
AUD/USD - Australian Dollar/US Dollar
USD/CAD - US Dollar/Canadian Dollar
The Forex revolves around the exchange rates between the two currencies in the pair. These exchange rates change from day to day, minute to minute, even second to second and these price fluctuations create a market.
Currency traders buy a currency if they think the price will go up and they sell a currency if they think the price will go down. Without a software program or extensive training in the Forex market, most people are basically guessing which way the price will move. Some people have more sophisticated methods of guessing, but it is still guessing.
Learn the risk of investing in the Forex market before you open a live account and fund it with your money.
In the Forex market, a currency pair consists of a "base" currency (the first currency in the pair) and a "cross" currency (the second currency in the pair) and is displayed as a symbol. For example, the symbol EUR/USD is for the Euro/US dollar. In this example, the Euro is the "base" currency and the US dollar is the "cross" currency.
In the Forex, there are six major currency pairs. They are:
EUR/USD - Euro/US Dollar
GBP/USD - Great British Pound/US Dollar
USD/CHF - US Dollar/Swiss Franc
USD/JPY - US Dollar/Japanese Yen
AUD/USD - Australian Dollar/US Dollar
USD/CAD - US Dollar/Canadian Dollar
The Forex revolves around the exchange rates between the two currencies in the pair. These exchange rates change from day to day, minute to minute, even second to second and these price fluctuations create a market.
Currency traders buy a currency if they think the price will go up and they sell a currency if they think the price will go down. Without a software program or extensive training in the Forex market, most people are basically guessing which way the price will move. Some people have more sophisticated methods of guessing, but it is still guessing.
Learn the risk of investing in the Forex market before you open a live account and fund it with your money.
Thursday, March 6, 2008
Forex - Reports and Brokers
Economic reports such as those on unemployment numbers and housing statistics are used as fundamental indicators. The Forex market is the deepest, largest and most fluid market for options of any kind in the world. When a country raises its interest rate, that country’s currency strengthens relative to other currencies. The levels of access that make up the forex market are determined by the size of the “line” or in other words, the amount of money with which they are trading. The Forex market was established in 1971 with the abolishment of fixed currency exchanges.
Many individuals consider the Foreign exchange market risky. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. Different brokers offer very different deals to their customers. Research the broker that you want to trade with prior to opening a live account.
A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Foreign exchange broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. Forex trading starts on Sunday at 5:00 p.m. Eastern Standard Time (EST). There are two markets open at the same time.
Increasing interest rates are usually bad news for the stock markets but can be very good news on the Forex market depending on which currencies you are trading.
Different Forex brokers will offer different trading suggestions and tools. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. The foreign exchange marketplace is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. Forex has no central marketplace for traders and no standard in foreign currency exchanges. Depending on your market position, an investor always has the opportunity to profit in a fluctuating marketplace because Foreign exchange trading involves selling one currency to buy another. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis.
There is no unified or centrally cleared marketplace for the majority of Forex trades, and there is very little cross-border regulation. Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by a number.
If you would like to participate in the Forex market, learn to manage the risks involved.
Many individuals consider the Foreign exchange market risky. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. Different brokers offer very different deals to their customers. Research the broker that you want to trade with prior to opening a live account.
A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Foreign exchange broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. Forex trading starts on Sunday at 5:00 p.m. Eastern Standard Time (EST). There are two markets open at the same time.
Increasing interest rates are usually bad news for the stock markets but can be very good news on the Forex market depending on which currencies you are trading.
Different Forex brokers will offer different trading suggestions and tools. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. The foreign exchange marketplace is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. Forex has no central marketplace for traders and no standard in foreign currency exchanges. Depending on your market position, an investor always has the opportunity to profit in a fluctuating marketplace because Foreign exchange trading involves selling one currency to buy another. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis.
There is no unified or centrally cleared marketplace for the majority of Forex trades, and there is very little cross-border regulation. Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by a number.
If you would like to participate in the Forex market, learn to manage the risks involved.
Saturday, March 1, 2008
Forex - Hours and Brokers
If you’re looking for the best days of the week to trade in the Forex market try Tuesdays and Wednesdays because these are the busiest days for trading. Most of the daily trading volume occurs during 3am EST and 11am EST because that's when the London session is open and that is currently the biggest trading session.
Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. The Forex market has become a popular work from home business for many. Interest rates and the strength of a country's economy are the two primary factors that determine the availability of a currency.
Only choose a Forex broker that has the best and most up to date Foreign exchange tools at his fingertips. All the broker companies require you to invest an initial sum of money. A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
There is little or no 'inside information' in the foreign exchange markets. Getting started in Forex trading involves learning two different ways of Forex trading (technical and fundamental) and becoming as efficient as you possibly can in the Forex trading strategy that works best for you. Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency.
Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. The Forex market has become a popular work from home business for many. Interest rates and the strength of a country's economy are the two primary factors that determine the availability of a currency.
Only choose a Forex broker that has the best and most up to date Foreign exchange tools at his fingertips. All the broker companies require you to invest an initial sum of money. A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
There is little or no 'inside information' in the foreign exchange markets. Getting started in Forex trading involves learning two different ways of Forex trading (technical and fundamental) and becoming as efficient as you possibly can in the Forex trading strategy that works best for you. Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency.
Wednesday, February 27, 2008
Basic Forex Analysis
Whether you plan to trade on the foreign exchange marketplace (Foreign exchange) or in the stock marketplace you will need to have some knowledge on two basic forms of analysis: fundamental analysis and technical analysis. Traders will transfer their money out of the stock market when interest rates rise, which can cause the currency of that country to weaken. The foreign exchange market is a cash interbank/interdealer market.
Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. In the broader sense, currency correlation can refer to the correlation between any currency pairs and the commodities, stocks and bonds markets. A country’s economic health is directly measured by economic reports. The foreign exchange (currency or foreign exchange or FX) market exists wherever one currency is traded for another.
Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. The world's currency markets can be viewed as a huge melting pot: in a large-scale and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in contrast to another shifts accordingly. Interest rates and the strength of the economy are the two primary causes that determine the availability of a currency. Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency.
Different dealers offer very different deals to their customers. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale.
When two markets are open at the same time, trading is busiest during those timeframes. The Forex market is open 24 hours a day; however it isn’t always active during those 24 hours. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.
The loan (influence) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position. The bare minimum security (margin) for each lost will vary from broker to broker. A margined account is a leverageable account in which Forex can be purchased for a combination of cash or collateral depending what your brokers will accept.
A market order is an order to buy or sell at the current marketplace price.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the forex market.
Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. Reports released by the government that detail a country’s economic performance are economic indicators.
Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. In the broader sense, currency correlation can refer to the correlation between any currency pairs and the commodities, stocks and bonds markets. A country’s economic health is directly measured by economic reports. The foreign exchange (currency or foreign exchange or FX) market exists wherever one currency is traded for another.
Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. The world's currency markets can be viewed as a huge melting pot: in a large-scale and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in contrast to another shifts accordingly. Interest rates and the strength of the economy are the two primary causes that determine the availability of a currency. Remember that economic indicators gauge a country’s economic state, changes in the conditions reported will directly affect the price and volume of a country’s currency.
Different dealers offer very different deals to their customers. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale.
When two markets are open at the same time, trading is busiest during those timeframes. The Forex market is open 24 hours a day; however it isn’t always active during those 24 hours. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.
The loan (influence) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position. The bare minimum security (margin) for each lost will vary from broker to broker. A margined account is a leverageable account in which Forex can be purchased for a combination of cash or collateral depending what your brokers will accept.
A market order is an order to buy or sell at the current marketplace price.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the forex market.
Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. Reports released by the government that detail a country’s economic performance are economic indicators.
Monday, February 18, 2008
Basic Forex Orders
Following is a brief description of the types of basic orders that can be placed in the Forex market:
Market Order
A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2045. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price.
Limit Order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2045. You want to go long if the price reaches 1.2065. You can either sit in front of your computer and wait for it to hit 1.2065 (at which point you would click a buy market order), or you can set a buy limit order at 1.2065 (then you can walk away from your computer). If the price goes up to 1.2065, your trading platform will automatically execute a buy order at that exact price.
Stop-Loss Order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if the price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. Stop-losses are extremely useful if you don’t want to sit in front of your computer all day worried that you will lose all your money.
Other Order Types
GTC (Good ‘til canceled)
A GTC order remains active in the Forex market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it is your responsibility to remember that you have the order scheduled.
GFD ( Good for the day)
A GFD order remains active in the Forex market until the end of the trading day. Because the foreign exchange is a 24-hour market, this usually means 5:00 p.m. EST since that is when the U.S. markets close, but you need to double check with your broker to determine the exact time of the end of the trading day.
OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are place above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2020. You want to either buy at 1.2075 or sell at 1.1965. If the OCO order reaches the 1.2075, you will buy and the 1.1965 sell order will be automatically canceled.
Market Order
A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2045. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price.
Limit Order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2045. You want to go long if the price reaches 1.2065. You can either sit in front of your computer and wait for it to hit 1.2065 (at which point you would click a buy market order), or you can set a buy limit order at 1.2065 (then you can walk away from your computer). If the price goes up to 1.2065, your trading platform will automatically execute a buy order at that exact price.
Stop-Loss Order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if the price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. Stop-losses are extremely useful if you don’t want to sit in front of your computer all day worried that you will lose all your money.
Other Order Types
GTC (Good ‘til canceled)
A GTC order remains active in the Forex market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it is your responsibility to remember that you have the order scheduled.
GFD ( Good for the day)
A GFD order remains active in the Forex market until the end of the trading day. Because the foreign exchange is a 24-hour market, this usually means 5:00 p.m. EST since that is when the U.S. markets close, but you need to double check with your broker to determine the exact time of the end of the trading day.
OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are place above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2020. You want to either buy at 1.2075 or sell at 1.1965. If the OCO order reaches the 1.2075, you will buy and the 1.1965 sell order will be automatically canceled.
Sunday, February 17, 2008
Forex Trading - Brokers
Many individuals consider the Forex market risky. Currency trading is risky but not any riskier than other investment trading (such as the stock market). It’s not the fact that you are trading currencies but how you manage the risk of the currency trading market. If you would like to participate in the Forex market, learn how to manage the risks involved.
Forex has no central market place for traders and no standard in foreign currency exchanges. Different dealers offer very different deals to their customers. Therefore you need to carefully research the Forex dealers before you sign up with their company. Pick a reputable dealer that will give you a fair deal and avoid scams.
It is recommended that traders only deal with authorized currency traders. If you are trading in the United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Most large brokerage firms are in some way connected to a bank or financial institution.
Different Forex brokers will offer different trading tips and tools. When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. A good Forex brokerage firm should offer real-time charts, technical analysis tools, real-time trade alerts and website support. Also make sure the broker offers a demo account that you can trade with prior to opening a live account.
Forex has no central market place for traders and no standard in foreign currency exchanges. Different dealers offer very different deals to their customers. Therefore you need to carefully research the Forex dealers before you sign up with their company. Pick a reputable dealer that will give you a fair deal and avoid scams.
It is recommended that traders only deal with authorized currency traders. If you are trading in the United States, make sure your Forex brokerage firm is registered with Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). Most large brokerage firms are in some way connected to a bank or financial institution.
Different Forex brokers will offer different trading tips and tools. When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. A good Forex brokerage firm should offer real-time charts, technical analysis tools, real-time trade alerts and website support. Also make sure the broker offers a demo account that you can trade with prior to opening a live account.
Tuesday, February 12, 2008
Foreign Exchange Market
Currency trading is risky but not any riskier than other investment trading (such as the stock market). Forex is the commonly used term for foreign exchange trading. Most large brokerage firms are in some way connected to a bank or financial institution. Interest rate news has a direct impact on the international financial markets.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. The Forex is made available to traders through platforms. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total forex marketplace volume, according to The Wall Street Journal Europe (5/5/06).
Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. There will be a greater demand, thus a higher price, for currencies perceived as stronger over their fairly weaker counterparts. (Pips are the smallest movement a currency can make on the Forex.) Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by a number of elements.
A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
You can trade 24-hours a day in the biggest and most fluid market in the world. There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. Foreign exchange trading starts on Sunday at 5:00 p.m.
If you would like to participate in the Forex market, learn how to manage the risks involved. It is difficult to determine what type of an impact a rate change will have in the marketplace. Margin rules may be regulated in some countries, but margin requirements and interest vary among broker/dealers so always check with the broker you are dealing with and make sure you understand their policy. Leverage financed with credit, such as that purchased on a margin account is very common in Forex.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. It is recommended that traders only deal with authorized currency traders. Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
Reports released by the government that detail a country’s economic performance are economic indicators. Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. There is the potential for profit in the currencies market regardless of which way the market moves.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. The Forex is made available to traders through platforms. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total forex marketplace volume, according to The Wall Street Journal Europe (5/5/06).
Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. There will be a greater demand, thus a higher price, for currencies perceived as stronger over their fairly weaker counterparts. (Pips are the smallest movement a currency can make on the Forex.) Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by a number of elements.
A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
You can trade 24-hours a day in the biggest and most fluid market in the world. There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. Foreign exchange trading starts on Sunday at 5:00 p.m.
If you would like to participate in the Forex market, learn how to manage the risks involved. It is difficult to determine what type of an impact a rate change will have in the marketplace. Margin rules may be regulated in some countries, but margin requirements and interest vary among broker/dealers so always check with the broker you are dealing with and make sure you understand their policy. Leverage financed with credit, such as that purchased on a margin account is very common in Forex.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. It is recommended that traders only deal with authorized currency traders. Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
Reports released by the government that detail a country’s economic performance are economic indicators. Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. There is the potential for profit in the currencies market regardless of which way the market moves.
Monday, February 11, 2008
Trading - Forex Market
It’s not the fact that you are trading currencies but how you manage the risk of the currency trading market. In the broader sense, currency correlation can refer to the correlation between any currency pairs and the commodities, stocks and bonds markets. Foreign exchange has no central marketplace place for traders and no standard in foreign currency exchanges. A Good For The Day (GFD) order remains active in the Foreign exchange market until the end of the trading day. There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation.
The Foreign exchange can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. Some individuals consider the Forex marketplace risky. As a person who wants to invest in the foreign exchange market, one should understand the basics of how this currency marketplace operates.
Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency. Reports can be used to predict the performance of and the immediate direction of a country’s economy. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are bought and sold.
A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers. A Foreign exchange broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. The Forex market is open 24 hours a day; however it isn’t always active during those 24 hours. There is very little volume on the weekends and holidays and you will probably end up losing money if you choose to trade on these days.
The loan (leverage) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position. A margined account is a leverageable account in which Forex can be purchased for a combination of cash or collateral depending what your brokers will accept. The loan (leverage) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position.
A currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation. In other words, this means the currencies bought and sold in the foreign exchange marketplace are bought and sold directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. Depending on your marketplace position, an investor always has the opportunity to profit in a fluctuating marketplace because Forex trading involves selling one currency to buy another. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be.
Interest rate news has a direct impact on the international financial markets. When a country raises its interest rate, that country’s currency strengthens relative to other currencies. Once you have deposited your money you will than be able to trade.
You need to carefully research the Forex dealers before you sign up with their company. Pick a reputable dealer that will give you a fair deal and avoid scams. Depending on your marketplace position, an investor always has the opportunity to profit in a fluctuating market because Forex trading involves selling one currency to buy another. The forex market exists wherever one currency is traded for another.
The Foreign exchange can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. Some individuals consider the Forex marketplace risky. As a person who wants to invest in the foreign exchange market, one should understand the basics of how this currency marketplace operates.
Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency. Reports can be used to predict the performance of and the immediate direction of a country’s economy. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are bought and sold.
A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers. A Foreign exchange broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
If you’re looking for the best days of the week to trade try Tuesdays and Wednesdays because these are the busiest days for trading. The Forex market is open 24 hours a day; however it isn’t always active during those 24 hours. There is very little volume on the weekends and holidays and you will probably end up losing money if you choose to trade on these days.
The loan (leverage) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position. A margined account is a leverageable account in which Forex can be purchased for a combination of cash or collateral depending what your brokers will accept. The loan (leverage) in the margined account is collateralized by your initial margin (deposit), if the value of the trade (position) drops sufficiently, the broker will ask you to either put in more cash, or sell a portion of your position or even close your position.
A currency may sometimes strengthen when inflation rises because of expectations that the central bank will raise short-term interest rates to combat rising inflation. In other words, this means the currencies bought and sold in the foreign exchange marketplace are bought and sold directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. Depending on your marketplace position, an investor always has the opportunity to profit in a fluctuating marketplace because Forex trading involves selling one currency to buy another. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be.
Interest rate news has a direct impact on the international financial markets. When a country raises its interest rate, that country’s currency strengthens relative to other currencies. Once you have deposited your money you will than be able to trade.
You need to carefully research the Forex dealers before you sign up with their company. Pick a reputable dealer that will give you a fair deal and avoid scams. Depending on your marketplace position, an investor always has the opportunity to profit in a fluctuating market because Forex trading involves selling one currency to buy another. The forex market exists wherever one currency is traded for another.
Friday, February 8, 2008
Trading Forex Basics
Just like in the stock market, better returns are provided by countrys that demonstrate faster growth and better economic conditions compared to other countries. Whether you plan to trade on the foreign exchange marketplace (Foreign exchange) or in the stock market you will need to have some knowledge on two basic forms of analysis: fundamental analysis and technical analysis.
Reports released by the government that detail a country’s economic performance are economic indicators. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. Fundamental analysis in the Forex is the economic conditions and the affect those conditions have on a nation’s currency.
The levels of access that make up the foreign exchange marketplace are determined by the size of the “line” (the amount of money with which they are trading). The Forex Marketplace better known as Foreign exchange - is a world wide market for buying and selling currencies. A country’s economic health is directly measured by economic reports. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session.
Different dealers offer very different deals to their customers. Traders of Forex commonly favor Forex online trading systems. Due to the over-the-counter (OTC) nature of currency markets, there are a number of interconnected marketplaces, where different currency instruments are traded. Interest rate news has a direct impact on the international financial markets.
A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. Different dealers offer very different deals to their customers. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
The Forex marketplace is open 24 hours a day; however it isn’t always active during those 24 hours. There are two markets open worldwide at the same time. There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. The London session is usually busier than the Tokyo or U.S. session.
Closing your open positions will prevent your account from falling into a negative balance if the market is decreasing rapidly. If you would like to participate in the Foreign exchange marketplace, learn how to manage the risks involved. Control financed with credit, such as that purchased on a margin account is very common in Foreign exchange.
The retail sales report measures the total receipts of all retail stores in a given country. Trade flows are a factor in the long-term direction of a currency's exchange rate. Many individuals consider the Foreign exchange market risky. Foreign currencies traded in the foreign exchange market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk.
Currency trading is risky but not any riskier than other investment trading (such as the stock market). A market order is an order to buy or sell at the current marketplace price. An important part of this marketplace comes from the financial activities of companies seeking forex to pay for goods or services.
When a country raises its interest rate, that country’s currency strengthens relative to other currencies. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a marketplace-maker will buy ("bid") from a wholesale customer.
Reports released by the government that detail a country’s economic performance are economic indicators. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be. Fundamental analysis in the Forex is the economic conditions and the affect those conditions have on a nation’s currency.
The levels of access that make up the foreign exchange marketplace are determined by the size of the “line” (the amount of money with which they are trading). The Forex Marketplace better known as Foreign exchange - is a world wide market for buying and selling currencies. A country’s economic health is directly measured by economic reports. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session.
Different dealers offer very different deals to their customers. Traders of Forex commonly favor Forex online trading systems. Due to the over-the-counter (OTC) nature of currency markets, there are a number of interconnected marketplaces, where different currency instruments are traded. Interest rate news has a direct impact on the international financial markets.
A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. Different dealers offer very different deals to their customers. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
The Forex marketplace is open 24 hours a day; however it isn’t always active during those 24 hours. There are two markets open worldwide at the same time. There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. The London session is usually busier than the Tokyo or U.S. session.
Closing your open positions will prevent your account from falling into a negative balance if the market is decreasing rapidly. If you would like to participate in the Foreign exchange marketplace, learn how to manage the risks involved. Control financed with credit, such as that purchased on a margin account is very common in Foreign exchange.
The retail sales report measures the total receipts of all retail stores in a given country. Trade flows are a factor in the long-term direction of a currency's exchange rate. Many individuals consider the Foreign exchange market risky. Foreign currencies traded in the foreign exchange market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk.
Currency trading is risky but not any riskier than other investment trading (such as the stock market). A market order is an order to buy or sell at the current marketplace price. An important part of this marketplace comes from the financial activities of companies seeking forex to pay for goods or services.
When a country raises its interest rate, that country’s currency strengthens relative to other currencies. The Forex can be broken up into three major trading sessions: the Tokyo Session, the London Session, and the U.S. Session. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a marketplace-maker will buy ("bid") from a wholesale customer.
Wednesday, February 6, 2008
Forex - Basics
Whether you plan to trade on the foreign exchange market (Forex) or in the stock market you will need to have some knowledge on two basic forms of analysis: fundamental analysis and technical analysis. It is the tendency for the price of a currency to reflect the impact of a specific action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. Certain reports will give an indication of whether a nation’s economy has improved or declined. Trade flows are an important cause in the long-term direction of a currency's exchange rate. The Foreign exchange can be broken up into three major trading sessions: the Tokyo session, the London session, and the US session.
Forex trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. GFD ( Good for the day) currency trading is risky but not any riskier than other investment trading (such as the stock marketplace).
It’s not the fact that you are trading currencies but how you manage the risk of the currency trading marketplace. Reports can be used to see if a country is making or losing money on its products and services when it is compared to a nation’s exports. The duration of the trade can be a few days, months or years. Whether you plan to trade on the foreign exchange market (Forex) or in the stock market you will need to have some knowledge on two basic forms of analysis: fundamental analysis and technical analysis.
A Foreign exchange broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. Different dealers offer very different deals to their customers. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
The Forex market is open 24 hours a day; however it isn’t always active during those 24 hours. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends. The London session is usually busier than the Tokyo or US sessions. There are usually two markets open at the same time.
A margined account is a leverageable account in which Foreign exchange can be purchased for a combination of cash or collateral depending what your brokers will accept. For instance, for every $1,000 you have, you can trade 1 lot of $100,000. Think of your broker as a bank who basically fronts you $100,000 to buy currencies and all he wants from you is $1,000 as a good faith deposit, which he will hold for you but not necessarily keep. This means that for every $100,000 traded, the broker requires $1,000 as a deposit on the position.
There is the potential for profit in the currencies marketplace regardless of which way the market moves. In simplest terms, this means the foreign currencies bought and sold in the forex marketplace are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. Interest rate news has a direct impact on the international financial markets. The levels of access that make up the foreign exchange market are determined by the size of the “line” (the amount of money with which they are trading).
Reports released by the government that detail a country’s economic performance are economic indicators. The retail sales report measures the total receipts of all retail stores in a given country. You are probably wondering how a small investor like yourself can trade such large-scale amounts of money. The foreign exchange market is not a "marketplace" in the traditional sense due to the fact that there is no centralized bank for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC).
When a country raises its interest rate, that country’s currency strengthens relative to other currencies. The average daily trade in the global forex and related markets currently is over US$ 3 trillion. A marketplace order is an order to buy or sell at the current marketplace price.
Forex trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. GFD ( Good for the day) currency trading is risky but not any riskier than other investment trading (such as the stock marketplace).
It’s not the fact that you are trading currencies but how you manage the risk of the currency trading marketplace. Reports can be used to see if a country is making or losing money on its products and services when it is compared to a nation’s exports. The duration of the trade can be a few days, months or years. Whether you plan to trade on the foreign exchange market (Forex) or in the stock market you will need to have some knowledge on two basic forms of analysis: fundamental analysis and technical analysis.
A Foreign exchange broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. Different dealers offer very different deals to their customers. A broker is any person or firm that charges a fee in exchange for executing trades for a trader. A Forex broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency.
The Forex market is open 24 hours a day; however it isn’t always active during those 24 hours. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends. The London session is usually busier than the Tokyo or US sessions. There are usually two markets open at the same time.
A margined account is a leverageable account in which Foreign exchange can be purchased for a combination of cash or collateral depending what your brokers will accept. For instance, for every $1,000 you have, you can trade 1 lot of $100,000. Think of your broker as a bank who basically fronts you $100,000 to buy currencies and all he wants from you is $1,000 as a good faith deposit, which he will hold for you but not necessarily keep. This means that for every $100,000 traded, the broker requires $1,000 as a deposit on the position.
There is the potential for profit in the currencies marketplace regardless of which way the market moves. In simplest terms, this means the foreign currencies bought and sold in the forex marketplace are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. Interest rate news has a direct impact on the international financial markets. The levels of access that make up the foreign exchange market are determined by the size of the “line” (the amount of money with which they are trading).
Reports released by the government that detail a country’s economic performance are economic indicators. The retail sales report measures the total receipts of all retail stores in a given country. You are probably wondering how a small investor like yourself can trade such large-scale amounts of money. The foreign exchange market is not a "marketplace" in the traditional sense due to the fact that there is no centralized bank for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC).
When a country raises its interest rate, that country’s currency strengthens relative to other currencies. The average daily trade in the global forex and related markets currently is over US$ 3 trillion. A marketplace order is an order to buy or sell at the current marketplace price.
Tuesday, February 5, 2008
Basic Forex Trading
Forex is the biggest and most fluid market in the world, trading approximately $2 trillion every day. The Foreign exchange marketplace is a cash interbank/interdealer marketplace. In simplest terms, this means the currencies traded in the Foreign exchange market are traded directly between banks, foreign currency dealers and Forex traders. Nevertheless, trade flows are an important cause in the long-term direction of a currency's exchange rate.
The Forex marketplace is not a traditional "market" due to the fact that there is no centralized bank for Forex trading activity and, therefore, trades placed in the Foreign exchange market are considered over-the-counter (OTC). Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Foreign exchange trading platforms and/or over the telephone directly with a Foreign exchange broker on our trading desk. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are bought and sold.
Until recently the Foreign exchange market has not been available to the small trader. The large-scale bare minimum foreign currency transaction sizes and financial contributions left this marketplace open only to banks, major foreign currency dealers and the occasional large-scale Foreign exchange speculator. Now, with the option to control large positions with a relatively small amount of capital (margin), the Forex market is now more fluid than ever and available to most investors.
Five major currencies dominate trading in the Foreign exchange marketplaces: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs in the Forex spot market. For instance, buying the EUR/USD in the Foreign exchange spot marketplace simply means the purchaser is buying the Euro and selling the U.S. Dollar in anticipation of the Euro gaining value in comparison to the U.S. Dollar. Likewise, the seller of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an escalation in international trade and foreign investment has made the economies of the world more interconnected. New opportunities for traders have been created with the dramatic economic growth of the Asian and Latin American economies. Today, supply and demand for a specific currency is the driving factor in determining exchange rates. Other factors such as routinely reported economic figures and unpredicted news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus determing international supply and demand for that currency.
The Forex marketplace is not a traditional "market" due to the fact that there is no centralized bank for Forex trading activity and, therefore, trades placed in the Foreign exchange market are considered over-the-counter (OTC). Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of banks worldwide. Clients can trade through online Foreign exchange trading platforms and/or over the telephone directly with a Foreign exchange broker on our trading desk. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are bought and sold.
Until recently the Foreign exchange market has not been available to the small trader. The large-scale bare minimum foreign currency transaction sizes and financial contributions left this marketplace open only to banks, major foreign currency dealers and the occasional large-scale Foreign exchange speculator. Now, with the option to control large positions with a relatively small amount of capital (margin), the Forex market is now more fluid than ever and available to most investors.
Five major currencies dominate trading in the Foreign exchange marketplaces: the U.S. Dollar, Euro, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs in the Forex spot market. For instance, buying the EUR/USD in the Foreign exchange spot marketplace simply means the purchaser is buying the Euro and selling the U.S. Dollar in anticipation of the Euro gaining value in comparison to the U.S. Dollar. Likewise, the seller of a EUR/USD contract would be selling the Euro against the U.S. Dollar.
Over the past twenty years, an escalation in international trade and foreign investment has made the economies of the world more interconnected. New opportunities for traders have been created with the dramatic economic growth of the Asian and Latin American economies. Today, supply and demand for a specific currency is the driving factor in determining exchange rates. Other factors such as routinely reported economic figures and unpredicted news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus determing international supply and demand for that currency.
Subscribe to:
Posts (Atom)