Tuesday, October 20, 2009

Forex Successful Curency Trading

The Foreign Exchange - Forex, FX - market is one of the biggest markets today. Daily turnover has skyrocketed from approximately 5 billion USD in 1977, to a staggering 3 trillion (and more) US dollars today. This is more than 40 times the daily turnover of the NASDAQ.

Forex currency trading is attractive to traders as currency markets are cnstantly fluctuating and there is potential to profit whether a currency is going up or down. Traders trade on margin which leverages their potential gains. What also makes it so popular is that there is no centralized location for trading as there is in futures or stocks, as trading occurs around the clock over the telephone and on computer terminals at thousands of locations worldwide.

Currency trading occurs when one country's currency is traded for another country's currency at the prevailing exchange rate. All currency is traded in LOTS. Each lot has a different amount of currency. Currency trading is carried out on a point (or pip) system. Traders are trying to capture points. Depending on the currency, each point is worth a different amount. For example, if the Brittish Pound is worth about $10 per point that is traded per lot and you trade 1 lot and capture 40 points, you make $400.

Forex currency trading does involve substantial amount of risk. About 10% of people make money and 90% lose money on currency trading! Why? Because many of those who enter the currency trading market are dirven by emotions and know very little about the techniques of currency trading. Having some forex currency trading education, being in the optimal state of mind, and having the right tools can help you to join the ranks of those 10% of people who do make money in forex currency trading.

Currency trading professionals seek price fluctuations and investors seek return on investment. Both take a calculated risk that is minimized by knowledge, optimal mind set, and the right tools. Currency trading turns into gambling when you are uneducated, trade emotionally or with a "hot tip".

Successful Forex Trading set of CDs is designed to help you become a successful Forex trader by programming your subconscious mind to help you choose the best currencies to trade, when to enter, when to exit the trade, develop your intuition and open yourself to financial abundance. Financial wizards will tell you that 80% of financial wizardry is in your mindset and the other 20% is in techniques and mechanics.

Successful Forex Trading CDs help you to get into the optimal mindset for successful Forex trading. Beside having the optimal mindset, you could also tremendously benefit from having the right tools

Investment Myths And The Forex Markets

First what is Forex: The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

What is a myth: A myth is often thought to be a lesson in story form which has deep explanatory or symbolic resonance for preliterate cultures, who preserve and cherish the wisdom of their elders through oral traditions by the use of skilled story tellers.

Many new Forex market traders have misconceptions about the entire system. They see people making money trading with the Forex market and automatically assume they can easily do the same. What they tend to forget it that there is strategy and research done in order to make successful trades and profits from trading. If you are new to the Forex market system, don't get caught up in popular investment myths. Be sure that you know exactly what to expect and be realistic when trading.

When you are trading and investing in any market, including the Forex, you must have the discipline needed to be successful. Although the system is enormous and there is a lot going on that you won't be involved within, you must actively protect your investments. Your investments will not be protected just because they are in the market. A lot can change throughout a day, so you have to always be aware of what is going on in order to be fully protected to your best ability. You should always make logical and researched decisions when trading. It is not a system to use to "get rich quick". It is a serious financial system that can break your pocket if you are not careful.

One thing to remember when trading and trying to protect your investments however will be that you must take risks to gain. Along with taking a large risk, can come a large success or large loss. You have to be prepared for the worst. You can do this by educating yourself as much as possible on the trading system and your investments. The more you know, the better prepared you will be to make successful decisions. If you are unsure about a system of trading, like the Forex, be sure to take classes and read about the system before you begin trading. Only trade when you are certain you are ready to begin. Even after you learn what you need to know about the system and are a seasoned trader, there are times when you will have losses. The system is not one that protects your investments or your money in general. So, be prepared and aware of this issue. Being realistic can really help you gain more success.

Leverage is something that is both great when it comes to the Forex and possibly dangerous. Trading currencies offers a high level of leverage. Those who don't have a lot of money to begin with can use leverage to gain more money. When used correctly, you can often do this in short amounts of time. Most people think however that this is something that can be done easily. Those who use leverage to their potential are often those with years of experience in trading. Some people tend to follow the myth that anyone will be able to easily use leverage to get rich fast. This is simply not true. You must be a trader with an excellent knowledge of the system in order to make leverage work to your maximum advantage.

Another thing to keep in mind is that just because you are trading with a minimum marginal deposit does not mean you should trade at levels above your portfolio. The myth that you can get away with this every time is not true. You should not over leverage yourself. By trading in small amounts, you will be able to make safe investments that will not result in huge losses. You will win some and lose some, especially when you are first starting out.

When it comes to the Forex market, you should know that what you assume to be true may not be true at all. You may think that you can use the Forex market to protect your investments. You have learned from reading this however that the Forex may not protect your investments, and one should be diligent in watching their investments in order to avoid anything catastrophic. You may also think that you can get rich quickly using the Forex market. The truth is that short term trading, which is notorious for turning profits quickly, is not for the beginner. Those who have traded for years may try short term investing, but it is very risky indeed. Lastly, you may think that leverage will help you "play with the big boys" and still stay safe. This can be a horrible assumption and many people will over leverage themselves if they are not careful. So, do research, be smart, and think before you act when dealing with the Forex.

Forex Anayles

For example, let's say, we shall endeavor to maintain the gains from the movement and the transition from English to Russian ruble FOREX Pounds.Using can we determine who, or rather the end of the handle, the advantages that most want to to return to the investor.

FOREX analysis to determine the costs and benefits of this strategy, and as we all know, this is very important to the borders of the investments and the potential benefits, each other, why funds if they do not reap a return on the amount that is greater ?

FOREX analysis is made easier for the average investor, if he has access to the agent, or to view statistical information service. Band, which really a collection of the narrow investment opportunities are in almost every time. So, have access to the best available analysis FOREX can make a difference, and that rule should be practical mater, since the decision in the FOREX market, investment in the future of your money either by you or by the erosion of time. FOREX analysis can be a place not only to the amount of your assets, but also to the size and potential growth of your money. A brief analysis of the FOREX is an important key to a successful strategic investment

Forex Trading Terms

When FX trading, it is a good idea to have some familiarity with basic terms that you will come across. Whether reading about the foreign currency exchange, or just understanding the jargon used by forex brokers, it is a good idea to have a basic knowledge of what common currency trading terms mean. Here are some terms forex brokers and others sometimes use in association with foreign exchange:

Leverage
This is the amount of money you are borrowing from forex brokers to make your FX trade. If you have 200:1 leverage, you pay 0.5% of what you are using to control your position, and the rest of the money comes from the forex broker.

Spread
This is the difference between the bid price and the ask price. You make a profit in currency trading when you overcome the spread.

Support
The level at which a forex trend changes from bearish to bullish.

Resistance
The opposite of support: The FX trend switches from bullish to bearish.

Pip
A term that stands for “percentage in point.” This is the smallest change that can be made to a currency rate.

Scalping
A technique that helps you get between three and five points per trade by using foreign currency pairs with low spreads. Most scalping trades last only a few seconds to a few minutes.

Margin cal
Forex brokers often monitor your margin requirements. When the equity of your forex trading account drops below your usable margin, your open positions on the foreign exchange market are closed to keep your losses from mounting.

Cable
This is the nickname for the Great Britain pound and U.S. dollar foreign currency pair on the FX market.Greenback, buck: Nicknames indicating the U.S. dollar in online currency trading.

Sterling
A nickname used for the Great Britain pound.

Fiber
A nickname used to indicate the euro currency.

Loonie
The currency exchange nickname for the Canadian dollar.

Kiwi
The FX trading nickname for the New Zealand Dollar

Forex Trading Margin

Margin trading allows you to leverage your capital into a larger position. Basically, forex brokers – including dbFX, which operates using a margin forex trading platform – lend their clients money so that they can control a larger position than they have the capital for. In forex trading, positions (called lots) are in chunks of 100,000 units of the base currency. Most people do not have $100,000 at their disposal in order to control such a large position. Using margin to leverage their capital, however, allows them to take $2,500 or $1,000 (or less) and control a large lot size.

Because lot sizes are so large, and because the foreign currency market is so volatile, a great deal of money can be made with each position. This allows the clients to make enough money to cover the margin used to trade forex. The flip side, though, is that if gains are magnified by the leverage use in currency trading, so are the losses.

Some forex brokers offer margin calculation services to help you keep track of how much of your account balance is available for new positions. With dbFX, which is owned by Deutsche Bank, it is possible to automatically see where you stand. This is very useful, since it can reduce the chances that you will over extend yourself. It is important to realize that margin forex trading can be devastating in some cases. Some forex brokers offer a 400:1 margin, but it is possible to select a 100:1 or 50:1 margin that is less risky. Your profit will be smaller, but so will your chance of a large loss.

Forex Methods

The Forex Market is indeed to be one of the great places to produce tremendous wealth, even in an recent economy of uncertainty. Better than Stocks and Futures Markets combined, Forex has opened its doors to individuals that want to have wealth sooner than they thought, and even larger than they ever dreamed of, and yes, that is you and me. In a such situation of the economy, companies turn their heads on Forex for additional income.

Did you know that the Forex Market is like fire? Because, if you do not know how to nourish or control fire, it takes over you and does some damage that can scar for for a very long time. But if you know where to direct it, place it, control its intensity and quantity, then fire is not a damaging element anymore, but useful. Evolution and time has taught man to control fire.

Same as in Forex, if you do not know how to make Forex work for you, your loss can be heartbraking and traumatizing. Forex Traders fail in forex, but not because it was just too risky, if you dig down deep, they tend to use a trade method that doesn’t work, for them. Remember that no matter how “effective” a trade method is, it won’t work unless it works for you. There are many forex trader success stories, using the method that works for them.

But what is a good trade method?

Here are some guidelines in order to determine if a trade method will benefit you the most:

1. It must be a complete method, with setup conditions, entry rules, initial stop rules, and exit
strategy rules, leaving no decision to chance.

2 . It must include specific risk management, money management, and portfolio management
guidelines.

3. It must be based on technical analysis, but it must not be a 100% mechanical system.

4. It must take less than an hour a day to apply after learning how to trade with it.

In evolution and time, there are forex methods that some may not be aware of, on how Forex is flame that can be put to our good use and maybe it becomes an important resource of convenience, financial convenience. Find a good trading method using the guidelines mentioned, there are good methods out there that you can use to experience financial freedom with Forex, it is possible to have your economy rebound with Forex. Start now.

Tuesday, October 13, 2009

How to Trade Forex

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type.

Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements.

Good Earnings With FOREX Trading

Earning has come to just a click away with the advent of online forex trading. The internet has already proved its worth in the trading system online, be it any business and when trading in forex market is talked about it has scored again.

It is a lot easier for the online trader to make investments online thus increasing his returns. The forex trading software has made the entire process further effortless. The software makes the trader task pretty uncomplicated by making and closing deals on its own thus leaving the trader tension-free, even where decision making process is concerned.

The online trading system with the help of software helps the trader and the broker to witness market changes right in front of them on the computer screen and that too in no time! Currency trading online can be learnt in no time with the help of the software. The process can be initiated on demo accounts and with virtual money which later on is easily applicable on real account and actual money. Practicing on virtual money spares the trader the risk of spending and loosing actual money.

Forex trading can be started at any point of time with gaining knowledge from the various courses available on the internet. These also are demo accounts available wherein the trader can actually learn trading in simpler ways. The learning process can go on slowly as the trader learns all the nuances of the forex market. The courses and demo accounts and other e-books make it very easy for the trader to know all that he needs to enter the forex market and start investing on real money.

To enhance the learning procedure, there also is currency trading software which gives an overall knowledge of the trading business and helps not only the new trader but also the experienced trader in investing online. The software provides all the required information and tips on investing so the decision making becomes easier for the trader.

To know which the appropriate software and how to use it, the trader can also take help from forex software review which tell him about the software usage, its performance and outcome. Reviews prove of a real help while buying software for trading online, as they might be given be users or experts. No matter how much experience the trader might have in the trade, he would need to update his knowledge every now and then in order to be successful.

For that required earning through forex trade, whether online or otherwise, the forex trading strategies remain the same and a knowledgeable and experienced trader and broker would use them just the right way to generate maximum profits.

Trading Strategy

A forex trading strategy can provide profit for a skilled speculator. A FX trading strategy is, simply put, a method for using foreign exchange rates of currency from various countries to buy one country’s currency when it is undervalued, and exchange it for another country’s currency with it is of normal or higher value, with the difference being profit.

A common forex trading strategy could involve US dollars and the Euro, the official currency of most European countries. To use a simple example of a forex trading strategy, a speculator would buy Euros when they were undervalued; let’s say two Euros equaled one US dollar. This would be unusual because normally the two currencies are almost equal.

By spending one hundred US dollars to buy two hundred Euros a speculator would be able to buy more goods in Germany, France or other European countries. When the market changed and became more even, the speculator would have twice as many goods as he normally would have, and would be able to exchange those goods for US dollars once again.

The difference would be profit. This is a very simple explanation of a forex trading strategy, but gives the basics to the new speculator.Of course, when coming up with a forex trading strategy the trader should only use money that he or she can afford to loose. This is speculation, as opposed to investment. The chances for profit are real, and could come quick but if the market turns the opposite way than expected the trader could actually loose money.

A forex trading strategy can reap large profits, but if anyone tells you that all trades will result in profit, they haven’t studied the market as well as they should have and they are not correct. Still having a sound forex trading strategy for a competent businessman can be a profitable venture. It requires study of the markets, which takes time and is usually best accomplished by reading financial newsletters and using tools available on the Internet.

Getting the advice of a professional forex trading strategy specialist can also be a sound choice. Professionals have the time, education and skills and can generally help a trader come up with a forex trading strategy that will result in profit more often than one could do without their help.The most sound forex trading strategy options are generally used by large multinational corporations who are often able to make steady profits.

Watching what large corporations do who are involved in forex trading, looking for patterns they may have set, can help a trader to get the benefit of the very expensive expertise used by these large companies. Making watching of the large traders a part of a person’s education is definitely a good place to start a forex trading education. Identifying the state of the market, determining the time frame you are working in, and the currencies that have fluctuation and getting the advice of professionals through self study can be the wisest forex trading strategy option available.

Multiply Your Wealth With FOREX

To many people that sounds amazing, and perhaps it is. It can be very profitable for investors and fortunes have been made by many. The incentive to learn forex trading is the oldest incentive by far, the incentive to make profit. If you learn forex trading you are learning how to make your money make more money for you, the goal of all investors.

If you choose to learn forex trading online you are not alone since thousands of people choose this method every year. If you learn forex trading online you have the benefit of choosing an instructor from almost anywhere in the world, or to choose multiple instructors.

When you learn forex trading in this fashion your virtual classmates could be from England, Hong Kong, Singapore, Paris, or any other exotic locale that you may have only read about in the past.

Obviously this diversity of culture and knowledge will be beneficial. During online chats and student discussions questions will be raised that you may not have thought of yourself, and you’ll be able to benefit by hearing the answers.

The ultimate goal of forex trading is to trade currency in a consistent manner that will result in profit. For instance, buying Euros with US dollars and then selling the Euros for more than you gave for them when the market changes.

This is the oldest rule of business, buy low and sell high. If you learn forex trading you’ll be able to do this on a scale you never would have thought possible, limited only by the amount of investment funds you have and by market conditions.

Trading Spot Gold and Silver

Much like trading currency pairs, spot metals enables traders to take a long or short position in gold (XAU/USD) or silver (XAG/USD) while simultaneously taking the opposite position in the U.S. dollar or other major currencies.

Spot gold and silver trades globally in an over-the-counter market, and prices float freely based on supply and demand. The spot price is the price quoted for the metal to be paid for (including delivery) two days following the date of the actual transaction (also known as the settlement date).

Spot gold and silver trades a lot like currency pairs in the foreign exchange market. Trading is available 24 hours a day from Sunday at 6:00 pm ET to Friday at 5:00 pm ET. There is no central market however, the main centers for trading spot gold and silver are London, New York, and Zurich. Liquidity is typically highest when European market hours overlap with trading in New York - roughly four hours a day during the morning for U.S. traders. There may be some illiquid periods for trading spot gold and silver around the close of the US market (5pm ET to 6 pm ET). There is a twice-daily fix for gold and a daily fix for silver in London that helps set reference points for intraday prices. Settlement is very similar to forex settlements.

Who trades spot gold and silver, and why?

There are many different reasons that drive investors to trade spot gold and silver:

* Speculation on the price based on the use of fundamental and or technical analysis

* Creating a balanced, diversified asset allocation model for an overall investment portfolio

* Applying risk management as a hedge against market volatility and financial crises caused by
economic, political or social turmoil.

Forex Fundamental Analysis

In order to make Forex trading strategy, most Forex traders rely on analysis such as fundamental analysis. Forex Fundamental Analysis is a type of market analysis that uses market trends to determine the future value of a particular currency in the FX market. Fundamental analysis gives us an overview of currency movements based on economic, political, environmental, other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. Forex fundamental analysis strategies require a basic understanding of supply and demand since it provides information how political and economical events influence the currency market. It is about looking at the intrinsic value of an investment. In other words, its application entails looking at the economic conditions that affect the valuation of a nation's currency.

The basis of fundamental analysis is mainly on the political and economic changes as these can frequently affect currency prices. Thus, traders are most likely to gather information from news sources to determine unemployment forecasts, political ideologies, economic policies, inflation, and growth rates. Traders keep an eye on the figures and statements given in speeches by important politicians and economists, as well as announcements related to United States economy and politics. Speeches from prominent people like the Chairman of the Federal Reserve Bank of USA, Secretary of Treasury, President of the Federal Reserve Bank of San Francisco and so on.

It is known that if there is a decrease in supply but the level of demand remains the same, there will be an increase in market prices. On the other hand, if there is an increase in supply, it produces the opposite effect. Thus, fundamental analysts study the supply and demand for the country's currency, products or services, quality management, government policies, past and forecast of performance, future plans and all the economic indicators like Gross Domestic Product (GDP), industrial production, interest rates, international trade, CPI, durable goods orders, PPI, PMI and retail orders. When all data is gathered from these studies, the analysts will construct a model that will check the current and estimated value of a currency against another. Analyst will then decide whether the currency ought to rise or fall after estimating the intrinsic value and comparing it to the current exchange rate.

In summary, Forex fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis include supply and demand, seasonal cycles, weather, and government policy. Thus, the fundamentalist studies that cause of market movement. Fundamental analyst needs to know a particular market intimately. In practice, traders use fundamental analysis in conjunction with technical analysis to determine a Forex trading strategy, fundamental analysis is considered to be the opposite of technical analysis.

FOREX Trading System

Want a good Forex Trading System? Searching for a good forex trading system? If you're anything like me, you've been probably exposed to a number of Forex trading systems haven't you? Most of those trading systems are 100% mechanical in their nature. You know the drill: "if A and B happen, do C... if not, do D instead". They basically tell you exactly what to do and when to do it, which is all good but... the problem is that you do not know what you are actually basing your trading decisions on! Pulling the trigger without know the "why?" factor always gets me a bit nervous. Here's the good news though: You can now learn Forex as a trader instead as a system-follower!Forex Trading System.

Luckily for all of us who enjoy old-school trading, there's a fantastic learning program now available where everything related to Forex trader is taught: chart-reading, trend analyzing, stop loss placement, profit takings, news announcements, trading psychology... absolutely everything!!! And you know what's best? it's all taught over live videos! cool ey? If you want to actually learn how to trade Forex, trust me on this one: you don't want to miss this out!Let's see a small snippet of the type of learning you will get in forex trading:Forex Trading System Many folks have asked repeatedly the following particular question regarding Money Management: "If I spot a crystal-clear, mint-perfect, extraordinarily high-probability setup... is it OK to increase my usual lot size for that very trade?" I remember one guy who had even developed a rather unique Money Management system under which he'd rank his trade setups from 1 to 5 points: 1 being a low quality setup with a high degree of risk, and 5 being an A-setup with absolutely all the ducks falling in line.

History Of FOREX

Initially, the value of goods was expressed in terms of other goods, i.e. an economy based on barter between individual market participants. The obvious limitations of such a system encouraged establishing more generally accepted means of exchange at a fairly early stage in history, to set a common benchmark of value. In different economies, everything from teeth to feathers to pretty stones has served this purpose, but soon metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.

Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, often introduced more successfully through force than persuasion were the basis of modern currencies.Before World War I, most central banks supported their currencies with convertibility to gold. Although paper money could always be exchanged for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central reserves of the government.

At times, the ballooning supply of paper money without gold cover led to devastating inflation and resulting political instability. To protect local national interests, foreign exchange controls were increasingly introduced to prevent market forces from punishing monetary irresponsibility.In the latter stages of World War II, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The Bretton Woods Conference rejected John Maynard Keynes suggestion for a new world reserve currency in favour of a system built on the US dollar.

Other international institutions such as the IMF, the World Bank and GATT (General Agreement on Tariffs and Trade) were created in the same period as the emerging victors of WW2 searched for a way to avoid the destabilising monetary crises which led to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that partly reinstated the gold standard, fixing the US dollar at USD35/oz and fixing the other main currencies to the dollar - and was intended to be permanent.The Bretton Woods system came under increasing pressure as national economies moved in different directions during the sixties.

A number of realignments kept the system alive for a long time, but eventually Bretton Woods collapsed in the early seventies following president Nixon's suspension of the gold convertibility in August 1971. The dollar was no longer suitable as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.The following decades have seen foreign exchange trading develop into the largest global market by far.

Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.But the idea of fixed exchange rates has by no means died. The EEC (European Economic Community) introduced a new system of fixed exchange rates in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when pent-up economic pressures forced devaluations of a number of weak European currencies.

Nevertheless, the quest for currency stability has continued in Europe with the renewed attempt to not only fix currencies but actually replace many of them with the Euro in 2001.The lack of sustainability in fixed foreign exchange rates gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates, in particular in South America, looking very vulnerable.But while commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have found a new playground.

The size of foreign exchange markets now dwarfs any other investment market by a large factor. It is estimated that more than USD 3,000 billion is traded every day, far more than the world's stock and bond markets combined.

Friday, October 2, 2009

Forex Market

Trading information for beginners

If you’re a new to the forex (foreign exchange) market, you probably have a lot of questions. Making money in a global currency market is an exciting prospect; you’re probably wondering how, and what you need to get started. A lot of information on the internet is geared toward the knowledgeable trader who has at least experienced the stock market. Not everyone has the benefit of Wall Street experience. We are here to help you out if you’re not all that stock savvy and don’t have a financial background.So, what is foreign currency exchange?The basic term, foreign currency exchange, is used to explain the exchange of one country’s currency for another’s.

If you’ve every traveled out of the country, you probably cashed in your American dollars to find that the trade was nowhere near equal. Forex is the same thing on a much larger scale – it’s similar to the market except it deals in liquid assets at all times. It’s the process of buying and selling cash from nations around the world.How can foreign currencies be traded?Currency exchanges can be handled on three different levels. You will need to use a broker or a brokerage firm that allows trades through one of the following:

• The Commodity Futures Trading Commission (CFTC)
• Securities and Exchange Commission (SEC)

There is also what is called the off-exchange (over-the-counter) market. An example of this would be that you return from your vacation from Canada and trade your cash in for American dollars. This is only on a retail level or corporate level. Off-exchange trading is subject to very limited regulatory oversight.How much money do I need to trade Forex?It depends on the Forex dealer. Brokers concentrated in the Forex market can set their own minimum accounts and are allowed to set their own fees and rate schedules. You’ll need to ask your dealer how much money it’s going to cost you initially.Many dealers will require a security deposit (a “margin”) to cover future transaction fees. When you choose a broker, make sure that you look over the fees and schedules carefully before you deposit any money.

It is important to understand your broker’s capabilities, as well, before handling any transactions through their firm.These are just a few basic facts about the Forex market to get you started. Trading foreign currencies can be an exhilarating experience when you’ve begun making money, but it is important to get an education before you start out. This website has a wealth of information for the new Forex trader, including tips and strategies. It is highly encouraged that you read up to explore the possibilities of trading in a worldwide environment.

Forex Update

Crude futures are consolidating beneath $70/bbl and our 2nd tier downtrend line as volume continues to drop off since Tuesday’s sell-off. Meanwhile, the S&P futures are fluctuating around 1000 while the EUR/USD and GBP/USD consolidate. Therefore, investors have had little incentive to send crude into a technical recovery. However, our EUR/USD and GBP/USD trend lines are approaching their respective inflection points

Forex Update

The GBP/USD is stabilizing further above our 3rd tier uptrend line, yet can manage to break free of our 2nd tier downtrend line. These two trend lines are colliding soon, and we notice multiple inflection points occurring in the EUR/USD. Hence, the two currency pairs are implying there could be a jolt of volatility soon. However, trading should be light today since many traders are taking a long weekend for the Labor Day holiday.

Forex Update

The GBP/USD is stabilizing further above our 3rd tier uptrend line, yet can manage to break free of our 2nd tier downtrend line. These two trend lines are colliding soon, and we notice multiple inflection points occurring in the EUR/USD. Hence, the two currency pairs are implying there could be a jolt of volatility soon. However, trading should be light today since many traders are taking a long weekend for the Labor Day holiday.