The US dollar is the currency of the United States of America and is abbreviated as $, USD or US$. It is also known as the “greenback.” The US currency is an important international reserve currency, along with the Euro. Its accumulation exceeds twice that of the Euro, comprising over 60% of the world’s foreign exchange reserves.
The US coins in circulation are:
1¢ (one cent) – also referred to as a penny
5¢ - nickel
10¢ - dime
25¢ - quarter
50¢ - half dollar or fifty-cent piece
$1 - dollar or dollar coin
Friday, October 23, 2009
Euro, Euros, Currency Euro, EU Currency, Euro Exchange Rate
Euro, Euros, Currency Euro, EU Currency, Euro Exchange Rate
The Euro is the official currency of 16 of the 27 member states of the European Union (EU). These 16 states include some of the most technologically advanced countries of the European continent and are collectively known as the Eurozone. The Euro is an important international reservecurrency. Euros have surpassed the US dollar with the highest combined value of cash in circulation in the world.
Benefits of the Euro
The most important implications of having a common currency, the Euro, are:
# Exchange rate certainty while traveling across Europe
# No exchange risk and, therefore, no cost of hedging against it
# No transaction costs
# Increased transparency and fewer transactions for importers and exporters
# Increased liquidity in the ‘United Euro’ financial market
Euro: Fact File
The Euro is an abbreviation for “European Operational Research Societies.” The association is a non-profit organization established in Brussels, Belgium. The Euro is administered by the European Central Bank (ECB) based in Frankfurt, and the Eurosystem, comprising of the various central banks of the Eurozone nations. The Euro was recognized in the Maastricht Treaty in 1992. Thecurrency was introduced initially in non-physical forms, such as travelers' checks and electronic banking, in 1999. The currency was officially introduced in the form of notes and coins on January 1, 2002.
Euro Exchange Rate: US Dollar vs. Euro
After the Euro was introduced as a cash currency in 2002, the US dollar began to steadily depreciate in value. This was due to a persistent increase in the US trade and budget deficit. By December 2004, the US dollar started falling against all major currencies and the Euro rose above $1.36/€ for the first time. An interest rate reduction by the US Federal Reserve on September 18, 2007 caused the US dollar to decline to new record lows of below $1.43 by October. In 2008, the Euro strengthened further to around $1.60. At the end of March 2009, the Euro stood at $1.3308.
Effect of the Euro on Other Currencies
A number of currencies are pegged to the Euro. Those are the B&H konvertibilna marka, Lithuanian litas, Bulgarian lev, Moroccan dirham, Cape Verdean escudo, Pacific franc, Danish krone, Slovak koruna, Estonian kroon, Central African CFA franc, Hungarian forint, West African CFA and the Comorian franc. This implies that the value of these currencies would depend significantly on the performance of the Euro. If the Euro exchange rate goes up, the value of these currencies would appreciate as well and if the Euro falls, the values of these currencies are sure to come down as well. Hence, the Euro exchange rate occupies a critical position in the context of world finance.
The Euro is the official currency of 16 of the 27 member states of the European Union (EU). These 16 states include some of the most technologically advanced countries of the European continent and are collectively known as the Eurozone. The Euro is an important international reservecurrency. Euros have surpassed the US dollar with the highest combined value of cash in circulation in the world.
Benefits of the Euro
The most important implications of having a common currency, the Euro, are:
# Exchange rate certainty while traveling across Europe
# No exchange risk and, therefore, no cost of hedging against it
# No transaction costs
# Increased transparency and fewer transactions for importers and exporters
# Increased liquidity in the ‘United Euro’ financial market
Euro: Fact File
The Euro is an abbreviation for “European Operational Research Societies.” The association is a non-profit organization established in Brussels, Belgium. The Euro is administered by the European Central Bank (ECB) based in Frankfurt, and the Eurosystem, comprising of the various central banks of the Eurozone nations. The Euro was recognized in the Maastricht Treaty in 1992. Thecurrency was introduced initially in non-physical forms, such as travelers' checks and electronic banking, in 1999. The currency was officially introduced in the form of notes and coins on January 1, 2002.
Euro Exchange Rate: US Dollar vs. Euro
After the Euro was introduced as a cash currency in 2002, the US dollar began to steadily depreciate in value. This was due to a persistent increase in the US trade and budget deficit. By December 2004, the US dollar started falling against all major currencies and the Euro rose above $1.36/€ for the first time. An interest rate reduction by the US Federal Reserve on September 18, 2007 caused the US dollar to decline to new record lows of below $1.43 by October. In 2008, the Euro strengthened further to around $1.60. At the end of March 2009, the Euro stood at $1.3308.
Effect of the Euro on Other Currencies
A number of currencies are pegged to the Euro. Those are the B&H konvertibilna marka, Lithuanian litas, Bulgarian lev, Moroccan dirham, Cape Verdean escudo, Pacific franc, Danish krone, Slovak koruna, Estonian kroon, Central African CFA franc, Hungarian forint, West African CFA and the Comorian franc. This implies that the value of these currencies would depend significantly on the performance of the Euro. If the Euro exchange rate goes up, the value of these currencies would appreciate as well and if the Euro falls, the values of these currencies are sure to come down as well. Hence, the Euro exchange rate occupies a critical position in the context of world finance.
Exchange Rate Forecast, Exchange Rate Forecasts
Exchange rate forecasts are drawn up through the computation of a currency’s value vis-à-vis other currencies over a period of time. While there are various theories that can be used to predict exchange rates, all of them have limitations. No model has been able to establish a monopoly in the forecasting process.
Exchange Rate Forecast: Approaches Employed
The two most commonly used methods for forecasting exchange rates are:
* Fundamental Approach: It forecasts exchange rates after considering the factors that give rise to long term cycles. Elementary data related to a country, such as GDP, inflation rates, productivity indices, balance of trade and unemployment rate, are taken into account. This approach is based on the premise that the ‘true worth’ of a currency will eventually be realized. Hence, this approach is suitable for long term investments.
* Technical Approach: This approach is based on the premise that it is investor sentiment that determines changes in the exchange rate and makes predictions by charting out patterns. Other tools used in this approach are positioning surveys, moving-average trend-following trading rules and FX dealer customer-flow data. Fund managers use these patterns to take informed decisions for short term investments.
Exchange Rate Forecast: Models
Some important exchange rate forecast models are:
* Purchasing Power Parity (PPP) Model: This method involves studying exchange rate movements based on the price level changes in each country.
* Uncovered Interest Rate Parity (UIP) Model: This model forecasts exchange rate movements in accordance with returns from investment in the two curencies. The UIP creates an arbitrage mechanism that sets an exchange rate which equalizes returns from domestic and foreign assets.
* Random Walk Model: This approach assumes that all available information on exchange rate movements in the future is reflected in the current exchange rate. Also, any future event leading to a change inexchange rates is purely random from today’s perspective. Thus, the best possible forecast of a currency’s value is its value today. This is the simplest approach for exchange rate forecasting.
A 1983 study by Meese and Rogoff depicted the superiority of the Random-Walk Model. However, exchange rate forecast models such as the PPP and UIP have also given successful predictions over longer timeframes. Exchange rate forecasts works best if there is a combined effort using these models.
Exchange Rate Forecast: Approaches Employed
The two most commonly used methods for forecasting exchange rates are:
* Fundamental Approach: It forecasts exchange rates after considering the factors that give rise to long term cycles. Elementary data related to a country, such as GDP, inflation rates, productivity indices, balance of trade and unemployment rate, are taken into account. This approach is based on the premise that the ‘true worth’ of a currency will eventually be realized. Hence, this approach is suitable for long term investments.
* Technical Approach: This approach is based on the premise that it is investor sentiment that determines changes in the exchange rate and makes predictions by charting out patterns. Other tools used in this approach are positioning surveys, moving-average trend-following trading rules and FX dealer customer-flow data. Fund managers use these patterns to take informed decisions for short term investments.
Exchange Rate Forecast: Models
Some important exchange rate forecast models are:
* Purchasing Power Parity (PPP) Model: This method involves studying exchange rate movements based on the price level changes in each country.
* Uncovered Interest Rate Parity (UIP) Model: This model forecasts exchange rate movements in accordance with returns from investment in the two curencies. The UIP creates an arbitrage mechanism that sets an exchange rate which equalizes returns from domestic and foreign assets.
* Random Walk Model: This approach assumes that all available information on exchange rate movements in the future is reflected in the current exchange rate. Also, any future event leading to a change inexchange rates is purely random from today’s perspective. Thus, the best possible forecast of a currency’s value is its value today. This is the simplest approach for exchange rate forecasting.
A 1983 study by Meese and Rogoff depicted the superiority of the Random-Walk Model. However, exchange rate forecast models such as the PPP and UIP have also given successful predictions over longer timeframes. Exchange rate forecasts works best if there is a combined effort using these models.
Currency Options, Forex Options, Fx Options, Currency Options Trading
Currency options are derivatives contracts in which foreign currency is the underlying asset. Currency options are also known as forex options or Fx options. The contract is between a buyer and a seller and gives the buyer the right (but not the obligation) to buy or sell the underlyingforeign currency at a specified price on an agreed upon date in the future.
Currency options are of two types: call options and put options. The buyer of a call option has the right to buy the underlying currency at an agreed upon price at a future date. A put option provides the buyer the right to sell the underlying currency.
How are Currency Options Traded?
While currency options give the buyer the right to buy or sell the underlying currency, there is no obligation to do so. However, the seller of the currency options is obligated to buy or sell the underlying currency in case the buyer decides to exercise the option.
For exercising the right to trade the underlying asset, the seller of the option is paid a price, known as premium. The price that is specified for either buying or selling at the future date is known as the strike price.
When an investor believes that the US dollar will appreciate against the Euro, he purchases a currency call option on USD/EUR. If the value of the US dollar actually increases against the Euro, the buyer can exercise his right to earn a profit.
Benefits of Currency Options
The benefits of currency options are:
* Currency options are extremely useful for hedging against the adverse movements of exchange rates.
* Currency options are the only option contracts that are traded 24 hours a day.
Risks of Currency Options
The risks associated with currency options are:
* Currency options change in value very frequently, since they are tied to the volatile forex market.
* The small outlay that is paid as the initial margin may prevent an investor from estimating the actual losses that he may suffer due to adverse market conditions
Currency options are of two types: call options and put options. The buyer of a call option has the right to buy the underlying currency at an agreed upon price at a future date. A put option provides the buyer the right to sell the underlying currency.
How are Currency Options Traded?
While currency options give the buyer the right to buy or sell the underlying currency, there is no obligation to do so. However, the seller of the currency options is obligated to buy or sell the underlying currency in case the buyer decides to exercise the option.
For exercising the right to trade the underlying asset, the seller of the option is paid a price, known as premium. The price that is specified for either buying or selling at the future date is known as the strike price.
When an investor believes that the US dollar will appreciate against the Euro, he purchases a currency call option on USD/EUR. If the value of the US dollar actually increases against the Euro, the buyer can exercise his right to earn a profit.
Benefits of Currency Options
The benefits of currency options are:
* Currency options are extremely useful for hedging against the adverse movements of exchange rates.
* Currency options are the only option contracts that are traded 24 hours a day.
Risks of Currency Options
The risks associated with currency options are:
* Currency options change in value very frequently, since they are tied to the volatile forex market.
* The small outlay that is paid as the initial margin may prevent an investor from estimating the actual losses that he may suffer due to adverse market conditions
Forex Signals, Forex Trading Signal
Forex signals are buy and sell indicators that alert investors of profit-making opportunities. These signals also enable a trader to determine the best time to enter or exit a trade. These signals are generated after a thorough technical analysis and review of charting tools and news-based events. An investor can acquire these forex trading signals for free or for a fee from professionals. This service is also offered by brokerage firms as part of their forex trading software.
Working of Forex Signals
Forex signals are produced by the constant monitoring of multiple factors, of which the economic indicators are most important, as well as analysis, including technical analysis, moving averages and market trend analysis. Traders who subscribe to these signals receive them through emails, pagers, cell phones or even as 'pop-up' messages. These forex signals are indicators to traders of attractive entry and exit points for a currency pair. A trader then needs to sign into his/her account and place the appropriate orders to book profits.
Meanwhile, an experienced trader can also automate his/her trading system to look for specific signals, interpret them and take appropriate action. With the help of automated trading signals, one can eliminate the psychological element that is sometimes known to result in losses.
Benefits of Forex Signals
The benefits of forex signals are:
1. There is no need for traders to learn trading systems or methods.
2. Traders can stop worrying about learning a complicated system that might not work well for them.
3. Effectively remove the guesswork from your financial investments.
4. Enable traders to start earning from day one.
5. Remove the psychological element, which can adversely affect trading.
6. Enable traders who do not have sufficient time to study the intricacies of the forex market to participate in the market.
7. Allow traders to utilize even those profit-making opportunities that come up when they are not actively studying the market.
Drawbacks of Forex Signals
Forex signals do not guarantee profits, since gains are dependent on the way a trader handles his/her resources. Forex signals cannot act as a substitute for knowledge of forex market fundamentals for earning long-term profits.
Working of Forex Signals
Forex signals are produced by the constant monitoring of multiple factors, of which the economic indicators are most important, as well as analysis, including technical analysis, moving averages and market trend analysis. Traders who subscribe to these signals receive them through emails, pagers, cell phones or even as 'pop-up' messages. These forex signals are indicators to traders of attractive entry and exit points for a currency pair. A trader then needs to sign into his/her account and place the appropriate orders to book profits.
Meanwhile, an experienced trader can also automate his/her trading system to look for specific signals, interpret them and take appropriate action. With the help of automated trading signals, one can eliminate the psychological element that is sometimes known to result in losses.
Benefits of Forex Signals
The benefits of forex signals are:
1. There is no need for traders to learn trading systems or methods.
2. Traders can stop worrying about learning a complicated system that might not work well for them.
3. Effectively remove the guesswork from your financial investments.
4. Enable traders to start earning from day one.
5. Remove the psychological element, which can adversely affect trading.
6. Enable traders who do not have sufficient time to study the intricacies of the forex market to participate in the market.
7. Allow traders to utilize even those profit-making opportunities that come up when they are not actively studying the market.
Drawbacks of Forex Signals
Forex signals do not guarantee profits, since gains are dependent on the way a trader handles his/her resources. Forex signals cannot act as a substitute for knowledge of forex market fundamentals for earning long-term profits.
Forex System, Forex Trading System
A forex system, or forex trading system, is a strategy or method devised by an experienced forex trader/broker to generate maximum profits. These systems help investors identify trading opportunities in the forex market, resulting in huge profits. Novice investors can buy these forex systems from brokers and use them till they gain ample expertise to formulate their own strategies.
How a Forex Trading System Works
A forex trading system uses a mix of mechanical methods and computations to calculate the right entry and exit values. While numerous forex trading systems are available in the market, none can be touted as perfect for allinvestors. In fact, selecting more than one forex trading system can help you identify entry and exit points more effectively.
Some of the popular forex systems accessible to investors are:
1. Simple Moving Average (SMA). This system helps one gauge simple averages of the exchange price of every currency from data charts. If, at any given time, the price of a currency is above the SMA, it indicates a time to buy the currency. The opposite is true in case the price dips below the SMA.
2. Support and Resistance. These levels reflect the exchange rates a currency pair tends to reach repeatedly, but fails to cross. You can recognize these levels by studying past data of a currency pair.
3. Leverage. Leverage enables traders to invest a much higher amount than they possess. However, it also exposes them to substantial risks.
4. Stop Loss Order. This forex strategy helps you generate a pre-specified price level beyond which you should neither keep your position open nor place a new buy order. This system helps you reduce your trading losses.
Benefits of a Forex System
A forex trading system helps investors:
1. Trade with greater confidence
2. Identify entry and exit points much earlier than other investors
3. Implement strategies without subscribing to expensive services
4. Learn the intricacies of forex trading faster
Drawbacks of a Forex System
Forex systems:
1. Do not work well for trades at the time of an important news release.
2. May not necessarily continue to perform well in future.
How a Forex Trading System Works
A forex trading system uses a mix of mechanical methods and computations to calculate the right entry and exit values. While numerous forex trading systems are available in the market, none can be touted as perfect for allinvestors. In fact, selecting more than one forex trading system can help you identify entry and exit points more effectively.
Some of the popular forex systems accessible to investors are:
1. Simple Moving Average (SMA). This system helps one gauge simple averages of the exchange price of every currency from data charts. If, at any given time, the price of a currency is above the SMA, it indicates a time to buy the currency. The opposite is true in case the price dips below the SMA.
2. Support and Resistance. These levels reflect the exchange rates a currency pair tends to reach repeatedly, but fails to cross. You can recognize these levels by studying past data of a currency pair.
3. Leverage. Leverage enables traders to invest a much higher amount than they possess. However, it also exposes them to substantial risks.
4. Stop Loss Order. This forex strategy helps you generate a pre-specified price level beyond which you should neither keep your position open nor place a new buy order. This system helps you reduce your trading losses.
Benefits of a Forex System
A forex trading system helps investors:
1. Trade with greater confidence
2. Identify entry and exit points much earlier than other investors
3. Implement strategies without subscribing to expensive services
4. Learn the intricacies of forex trading faster
Drawbacks of a Forex System
Forex systems:
1. Do not work well for trades at the time of an important news release.
2. May not necessarily continue to perform well in future.
Currency Converter
Overview of Currency Converters
A currency converter is a tool to calculate the value of one currency in another currency.
This content is part of the extensive resources on Insurance featured in
A currency converter is a tool to calculate the value of one currency in another currency.
This content is part of the extensive resources on Insurance featured in
Forex Trading: Online Forex Trading
Forex trading, also known as FX trading, involves the buying and selling of currencies of various nations. In the forex trade, currencies are exchanged continuously in the forex market that spans the globe. People are presented with profit-making opportunities in forex trading when the value of one currency fluctuates against that of another.
People conduct Forex Trade to:
1. Make direct foreign investments
2. Earn profits from short-term fluctuations in the value of a currency pair
3. Manage their existing positions in the market
4. Fulfill their import and export requirements
As the forex market does not have any centralized exchange, trading is conducted either through the Electronic Broking System (EBS) or on the Internet. Online forex trading is most popular among individual investors. High leverage, liquidity and flexibility are the three factors that attract people toforex trading.
People conduct Forex Trade to:
1. Make direct foreign investments
2. Earn profits from short-term fluctuations in the value of a currency pair
3. Manage their existing positions in the market
4. Fulfill their import and export requirements
As the forex market does not have any centralized exchange, trading is conducted either through the Electronic Broking System (EBS) or on the Internet. Online forex trading is most popular among individual investors. High leverage, liquidity and flexibility are the three factors that attract people toforex trading.
How is Forex Trading Conducted?
As with other transactions, forex trading involves buyers, sellers and intermediaries.While buyers and sellers in this market could be banks, hedge funds, investment management firms, commercial companies and retail investors, the intermediaries are brokers. Forex brokers act as market makers and place bid and ask prices for a currency pair on behalf of a buyer or a seller.
Buyers make money by purchasing a currency at a lower price and selling it later at a higher price. All transactions by individual traders in theforex market occur through brokers. However, most of the forex trade is conducted between banks.
Buyers make money by purchasing a currency at a lower price and selling it later at a higher price. All transactions by individual traders in theforex market occur through brokers. However, most of the forex trade is conducted between banks.
Benefits of Forex Trading
The benefits of forex trading are:
1. It is conducted in an extremely liquid market. Thus, you are unlikely to get stuck in a trade. You can open and close any position at your desired level.
2. Traders can benefit in both rising and falling markets. You can take a short position (selling the currency pair and buying it back at a lower price) or long position (buying the currency pair and selling it later at a higher price).
3. Provides traders the option of trading in small lots. If you are a novice trader, you can opt to open small accounts and start trading with small lots. This allows you to begin with little capital and limit your risks.
4. Traders do not have to pay commissions to brokers. The cost of the transactions is built into the currency price and is known as the spread, which is the difference between thebuying and selling price at any given time.
1. It is conducted in an extremely liquid market. Thus, you are unlikely to get stuck in a trade. You can open and close any position at your desired level.
2. Traders can benefit in both rising and falling markets. You can take a short position (selling the currency pair and buying it back at a lower price) or long position (buying the currency pair and selling it later at a higher price).
3. Provides traders the option of trading in small lots. If you are a novice trader, you can opt to open small accounts and start trading with small lots. This allows you to begin with little capital and limit your risks.
4. Traders do not have to pay commissions to brokers. The cost of the transactions is built into the currency price and is known as the spread, which is the difference between thebuying and selling price at any given time.
Drawbacks of Forex Trading
Forex trading can lead to huge losses if the trader is a novice. The lack of prompt action can also lead to substantial losses.
Forex Brokers
There are two types of retail brokers offering the opportunity for speculative trading. Retail forex brokers or Market makers. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. Retail forex brokers, while largely controlled and regulated by the CFTC and NFA might be subject to forex scams. At present, the NFA and CFTC are imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone. It is not widely understood that retail brokers and market makers typically trade against their clients and frequently take the other side of their trades. This can often create a potential conflict of interest and give rise to some of the unpleasant experiences some traders have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but caution is still advised in ensuring that all is as it is presented.
Here are some of the best Forex brokers:
Interbank FX
Ikon Royal
MB Trading
FXDD
GFT Forex
Oanda
Software
Tradestation
MetaTrader 4
Forums
Forex Factory
Money Tec
Oanda Forex Forum
Elite Trader
Here are some of the best Forex brokers:
Interbank FX
Ikon Royal
MB Trading
FXDD
GFT Forex
Oanda
Software
Tradestation
MetaTrader 4
Forums
Forex Factory
Money Tec
Oanda Forex Forum
Elite Trader
technical indicators
One of the first things that a beginner to Forex must do is studying and understanding technical indicators. Technical tools are very popular among both professionals and amateur traders, and no study of Forex trading can be complete without taking a look at them. In this brief article well examine the basic principles behind technical trading, and how technical indicators can be used, in general, for profitable strategies.
In most basic terms, technical tools are used to create trade signals from the price action. From the raw price data it is not possible to determine which price is high, and which is low, because prices dont have an upper limit to them, and they almost never reach zero. As a result, we need tools that will tell us, in relative terms, that a low price is low enough to constitute a buy or sell signal depending on the trading style used and the conditions of the market. Technical tools are mostly used for this purpose.
Not all indicators perform equally well in all markets. For example, the RSI is mostly used in arranging market. Trending markets dont ever take its overbought or oversold signals seriously, and consequently the indicator will generate many false signals in such environments. Moving averages are best used in trending markets. In ranging markets they will zigzag too much, and wont offer clear signals. The Fibonacci indicators, on the other hand, can be used in many different conditions and in many different ways. Knowing which indicator is most productive and reliable in terms of trade signals is an important part of technical analysis.
Another important point to keep in mind while using these indicators is that technical indicators never give perfect signals. They only alert us to conditions that might be appropriate for the opening of a position, but the choice is always ours. Any number of indicators can fail at the same time, and a single indicator can make a correct statement about the future of price action while being contradicted by everything else. Successful use of technical indicators requires that the trader always keeps in mind the possibility of failure. And as such, technical tools should always be coupled to a sound money management plan which can be used in case events dont progress as expected.
In conclusion, Forex strategies can depend on any kind of analytical approach. One can use fundamental or technical analysis, or a combination of the two, for profit. Common sense, and a conservative approach to arising opportunities are what distinguish the frantic speculators from seasoned investors, and the key to success lies in patience and discipline, not in genius or special talents.
In most basic terms, technical tools are used to create trade signals from the price action. From the raw price data it is not possible to determine which price is high, and which is low, because prices dont have an upper limit to them, and they almost never reach zero. As a result, we need tools that will tell us, in relative terms, that a low price is low enough to constitute a buy or sell signal depending on the trading style used and the conditions of the market. Technical tools are mostly used for this purpose.
Not all indicators perform equally well in all markets. For example, the RSI is mostly used in arranging market. Trending markets dont ever take its overbought or oversold signals seriously, and consequently the indicator will generate many false signals in such environments. Moving averages are best used in trending markets. In ranging markets they will zigzag too much, and wont offer clear signals. The Fibonacci indicators, on the other hand, can be used in many different conditions and in many different ways. Knowing which indicator is most productive and reliable in terms of trade signals is an important part of technical analysis.
Another important point to keep in mind while using these indicators is that technical indicators never give perfect signals. They only alert us to conditions that might be appropriate for the opening of a position, but the choice is always ours. Any number of indicators can fail at the same time, and a single indicator can make a correct statement about the future of price action while being contradicted by everything else. Successful use of technical indicators requires that the trader always keeps in mind the possibility of failure. And as such, technical tools should always be coupled to a sound money management plan which can be used in case events dont progress as expected.
In conclusion, Forex strategies can depend on any kind of analytical approach. One can use fundamental or technical analysis, or a combination of the two, for profit. Common sense, and a conservative approach to arising opportunities are what distinguish the frantic speculators from seasoned investors, and the key to success lies in patience and discipline, not in genius or special talents.
Forex strategies
After many heretofore unsuccessful attempts to create a software system that takes the guesswork out of trading, finally there is the Forex Autopilot System. However take care not to look this supposed gift horse in the mouth.
Traders believe that software that could expertly predict trends and market fluctuations will help them tide over most of their troubles. This system will enable you to act according to your discretion when you can perceive market trends beforehand! This is what actually constitutes the essence of currency trading, and is based on the concept of the Fibonacci formula.
The forex robot is known for reaping maximum profits usually coincides with shortest time bracket possible. Not only does this little gadget predict market trends, it conveniently makes trading decisions for you. Sweet!
For maximum profits you are looking at investing in an enhanced automated forex trading system. Using a system of algorithms they calculate the most optimum entry and exit points for your trading decisions. They may even boast cash supervision tools that minimize your financial losses.
There are a variety of forex robots on the market so you need to investigate before you buy. A $65.00 a month program-usage fee is standard but the enhanced Forex Autopilot Systems will run you up a heftier fee than that.
Bear in mind key factors when purchasing the Forex Autopilot System:
1. Ensure that you use and experience the free trial that usually extends for about eight weeks. This enables you to see whether you can really benefit from it or not.
2. Inquire about using the demo account that the forex robot includes in order to “invest” without using actual currency.
3. Self-educate! The forex robot comes with training tutorials or videos that provide valuable tips on getting your money’s worth from your new investment in a way that trial and error never will.
4. Three crucial words: Meta Trader 4. Your forex robot has got to work in the current trading platforms and the Meta Trader 4 is certainly the most popular and profitable.
5. Money-back guarantees make a lot of “cents” in the event that your forex robot isn’t quite right for you.
Purchasing your very own forex robot is an exciting venture in the trading world. Armed with a little knowledge you can make a sensible and profitable investment.
Traders believe that software that could expertly predict trends and market fluctuations will help them tide over most of their troubles. This system will enable you to act according to your discretion when you can perceive market trends beforehand! This is what actually constitutes the essence of currency trading, and is based on the concept of the Fibonacci formula.
The forex robot is known for reaping maximum profits usually coincides with shortest time bracket possible. Not only does this little gadget predict market trends, it conveniently makes trading decisions for you. Sweet!
For maximum profits you are looking at investing in an enhanced automated forex trading system. Using a system of algorithms they calculate the most optimum entry and exit points for your trading decisions. They may even boast cash supervision tools that minimize your financial losses.
There are a variety of forex robots on the market so you need to investigate before you buy. A $65.00 a month program-usage fee is standard but the enhanced Forex Autopilot Systems will run you up a heftier fee than that.
Bear in mind key factors when purchasing the Forex Autopilot System:
1. Ensure that you use and experience the free trial that usually extends for about eight weeks. This enables you to see whether you can really benefit from it or not.
2. Inquire about using the demo account that the forex robot includes in order to “invest” without using actual currency.
3. Self-educate! The forex robot comes with training tutorials or videos that provide valuable tips on getting your money’s worth from your new investment in a way that trial and error never will.
4. Three crucial words: Meta Trader 4. Your forex robot has got to work in the current trading platforms and the Meta Trader 4 is certainly the most popular and profitable.
5. Money-back guarantees make a lot of “cents” in the event that your forex robot isn’t quite right for you.
Purchasing your very own forex robot is an exciting venture in the trading world. Armed with a little knowledge you can make a sensible and profitable investment.
Margin Calls and Currency Trading
Here’s some common mistakes forex traders make to get margin calls.
1. Not paying attention to the news
Die hard technical trading followers can get their account balance lowered to dangerous level if not wiped out totally during big fundamental changes that happen in the political and economic news. It is a must that you understand what is happening, also keep an eye on the economic calendar even if your trading is not based on it.
2. Trading too much
Many new traders trade too much: placing more trades than they can afford, not understanding when too much is too much. First master trading only one position at the time, then after you are more experienced add more positions.
3. Not trading systematically
To be a successful currency trader you need a systematic approach, you can back test your trading system first before committing any real money in to the market. Once you have a winning plan start small, and do not let your emotions get the best of you. A systematic trading approach gives you the tools to make you money. Without a great system, you will surely start loosing money.
4. Not using stops
Always you stops, not just mentally but also put them in the market, you do not know what’s going happen to your broker or your Internet connection. It takes many loosing trades before you can understand just where to place stop orders, hopefully you do now have to learn the hard way.
5, Poor or no money management
There are many great books written on this subject, money management is as important as your trading system. You will have to know when to take profits and when to cut your losses or your trading account could be wiped out too soon.
6. Trading against the trend
Unless you have millions of Dollars you can not afford to trade against the trend, sure the market is going to stop and reverse at some point in time but it is too risky to bet on it. Your trading system should identify the underlying market trend and trade in the direction of the prevailing market trend.
7. Not getting out of losing trade
Learning to get out of losing trade is one of the hardest things to master. Wishful thinking and dreaming will not help you in this matter. Big losing trades make it hard if not impossible to regain the money that was lost. Take your losses early and place some better trades next time.
Good luck with your FX!
1. Not paying attention to the news
Die hard technical trading followers can get their account balance lowered to dangerous level if not wiped out totally during big fundamental changes that happen in the political and economic news. It is a must that you understand what is happening, also keep an eye on the economic calendar even if your trading is not based on it.
2. Trading too much
Many new traders trade too much: placing more trades than they can afford, not understanding when too much is too much. First master trading only one position at the time, then after you are more experienced add more positions.
3. Not trading systematically
To be a successful currency trader you need a systematic approach, you can back test your trading system first before committing any real money in to the market. Once you have a winning plan start small, and do not let your emotions get the best of you. A systematic trading approach gives you the tools to make you money. Without a great system, you will surely start loosing money.
4. Not using stops
Always you stops, not just mentally but also put them in the market, you do not know what’s going happen to your broker or your Internet connection. It takes many loosing trades before you can understand just where to place stop orders, hopefully you do now have to learn the hard way.
5, Poor or no money management
There are many great books written on this subject, money management is as important as your trading system. You will have to know when to take profits and when to cut your losses or your trading account could be wiped out too soon.
6. Trading against the trend
Unless you have millions of Dollars you can not afford to trade against the trend, sure the market is going to stop and reverse at some point in time but it is too risky to bet on it. Your trading system should identify the underlying market trend and trade in the direction of the prevailing market trend.
7. Not getting out of losing trade
Learning to get out of losing trade is one of the hardest things to master. Wishful thinking and dreaming will not help you in this matter. Big losing trades make it hard if not impossible to regain the money that was lost. Take your losses early and place some better trades next time.
Good luck with your FX!
Forex Strategy
Forex Strategy
Despite what you might have heard or thought, there is not a one simple system that will easily give you large profits in currency trading. By implementing a systematic Forex trading plan you can increase the amount of winning trades while protecting yourself from your account being wiped out by loosing trades.
When you start getting into the FX trading strategies there are three basic time frames (systems) in which you can trade Forex. These foreign exchange trading plans are basically short, medium and long term trading approaches. All of these systems have their own advantages and disadvantages when it comes to putting it all to work to make money.
- Short Term Forex trading is called scalping as trading is very quick. Trading all the time in both long and short positions, trades sometimes only lasting seconds or minutes. This requires a lot more skill and experience than it looks like, it can also be very stressful.
- Medium term currency trading is about holding an open position from one day to one week. The major plus of the medium term trading is that money can be made without spending all day in front of the trading screen.
- Long term foreign exchange trading is more about investing as it can mean to hold an open position from weeks to months or even years if there is an opportunity to make money while protecting the investment capital.
The big mistake that the new traders often make is that they start as a short term trader but when the market goes against their trade they then decide to hold on and become a medium term trader or even long term investor. Most often the market will not turn before it is too late for under capitalized novice Forex trader and they will have to throw in a towel and get out with big losses. So whichever strategy you decide to follow – stick to it. Good Luck!
Despite what you might have heard or thought, there is not a one simple system that will easily give you large profits in currency trading. By implementing a systematic Forex trading plan you can increase the amount of winning trades while protecting yourself from your account being wiped out by loosing trades.
When you start getting into the FX trading strategies there are three basic time frames (systems) in which you can trade Forex. These foreign exchange trading plans are basically short, medium and long term trading approaches. All of these systems have their own advantages and disadvantages when it comes to putting it all to work to make money.
- Short Term Forex trading is called scalping as trading is very quick. Trading all the time in both long and short positions, trades sometimes only lasting seconds or minutes. This requires a lot more skill and experience than it looks like, it can also be very stressful.
- Medium term currency trading is about holding an open position from one day to one week. The major plus of the medium term trading is that money can be made without spending all day in front of the trading screen.
- Long term foreign exchange trading is more about investing as it can mean to hold an open position from weeks to months or even years if there is an opportunity to make money while protecting the investment capital.
The big mistake that the new traders often make is that they start as a short term trader but when the market goes against their trade they then decide to hold on and become a medium term trader or even long term investor. Most often the market will not turn before it is too late for under capitalized novice Forex trader and they will have to throw in a towel and get out with big losses. So whichever strategy you decide to follow – stick to it. Good Luck!
Forex Fundamental Analysis
Fundamental analysis in Forex trading has been almost totally forgotten along with simple understanding of charts in favor of all the exotic indicators and automatic systems that most speculators use in their day to day trading.
Traders today somehow feel that the best currency trading strategy has to be in these maze of indicators,colors, noises,systems and whatever else is “hot” nowadays. Its really quite sad that it has gotten to this point. Foreign exchange traders used to pride themselves on how they were able to truly understand the market, but in the present time we live in, they are more worried about understanding what their indicators are telling them.
Traders today somehow feel that the best currency trading strategy has to be in these maze of indicators,colors, noises,systems and whatever else is “hot” nowadays. Its really quite sad that it has gotten to this point. Foreign exchange traders used to pride themselves on how they were able to truly understand the market, but in the present time we live in, they are more worried about understanding what their indicators are telling them.
EURUSD Trading
Forex Trading update: We just went long EURUSD at 1.4620, stop at 1.4575. Break even stop used if given a change after 3-4 hours. Targeting 1.47 area where we may put in shorts or raise break even stop to 1.4670 area. Short position also considered at 1.4750 + area depending on the market action.
Trading currencies on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade forex you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXLine are those of the individual authors and do not necessarily represent the opinion of FXLine or its management. FXLine has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXLine, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXLine will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Trading currencies on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade forex you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXLine are those of the individual authors and do not necessarily represent the opinion of FXLine or its management. FXLine has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXLine, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXLine will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Day Trading Forex
orex is very well suited for day trading, here’s some pointers:
Study the fundamentals of the currency market like the various economic market conditions. Schedule your trading times according to market volatility and which way you expect that Forex rates are likely to be moving. Avoid the frustation of making losses let you to stop trading. Use strategies like stop loss orders to minimize your losses. Do not get discouraged, If you have some loosing trades, as it is a part of the speculation that you cannot avoid. Stop trading for the day, once you have made your expected profit. Do not run after more money and give back your earned profits. Assuming that the foreign exchange market does not meet your expectations, do not day trade. When your experience in day trading increases, you gain the ability to foreknow the direction in which the FX rates are moving. If you find it too difficult to decide in which way the market is going, do not trade, just wait or paper trade. Get some knowledge about buying and selling tactics of successful Forex traders. These currency traders commonly sell when there is good news and buy when there is bad news. Being alert and professional are the main characteristics of successful traders so don’t be emotional. Have confidence on your instincts also as relying only upon on the system means skipping some good trading chances. Be educated and use most important strategies to trade. Study new trading strategies daily and use them to your benefit.
Let’s make some money!
Study the fundamentals of the currency market like the various economic market conditions. Schedule your trading times according to market volatility and which way you expect that Forex rates are likely to be moving. Avoid the frustation of making losses let you to stop trading. Use strategies like stop loss orders to minimize your losses. Do not get discouraged, If you have some loosing trades, as it is a part of the speculation that you cannot avoid. Stop trading for the day, once you have made your expected profit. Do not run after more money and give back your earned profits. Assuming that the foreign exchange market does not meet your expectations, do not day trade. When your experience in day trading increases, you gain the ability to foreknow the direction in which the FX rates are moving. If you find it too difficult to decide in which way the market is going, do not trade, just wait or paper trade. Get some knowledge about buying and selling tactics of successful Forex traders. These currency traders commonly sell when there is good news and buy when there is bad news. Being alert and professional are the main characteristics of successful traders so don’t be emotional. Have confidence on your instincts also as relying only upon on the system means skipping some good trading chances. Be educated and use most important strategies to trade. Study new trading strategies daily and use them to your benefit.
Let’s make some money!
Forex Tip
Trading Forex without knowing about the economic fundamentals is very risky. You might be lucky with few trades but not over the long haul, the market will get back at you and take away your profits a lot sooner and harder than what you might expect.
For currency traders, the fundamental analysis is a very important factor to consider before entering into a large position, even if you are mainly a technical trader. From interest rates and central bank policies to natural disasters, fundamentals consists of many different factors that are moving the foreign exchange market. Needless to say, it is vital to have an understanding of fundamental analysis and always use it along with technical analysis.
Pure FX fundamental analysis focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycles. Forecasting models are as numerous and varied as the speculators and market participants that use them. Traders can look at the exact same economic information and come up with many totally different conclusions about how the market will react long or short term.
Just don’t confuse yourself by information overload, this is easy nowadays with all the financial news available on TV and over the Internet. Keeping it simple is the best approach even in fundamental analysis just as it is also on technical analysis trading. You will need to come up with a precise method as to how best to translate economic information into entry and exit points for your Forex strategy or system.
Good luck!
For currency traders, the fundamental analysis is a very important factor to consider before entering into a large position, even if you are mainly a technical trader. From interest rates and central bank policies to natural disasters, fundamentals consists of many different factors that are moving the foreign exchange market. Needless to say, it is vital to have an understanding of fundamental analysis and always use it along with technical analysis.
Pure FX fundamental analysis focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycles. Forecasting models are as numerous and varied as the speculators and market participants that use them. Traders can look at the exact same economic information and come up with many totally different conclusions about how the market will react long or short term.
Just don’t confuse yourself by information overload, this is easy nowadays with all the financial news available on TV and over the Internet. Keeping it simple is the best approach even in fundamental analysis just as it is also on technical analysis trading. You will need to come up with a precise method as to how best to translate economic information into entry and exit points for your Forex strategy or system.
Good luck!
Currency Markets Trend
Currency markets often are trending long term, instead of short term speculation you should consider building a robust trend following system, it’s a smart way to speculate in foreign exchange markets.
Most profitable trend following systems are pretty simple, these basic systems work better than more complicated ones because they have less variable factors to break than the complex ones.
A great trend following system can be built on using a few indicators and support and resistance points. If you are thinking about building a trend following system you should look into breakouts in your trading strategy. Breakouts happen when the currency pair breaks out of the prevailing trend or sideways moving market, this is a good place to place your buy and sell orders.
Traders that use trend following systems trade infrequently, only when the odds are in their favor. The only thing that matters in Forex is that are you making money or not, if you are patient and wait for the system to tell you to trade you will be making profitable trades most of the time. There is a lot of short term noise in the FX markets which may make you want to trade against your system, this will surely result in losses over the long term.
Trends in Forex last for weeks. months or sometimes even years, so do not worry about picking tops or bottoms, this is not necessary. Trend following requires patience and discipline that you do not jump in and out the market. With properly built and managed system you should be able to make profit of 50-60% of the prevailing market trend, and any Forex trader would tell you that this is a great result. Good luck!
Most profitable trend following systems are pretty simple, these basic systems work better than more complicated ones because they have less variable factors to break than the complex ones.
A great trend following system can be built on using a few indicators and support and resistance points. If you are thinking about building a trend following system you should look into breakouts in your trading strategy. Breakouts happen when the currency pair breaks out of the prevailing trend or sideways moving market, this is a good place to place your buy and sell orders.
Traders that use trend following systems trade infrequently, only when the odds are in their favor. The only thing that matters in Forex is that are you making money or not, if you are patient and wait for the system to tell you to trade you will be making profitable trades most of the time. There is a lot of short term noise in the FX markets which may make you want to trade against your system, this will surely result in losses over the long term.
Trends in Forex last for weeks. months or sometimes even years, so do not worry about picking tops or bottoms, this is not necessary. Trend following requires patience and discipline that you do not jump in and out the market. With properly built and managed system you should be able to make profit of 50-60% of the prevailing market trend, and any Forex trader would tell you that this is a great result. Good luck!
Tuesday, May 12, 2009
Asian And American Forex Update
Growing optimism seen from Fed Chairman Bernanke in early US session and subsequent after-hours strong draw from the US TALF program have been once again overshadowed in Asian hours by ominous uncertainty over the impending stress-test results for US financials. Whereas in the prior session it was the press speculation that as many as 10 banks may require additional capital, this time the scrutiny is being limited to Bank of America alone. However, the sheer size of the forecasted $34B capital raise request is translating into a more magnified bout of risk aversion across equity, currency, and bond markets than one seen yesterday. The prevalence of the Bank of America speculation calling for a raise of 50% of its market cap is also weighing heavier on sentiment, with the story appearing in NY Times and WSJ after the initial rumor surfaced on the wires around 9:30pmET. Asian bourses and US index futures reversed initial gains, trading around the session's worst level going into the final hour of the day. S&P/ASX was up 0.4% pre-BAC report but last seen off by 0.7% while Korea's Kospi was lower by 0.9% after a near 1% initial rally. Nikkei225 remains close for the final day of golden week. Taiwan's Taiex remained relatively immune to US financials worries, remaining at the forefront of regional gainers in recent sessions with another 2.7% rise to gain 16% in the last 4 sessions. In US equities, front-month S&P futures point to a lower open with a 1.2% session decline.
- Although market sentiment was simultaneously clouded by the Bank of America rumors, there were some notable rays of sunshine from two rounds of Aussie economic data. March retail sales saw their biggest rise in three months and their second-best increase in years with a 2.2% gain v 0.5% expected and -2.0% prior. Likewise, Australia March trade surplus was also second only to October in at least 3 years, coming in at A$2.45B V A$1.7BE. Surplus remained driven by contracting imports, but exports leveled off to unchanged. Most striking was Australia's export levels to its largest trading partner China rising by the highest margin of 23% in years to $4.35B, also the highest multi-month level. Australia's Finance Ministry and Treasury officials subsequently reflected on better than expected retail sales and trade data as evidence that the govt stimulus is working.
FX Solutions, LLC Forex Broker
| ||||
 | 24 hr commission-free trading in the majors and crosses, Global Trading System (G.T.S.) with free professional charting package, split-second trade execution from real time, streaming quotes; managed account program; partner services include introducing broker program, white label / co-brand program; back office services for money managers, etc. | |||
| ||||
| Languages: | English, Espanol,  | |||
| Minimum account: | 500 | |||
| Minimum trade: | 10,000 | |||
| Pip spread (most popular pairs): | 3-5 | |||
| Commissions: | No | |||
| Trading Software: | Global Trading System (GTS) | |||
| Regulated: | NFA (USA); CFTC (USA) | |||
| ||||
| Headquarters: | 127 East Ridgewood Suite 201, Ridgewood, NJ 07450 USA | |||
| Phone number: | 1 201 345 2201 | |||
| Fax number: | 1 201 345 2211 | |||
| E-mail: | info@fxsol.com | |||
| Company URL: | www.fxsol.com | |||
OANDA Forex Broker
OANDA is a leading market-maker for currency trading. OANDA FXTrade Platform comes from 15+ years of foreign exchange market research and analysis. | ||||
| ||||
| Minimum trade: | NO limits on trade size: FXTrade is unique in its ability to support trades in much smaller quantities than most other platforms. In fact, it allows you to trade as little as $1.00! | |||
| Pip spread (most popular pairs): | 2-3 | |||
| Commissions: | No | |||
| Trading Software: | OANDA FXTrade Platform | |||
| Regulated: | NFA (USA); CFTC (USA) | |||
| ||||
| Headquarters: | New York City | |||
| Phone number: | +1 416 593 9436 24 hour live customer service from Sunday 4 pm EST to Friday 4 pm EST | |||
| Company URL: | fxtrade.oanda.com | |||
CFOS/FX American Forex Brokers
CFOS/FX All of the professional brokers at CFOS/FX are licensed by the National Futures Association and are qualified to provide you with the following services: forex broker, forex options broker, commodity futures broker, commodity options on futures broker and forex and futures consulting. CFOS/FX provides both online and telephone brokerage services to clients, and customer satisfaction is our top priority.
Monday, May 4, 2009
Forex Risk management Strategies
Forex risk management strategiesThe Forex market behaves differently from other markets! The speed, volatility, and enormous size of the Forex market are unlike anything else in the financial world. Beware: the Forex market is uncontrollable - no single event, individual, or factor rules it. Enjoy trading in the perfect market! Just like any other speculative business, increased risk entails chances for a higher profit/loss.
Currency markets are highly speculative and volatile in nature. Any currency can become very expensive or very cheap in relation to any or all other currencies in a matter of days, hours, or sometimes, in minutes. This unpredictable nature of the currencies is what attracts an investor to trade and invest in the currency market.
But ask yourself, "How much am I ready to lose?" When you terminated, closed or exited your position, did you understand the risks and taken steps to avoid them? Let's look at some foreign exchange risk management issues that may come up in your day-to-day foreign exchange transactions.
Unexpected corrections in currency exchange rates
Wild variations in foreign exchange rates
Volatile markets offering profit opportunities
Lost payments
Delayed confirmation of payments and receivables
Divergence between bank drafts received and the contract price
These are areas that every trader should cover both BEFORE and DURING a trade.
Exit the Forex market at profit targets Take profit take orders, allow Forex traders to exit the Forex market at pre-determined profit targets. If you are short (sold) a currency pair, the system will only allow you to place a limit order below the current market price because this is the profit zone. Similarly, if you are long (bought) the currency pair, the system will only allow you to place a take profit order above the current market price. Take profit orders help create a disciplined trading methodology and make it possible for traders to walk away from the computer without continuously monitoring the market.
Control risk by capping losses Stop/loss orders allow traders to set an exit point for a losing trade. If you are short a currency pair, the stop/loss order should be placed above the current market price. If you are long the currency pair, the stop/loss order should be placed below the current market price. Stop/loss orders help traders control risk by capping losses. Stop/loss orders are counter-intuitive because you do not want them to be hit; however, you will be happy that you placed them! When logic dictates, you can control greed.
Where should I place my stop and take profit orders? As a general rule of thumb, traders should set stop/loss orders closer to the opening price than take profit orders. If this rule is followed, a trader needs to be right less than 50% of the time to be profitable. For example, a trader that uses a 30 pip stop/loss and 100-pip take profit orders, needs only to be right 1/3 of the time to make a profit. Where the trader places the stop and take profit will depend on how risk-adverse he is. Stop/loss orders should not be so tight that normal market volatility triggers the order. Similarly, take profit orders should reflect a realistic expectation of gains based on the market's trading activity and the length of time one wants to hold the position. In initially setting up and establishing the trade, the trader should look to change the stop loss and set it at a rate in the 'middle ground' where they are not overexposed to the trade, and at the same time, not too close to the market.
Trading foreign currencies is a demanding and potentially profitable opportunity for trained and experienced investors. However, before deciding to participate in the Forex market, you should soberly reflect on the desired result of your investment and your level of experience. Warning! Do not invest money you cannot afford to lose.
So, there is significant risk in any foreign exchange deal. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions, that may substantially affect the price or liquidity of a currency.
Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of your initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. 'Stop-loss' or 'limit' order strategies may lower an investor's exposure to risk.
Easy-Forex foreign exchange technology links around-the-clock to the world's foreign currency exchange trading floors to get the lowest foreign currency rates and to take every opportunity to make or settle a transaction.
Avoiding/lowering risk when trading Forex:Trade like a technical analyst. Understanding the fundamentals behind an investment also requires understanding the technical analysis method. When your fundamental and technical signals point to the same direction, you have a good chance to have a successful trade, especially with good money management skills. Use simple support and resistance technical analysis, Fibonacci Retracement and reversal days. Be disciplined. Create a position and understand your reasons for having that position, and establish stop loss and profit taking levels. Discipline includes hitting your stops and not following the temptation to stay with a losing position that has gone through your stop/loss level. When you buy, buy high. When you sell, sell higher. Similarly, when you sell, sell low. When you buy, buy lower. Rule of thumb: In a bull market, be long or neutral - in a bear market, be short or neutral. If you forget this rule and trade against the trend, you will usually cause yourself to suffer psychological worries, and frequently, losses. And never add to a losing position. On Easy-Forex the trader can change their trade orders as many times as they wish free of charge, either as a stop loss or as a take profit. The trader can also close the trade manually without a stop loss or profit take order being hit. Many successful traders set their stop loss price beyond the rate at which they made the trade so that the worst that can happen is that they get stopped out and make a profit
Currency markets are highly speculative and volatile in nature. Any currency can become very expensive or very cheap in relation to any or all other currencies in a matter of days, hours, or sometimes, in minutes. This unpredictable nature of the currencies is what attracts an investor to trade and invest in the currency market.
But ask yourself, "How much am I ready to lose?" When you terminated, closed or exited your position, did you understand the risks and taken steps to avoid them? Let's look at some foreign exchange risk management issues that may come up in your day-to-day foreign exchange transactions.
Unexpected corrections in currency exchange rates
Wild variations in foreign exchange rates
Volatile markets offering profit opportunities
Lost payments
Delayed confirmation of payments and receivables
Divergence between bank drafts received and the contract price
These are areas that every trader should cover both BEFORE and DURING a trade.
Exit the Forex market at profit targets Take profit take orders, allow Forex traders to exit the Forex market at pre-determined profit targets. If you are short (sold) a currency pair, the system will only allow you to place a limit order below the current market price because this is the profit zone. Similarly, if you are long (bought) the currency pair, the system will only allow you to place a take profit order above the current market price. Take profit orders help create a disciplined trading methodology and make it possible for traders to walk away from the computer without continuously monitoring the market.
Control risk by capping losses Stop/loss orders allow traders to set an exit point for a losing trade. If you are short a currency pair, the stop/loss order should be placed above the current market price. If you are long the currency pair, the stop/loss order should be placed below the current market price. Stop/loss orders help traders control risk by capping losses. Stop/loss orders are counter-intuitive because you do not want them to be hit; however, you will be happy that you placed them! When logic dictates, you can control greed.
Where should I place my stop and take profit orders? As a general rule of thumb, traders should set stop/loss orders closer to the opening price than take profit orders. If this rule is followed, a trader needs to be right less than 50% of the time to be profitable. For example, a trader that uses a 30 pip stop/loss and 100-pip take profit orders, needs only to be right 1/3 of the time to make a profit. Where the trader places the stop and take profit will depend on how risk-adverse he is. Stop/loss orders should not be so tight that normal market volatility triggers the order. Similarly, take profit orders should reflect a realistic expectation of gains based on the market's trading activity and the length of time one wants to hold the position. In initially setting up and establishing the trade, the trader should look to change the stop loss and set it at a rate in the 'middle ground' where they are not overexposed to the trade, and at the same time, not too close to the market.
Trading foreign currencies is a demanding and potentially profitable opportunity for trained and experienced investors. However, before deciding to participate in the Forex market, you should soberly reflect on the desired result of your investment and your level of experience. Warning! Do not invest money you cannot afford to lose.
So, there is significant risk in any foreign exchange deal. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions, that may substantially affect the price or liquidity of a currency.
Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of your initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. 'Stop-loss' or 'limit' order strategies may lower an investor's exposure to risk.
Easy-Forex foreign exchange technology links around-the-clock to the world's foreign currency exchange trading floors to get the lowest foreign currency rates and to take every opportunity to make or settle a transaction.
Avoiding/lowering risk when trading Forex:Trade like a technical analyst. Understanding the fundamentals behind an investment also requires understanding the technical analysis method. When your fundamental and technical signals point to the same direction, you have a good chance to have a successful trade, especially with good money management skills. Use simple support and resistance technical analysis, Fibonacci Retracement and reversal days. Be disciplined. Create a position and understand your reasons for having that position, and establish stop loss and profit taking levels. Discipline includes hitting your stops and not following the temptation to stay with a losing position that has gone through your stop/loss level. When you buy, buy high. When you sell, sell higher. Similarly, when you sell, sell low. When you buy, buy lower. Rule of thumb: In a bull market, be long or neutral - in a bear market, be short or neutral. If you forget this rule and trade against the trend, you will usually cause yourself to suffer psychological worries, and frequently, losses. And never add to a losing position. On Easy-Forex the trader can change their trade orders as many times as they wish free of charge, either as a stop loss or as a take profit. The trader can also close the trade manually without a stop loss or profit take order being hit. Many successful traders set their stop loss price beyond the rate at which they made the trade so that the worst that can happen is that they get stopped out and make a profit
Forex Forecasting
Forex-ForecastingThis article provides insight into the two major methods of analysis used to forecast the behavior of the Forex market. Technical analysis and fundamental analysis differ greatly, but both can be useful forecast tools for the Forex trader. They have the same goal - to predict a price or movement. The technician studies the effect while the fundamentalist studies the cause of market movement. Many successful traders combine a mixture of both approaches for superior results.
Technical analysis Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action. Technical analysis is concerned with what has actually happened in the market, rather than what should happen and takes into account the price of instruments and the volume of trading, and creates charts from that data to use as the primary tool. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments simultaneously.
Technical analysis is built on three essential principles:
1. Market action discounts everything! This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. However, the pure technical analyst is only concerned with price movements, not with the reasons for any changes.
2. Prices move in trends Technical analysis is used to identify patterns of market behavior that have long been recognized as significant. For many given patterns there is a high probability that they will produce the expected results. Also, there are recognized patterns that repeat themselves on a consistent basis.
3. History repeats itself Forex chart patterns have been recognized and categorized for over 100 years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time.
Forex charts are based on market action involving price. There are five categories in Forex technical analysis theory:
Indicators (oscillators, e.g.: Relative Strength Index (RSI)
Number theory (Fibonacci numbers, Gann numbers)
Waves (Elliott wave theory)
Gaps (high-low, open-closing)
Trends (following moving average). Some major technical analysis tools are described below:
Relative Strength Index (RSI): The RSI measures the ratio of up-moves to down-moves and normalizes the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater, then the instrument is assumed to be overbought (a situation in which prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation in which prices have fallen more than the market expectations).
Stochastic oscillator: This is used to indicate overbought/oversold conditions on a scale of 0-100%. The indicator is based on the observation that in a strong up trend, period closing prices tend to concentrate in the higher part of the period's range. Conversely, as prices fall in a strong down trend, closing prices tend to be near to the extreme low of the period range. Stochastic calculations produce two lines, %K and %D that are used to indicate overbought/oversold areas of a chart. Divergence between the stochastic lines and the price action of the underlying instrument gives a powerful trading signal.
Moving Average Convergence Divergence (MACD): This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.
Number theory: Fibonacci numbers: The Fibonacci number sequence (1,1,2,3,5,8,13,21,34...) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number.
Gann numbers: W.D. Gann was a stock and a commodity trader working in the '50s who reputedly made over million in the markets. He made his fortune using methods that he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann's methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.
Waves Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five-wave advance followed by a three-wave decline.
Gaps Gaps are spaces left on the bar chart where no trading has taken place. An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap that forms on the completion of an important price pattern. It usually signals the beginning of an important price move. A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.
Trends A trend refers to the direction of prices. Rising peaks and troughs constitute an up trend; falling peaks and troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range.
Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a market with a strong up or down trend.
The most common technical tools:
Coppock Curve is an investment tool used in technical analysis for predicting bear market lows.
DMI (Directional Movement Indicator) is a popular technical indicator used to determine whether or not a currency pair is trending.
Unlike the fundamental analyst, the technical analyst is not much concerned with any of the "bigger picture" factors affecting the market, but concentrates on the activity of that instrument's market.
Fundamental analysis Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.
Fundamental analysis is a macro or strategic assessment of where a currency should be trading based on any criteria but the movement of the currency's price itself. These criteria often include the economic condition of the country that the currency represents, monetary policy, and other "fundamental" elements.
Many profitable trades are made moments prior to or shortly after major economic announcements.
Technical analysis Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action. Technical analysis is concerned with what has actually happened in the market, rather than what should happen and takes into account the price of instruments and the volume of trading, and creates charts from that data to use as the primary tool. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments simultaneously.
Technical analysis is built on three essential principles:
1. Market action discounts everything! This means that the actual price is a reflection of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment. However, the pure technical analyst is only concerned with price movements, not with the reasons for any changes.
2. Prices move in trends Technical analysis is used to identify patterns of market behavior that have long been recognized as significant. For many given patterns there is a high probability that they will produce the expected results. Also, there are recognized patterns that repeat themselves on a consistent basis.
3. History repeats itself Forex chart patterns have been recognized and categorized for over 100 years and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time.
Forex charts are based on market action involving price. There are five categories in Forex technical analysis theory:
Indicators (oscillators, e.g.: Relative Strength Index (RSI)
Number theory (Fibonacci numbers, Gann numbers)
Waves (Elliott wave theory)
Gaps (high-low, open-closing)
Trends (following moving average). Some major technical analysis tools are described below:
Relative Strength Index (RSI): The RSI measures the ratio of up-moves to down-moves and normalizes the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater, then the instrument is assumed to be overbought (a situation in which prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation in which prices have fallen more than the market expectations).
Stochastic oscillator: This is used to indicate overbought/oversold conditions on a scale of 0-100%. The indicator is based on the observation that in a strong up trend, period closing prices tend to concentrate in the higher part of the period's range. Conversely, as prices fall in a strong down trend, closing prices tend to be near to the extreme low of the period range. Stochastic calculations produce two lines, %K and %D that are used to indicate overbought/oversold areas of a chart. Divergence between the stochastic lines and the price action of the underlying instrument gives a powerful trading signal.
Moving Average Convergence Divergence (MACD): This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.
Number theory: Fibonacci numbers: The Fibonacci number sequence (1,1,2,3,5,8,13,21,34...) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number.
Gann numbers: W.D. Gann was a stock and a commodity trader working in the '50s who reputedly made over million in the markets. He made his fortune using methods that he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann's methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.
Waves Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five-wave advance followed by a three-wave decline.
Gaps Gaps are spaces left on the bar chart where no trading has taken place. An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap that forms on the completion of an important price pattern. It usually signals the beginning of an important price move. A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.
Trends A trend refers to the direction of prices. Rising peaks and troughs constitute an up trend; falling peaks and troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range.
Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a market with a strong up or down trend.
The most common technical tools:
Coppock Curve is an investment tool used in technical analysis for predicting bear market lows.
DMI (Directional Movement Indicator) is a popular technical indicator used to determine whether or not a currency pair is trending.
Unlike the fundamental analyst, the technical analyst is not much concerned with any of the "bigger picture" factors affecting the market, but concentrates on the activity of that instrument's market.
Fundamental analysis Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.
Fundamental analysis is a macro or strategic assessment of where a currency should be trading based on any criteria but the movement of the currency's price itself. These criteria often include the economic condition of the country that the currency represents, monetary policy, and other "fundamental" elements.
Many profitable trades are made moments prior to or shortly after major economic announcements.
History Of Forex Trade
The History of the Forex MarketAn overview into the historical evolution of the foreign exchange market
This article will follow the historical roots of the international currency trading from the days of the gold exchange, through the Bretton Woods Agreement, to its current setting.
The Gold exchange period and the Bretton Woods Agreement.
Prior to Bretton Woods, the gold exchange standard -- paramount between 1876 and World War I -- ruled over the international economic system. Under the gold exchange, currencies experienced a new era of stability because they were supported by the price of gold.
However, the gold exchange standard had a weakness of boom-bust patterns. As a country's economy strengthened, its imports would increase until the country ran down its gold reserves, which were required to support its currency. As a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities would hit bottom, appearing attractive to other nations, who would rush in and amid a buying frenzy inject the economy with gold until it increased its money supply, driving down interest rates and restoring wealth into the economy. Such boom-bust patterns abounded throughout the gold standard until World War I temporarily discontinued trade flows and the free movement of gold.
The Bretton Woods Agreement, established in 1944, fixed national currencies against the dollar, and set the dollar at a rate of USD 35 per ounce of gold. The agreement was aimed at establishing international monetary steadiness by preventing money from taking flight across countries, and to curb speculation in the international currency market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold as needed. As a result, the dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the USA. Countries were prohibited from devaluing their currency to benefit their foreign trade and were only allowed to devalue their currency by less than 10%. The great volume of international Forex trade led to massive movements of capital, which were generated by post-war construction during the 1950s, and this movement destabilized the foreign exchange rates established in Bretton Woods.
The year 1971 heralded the abandonment of the Bretton Woods in that the US dollar would no longer be exchangeable into gold. By 1973, the forces of supply and demand controlled major industrialized nations' currencies, which now floated more freely across nations. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, and new financial instruments, market deregulation and trade liberalization emerged.
The onset of computers and technology in the 1980s accelerated the pace of extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased intensively from nearly billion a day in the 1980s, to more than $1.9 trillion a day two decades later.
This article will follow the historical roots of the international currency trading from the days of the gold exchange, through the Bretton Woods Agreement, to its current setting.
The Gold exchange period and the Bretton Woods Agreement.
Prior to Bretton Woods, the gold exchange standard -- paramount between 1876 and World War I -- ruled over the international economic system. Under the gold exchange, currencies experienced a new era of stability because they were supported by the price of gold.
However, the gold exchange standard had a weakness of boom-bust patterns. As a country's economy strengthened, its imports would increase until the country ran down its gold reserves, which were required to support its currency. As a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities would hit bottom, appearing attractive to other nations, who would rush in and amid a buying frenzy inject the economy with gold until it increased its money supply, driving down interest rates and restoring wealth into the economy. Such boom-bust patterns abounded throughout the gold standard until World War I temporarily discontinued trade flows and the free movement of gold.
The Bretton Woods Agreement, established in 1944, fixed national currencies against the dollar, and set the dollar at a rate of USD 35 per ounce of gold. The agreement was aimed at establishing international monetary steadiness by preventing money from taking flight across countries, and to curb speculation in the international currency market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold as needed. As a result, the dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the USA. Countries were prohibited from devaluing their currency to benefit their foreign trade and were only allowed to devalue their currency by less than 10%. The great volume of international Forex trade led to massive movements of capital, which were generated by post-war construction during the 1950s, and this movement destabilized the foreign exchange rates established in Bretton Woods.
The year 1971 heralded the abandonment of the Bretton Woods in that the US dollar would no longer be exchangeable into gold. By 1973, the forces of supply and demand controlled major industrialized nations' currencies, which now floated more freely across nations. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, and new financial instruments, market deregulation and trade liberalization emerged.
The onset of computers and technology in the 1980s accelerated the pace of extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased intensively from nearly billion a day in the 1980s, to more than $1.9 trillion a day two decades later.
Forex Exchange Rates
Exchange ratesBecause currencies are traded in pairs and exchanged one against the other when traded, the rate at which they are exchanged is called the exchange rate. The majority of the currencies are traded against the US dollar (USD). The four next-most traded currencies are the Euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or "the Majors". Some sources also include the Australian dollar (AUD) within the group of major currencies.
The first currency in the exchange pair is referred to as the base currency and the second currency as the counter term or quote currency. The counter term or quote currency is thus the numerator in the ratio, and the base currency is the denominator. The value of the base currency (denominator) is always 1. Therefore, the exchange rate tells a buyer how much of the counter term or quote currency must be paid to obtain one unit of the base currency. The exchange rate also tells a seller how much is received in the counter term or quote currency when selling one unit of the base currency. For example, an exchange rate for EUR/USD of 1.2083 specifies to the buyer of euros that 1.2083 USD must be paid to obtain 1 euro.
At any given point, time and place, if an investor buys any currency and immediately sells it - and no change in the exchange rate has occurred - the investor will lose money. The reason for this is that the bid price, which represents how much will be received in the counter or quote currency when selling one unit of the base currency, is always lower than the ask price, which represents how much must be paid in the counter or quote currency when buying one unit of the base currency. For instance, the EUR/USD bid/ask currency rates at your bank may be 1.2015/1.3015, representing a spread of 1000 pips (also called points, one pip = 0.0001), which is very high in comparison to the bid/ask currency rates that online Forex investors commonly encounter, such as 1.2015/1.2020, with a spread of 5 pips. In general, smaller spreads are better for Forex investors since even they require a smaller movement in exchange rates in order to profit from a trade.
MarginBanks and/or online trading providers need collateral to ensure that the investor can pay in case of a loss. The collateral is called the margin and is also known as minimum security in Forex markets. In practice, it is a deposit to the trader's account that is intended to cover any currency trading losses in the future.
Margin enables private investors to trade in markets that have high minimum units of trading by allowing traders to hold a much larger position than their account value. Margin trading also enhances the rate of profit, but can also enhance the rate of loss if the investor makes the wrong decision.
Leveraged financingLeveraged financing, i.e., the use of credit, such as a trade purchased on a margin, is very common in Forex. The loan/leveraged in the margined account is collateralized by your initial deposit. This may result in being able to control USD 100,000 for as little as USD 1,000.
There are three ways private investors can trade in Forex directly or indirectly:
The spot market
Forwards and futures
Options
A spot transaction A spot transaction is a straightforward exchange of one currency for another. The spot rate is the current market price, also called the benchmark price. Spot transactions do not require immediate settlement, or payment "on the spot." The settlement date, or "value date," is the second business day after the "deal date" (or "trade date") on which the transaction is agreed to by the two traders. The two-day period provides time to confirm the agreement and arrange the clearing and necessary debiting and crediting of bank accounts in various international locations.
Forwards and FuturesForwards make up about 46% of currency trading. A forward transaction is an agreement between two parties whereby one party buys a currency at a particular price by a certain date that is greater than two business days (a spot transaction).
A future contract is a forward contract with fixed currency amounts and maturity dates. They are traded on future exchanges and not through the interbank foreign exchange market.
OptionsA currency option is similar to a futures contract in that it involves a fixed currency transaction at some future date in time. However the buyer of the option is only purchasing the right but not the obligation to purchase a fixed amount of currency at a fixed price by a certain date in future. The price is known as the premium and is lost if the buyer does not exercise the option.
RisksAlthough Forex trading can lead to very profitable results, there are risks involved: exchange rate risks, interest rate risks, credit risks, and country risks. Approximately 80% of all currency transactions last a period of seven days or less, while more than 40% last fewer than two days. Given the extremely short lifespan of the typical trade, technical indicators heavily influence entry, exit and order placement decisions.
The first currency in the exchange pair is referred to as the base currency and the second currency as the counter term or quote currency. The counter term or quote currency is thus the numerator in the ratio, and the base currency is the denominator. The value of the base currency (denominator) is always 1. Therefore, the exchange rate tells a buyer how much of the counter term or quote currency must be paid to obtain one unit of the base currency. The exchange rate also tells a seller how much is received in the counter term or quote currency when selling one unit of the base currency. For example, an exchange rate for EUR/USD of 1.2083 specifies to the buyer of euros that 1.2083 USD must be paid to obtain 1 euro.
At any given point, time and place, if an investor buys any currency and immediately sells it - and no change in the exchange rate has occurred - the investor will lose money. The reason for this is that the bid price, which represents how much will be received in the counter or quote currency when selling one unit of the base currency, is always lower than the ask price, which represents how much must be paid in the counter or quote currency when buying one unit of the base currency. For instance, the EUR/USD bid/ask currency rates at your bank may be 1.2015/1.3015, representing a spread of 1000 pips (also called points, one pip = 0.0001), which is very high in comparison to the bid/ask currency rates that online Forex investors commonly encounter, such as 1.2015/1.2020, with a spread of 5 pips. In general, smaller spreads are better for Forex investors since even they require a smaller movement in exchange rates in order to profit from a trade.
MarginBanks and/or online trading providers need collateral to ensure that the investor can pay in case of a loss. The collateral is called the margin and is also known as minimum security in Forex markets. In practice, it is a deposit to the trader's account that is intended to cover any currency trading losses in the future.
Margin enables private investors to trade in markets that have high minimum units of trading by allowing traders to hold a much larger position than their account value. Margin trading also enhances the rate of profit, but can also enhance the rate of loss if the investor makes the wrong decision.
Leveraged financingLeveraged financing, i.e., the use of credit, such as a trade purchased on a margin, is very common in Forex. The loan/leveraged in the margined account is collateralized by your initial deposit. This may result in being able to control USD 100,000 for as little as USD 1,000.
There are three ways private investors can trade in Forex directly or indirectly:
The spot market
Forwards and futures
Options
A spot transaction A spot transaction is a straightforward exchange of one currency for another. The spot rate is the current market price, also called the benchmark price. Spot transactions do not require immediate settlement, or payment "on the spot." The settlement date, or "value date," is the second business day after the "deal date" (or "trade date") on which the transaction is agreed to by the two traders. The two-day period provides time to confirm the agreement and arrange the clearing and necessary debiting and crediting of bank accounts in various international locations.
Forwards and FuturesForwards make up about 46% of currency trading. A forward transaction is an agreement between two parties whereby one party buys a currency at a particular price by a certain date that is greater than two business days (a spot transaction).
A future contract is a forward contract with fixed currency amounts and maturity dates. They are traded on future exchanges and not through the interbank foreign exchange market.
OptionsA currency option is similar to a futures contract in that it involves a fixed currency transaction at some future date in time. However the buyer of the option is only purchasing the right but not the obligation to purchase a fixed amount of currency at a fixed price by a certain date in future. The price is known as the premium and is lost if the buyer does not exercise the option.
RisksAlthough Forex trading can lead to very profitable results, there are risks involved: exchange rate risks, interest rate risks, credit risks, and country risks. Approximately 80% of all currency transactions last a period of seven days or less, while more than 40% last fewer than two days. Given the extremely short lifespan of the typical trade, technical indicators heavily influence entry, exit and order placement decisions.
What Is Forex Trading
An overview of the Forex market
The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
Forex trading
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
Forex trading
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
Friday, February 13, 2009
Forex Corrency trade price movement
Most traders simply don't understand the factors that cause currency price movement and although this is a basic of currency trading success most traders get it totally wrong and lose...
Here is the equation for Currency price movement
Supply and Demand Facts + Investor Perception Of = Price
That's simple you may say and it is but it means all the common beliefs below are wrong:
- You cannot predict price movement in advance
- There is no scientific theory of market movement
- Market price movement is chaos
- You cannot trade fundamentals or news on there own
- Day trading and scalping are doomed to failure
The facts or news are not important in Forex trading, its how investors see the facts, coloured by the emotions of greed and fear that is. Furthermore, humans are creatures of emotion not logic, so you can never predict what they are going to in advance.
You have a market which is chaos and totally unpredictable, so how can you win?
You need to forget all the people who say they can predict and markets move to mathematics and forget them. As prediction is simply hoping or guessing and you wont win doing that! You need to use a different way to make profits and that's to trade probabilities.
Although humans cannot be measured with certainty, human nature is constant and this will show up in high probability chart patterns, which can be traded for profit.
You wont win every time but if you trade the odds and keep your losses small and run your winners, you can make a lot of money.
When trading the odds, you never try and predict what will happen next - you trade the reality of price change, as you see it on a Forex chart. The best way to do this is to use a breakout methodology and we will look at how to implement a breakout Forex trading strategy, in the next article in this series.
The real message of this article is - trade the odds and trade the reality of price change and if you do this you can enjoy currency trading success.
Here is the equation for Currency price movement
Supply and Demand Facts + Investor Perception Of = Price
That's simple you may say and it is but it means all the common beliefs below are wrong:
- You cannot predict price movement in advance
- There is no scientific theory of market movement
- Market price movement is chaos
- You cannot trade fundamentals or news on there own
- Day trading and scalping are doomed to failure
The facts or news are not important in Forex trading, its how investors see the facts, coloured by the emotions of greed and fear that is. Furthermore, humans are creatures of emotion not logic, so you can never predict what they are going to in advance.
You have a market which is chaos and totally unpredictable, so how can you win?
You need to forget all the people who say they can predict and markets move to mathematics and forget them. As prediction is simply hoping or guessing and you wont win doing that! You need to use a different way to make profits and that's to trade probabilities.
Although humans cannot be measured with certainty, human nature is constant and this will show up in high probability chart patterns, which can be traded for profit.
You wont win every time but if you trade the odds and keep your losses small and run your winners, you can make a lot of money.
When trading the odds, you never try and predict what will happen next - you trade the reality of price change, as you see it on a Forex chart. The best way to do this is to use a breakout methodology and we will look at how to implement a breakout Forex trading strategy, in the next article in this series.
The real message of this article is - trade the odds and trade the reality of price change and if you do this you can enjoy currency trading success.
What Is a Forex trading guide??
A Forex trading guide is basically a software system that trades in place of the sometimes emotional human mind. Of course there are many many benefits to having a EA trade for you. just the issue of reading your sheets and indicators quickly and with pin point accuracy is a hint if what a robot type brain can do. reminds me of an old star trek film when Data moves the knife between his fingers so fast the human eye can't keep up.
All trading guides have there very own set-up that is what sets them apart. some are set for scalping. A quick few minutes on the trading server. or long range trading where you take a much longer view on the movement of one currency against another. The currency units are always set to the best trading pair USD/GBP or EUR/USD for instance. Don't tamper with these settings unless your really sure of what your doing.
There are many different types of Forex Trading guides depending on their end user application. Some are designed specifically to trade big events and remain out of the market all other times while other EA's are meant to remain active 24 hours a day 365 days a year. Some of the big traders hire programmers to build there software with their own "special settings" These traders usually have been at it for years so it's not something that the average trader entertains.
There are Expert Advisers that can teach you a bit quicker and smarter than others. Right now FAP Turbo is sweeping across the forex Market Scalping Trades with unprecedented accuracy. increasing your pip count 2 or 3 fold.
You'll find more info on these fantastic assets here. Not Many success online only a few of us are real risk takers. Once you get past all the doubt, that's when you realise there is NO RISK. If you work hard - and don't throw the towel in when its gets hard!!
I'm just a dad working for his family and not working to get paid - being paid is a result of having a passion what's your passion? .... If you just want to relax at home and have more time than you ever dreamed of doing the things that you and your loved ones cherish... SERIOUSLY CHECK THIS OUT Awesome system Learn HOW-TO become a successful at currency trading and realize $1000's extra income per month.
All trading guides have there very own set-up that is what sets them apart. some are set for scalping. A quick few minutes on the trading server. or long range trading where you take a much longer view on the movement of one currency against another. The currency units are always set to the best trading pair USD/GBP or EUR/USD for instance. Don't tamper with these settings unless your really sure of what your doing.
There are many different types of Forex Trading guides depending on their end user application. Some are designed specifically to trade big events and remain out of the market all other times while other EA's are meant to remain active 24 hours a day 365 days a year. Some of the big traders hire programmers to build there software with their own "special settings" These traders usually have been at it for years so it's not something that the average trader entertains.
There are Expert Advisers that can teach you a bit quicker and smarter than others. Right now FAP Turbo is sweeping across the forex Market Scalping Trades with unprecedented accuracy. increasing your pip count 2 or 3 fold.
You'll find more info on these fantastic assets here. Not Many success online only a few of us are real risk takers. Once you get past all the doubt, that's when you realise there is NO RISK. If you work hard - and don't throw the towel in when its gets hard!!
I'm just a dad working for his family and not working to get paid - being paid is a result of having a passion what's your passion? .... If you just want to relax at home and have more time than you ever dreamed of doing the things that you and your loved ones cherish... SERIOUSLY CHECK THIS OUT Awesome system Learn HOW-TO become a successful at currency trading and realize $1000's extra income per month.
How To Succeed In Forex Trading
If you want to learn how to succeed in currency trading , this article is for you and the way to do it is not the way most traders believe, as 95% lose. To win at currency trading you need to understand this article...
The first place we are going to start is to compare Forex trading success, to a game of chess. Why? Because the way you succeed in Chess, is similar to the way you succeed in Forex.
Chess is a simple game on the surface (just like Forex) you have a set number of pieces and simple rules now consider how a game unfolds. Every game has the same rules but every game is different. There are literally billions of different outcomes to a game of chess but the rules the game are played in remain constant - so what does that prove you may say?
Well consider Forex trading in comparison - most traders spend time looking for an underlying order to the markets and trying to predict what will happen next but this never works. You can't predict how Forex prices will unfold exactly but if you know the rules of the game you can react accordingly and win.
In Forex trading the simple rules you adhere to are these:
1. Never predict always react to the reality of price change
2. Whatever happens limit your losses
3. When you get a profit hold it and maximize it
There are many traders who follow junk robots and sure fire trading systems which claim to predict price movement and they all get turned to dust by the market. Your trading system can be simple, as simple systems always work best, as they are more robust than complex trading systems. The important criteria to base your forex trading strategy on is you must the trade the reality of price change and not predict.
A good example of trading the reality of price change is to use a breakout methodology which you can look up in our other articles, it works and will always get the odds on your side. If you trade the reality of price change with your Forex trading system, you will have the odds on your side and win.
If you think about the logic of the above piece of Forex education it leads you to a compelling conclusion:
A simple set of rules and the ability to trade on the reality of price change, can allow you to enjoy currency trading success.
Get a proven, profitable FREE Forex Trading System and an exclusive proven RISK FREE Forex Trading Course visit our website and learn how to become a Forex trader.
The first place we are going to start is to compare Forex trading success, to a game of chess. Why? Because the way you succeed in Chess, is similar to the way you succeed in Forex.
Chess is a simple game on the surface (just like Forex) you have a set number of pieces and simple rules now consider how a game unfolds. Every game has the same rules but every game is different. There are literally billions of different outcomes to a game of chess but the rules the game are played in remain constant - so what does that prove you may say?
Well consider Forex trading in comparison - most traders spend time looking for an underlying order to the markets and trying to predict what will happen next but this never works. You can't predict how Forex prices will unfold exactly but if you know the rules of the game you can react accordingly and win.
In Forex trading the simple rules you adhere to are these:
1. Never predict always react to the reality of price change
2. Whatever happens limit your losses
3. When you get a profit hold it and maximize it
There are many traders who follow junk robots and sure fire trading systems which claim to predict price movement and they all get turned to dust by the market. Your trading system can be simple, as simple systems always work best, as they are more robust than complex trading systems. The important criteria to base your forex trading strategy on is you must the trade the reality of price change and not predict.
A good example of trading the reality of price change is to use a breakout methodology which you can look up in our other articles, it works and will always get the odds on your side. If you trade the reality of price change with your Forex trading system, you will have the odds on your side and win.
If you think about the logic of the above piece of Forex education it leads you to a compelling conclusion:
A simple set of rules and the ability to trade on the reality of price change, can allow you to enjoy currency trading success.
Get a proven, profitable FREE Forex Trading System and an exclusive proven RISK FREE Forex Trading Course visit our website and learn how to become a Forex trader.
Forex Trade Signals
Forex trade signals are signals and strenths given either by brokers, key investers or even Forex based software, to the investor to tell him whether or not his investment strategy is sound, or if there are any changes he must make to his overall plan to either make a stronger profit or avoid disaster. This article will discuss about the overall usability and how good these trade signals are in helping you to make more money from the paper trade. In essence, an investor can sign up with a broker; who will then provide you, at an extra monthly subscription cost or one time fee, these trade signal service.
These are basically recommendations based on thousands of man hours of research on the numbers of the market, its psychology and other external factors to give you an almost precise co-ordinates to plant your money and see it grow. Most common trade signals include specific entry into the market; which means it tells you when to dive in or hold back, when the market is ripe for the picking, which currency pair to divest in, stop exits and other key factors like trailing stop orders.
Good trade signals usually change day by day, and some even give you 6 hourly strategy changes right to your email or Forex systems software. This is crucial and one of the defining features that make trade signals good.
When talking about a market as dynamic as FX, one that can change its entire market psychology in a matter of a few hours, react to world changes in mere moments, you need up to date information all the time. Price feeds and market economic numbers used to be enough, but investors have realised the importance of looking at the big picture when investing in Forex and trade signals inculcate most of the important factors that they need to know about when trading.
These strategies are sometimes called 'set & forget' or 'one time application' plans. A good trade signal plan will give you these day by day strategies on most of the major currency pairs and in most regional markets.
A quick look at the services available from most brokerages, they include things like daily intraday strategy and swing trade alerts, which mean that investors can get information on crucial swing trades via their email or even SMS. This brings me to another great point about these Forex alerts - they transcend all modern and instant mediums like email, SMS and even desktop alerts. You even have the option to receive it via RSS feed or even as a specialised POD cast.
Forex trade signals are excellent, in fact one could go so far and say that they are crucial to intermediate and advanced investors who know how to use the information to their advantage. For budding investors, pairing their usefulness with a good brokerage and Forex systems software are the three tools to give you an advantage when trading, and when it comes to a road to financial independence, any investor needs all the help they can get.
These are basically recommendations based on thousands of man hours of research on the numbers of the market, its psychology and other external factors to give you an almost precise co-ordinates to plant your money and see it grow. Most common trade signals include specific entry into the market; which means it tells you when to dive in or hold back, when the market is ripe for the picking, which currency pair to divest in, stop exits and other key factors like trailing stop orders.
Good trade signals usually change day by day, and some even give you 6 hourly strategy changes right to your email or Forex systems software. This is crucial and one of the defining features that make trade signals good.
When talking about a market as dynamic as FX, one that can change its entire market psychology in a matter of a few hours, react to world changes in mere moments, you need up to date information all the time. Price feeds and market economic numbers used to be enough, but investors have realised the importance of looking at the big picture when investing in Forex and trade signals inculcate most of the important factors that they need to know about when trading.
These strategies are sometimes called 'set & forget' or 'one time application' plans. A good trade signal plan will give you these day by day strategies on most of the major currency pairs and in most regional markets.
A quick look at the services available from most brokerages, they include things like daily intraday strategy and swing trade alerts, which mean that investors can get information on crucial swing trades via their email or even SMS. This brings me to another great point about these Forex alerts - they transcend all modern and instant mediums like email, SMS and even desktop alerts. You even have the option to receive it via RSS feed or even as a specialised POD cast.
Forex trade signals are excellent, in fact one could go so far and say that they are crucial to intermediate and advanced investors who know how to use the information to their advantage. For budding investors, pairing their usefulness with a good brokerage and Forex systems software are the three tools to give you an advantage when trading, and when it comes to a road to financial independence, any investor needs all the help they can get.
Wednesday, February 4, 2009
Online Forex Trading
The increasing popularity of internet technologies and applications, as well as the enhancement of existing communication systems has paved the way for online forex trading for both small scale and medium scale traders. Online foreign exchange trading has now become the most economical yet lucrative means of communicating with traders, markets, financial institutions, and other players in the foreign exchange market. Getting involved in forex trading has its perks. It is currently the largest and fastest growing global market, trading over US $3 trillion in a single day. A great advantage when engaging in online forex trading is the availability and accessibility of the market. You can trade from anywhere in the world and at any time of day through online trading - all you need is a computer and internet access. Online foreign exchange trading is usually done through a trading platform. These platforms provide background information on the forex market, training, and support. Experts are also available for consultation at any time of day. These experts share what they know about the market so all traders who invest and play in the online forex trading market can be assured of expert support. Some of the available online forex trading platforms may even assign an account service manager to take care of your trading activities. These account service managers may be reached via email, phone, or other forms of online communication. These online trading platforms also offer demonstrations that can simulate real time trading situations in the Forex market. You may start tinkering around with these demonstrations before trying your hand on the real thing. These online demos are a good way to learn about the functions of the platform, gain confidence, and become familiar with how the market operates. The services offered through online forex trading are very user friendly and simple to use. You will not need to be an expert to find your way through the system. Online trading may be done through an application which you download and install on your system or through a web based platform. A web based platform is more accessible than a client-based platform as you can access the web based platform on any computer that has a web browser. Client-based platforms may only be accessed on the computer on which the software application was installed. Online forex trading is a very friendly environment to amateur traders. Online foreign exchange brokers provide high end software solutions for all traders, including data, signal services, delivery options online, and trading applications that allow traders to match bids and offers. These services make it easy for newbies and experienced traders alike to run their business from home or anywhere they feel comfortable. If you are new to online forex trading, you can choose to deposit very minimal amounts. This way, you can set a limit to your expenses while you gain experience in the market. You can then increase your deposit at anytime on your convenience once you think you've gained enough experience. There is an abundance of platforms for online forex trading. Choosing one may be difficult for someone who is new to this market, so before you select an online trading service, do your research and make sure the system you choose is transparent and has no hidden cost, offers flexibility, a high level of security, and risk management features
Online Forex trading
Online Forex trading platform are software through which online brokers and investors can perform daily forex trading from anywhere around the world. New age platforms offer you advanced, unique features that can actually change the way one used to perceive online trading. The best online platform presents the blend of functional usage combined with ease of use.The best online trading platform will be designed to help the investor in executing the trading most effectively by employing strategies to maximize the return. Most of the trading platforms are powered with unique analysis and strategy-testing features to test all buy and sell rules. With a click of your mouse you can access strategy performance reports with simulated results like profit versus loss, annual rate of return, etc. Based on them you can modify your trading strategies without incurring losses.The best platform always comes with fully automated real-time online streaming data from the market to take the advantage of the liquidity of the market. The best online forex trading platform connects your monitor to the markets. This also ensures that you get the execution prices on every order type available without any slippage. The best trading platform should provide the robust backbone to handle transaction of heavy data and information traffic.The best platform must offer more than one type of account like standard, institutional or mini. The platform should come with different operating packages like Flash, Java, or WAP. These software's provide firewall protection to maintain the security and integrity of your trading. You can perform your trading from home, office, laptop on the go or even from an internet cafe with equal ease. The best online forex trading platform will facilitate you to use the system without downloading any program, which presents perfect mobility to the traders or investors.The best platform should offer:- Tight spread on all major currency pairs with cutting-edge trading technology- Quick execution with unlimited transaction amount- No slippages and no requites- Constant margin requirements in all volatile market condition - Multiple real-time charts and other technical analysis based predictions with maximum visual representation- Flexibility of placing complex orders including contingency orders - Real time margin and position monitoring. - Technical analysis for all demo and live accounts - Authentic market news and economic calendar - Performance, Security, Simplicity and Transparency- Trading history and print out any reports With advanced mobile platforms, you can operate when you are away from your computer.Therefore the best online forex-trading platform with facilities of mobile trading enables you access and trade your forex account from anywhere with your mobile phone. These platforms come with easy to use interface, where you can easily move from one screen to the next. You can place market and contingent orders with simple steps and can have full reports including execution and open order
Tuesday, February 3, 2009
Spot Forex Currency Trading
Spot Currency Trading
And introducing broker (ib), today announces its ib partnership with boston trading and research llc (btr), a managed forex account provider in the spot foreign currency trading. Spot trading or the forex why trade in the spot money market forex fx, foreign exchange, currency trading, forex chart, currency exchange, online forex trading, forex forecasts free, fx forecasts, currency, spot forex, euro, internet trading. Forex currency futures calculator: forex spot to forex futures take advantage of the imm swaps calculator, a free forex futures calculator (convert forex spot to forex futures) updated daily at global-view foreign currency futures, forex. Spot currency trading in spot currency trading customers receive one low margin rate for trades done 24 hours a day in currency futures trading the client has one margin rate for "day" trades and one. The foreign exchange market currencyalpha forex and currency trading articles - spot forex trading, part 1 - trading with the trend spot forex trading, part 1 - trading with the trend by mark a mc donnell.
Forex / fx currency trading forecasts : trl online forex trading system, global foreign currency, exchange trading & cfds forex quotes are based on spot prices regardless of the transaction size. Spot forex trading, part 1 - trading with the trend countingpips forex 101 spot trading trading advice trade currency work at home common terms why forex tips our policies - refund / privacy site designed for 1024 x 768. Forex trading system, market, trade, foreign currency & exchange of daimlerchrysler s $1 billion in profits in a recent quarterly earnings report came from currency trades in the foreign currency market known as the (spot) forex money trading. Welcome to easy forex at a retail brokerage firm that offers spot currency trading 2 on an exchange that offers currency futures and options products such as the chicago mercantile exchange (cme.
And introducing broker (ib), today announces its ib partnership with boston trading and research llc (btr), a managed forex account provider in the spot foreign currency trading. Spot trading or the forex why trade in the spot money market forex fx, foreign exchange, currency trading, forex chart, currency exchange, online forex trading, forex forecasts free, fx forecasts, currency, spot forex, euro, internet trading. Forex currency futures calculator: forex spot to forex futures take advantage of the imm swaps calculator, a free forex futures calculator (convert forex spot to forex futures) updated daily at global-view foreign currency futures, forex. Spot currency trading in spot currency trading customers receive one low margin rate for trades done 24 hours a day in currency futures trading the client has one margin rate for "day" trades and one. The foreign exchange market currencyalpha forex and currency trading articles - spot forex trading, part 1 - trading with the trend spot forex trading, part 1 - trading with the trend by mark a mc donnell.
Forex / fx currency trading forecasts : trl online forex trading system, global foreign currency, exchange trading & cfds forex quotes are based on spot prices regardless of the transaction size. Spot forex trading, part 1 - trading with the trend countingpips forex 101 spot trading trading advice trade currency work at home common terms why forex tips our policies - refund / privacy site designed for 1024 x 768. Forex trading system, market, trade, foreign currency & exchange of daimlerchrysler s $1 billion in profits in a recent quarterly earnings report came from currency trades in the foreign currency market known as the (spot) forex money trading. Welcome to easy forex at a retail brokerage firm that offers spot currency trading 2 on an exchange that offers currency futures and options products such as the chicago mercantile exchange (cme.
Forex Learning
Forex Learning
Profits run forex trading - forex profit accelerator forex education online currency trading how to make money with forex and stock trading providing the best resources from. Finance or forex or currency trading learning forex trading learning forex trading forex trading, a lot of people may already have heard of it, but not all know what it is all about. Forex learning guide this means test, test, test and improve when necessary written by - visit website posted in forex learning, trading psychology 1 comment. Forex trading system, forex trading course, brokerage account reviews we feature a step by step online presentation to help you learn forex and how to make the most of online forex trading. Forex investology links to finance - find hosting companies, compare hosts and read host reviews the foreign exchange market (also referred to as the forex or fx market) is the largest.
Forex starz you will be learning forex language, fundamental and technical analysis, trading plan and money management you will be taught strategies on how to invest using banker's hedging. Sigma forex trading currencies news forex lessons from shanghai bc from the global-view.com forex forum we offer tools for currency trading in the foreign exchange market for the forex trader - forex help forum, fx. Forex learning there is a terrific amount of information on the internet surrounding forex, but much of it should be treated with skepticism objective advice often masks a hidden agenda. Forex lessons from shanghai bc - for currency trading in the foreign eur/usd: analysis - tue 02-sep-2008: gbp/usd daily analysis - tue 02-sep-2008: analysis: usdchf is topping at 1 0623 - sun 11-may-2008: analysis: watch for a eurusd
Profits run forex trading - forex profit accelerator forex education online currency trading how to make money with forex and stock trading providing the best resources from. Finance or forex or currency trading learning forex trading learning forex trading forex trading, a lot of people may already have heard of it, but not all know what it is all about. Forex learning guide this means test, test, test and improve when necessary written by - visit website posted in forex learning, trading psychology 1 comment. Forex trading system, forex trading course, brokerage account reviews we feature a step by step online presentation to help you learn forex and how to make the most of online forex trading. Forex investology links to finance - find hosting companies, compare hosts and read host reviews the foreign exchange market (also referred to as the forex or fx market) is the largest.
Forex starz you will be learning forex language, fundamental and technical analysis, trading plan and money management you will be taught strategies on how to invest using banker's hedging. Sigma forex trading currencies news forex lessons from shanghai bc from the global-view.com forex forum we offer tools for currency trading in the foreign exchange market for the forex trader - forex help forum, fx. Forex learning there is a terrific amount of information on the internet surrounding forex, but much of it should be treated with skepticism objective advice often masks a hidden agenda. Forex lessons from shanghai bc - for currency trading in the foreign eur/usd: analysis - tue 02-sep-2008: gbp/usd daily analysis - tue 02-sep-2008: analysis: usdchf is topping at 1 0623 - sun 11-may-2008: analysis: watch for a eurusd
Forex Broker
Forex Broker
I tried a lot of paid forecasts and signals but i didn t meet such quality forecasts forex analysis: forex news: forex broker: foreign exchange: forex directory: russian forex. Forex broker forex brokers ecn forex metatrader ndd a forex broker is different than a forex dealer, especially when you are an individual trader in the global currencies markets more information about forex brokers is available at. Forex broker forex broker, stock brokers, business broker, mutual fund broker, bond broker : experienced online daters will tell you that the game begins once your inbox starts filling up with. Best forex broker western capital forex s a in order to better forex service is using the latest techniques and works with one of the best forex trading system on the market today wcf also. Forex broker we provide reviews on all major forex brokers by reading our information you will learn which broker suits your needs best in addition to our forex broker reviews, you will find.
Best forex analysis for forex brokers live sms forex signals earn daily forex is the most comprehensive online forex market guide it reviews, compare and rates forex market services including brokers, forex courses, signal providers and more. Forex market reviews- find your forex broker forex trading reviews ikon royal provides twenty four hours online fx trading, which enables you to create a platform for forex trading along with a free demo account for more details log on to: www. Forex broker trading online - global forex trading forex) market here today but i will also explain nearly technical indicators and the video instruction from automated forex investor must never trades out and incorporate sound. Forex trading online forex trading forex broker online fx welcome to wordpress this is your first post edit or delete it, then start blogging.
I tried a lot of paid forecasts and signals but i didn t meet such quality forecasts forex analysis: forex news: forex broker: foreign exchange: forex directory: russian forex. Forex broker forex brokers ecn forex metatrader ndd a forex broker is different than a forex dealer, especially when you are an individual trader in the global currencies markets more information about forex brokers is available at. Forex broker forex broker, stock brokers, business broker, mutual fund broker, bond broker : experienced online daters will tell you that the game begins once your inbox starts filling up with. Best forex broker western capital forex s a in order to better forex service is using the latest techniques and works with one of the best forex trading system on the market today wcf also. Forex broker we provide reviews on all major forex brokers by reading our information you will learn which broker suits your needs best in addition to our forex broker reviews, you will find.
Best forex analysis for forex brokers live sms forex signals earn daily forex is the most comprehensive online forex market guide it reviews, compare and rates forex market services including brokers, forex courses, signal providers and more. Forex market reviews- find your forex broker forex trading reviews ikon royal provides twenty four hours online fx trading, which enables you to create a platform for forex trading along with a free demo account for more details log on to: www. Forex broker trading online - global forex trading forex) market here today but i will also explain nearly technical indicators and the video instruction from automated forex investor must never trades out and incorporate sound. Forex trading online forex trading forex broker online fx welcome to wordpress this is your first post edit or delete it, then start blogging.
Forex Basics
Forex Basics
Providing forex trading services with the index protrader and other foreign currency exchange brokerage tools online information on forex trading. Interest rollover basics the charting basics for reading the forex there are 3 types of charts most commonly used by traders when trading the forex. Learn forex trading forex basics forex trading course ftc description discount policy free seminars baio capital group in cooperation with its highly regarded partners is the one-stop. An introduction to forex basics the forex classroom forex basics no commissions narrow. Forex charting basics a short description of what the foreign exchange market is, and how it works an introduction to forex basics posted on april 8, 2008 filed under basics, forex.
Forex basics a novice investor guide to learn forex trading welcome to forex trading school, where you can learn fx trading basics the forex market is by far the largest and most liquid. Foreign exchange market update for online forex traders with free live forex veda is veda of global foreign exchange market also known as forex or fx market or currency market for online trading with free currency analysis fx charts of dollar euro. Bcg forex hello everybody, i thought since there is a huge crowd of forex newbies here to try and publish a few articles regarding the basic techniques. Forex micro lot broker gold forex transactions involve the purchasing and selling of currencies through the borrowing of one currency for the financing the buying of another a major role in such transactions
Providing forex trading services with the index protrader and other foreign currency exchange brokerage tools online information on forex trading. Interest rollover basics the charting basics for reading the forex there are 3 types of charts most commonly used by traders when trading the forex. Learn forex trading forex basics forex trading course ftc description discount policy free seminars baio capital group in cooperation with its highly regarded partners is the one-stop. An introduction to forex basics the forex classroom forex basics no commissions narrow. Forex charting basics a short description of what the foreign exchange market is, and how it works an introduction to forex basics posted on april 8, 2008 filed under basics, forex.
Forex basics a novice investor guide to learn forex trading welcome to forex trading school, where you can learn fx trading basics the forex market is by far the largest and most liquid. Foreign exchange market update for online forex traders with free live forex veda is veda of global foreign exchange market also known as forex or fx market or currency market for online trading with free currency analysis fx charts of dollar euro. Bcg forex hello everybody, i thought since there is a huge crowd of forex newbies here to try and publish a few articles regarding the basic techniques. Forex micro lot broker gold forex transactions involve the purchasing and selling of currencies through the borrowing of one currency for the financing the buying of another a major role in such transactions
Forex Charts
Forex Charts
The forex trading platform of fxcm enables you to analyze charts, make trades, and track positions all on one screen. Forex charts guide - babypips.com to get started click "file--> load new chart" below to save and share your chart, click the save icon. Forex currency trading forex trading forex broker forex trading, currency trading news, forex trading news, fx news, forex news - forexcult home news articles rates & charts trade now trading software contacts about. Forex charts: line chart, bar chart and candlestick chart reading forex charts is the main focus of technical analysis traders may choose between a wide range of technical indicators such as the rsi, bollinger bands or the macd to read. Forex charts forex charts - real time data forex rate has an rss currency news feed click the button above for the raw feed web address.
Free forex charts - forex technical analysis babypips.com is a free, funny, and easy-to-understand guide for teaching beginners how to trade in the. Forex charts www.fx-charts.com provides free trading signal charts for short term trading of the 4 major pairs get charting, forex news and forex forum check out the forex bookstore. Forex charts forex center is a forex trading portal offering all the latest online forex news and rates. Fx-charts.com, free forex trend signal charts, 4 major currency pairs fxcm.com - 24 hour online forex trading with no dealing desk 2 pip euro spreads, trading from charts, and live support.
The forex trading platform of fxcm enables you to analyze charts, make trades, and track positions all on one screen. Forex charts guide - babypips.com to get started click "file--> load new chart" below to save and share your chart, click the save icon. Forex currency trading forex trading forex broker forex trading, currency trading news, forex trading news, fx news, forex news - forexcult home news articles rates & charts trade now trading software contacts about. Forex charts: line chart, bar chart and candlestick chart reading forex charts is the main focus of technical analysis traders may choose between a wide range of technical indicators such as the rsi, bollinger bands or the macd to read. Forex charts forex charts - real time data forex rate has an rss currency news feed click the button above for the raw feed web address.
Free forex charts - forex technical analysis babypips.com is a free, funny, and easy-to-understand guide for teaching beginners how to trade in the. Forex charts www.fx-charts.com provides free trading signal charts for short term trading of the 4 major pairs get charting, forex news and forex forum check out the forex bookstore. Forex charts forex center is a forex trading portal offering all the latest online forex news and rates. Fx-charts.com, free forex trend signal charts, 4 major currency pairs fxcm.com - 24 hour online forex trading with no dealing desk 2 pip euro spreads, trading from charts, and live support.
Forex
Provides an online foreign exchange trading system which includes forex charts, analysis, and forecasts exchange rates, news and forex tutorials. Forex trading currency trading metatrader 4 forex trading liteforex brings competitive forex trading conditions for beginners and pro traders worldwide we also offer a dedicated forex trading server. Forex trading forex training online currency forex trading forex fxdd - 24hr customer support, tight spreads, commission-free trading, 100:1 leverage on standard accounts and 200:1 leverage on mini accounts. Forex world liteforex forex trading seminar - learn online forex trading training course, forex training, currency trading, currency forex trading by forex trading seminar. Forex signals, professional online forex trade alerts fxd24.com - the site for forex trading fxd24 has been the leading on-line forex broker since 2003 which provides high-class services and a whole complex of solutions to corporate.
Subscribe to:
Posts (Atom)