It is a fact that you can make money with currency trading on Forex. Indeed, Forex investing is one of the most potentially rewarding types of investments available. Since individual traders and companies have equal chance to expand in Forex trading, we all have the option to becoming a forex trading broker in order to generate more revenue.
In order to help with your trading strategy and transactions, it is recommended that you must find a forex broker if you are new to the FOREX. The forex broker acts as a liaison of the client to the forex market, which provides technical analysis and research of the market situation and guides the client on the methods of trade as well. All of the information he provides is believed to increase the client's profit.
Before I will discuss on how to become a forex broker, here are some reasons why should you become one. As a forex trading broker you provide your customers access to the freedom that comes from actively trading their own money online on secure forex trading platforms. Since you offer your clients some money making opportunities and some investments, you are then greatly improving the scope and reputation of your own business leading to greater client retention levels. Aside from the fact that you are paid a commission you can also take advantage of the explosive growth in the demand for alternative investments by offering your high-net worth clients a managed forex account.
Becoming a forex broker is simple. A currency trading broker in the Forex trading market is like being a realtor in the property market. Here are steps to becoming one. Becoming Licensed and Registered. Sign on to a licensed business or seek appropriate securities license and fill out a registration form with the SEC in order to be a full service broker. Take note that licensing is different depending on which state you live in. If you move from state to state, license is not always acknowledged. You’re ready to start trading once registered.
However, if you want to become a business broker only and not a full service forex broker, you may work at a brokerage house. You may either go to school or try to learn forex trading by yourself in order to get license. Remember, knowledge is power for the successful broker! A successful forex broker is aware of what’s happening in the world. Forex brokers research heavily on all political and economic news from the countries for which they hold currency.
Forex brokers are much like any other broker that act as the middleman for the individual and the market itself. They key to a successful forex broker is to get licensed and educated about how the market works. With this article you now have information on how to become a forex broker. Get licensed and registered and start forex trading. Soon you will just be sitting up in your multi-million dollar offices.
SOURCE: http://www.forexfloor.com/how-to-become-a-forex-broker.html
Friday, July 31, 2009
Is There Such A Thing As Forex Psychology?
The Forex market is a crowd of intelligent bankers, fund managers, multi million investors and amateur traders. Traders’ pros or the novice read Forex news for forecast analysis and play the game of trading following the rules and protocols.
In most cases the experienced traders are always at the advantage side having the best experience and at the advantageous side while the novices with limited experience are mostly at the disadvantaged side. Sometimes novice traders lose money because of Forex trading mistakes committed. They usually become sacrificial for the more experienced traders.
Forex traders who experience losses do not actually lose but they cannot actually overcome their own psychology of Forex.
The “follow blindly” Forex psychology is one of the most common weaknesses of Forex traders. They tend to react fearless whenever there are breaking news and charts showing some movements. They immediately rush to be the first to enter the market. They worry too much that others are profiting from the news while they are not.
Definitely, following the trends is definitely the number one rule in Forex trading but it does not mean that you have to be the first to enter the market when trends are changed.
Sometimes this breaking news does not dictate the forecast of the trading. You have to analyze carefully if it will have big impact on the trading prices. Most often, these data are false alarms and will put you in a losing position.
It is important that you have to overcome your eagerness to enter first. You have all the time to analyze what would be the impact of this breaking news and then you enter the trade.
Greediness is another Forex psychology character which traders have in common. That is why the Forex is the largest market in the whole world. In Forex trading you can easily have an annual profit of 10%-40% which is good already. But most of the time, these figures are not enough for traders. They want double or even triple profit which leads them to enter again the market and urging to earn profit again on the same day. But finally at the end of the day, they will end up losing at the end of the day.
As a trader, you should overcome greediness and learn to be satisfied with what you have. It is advisable to set a realistic target every day. For example, your target profit must be 50 to 100 pips. Upon reaching the target, stop and just relax and have a break. That’s good enough profit than losing more.
Forex trading is really not an easy business. It is complex which has a lot of factors which dictates the daily prices of the market value. In reality, a lot of traders are actually losing from the trading. You can never be sure that you will earn profit just by looking at the trends. Careful analysis and overcoming the negative Forex psychology is a good foundation for your trading. Exert a lot of effort in learning how Forex market works and have an in depth knowledge of the trends and enter trades in the right time.
SOURCE: http://www.forexfloor.com/psychology.html
In most cases the experienced traders are always at the advantage side having the best experience and at the advantageous side while the novices with limited experience are mostly at the disadvantaged side. Sometimes novice traders lose money because of Forex trading mistakes committed. They usually become sacrificial for the more experienced traders.
Forex traders who experience losses do not actually lose but they cannot actually overcome their own psychology of Forex.
The “follow blindly” Forex psychology is one of the most common weaknesses of Forex traders. They tend to react fearless whenever there are breaking news and charts showing some movements. They immediately rush to be the first to enter the market. They worry too much that others are profiting from the news while they are not.
Definitely, following the trends is definitely the number one rule in Forex trading but it does not mean that you have to be the first to enter the market when trends are changed.
Sometimes this breaking news does not dictate the forecast of the trading. You have to analyze carefully if it will have big impact on the trading prices. Most often, these data are false alarms and will put you in a losing position.
It is important that you have to overcome your eagerness to enter first. You have all the time to analyze what would be the impact of this breaking news and then you enter the trade.
Greediness is another Forex psychology character which traders have in common. That is why the Forex is the largest market in the whole world. In Forex trading you can easily have an annual profit of 10%-40% which is good already. But most of the time, these figures are not enough for traders. They want double or even triple profit which leads them to enter again the market and urging to earn profit again on the same day. But finally at the end of the day, they will end up losing at the end of the day.
As a trader, you should overcome greediness and learn to be satisfied with what you have. It is advisable to set a realistic target every day. For example, your target profit must be 50 to 100 pips. Upon reaching the target, stop and just relax and have a break. That’s good enough profit than losing more.
Forex trading is really not an easy business. It is complex which has a lot of factors which dictates the daily prices of the market value. In reality, a lot of traders are actually losing from the trading. You can never be sure that you will earn profit just by looking at the trends. Careful analysis and overcoming the negative Forex psychology is a good foundation for your trading. Exert a lot of effort in learning how Forex market works and have an in depth knowledge of the trends and enter trades in the right time.
SOURCE: http://www.forexfloor.com/psychology.html
What Are Forex Charts and How to Read Them?
Forex charts are important technical tools for traders to study if they want to have a success trading transaction. This chart is the primary tool for technical analysts as practitioners to watch for patterns or noticeable abnormalities in legendary price action. This could help them in order to predict what possible move they should take in the future. If you want to become a successful Forex trader and gain more profit you should be aware of how to read the charts which is very important and quite essential factor for any trader. These charts could show a single period of time and such period could range from one minute to one month to several years.
This chart is an exact illustration and representation of the price history of a currency. With the crammed scope of monitoring and trading global currencies, the importance of Forex charts for best investor cannot be estimated over. After glancing in a few Forex Trading Charts, you may recognize that there are few or little price gaps or there are also times where there are not especially on the charts having longer terms such as 3-hour, 4-hour or daily charts. Trading cannot be considered to be as easy as we think it is. It has been done with a lot of work, discipline, patience and education. Luckily there are also sites which give new set of tools to monitor and administer your Forex Trading.
One good thing about the Forex charts which others before are using, taken in hand in stocks day trading is their easiness for interpreting and understanding. These forex charts can give an in depth look when it comes to the relation of the movements of a certain economy of a country. This may show slow faction with day to day condition which concerns with company reports, and analysts from Wall Street and the demands of shareholders. Charts can be customized depending on your choice. Charting package may also be manipulated in order to view in several different ways.
There are kinds of Forex charts that show actions in prices. These are:
• Line Chart – this is graph which is a representation of the chronological exchange rate of a certain currency pair in a given period of time.
• Bar Chart – this is a currency chart that corresponds to the currency price, which forms vertical bars in a day like ever 60 minutes or others.
• Candlestick Chart – this chart is used to predict the present market which represents opening, closing, highness and lowness of prices as candlesticks with a wick at each end.
• Point & Figure Chart – this models are essentially the same prototype found in bar charts but Xs and Os are used to market changes in price direction.
Foreign currency charts are easy to understand, especially if you are a previous stock , future trader and investors. To view the history of a price of a stock in chart form, a stock trader has to settle on the ticker symbol of the stock, the chart period (1 day, 1 hour, 15 minutes, etc.). In the forex trading market, this process of using charts is no different, with the exclusion that instead of specifying a ticker symbol, the currency trader states the currency pair he wants to trade.
There are also such types of charts as:
• Equivolume charts
• Renko charts
• Three-Line Break
• Kagi charts
SOURCE: http://www.forexfloor.com/forex-charts.html
This chart is an exact illustration and representation of the price history of a currency. With the crammed scope of monitoring and trading global currencies, the importance of Forex charts for best investor cannot be estimated over. After glancing in a few Forex Trading Charts, you may recognize that there are few or little price gaps or there are also times where there are not especially on the charts having longer terms such as 3-hour, 4-hour or daily charts. Trading cannot be considered to be as easy as we think it is. It has been done with a lot of work, discipline, patience and education. Luckily there are also sites which give new set of tools to monitor and administer your Forex Trading.
One good thing about the Forex charts which others before are using, taken in hand in stocks day trading is their easiness for interpreting and understanding. These forex charts can give an in depth look when it comes to the relation of the movements of a certain economy of a country. This may show slow faction with day to day condition which concerns with company reports, and analysts from Wall Street and the demands of shareholders. Charts can be customized depending on your choice. Charting package may also be manipulated in order to view in several different ways.
There are kinds of Forex charts that show actions in prices. These are:
• Line Chart – this is graph which is a representation of the chronological exchange rate of a certain currency pair in a given period of time.
• Bar Chart – this is a currency chart that corresponds to the currency price, which forms vertical bars in a day like ever 60 minutes or others.
• Candlestick Chart – this chart is used to predict the present market which represents opening, closing, highness and lowness of prices as candlesticks with a wick at each end.
• Point & Figure Chart – this models are essentially the same prototype found in bar charts but Xs and Os are used to market changes in price direction.
Foreign currency charts are easy to understand, especially if you are a previous stock , future trader and investors. To view the history of a price of a stock in chart form, a stock trader has to settle on the ticker symbol of the stock, the chart period (1 day, 1 hour, 15 minutes, etc.). In the forex trading market, this process of using charts is no different, with the exclusion that instead of specifying a ticker symbol, the currency trader states the currency pair he wants to trade.
There are also such types of charts as:
• Equivolume charts
• Renko charts
• Three-Line Break
• Kagi charts
SOURCE: http://www.forexfloor.com/forex-charts.html
The Forex Charts You Need to Read
The charts we offer are live interactive Forex Charts with real time data ranging from second by second feeds to daily and weekly updates. Offering traders fast paced, far reaching information displayed in line bar or candle format for traders’ personal preferences and convenience.
Coupled with our Quotes section, ForexFloor offers its users the broadest data base available on the web.
SOURCE: http://www.forexfloor.com/charts.html
Coupled with our Quotes section, ForexFloor offers its users the broadest data base available on the web.
SOURCE: http://www.forexfloor.com/charts.html
Basics of 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.
SOURCE: http://www.forexfloor.com/fundamental-analysis.html
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.
SOURCE: http://www.forexfloor.com/fundamental-analysis.html
Forex Trading School-Where Knowledge Makes a Difference
Every schoolboy knows that getting started is really the only way to learn. To help you do just that, we’ve set up a forex trading school dedicated entirely to educating young traders on the ins and outs of currency trading.
At our trading school you’ll find a step-by step guide to navigating the world of forex trading. Our comprehensive handbook is specifically designed to cater to the needs of those hoping to make a profit in online currency trading.
We have responsibly consulted with a expert educational staff and, with their advice in mind, have purposely divided our forex trading school into steps for your learning convenience:
Step 1 Forex Trading Background
Step 2 Forecasting the Market
Step 3 Making Skilled Decisions
Step 4 Opening Your First Forex Trading Account
Step 5 Placing Your First Order
Whether you are a new trader on your first foray into the world of online forex trading or a seasoned trader looking to refresh his skill, our forex school curriculum is guaranteed to give you the answers you need!
SOURCE: http://www.forexfloor.com/forex-school.html
At our trading school you’ll find a step-by step guide to navigating the world of forex trading. Our comprehensive handbook is specifically designed to cater to the needs of those hoping to make a profit in online currency trading.
We have responsibly consulted with a expert educational staff and, with their advice in mind, have purposely divided our forex trading school into steps for your learning convenience:
Step 1 Forex Trading Background
Step 2 Forecasting the Market
Step 3 Making Skilled Decisions
Step 4 Opening Your First Forex Trading Account
Step 5 Placing Your First Order
Whether you are a new trader on your first foray into the world of online forex trading or a seasoned trader looking to refresh his skill, our forex school curriculum is guaranteed to give you the answers you need!
SOURCE: http://www.forexfloor.com/forex-school.html
Forex Analyzing Tools
If you are going to take Forex trading seriously, you're going to want to invest your labors looking into nothing but excellent Forex analyzing tools. We’ve gone out and gathered these tools for you, and are here to provide you with tried and true, expert recommended, success proven, analyzing tools.
We have found that there is no single, all-encompassing or best Forex analyzing tool. Rather, different traders favor different tools and find them useful at different times. With that in mind, we’ve take the liberty to provide you with enough tools and indicators to let you choose
SORUCE:http://www.forexfloor.com/analyzing-tools.html
We have found that there is no single, all-encompassing or best Forex analyzing tool. Rather, different traders favor different tools and find them useful at different times. With that in mind, we’ve take the liberty to provide you with enough tools and indicators to let you choose
SORUCE:http://www.forexfloor.com/analyzing-tools.html
Thursday, July 30, 2009
Forex Auto Trading:
Despite the fact you are successful in the stock market, this does not imply that you’ll be successful in the Forex market. There are a lot of differences between the stock market and the Forex market. First of all, the Forex market is open 24 hours a day. This requires a lot more complexity and work. As you know, you cannot be in front of your computer 24 hours a day. You’ll have to figure out the best time periods to trade so that you can be successful. Also, you need volatility. And here’s another problem with the Forex market. There are periods of very high volatility and very low volatility. This difference is much higher in this market than on stocks. You may think that as the Forex market is open 24 hours a day, you can day trade whenever you want. You just need to turn on your computer and there it is… a trade just for you. Well, that’s not even close to the reality. This may happen from time to time but it’s not frequent. You need to develop a good strategy. The last point I need to focus is a real important one. If you want to trade Forex you need to find a good forex broker. Well, this isn’t a simple task as in the stock market because this market is not regulated. This means that there are a lot of brokers that don’t act in the best interest of their clients. Be ready to spend quite some time finding a solid broker that fits your needs.
Forex trading carries a high level of risk, and may not be suitable for all investors.
SOURCE:http://www.forexntrading.com/forex_auto_trading.php
Forex trading carries a high level of risk, and may not be suitable for all investors.
SOURCE:http://www.forexntrading.com/forex_auto_trading.php
Forex Trading Account:
A mini forex trading account is designed for those who are new to forex trading or when the trading account balance is less then $10.000.
Mini forex account key points:
Only $250-$300 to open
Up to 200:1 trade leverage
1 pip = $1 for EUR/USD and GBP/USD
Smaller trade size
Mini forex account advantages
Build up confidence starting small
A trader can trade a mini forex account using 1 mini lot and building up lot size slowly when he makes profits in his account. A general rule is to trade ONLY 1 mini lot for every $1000 a trader has in account. For example, if an account is worth $5000, trader can take up to 5 mini lots.
Develop a forex trading strategy
Because on a mini forex account, pip value is $1 = 1 pip, trader can pay more attention on building a solid trading strategy without focusing on floating profit & Loss (P/L). Most traders with a small account balance trading on a standard account will tend to base trading decisions on profit &Loss and not on their trading strategy, they are emotionally too involved.
Their account balance fluctuations are so important that they even can’t think developing a proper trading strategy. Their account size is too small for the lot size they take and every small pip loss can lead to a painful loss in their trading account.
Such traders will tend to take profits (too) soon and cut losses too late because they always hope the trade will make a reverse and come back.
Consider the following example:
A trader has a $2000 trading Account.
When trading a forex standard account, a 37 pip loss will result in a $370 loss in his trading account or 18.5% of his account balance. When taking the same trade on a forex mini account, a 37 pip loss will result in a $37 loss in his trading account or 1.85 % of his account balance.
Conclusion
By starting with a Mini account- a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy, in the long rum, this will lead to much better trading results.
Toby Smitz - Daily Operations Mini Forex Trading
Artilce Source:
This article courtesy of http://www.forexntrading.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.
Mini forex account key points:
Only $250-$300 to open
Up to 200:1 trade leverage
1 pip = $1 for EUR/USD and GBP/USD
Smaller trade size
Mini forex account advantages
Build up confidence starting small
A trader can trade a mini forex account using 1 mini lot and building up lot size slowly when he makes profits in his account. A general rule is to trade ONLY 1 mini lot for every $1000 a trader has in account. For example, if an account is worth $5000, trader can take up to 5 mini lots.
Develop a forex trading strategy
Because on a mini forex account, pip value is $1 = 1 pip, trader can pay more attention on building a solid trading strategy without focusing on floating profit & Loss (P/L). Most traders with a small account balance trading on a standard account will tend to base trading decisions on profit &Loss and not on their trading strategy, they are emotionally too involved.
Their account balance fluctuations are so important that they even can’t think developing a proper trading strategy. Their account size is too small for the lot size they take and every small pip loss can lead to a painful loss in their trading account.
Such traders will tend to take profits (too) soon and cut losses too late because they always hope the trade will make a reverse and come back.
Consider the following example:
A trader has a $2000 trading Account.
When trading a forex standard account, a 37 pip loss will result in a $370 loss in his trading account or 18.5% of his account balance. When taking the same trade on a forex mini account, a 37 pip loss will result in a $37 loss in his trading account or 1.85 % of his account balance.
Conclusion
By starting with a Mini account- a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy, in the long rum, this will lead to much better trading results.
Toby Smitz - Daily Operations Mini Forex Trading
Artilce Source:
This article courtesy of http://www.forexntrading.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.
LEARN TRADING
Many new traders come with little or no education to the forex market, only to blow out their entire account in matter of days.
Why?
Because the have never learnt anything about how the FOREX works, technical analysis, strategy's, traders psychology, chart set up and many other important things you should know before you start to trade.
So, knowing this, it is important for new traders to have some serious education about forex before you go trading LIVE.
What type of education?
This can be a forex trading course or online education with live instructors from respectable FX companies.
How much should a trader spend?
It depends on how much a trader is willing to pay but a good forex trading course must be available starting as low as $250, some companies even offer it for free. Online education with live instructors can cost a lot more, finally it is up to the trader what he is willing to pay for proper forex education.
Just think about this: it is very easy to lose an entire forex account with no education, whether it is a $1000 or a $100,000 account, personally, I would learn forex first before wasting my money.
What lessons a trader should learn in a forex trading course or with online forex instructors:
Forex Basics
What is Forex?, Currency Pairs, Order types,...
Technical Analysis
Technical Indicators, Candlestick, Types of charts, Patterns, Moving Averages, Support&Resistance, Trend Lines,..
Trading System
Entry Setup, Limit Levels, Where to place a stop levels,...
Chart Patterns
Special Chart patterns with high probability to look for,...
Trading Psychology
How to succeed in Forex trading and how to avoid pitfalls, Holy grail,..
Money Management
Risk-to-reward ratio's,....
Toby Smitz - Daily Operations Forex Trading Course
SOURCE: http://www.forexntrading.com/learn_trading.php
Why?
Because the have never learnt anything about how the FOREX works, technical analysis, strategy's, traders psychology, chart set up and many other important things you should know before you start to trade.
So, knowing this, it is important for new traders to have some serious education about forex before you go trading LIVE.
What type of education?
This can be a forex trading course or online education with live instructors from respectable FX companies.
How much should a trader spend?
It depends on how much a trader is willing to pay but a good forex trading course must be available starting as low as $250, some companies even offer it for free. Online education with live instructors can cost a lot more, finally it is up to the trader what he is willing to pay for proper forex education.
Just think about this: it is very easy to lose an entire forex account with no education, whether it is a $1000 or a $100,000 account, personally, I would learn forex first before wasting my money.
What lessons a trader should learn in a forex trading course or with online forex instructors:
Forex Basics
What is Forex?, Currency Pairs, Order types,...
Technical Analysis
Technical Indicators, Candlestick, Types of charts, Patterns, Moving Averages, Support&Resistance, Trend Lines,..
Trading System
Entry Setup, Limit Levels, Where to place a stop levels,...
Chart Patterns
Special Chart patterns with high probability to look for,...
Trading Psychology
How to succeed in Forex trading and how to avoid pitfalls, Holy grail,..
Money Management
Risk-to-reward ratio's,....
Toby Smitz - Daily Operations Forex Trading Course
SOURCE: http://www.forexntrading.com/learn_trading.php
Sunday, July 26, 2009
How does Forex works?
Forex is short for Foreign Exchange and cannot be compared with the shares (like Nasdaq). The currencies are traded between the central bank and the brokers. Currency can be traded in pairs, like EUR/USD. EUR is the basic and USD the second. This means that EUR/USD can be 1.3000 where one EUR is 1.3000 USD.
Forex products prices are displayed with two or four decimals (e.g. €/$ 1.12 or 1.1234). The decimal holds the name “pip”. To be able to trade on the Forex Market, you'll need an account. The brokers can give you access to the market and offer different account types. A minimum deposit of $25 to $25,000 is required, when you like to enter the market with real money.
The winning and losing of money by buying or selling currency, is displayed in pips. If you, for example, win five pips (1.3000 to 1.3005) and you own 100,000 pairs, you'll win $50 (0.0005*100,000). We advice you, as a starter, to only deal with small pairs.
To read and learn more about the market, check our Forex tutorials or join the lessons from your Forex broker.
SOURCE: http://www.forextrading.org/#
Forex products prices are displayed with two or four decimals (e.g. €/$ 1.12 or 1.1234). The decimal holds the name “pip”. To be able to trade on the Forex Market, you'll need an account. The brokers can give you access to the market and offer different account types. A minimum deposit of $25 to $25,000 is required, when you like to enter the market with real money.
The winning and losing of money by buying or selling currency, is displayed in pips. If you, for example, win five pips (1.3000 to 1.3005) and you own 100,000 pairs, you'll win $50 (0.0005*100,000). We advice you, as a starter, to only deal with small pairs.
To read and learn more about the market, check our Forex tutorials or join the lessons from your Forex broker.
SOURCE: http://www.forextrading.org/#
Forex news headlines
Our website provides you with the most recent news and highlights subjects that might influence the market, to let you know what is happening in the world of Forex trading.
01-09-2009: ForexTrading.org online!
Today is big day for our crew, as the website is officially launched and starts its journey to become a well-known and reliable source of information dealing with the Forex market. Our website contains all kind of information, covering the best brokers, Forex lessons and a special system that determines the best Forex account for you!
As the website is new, there might be a possibility, that you bump into some errors. We would like you to report these using the contact form (footer). ForexTrading.org will try to keep you updated with the best brokers and hottest news in the future. Thank you for your visit and we hope to see you back soon.
SOURCE: http://www.forextrading.org/#
01-09-2009: ForexTrading.org online!
Today is big day for our crew, as the website is officially launched and starts its journey to become a well-known and reliable source of information dealing with the Forex market. Our website contains all kind of information, covering the best brokers, Forex lessons and a special system that determines the best Forex account for you!
As the website is new, there might be a possibility, that you bump into some errors. We would like you to report these using the contact form (footer). ForexTrading.org will try to keep you updated with the best brokers and hottest news in the future. Thank you for your visit and we hope to see you back soon.
SOURCE: http://www.forextrading.org/#
Trading advice
ForexTrading.com is offering you a trading advice weekly. This might contain safety information, rules for the Forex or tips to improve your earnings. Make sure to check the page weekly to gain the most recent advice, or read all the Forex tips.
This week's advice: This is the first advice to be published on our new website. This week, we will give you information about joining a Forex broker. This is a company, which can give you access to the market. You are obliged to be signed in with a broker, to work with the Forex trading. But what broker is the best for you?
At this moment, there are more than 100 Forex brokers on the internet. That's a lot. To make sure you'll get the broker that fits you the best, you need to think things over. What would you like from your broker? Would you like to trade in other currencies than US dollars? Or would you rather trade in oil? Are you a big trader or do you want support and lessons from your broker?
You can use the Broker search function to see what type of account and which broker fits you best. Your choice is always right as ForexBroker.org allows the best brokers only, enabling you to have the best trading experience. You can always be sure of 100% reliability, professionalism and welldeveloped tools.
Next week, we will advice you about account types.
SOURCE:http://www.forextrading.org/#
This week's advice: This is the first advice to be published on our new website. This week, we will give you information about joining a Forex broker. This is a company, which can give you access to the market. You are obliged to be signed in with a broker, to work with the Forex trading. But what broker is the best for you?
At this moment, there are more than 100 Forex brokers on the internet. That's a lot. To make sure you'll get the broker that fits you the best, you need to think things over. What would you like from your broker? Would you like to trade in other currencies than US dollars? Or would you rather trade in oil? Are you a big trader or do you want support and lessons from your broker?
You can use the Broker search function to see what type of account and which broker fits you best. Your choice is always right as ForexBroker.org allows the best brokers only, enabling you to have the best trading experience. You can always be sure of 100% reliability, professionalism and welldeveloped tools.
Next week, we will advice you about account types.
SOURCE:http://www.forextrading.org/#
Tuesday, July 14, 2009
Bank of Ireland, Largest Bank in Irish Republic, Chooses Transoft International to Provide Currency Supply Chain Management
Cary, North Carolina July 2003 -- Transoft International Inc., the recognised leader in the provision of currency management solutions worldwide, announced today that Bank of Ireland, the largest financial institution in the Irish Republic, selected Transoft's end-to-end currency-management solution.
Bank of Ireland chose Transoft International following an extensive competitive evaluation of leading systems. The award was made to Transoft based on the ability to deliver the required benefits, the maturity and robust nature of the product family, user-friendliness, ease of use and their expertise in currency management.
BOI spokesman Jim Molloy said, ‘We were very impressed by the feedback we received from existing Transoft users, and we look forward to a successful partnership with Transoft in enabling us to deliver ongoing benefits across all of Bank of Ireland's Cash operations'.
Using OptiCash, OptiNet and OptiVault, Bank of Ireland will be able to streamline business processes within the cash environment and optimise the level of cash held across the supply chain. Throughout the year, all ATMs, branches and vaults will be operational on Transoft's applications resulting in immediate significant savings.
"Due to the recent market changes following the introduction of the Euro, we are currently seeing much success and expansion in Europe", adds Bo H. Holmgreen, President & CEO of Transoft International in the United States, himself a European. "Being awarded this opportunity is further evidence of our leadership position in the European banking industry, as the preferred provider of currency management solutions to large financial institutions."
Michael Printer, Director of Transoft Europe said, "We consider the decision on behalf of Bank of Ireland to be particularly strategic given the strong nature of the competition within the evaluation process and the Bank's adherence to rigorous quality standards. We're delighted to have the opportunity to work with Bank of Ireland".
Transoft is solely focused on Currency Management, offered directly to customers as in-house systems or as outsourced services operated by both global and regional partners.
About Transoft
Transoft develops solutions that provide cost optimization and improved currency management procedures. With customers spanning 6 continents, Transoft solutions manage cash for nearly 100,000 ATMs and branches.
Transoft is on the "Fast 50 list" of North Carolina's fastest growing IT companies and can be found at www.transoftinc.com.
Contact:
Transoft International, Inc.
Joanna McGee
Phone: 919.678.9192
Joanna.Mcgee@Transoftinc.com
This article courtesy of http://www.foreignexchangeportal.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.
SOURCE: http://www.foreignexchangeportal.com/articles/issue24.html
Bank of Ireland chose Transoft International following an extensive competitive evaluation of leading systems. The award was made to Transoft based on the ability to deliver the required benefits, the maturity and robust nature of the product family, user-friendliness, ease of use and their expertise in currency management.
BOI spokesman Jim Molloy said, ‘We were very impressed by the feedback we received from existing Transoft users, and we look forward to a successful partnership with Transoft in enabling us to deliver ongoing benefits across all of Bank of Ireland's Cash operations'.
Using OptiCash, OptiNet and OptiVault, Bank of Ireland will be able to streamline business processes within the cash environment and optimise the level of cash held across the supply chain. Throughout the year, all ATMs, branches and vaults will be operational on Transoft's applications resulting in immediate significant savings.
"Due to the recent market changes following the introduction of the Euro, we are currently seeing much success and expansion in Europe", adds Bo H. Holmgreen, President & CEO of Transoft International in the United States, himself a European. "Being awarded this opportunity is further evidence of our leadership position in the European banking industry, as the preferred provider of currency management solutions to large financial institutions."
Michael Printer, Director of Transoft Europe said, "We consider the decision on behalf of Bank of Ireland to be particularly strategic given the strong nature of the competition within the evaluation process and the Bank's adherence to rigorous quality standards. We're delighted to have the opportunity to work with Bank of Ireland".
Transoft is solely focused on Currency Management, offered directly to customers as in-house systems or as outsourced services operated by both global and regional partners.
About Transoft
Transoft develops solutions that provide cost optimization and improved currency management procedures. With customers spanning 6 continents, Transoft solutions manage cash for nearly 100,000 ATMs and branches.
Transoft is on the "Fast 50 list" of North Carolina's fastest growing IT companies and can be found at www.transoftinc.com.
Contact:
Transoft International, Inc.
Joanna McGee
Phone: 919.678.9192
Joanna.Mcgee@Transoftinc.com
This article courtesy of http://www.foreignexchangeportal.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.
SOURCE: http://www.foreignexchangeportal.com/articles/issue24.html
Foreign Currency Trading Goes Mainstream!
June 11, 2004 -- PROTRADE CAPITAL GROUP, LLC ("PCG"), http://www.protradefx.com , announces it's New Cutting Edge Suite of Foreign Currency Trading Services and Products that empower the novice or experienced investor to take advantage of the incredible advantages in trading the $1.5 trillion per day Foreign Currency ("Forex" or "FX") market – the largest trading market in the world!
Mark Shawzin, Founder and Managing Director of PCG, says that one of the main reasons he started his firm was to give the average investor alternative investment options to current mainstream and antiquated "buy-and-hold" investment strategies.
In addition to FREE Guides and Reports on the Forex Industry, PCG offers investors the ability to register for a no obligation FREE $10,000 "Demo Account", to test your trading strategies and get a feel for what's involved in the day-to-day trading of Foreign Currencies.
Once you are ready to begin trading, PCG offers three distinctive service offerings designed to meet each client's individual needs and objectives:
Self Directed
Broker-Assisted
*Managed
Mr. Shawzin states that even the most sophisticated traders aren't aware of how easy it is to take advantage of this form of portfolio enhancement investing, and, that once they have been provided with the information and tools to get started, they seldom ever stop trading forex.
The missing ingredient in this industry has been a "bridge" if you will, between those who have been in this market and more traditional investors who have never given forex trading a chance.
PCG provides that "bridge" and, through its ongoing dedication and commitment to provide unparalleled service and performance to its clients, continuously strives to introduce more and more investors to this dynamic investment alternative.
Please call or e-mail us for a copy of our Disclosure Document.
Investor Relations Contact:
Protrade Capital Management
Telephone: (866) 866-6608
Email: managedaccounts@protrade-fx.com
SOURCE: http://www.foreignexchangeportal.com/articles/issue9.html
Mark Shawzin, Founder and Managing Director of PCG, says that one of the main reasons he started his firm was to give the average investor alternative investment options to current mainstream and antiquated "buy-and-hold" investment strategies.
In addition to FREE Guides and Reports on the Forex Industry, PCG offers investors the ability to register for a no obligation FREE $10,000 "Demo Account", to test your trading strategies and get a feel for what's involved in the day-to-day trading of Foreign Currencies.
Once you are ready to begin trading, PCG offers three distinctive service offerings designed to meet each client's individual needs and objectives:
Self Directed
Broker-Assisted
*Managed
Mr. Shawzin states that even the most sophisticated traders aren't aware of how easy it is to take advantage of this form of portfolio enhancement investing, and, that once they have been provided with the information and tools to get started, they seldom ever stop trading forex.
The missing ingredient in this industry has been a "bridge" if you will, between those who have been in this market and more traditional investors who have never given forex trading a chance.
PCG provides that "bridge" and, through its ongoing dedication and commitment to provide unparalleled service and performance to its clients, continuously strives to introduce more and more investors to this dynamic investment alternative.
Please call or e-mail us for a copy of our Disclosure Document.
Investor Relations Contact:
Protrade Capital Management
Telephone: (866) 866-6608
Email: managedaccounts@protrade-fx.com
SOURCE: http://www.foreignexchangeportal.com/articles/issue9.html
Shift4 Partners with Planet Payment to Offer Dynamic Currency Conversion at the Point-of-Sale
Las Vegas, NV April 22, 2004 -– Shift4 Corporation, developers of $$$ ON THE NET®, the leading web-based e-payment gateway solution with real-time electronic payment authorization, settlement, reporting and fraud control capabilities, has partnered with Planet Payment to deliver Dynamic Currency Conversion (DCC) capabilities to $$$ ON THE NET partners and customers. Shift4 has integrated this feature into its new MICROS 8700 enhanced interface and will be demonstrating it at Booth 918 & 712 at the 2004 ETA Annual Meeting & Expo April 20-22 in Las Vegas.
What does Dynamic Currency Conversion do? Every time a customer with a Visa or MasterCard issued by a foreign bank makes a transaction at a merchant, a fee of approximately 3% is charged to the customer to handle currency exchange and foreign processing. Currently, that fee gets split among the card associations (Visa/MasterCard) and the cardholder's issuing bank.
$$$ ON THE NET with DCC, however, spins off all foreign transactions to Planet Payment, a transaction processor that specializes in foreign currency conversions and maintains an "inventory" of foreign currency. Planet Payment authorizes these foreign cardholder transactions and locks in the current exchange rate. It then returns the authorization to the merchant listing both the dollar amount in the merchant's currency and in the cardholder's currency. The entire authorization process takes under three seconds.
For merchants, $$$ ON THE NET with DCC enables them to know exactly what funds they will receive and often enables them to receive these fund significantly faster. Merchants are able to offer their foreign customers a valuable additional service, by showing them exactly how much they will be charged in their own currency – no more statement surprises. Plus, $$$ ON THE NET with DCC offers revenue sharing capabilities wherein the merchant can receive a portion of the fee charged to the customer.
"Dynamic currency conversion has the potential to become a potent part of the processing industry. When you think about it, no one loses. Merchants and even POS providers can offer a value added service while earning additional revenues and customers get a better understanding of what they are paying without any additional costs," stated J. David Oder, President and CEO. "Planet Payment was the forerunner of the multi-currency processing industry. We are excited that our partnership with them, in conjunction with our relationship with today's leading POS and PMS providers, has allowed us to bring the power of DCC to the merchant directly at the point-of-sale."
While several organizations today say they support Dynamic Currency Conversion, Shift4 is the first company to partner with Planet Payment to make this capability readily available to merchants at the point-of-sale. Merchants simply swipe or key in the card utilizing their standard methods. $$$ ON THE NET uses a numerical recognition program to identify foreign cards and seamlessly sends these transactions over a high speed leased line directly to Planet Payment. The authorization is returned as normal and the total in both currencies is printed right on the receipt.
The reason this capability was not previously available at the point-of-sale is the extensive programming required between the POS or PMS system and Planet Payment. With the interface Shift4 created to Planet Payment, however, POS vendors can offer this capability with minimal development time and resources required. In addition, the $$$ ON THE NET interface offers a consistent, standardized solution that is compliant with all current and potential upcoming card association regulations, including any required disclaimers and complete opt-in/opt-out capabilities.
About Shift4 Corporation
Shift4, a leading developer of financial transaction processing software and services, provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices and e-commerce markets. Through connectivity to most of the major processors, including Vital Processing Services, Global Payment Services, Fifth Third Bank, NDC Canada, First Data Corporation, American Express, Paymentech, Nova Information Systems, Chase Merchant Services, Bank of America, First Horizon Merchant Services and Planet Payment, $$$ ON THE NET provides both high speed and low cost authorizations and settlements for credit, debit, check, private label and gift card transactions. $$$ ON THE NET also includes the ability to access, review and edit transactions prior to settlement, as well as a searchable, 24-month archive of transactions for reporting and charge back defense. Shift4's solutions are designed to integrate with virtually any POS/PMS system and interface partners include MICROS, RunIT, Aloha, Retail Pro, Smyth Systems, Digital Dining, Spa Soft and InnQuest. Shift4's $$$ ON THE NET application and data center are acknowledged by Visa USA as compliant with their Cardholder Information Security Program (CISP), and are also compliant with MasterCard's SDP and American Express's DSOP. For more information, contact Shift4 at (702) 597-2480 or visit them online at www.shift4.com.
This article courtesy of http://www.foreignexchangeportal.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.
Source:http://www.foreignexchangeportal.com/articles/issue2.html
What does Dynamic Currency Conversion do? Every time a customer with a Visa or MasterCard issued by a foreign bank makes a transaction at a merchant, a fee of approximately 3% is charged to the customer to handle currency exchange and foreign processing. Currently, that fee gets split among the card associations (Visa/MasterCard) and the cardholder's issuing bank.
$$$ ON THE NET with DCC, however, spins off all foreign transactions to Planet Payment, a transaction processor that specializes in foreign currency conversions and maintains an "inventory" of foreign currency. Planet Payment authorizes these foreign cardholder transactions and locks in the current exchange rate. It then returns the authorization to the merchant listing both the dollar amount in the merchant's currency and in the cardholder's currency. The entire authorization process takes under three seconds.
For merchants, $$$ ON THE NET with DCC enables them to know exactly what funds they will receive and often enables them to receive these fund significantly faster. Merchants are able to offer their foreign customers a valuable additional service, by showing them exactly how much they will be charged in their own currency – no more statement surprises. Plus, $$$ ON THE NET with DCC offers revenue sharing capabilities wherein the merchant can receive a portion of the fee charged to the customer.
"Dynamic currency conversion has the potential to become a potent part of the processing industry. When you think about it, no one loses. Merchants and even POS providers can offer a value added service while earning additional revenues and customers get a better understanding of what they are paying without any additional costs," stated J. David Oder, President and CEO. "Planet Payment was the forerunner of the multi-currency processing industry. We are excited that our partnership with them, in conjunction with our relationship with today's leading POS and PMS providers, has allowed us to bring the power of DCC to the merchant directly at the point-of-sale."
While several organizations today say they support Dynamic Currency Conversion, Shift4 is the first company to partner with Planet Payment to make this capability readily available to merchants at the point-of-sale. Merchants simply swipe or key in the card utilizing their standard methods. $$$ ON THE NET uses a numerical recognition program to identify foreign cards and seamlessly sends these transactions over a high speed leased line directly to Planet Payment. The authorization is returned as normal and the total in both currencies is printed right on the receipt.
The reason this capability was not previously available at the point-of-sale is the extensive programming required between the POS or PMS system and Planet Payment. With the interface Shift4 created to Planet Payment, however, POS vendors can offer this capability with minimal development time and resources required. In addition, the $$$ ON THE NET interface offers a consistent, standardized solution that is compliant with all current and potential upcoming card association regulations, including any required disclaimers and complete opt-in/opt-out capabilities.
About Shift4 Corporation
Shift4, a leading developer of financial transaction processing software and services, provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices and e-commerce markets. Through connectivity to most of the major processors, including Vital Processing Services, Global Payment Services, Fifth Third Bank, NDC Canada, First Data Corporation, American Express, Paymentech, Nova Information Systems, Chase Merchant Services, Bank of America, First Horizon Merchant Services and Planet Payment, $$$ ON THE NET provides both high speed and low cost authorizations and settlements for credit, debit, check, private label and gift card transactions. $$$ ON THE NET also includes the ability to access, review and edit transactions prior to settlement, as well as a searchable, 24-month archive of transactions for reporting and charge back defense. Shift4's solutions are designed to integrate with virtually any POS/PMS system and interface partners include MICROS, RunIT, Aloha, Retail Pro, Smyth Systems, Digital Dining, Spa Soft and InnQuest. Shift4's $$$ ON THE NET application and data center are acknowledged by Visa USA as compliant with their Cardholder Information Security Program (CISP), and are also compliant with MasterCard's SDP and American Express's DSOP. For more information, contact Shift4 at (702) 597-2480 or visit them online at www.shift4.com.
This article courtesy of http://www.foreignexchangeportal.com.
You may freely reprint this article on your website or in
your newsletter provided this courtesy notice and the author
name and URL remain intact.
Source:http://www.foreignexchangeportal.com/articles/issue2.html
Monday, July 13, 2009
Important Forex Trading Terms
*
Spread
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
*
Pips
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.
On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.
source: http://www.forextrading.com/articles/HowToTrade.aspx
Spread
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
*
Pips
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.
On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.
source: http://www.forextrading.com/articles/HowToTrade.aspx
Why Trade Forex?
*
24 hour trading
One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
*
Superior liquidity
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
*
No commissions
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
*
100:1 Leverage
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
*
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.
source: http://www.forextrading.com/articles/HowToTrade.aspx
24 hour trading
One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
*
Superior liquidity
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
*
No commissions
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
*
100:1 Leverage
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
*
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.
source: http://www.forextrading.com/articles/HowToTrade.aspx
Trading on Margin
Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or “gearing”). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
source: http://www.forextrading.com/articles/HowToTrade.aspx
source: http://www.forextrading.com/articles/HowToTrade.aspx
Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.
Forward Outrights
For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.
source: http://www.forextrading.com/articles/HowToTrade.aspx
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.
Forward Outrights
For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.
source: http://www.forextrading.com/articles/HowToTrade.aspx
Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.
As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.
Overview
Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.
Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market.
source: http://www.forextrading.com/articles/HowToTrade.aspx
As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.
Overview
Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.
Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market.
source: http://www.forextrading.com/articles/HowToTrade.aspx
Sunday, July 12, 2009
Forex Trading Uptrend Strategy - Buying for Low Prices
So you've recognized an uptrend, what then? How can you use your knowledge in order to invest in the Forex trading currency more wisely? In this guide we will teach you the Forex trading guidelines for uptrend strategy.
It is actually not very difficult to invest using uptrend. We will make it easier for you and dissect it into segments.
Uptrend are very useful for technical analysis, because they help you know when to buy a certain currency that is on the rise.
- - First, make sure you are certain about the occurrence of the uptrend, and remember that the steeper the uptrend is the more profits are there, but also the sooner it is expected to change direction.
- - Next, examine the previous developments of the Forex trading trends, and especially notice the length of previous uptrends. A common phenomenon is for recurring lengths of uptrends.
- - Do not wait for the uptrend to finish rising, and try to invest in just starting trends. Placing stop and limit orders can help you be protected in cases of currency drops.
Using uptrend strategy is a basic in forex trading education, and the rest of the rules for uptrend will be gathered as you practice the real thing.
Jim Barns, Market Analyst
source: http://www.forexfloor.com/uptrend.html
Trend Analysis - Recognizing Forex Trading Trends
We have already covered various Forex trading trends, but it is also important to learn Forex trading strategies for recognizing trends.
In this guide we will first teach you about what are trend lines, and then go on for an elaborate explanation of the various trend strategies:
Basic Trend Pattern Strategy
- Sideways Forex trading Strategy
- Uptrend Forex trading Strategy
- Downtrend Forex trading Strategy
Reversal Trend Patterns
- Double top
- Double bottom
- Head and shoulders top/bottom
Continuation Patterns
- Symmetrical triangles
- Ascending triangles
- Descending triangle
- Flag/pennant
- Rectangle
Gap Patterns
- Breakaway gap
- Runaway gap
- Exhaustion gap
- Island reversal gap
A Forex trading trend line is sketched by drawing a straight line above the daily highs for a downward trend and below daily lows for an upward trend. Forex trading trend lines are very fun to use, because you need to use your mental skills in order to recognize the different patterns in the right Forex trading chart. This is not an easy task, as the chart is usually filled with chaotic lines that constantly rise and drop. With the right practice though, you are able to improve your chart skills and recognize trends in no time. Attend each forex trading class that we offer, and you'll actually become a well educated investor.
source: http://www.forexfloor.com/trend-patterns.html
The Basics of Forex Technical Analysis
Technical analysis is one of the two methods of analyzing Forex; fundamental analysis is the other. These two methods are very important in the Forex trading by forecasting the variations of the Forex market, prediction of the price and the movement of the market. Although technical analysis and fundamental analysis differ greatly, they both predict a price or movement. In this article, Forex technical analysis will be analyzed in detail.
Technical analysis is a method of forecasting price movements and future market trends through the study of past market action which take into account price of instruments, volume of trading and open interest in the instruments. Unlike fundamental analysis, technical analysis is focused with what has actually happened in the Forex market, rather than what should happen. There are certain technical analysis tools such as the relative strength index (RSI), which is a price-following oscillator that ranges between 0 and 100; the Elliott waves method, which deals in the prediction of the market movement by the study of wave patterns over a period of time; the parabolic SAR methodology, in which the prices are examined and compared to stop and reversal numbers which are an indication of entry points and exit points for any Forex trade; the stochastic oscillator, which shows the over bought or oversold currencies on a scale of 0- 100%; and gaps, which denotes the spaces on the bar chart that none of the trading takes place.
Technical analysts are confident that historical performance of stocks and markets denote future performance. They use charts and other tools to identify patterns that can suggest future activity. They do not attempt to measure a security's intrinsic value. They study the price and volume movements. And they create charts from that data. A technical analyst would rather sit on a bench in a certain mall and watch people going into the store. He decides basing on the activity of people going into each store. But if he is a fundamental analyst, he would rather go to each store and study the products on sale. Later he decides whether to buy or not. In other words, technical analysts disregard the intrinsic value of the products in the store. From the point of view of technical analyst, anyone can gain the profit by posing himself in the trend direction. Consequently, they use different patterns in order to create the price chart that will suit the future market and the price would follow the pattern.
In summary, Forex technical analysis focuses on what actually happens in the market. The charts are based on market action involving price, volume and open interest. It is always focused with the pricing and time factors rather than the factors affecting the market. Thus technical analysts study the effects, not the cause of market movement.
source: http://www.forexfloor.com/technical-analysis.html
Basics of 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.
source: http://www.forexfloor.com/fundamental-analysis.html
Forex Trading School-Where Knowledge Makes a Difference
Every schoolboy knows that getting started is really the only way to learn. To help you do just that, we’ve set up a forex trading school dedicated entirely to educating young traders on the ins and outs of currency trading.
At our trading school you’ll find a step-by step guide to navigating the world of forex trading. Our comprehensive handbook is specifically designed to cater to the needs of those hoping to make a profit in online currency trading.
We have responsibly consulted with a expert educational staff and, with their advice in mind, have purposely divided our forex trading school into steps for your learning convenience:
- Step 1 Forex Trading Background
- Step 2 Forecasting the Market
- Step 3 Making Skilled Decisions
- Step 4 Opening Your First Forex Trading Account
- Step 5 Placing Your First Order
Whether you are a new trader on your first foray into the world of online forex trading or a seasoned trader looking to refresh his skill, our forex school curriculum is guaranteed to give you the answers you need!
source: http://www.forexfloor.com/forex-school.html
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