What Makes Forex Trading Unique

August 10, 2016 by  
Filed under Forex Trading

Forex is the acronym of Foreign Exchange. Forex market is the place where currencies from all over the world are traded. Why currency? Currency is important tool to conduct foreign trade and business. For example a businessman needs to buy the euro (EUR) to pay the imported goods. That means he has to exchange the equivalent value of U.S dollar (USD) into Poundsterling (GBP). Forex market is claimed to be the most liquid financial market in the world as the rapidly escalating need to exchange.

One can join the trade typically through a market maker or broker. To trade currency, one as forex trader can choose a currency pair for example USD-GBP. The forex trader purchases 500 GBP in June 2009. During 2009 the GBP’s value goes constantly increasing or upside down vs USD’s. At the beginning of 2010 $500 USD is worth 600 GBP. Well, that is just a simple example and description on how the forex market done. Actually the forex traders include huge ones like bank, company, governments, and financial institution.

There are some aspects that make Forex trading unique:
1. Forex trading neither manifest as physical market nor has central market exchange. This international huge market is conducted electronically or we can say an online internet market.
2. Forex trading does not have office hour. It operates 24 hour except the weekends. Yet there is bussy hour trading for example trading from 20.00GMT on Monday until 20.00 GMT on Friday.
3. Forex trading has low margin compared to fixed income.
4. The forex trader can use leverage to enhance profit with respect to account size.

Just like other kind of business, Forex trading has a risk too. Especially, the currency is more volatile market compared to the others. To deal with the risk trader should simply has trading plan.

Forex Trading as a Perfect Competition on Global Market

December 24, 2011 by  
Filed under Forex Trading

Foreign exchange market or currency market is a financial market for trading currencies, the market has global scope and decentralized to smaller market which usually decentralized by countries. The anchors for the decentralized market is the financial centers around the globe, it plays the function of connecting various kind of sellers and buyers in wide range of areas during the working days and hours. The currency market also plays its function assisting international trade and also investment. This function is managed by providing conversion on the currencies used for international trading and international investment. The conversion allows international trades conducted in various currencies, the buyer can buy from the seller in the buyer’s currency and vice versa. The market also plays important part in the speculation of currency values and also the carry trade, it is the changes of interest rates between two currencies which also the subject of speculation in the foreign exchange market.

The transactions in the foreign exchange market is engaged by the purchase of a quantity of currency by a buyer and the buyer pay the seller in another currency in equal value based on the condition of the market prices. The foreign exchange market is a unique market because of its geographical dispersion and also the 24 hours transactions except on the weekends. The trading will be started at 20:15 GMT on Sunday and the market will be closed on Friday at 22:00 GMT. The market has various aspects and factors that affect the exchange rates, it creates a dynamic market that can fluctuate second by second based on the affecting factors and aspects. This can leads to speculations which even make the market more and more dynamic. Forex Trading also represent the largest asset class in the global transactions of liquidity. The currency market also mentioned as the ideal example of perfect market competition although there might be interventions on the market and the trading by central banks whenever there is currency intervention policy made by a country that owns a currency.

Forex Trading as Your Main Business

October 31, 2011 by  
Filed under Forex Trading

There are many online business types that people can look at. One of the popular business types that offer lots of benefit and money is forex. This is a high risk business but it also brings high opportunities for people who want to try it. This is the business type for people who love adventure and willing to take any risk without fear of fail.

People can do online trading from their own home 24 hours a day. This is the biggest currency market in the whole world. There are many people who involved in this business starting from ordinary people, government bank, investment bank and many others. The business is going online for 24 hours a day for every day except Saturday and Sunday.

The main purpose for forex trading is buy some currency from a country with the lowest price that people can get and sell it when the price was going up. This is when they get their profit when hey are able to sell it on the right time. People need to learn about this business and also about the currency itself. They need to keep monitoring the currency movement so they can find the right time to sell the currency that they have.

Get Your Success with Forex Trading

October 17, 2011 by  
Filed under Forex Trading

The internet era has opened many new opportunities for us to get the success. The development of the internet technology has changed the paradigm that business must be done face to face. The internet enables us to set a business though wireless medium. There are many businesses that we can try if we want to get the success.

One of the most promising businesses is by making investment in forex trading. There are many people who are interested in the business. But often they are afraid of the failure that they may face. Actually we can limit the possibility of the failure if we know what to do. So, it is very important to learn more about the forex including the tips and tricks to get the success. In the trading, we have to able to predict the flow of the market. We have to predict the value of the currency so that we can make the right decision when to buy or to sell.
A forex trader or the person who joins the trading must have a good prediction sense so that he or she can make the right decision at the right time. Besides, they have to always keep an eye on the flow of the currency. You can learn more about becoming the successful trader from the professional sources.

Advanced Trading Platform to Optimize Your Returns

September 17, 2011 by  
Filed under Forex Trading

Forex trading is on the rise these days. Lots of people see forex market as the right place where they can get prospective returns on their investment. In Forex trading, having a reliable forex trading platform is very crucial and in the ever growing forex market, there’s no more popular name than Metatrader. This is a powerful forex trading platforms chosen by many traders from all over the world.

Every forex trader has the same expectation about what kind of forex trading platform they need. The platform should be able to provide various features allowing them to access and analyze the dynamic market to make the right decision. The platform should also easy and convenience to use while also provides high security. Metatrader is releasing the latest version of its free trading software, Metatrader5. With the legacy of Metatrader platform, this new version offers lots of improvement dedicated to optimize trading strategies with the big goal of maximizing your returns.

One of the strongest features of Metatrader5 is its comprehensive tools dedicated for market technical analysis. Its covering as much as 38 technical indicators and 46 analytical objects giving trader comprehensive access to the market. Making the right strategy will be much easier using such advanced features and you can easily make best decision for maximum gain. No wonder leading forex brokers in USA chose Metatraders and recommend it to their affiliated traders. There’s no reason for you not to use Metatrader5. Upgrade your trading platform to Metatrader5 and you will reach a higher level in your trading campaign.

Basic Money Management in Forex Trading

December 21, 2009 by  
Filed under Forex Trading

Exchanging currency on the forex market as a forex trader is an activity that is practiced around the world by thousands of people. Financial managers, individual investors trading through brokerage firms online.

Since Forex trading can be a risky business, some common basic principles are developed by currency traders to enable them to better manage their money.

A smart way to manage money is to use stop orders. This device mitigation of risk is a sell order at a price below the original selling price. And if the currency drops to that value will be sold automatically by the broker. It should be set at levels low enough that it does not trigger falsely by normal daily fluctuations of the currency. It’sa good way to put a limitation on the possible loss of the existing position.

Often an investor attaches to an investment loss of speed, either because he is emotionally attached to this investment, either because he thinks it will rebound soon. In the world of forex trading works at a fast pace, it is not always the best course of action to follow. Usually it’s better to leave a position in fall and try a different tactic.

Regarding the trading of forex, another technique of good money management is to use hedging. Traders can hedge their currency positions in several ways, but most popular is the use of futures and options. With these investments of financial instrument futures, you pay some money to buy an allowance money to a future date at a fixed price. Traders buy these financial instruments to hedge a long position, with the value at which the long position was taken and the currency that was used to purchase the original position. In reversing the order of values, a fall in the long position one currency will gain money on the financial instrument futures trader and by offsetting the initial loss.

The mantra that good traders on the trading of forex follow is to cut losses short and let it run gains. As everyone wants to see their investments grow, a downward trend in the amount of earnings incurred when a transaction is a bad thing. Therefore, this trend should be stopped as soon as possible by closing the losing position.

Know The Rules in Forex Trading

December 19, 2009 by  
Filed under Forex Trading

Behavior fulfills excessive emotions when trading on the forex market can be fatal.

If fat loss, emotional behavior can sometimes push the inexperienced trader to come back too quickly on the market at an inopportune moment to try to recover money that has been recently lost. The trader thinks he can catch up by multiplying the number of operations.

The best way to address these problems is to establish a list of rules to follow in the trade of forex and never deviate from these principles.

Here are some rules that every trader could follow to increase its chances of success:

1. Leave your emotions aside.
The currency trading is like any other busines, and should be treated as such. As it is difficult to separate from the emotion caused by a loss, consider that once the loss written in the books, there’s nobody who can change that. So the best course of action is to try to learn from all the mistakes that have been committed, and process the next transaction in the same manner as if the money had been earned on the previous transaction.

2. Never make over trade. This is due to rule number 1 where often, the emotions have been running a forex trader to trade too. By trying to compensate for its loss, the forex trader beginner tends to make hasty decisions that may be detrimental to his position of account. Thinking that more transactions generate more money, too many transactions based only on intuitive decisions can quickly deteriorate the status of your account.

3. Follow the trend.
One thing that thousands of traders who practice fundamental analysis or technical analysis (or both) agree is that the Forex market follows trends. The identification of these trends may mean the difference between success and failure. Following the general trend of the currency, you can seize the opportunity to take advantage of the trend until it is reversed.

4. Stay out of the market if there is any doubt.
If a trader can not identify the trend that follows a currency, it is better to avoid a time until a better image can be formed on what is happening on the price trend.

By following these basic rules, the tarders Forex stay away from problems caused by hasty decisions based on emotion or lack of analysis.

Hedging in Forex Trading ?

December 6, 2009 by  
Filed under Forex Trading

Just like in the stock market, forex investors often use a strategy called hedging to reduce some of the risk involved in trading. Many people believe in hedging transactions like buying an insurance policy for their currency position. It acts more or less the same way. Using investment vehicles known to financial futures, Forex traders can rest easy knowing that all losses are covered by the backup plan.

A type of financial instrument futures that many forex traders use to hedge a position is a futures contract, which is an agreement for the exchange of one currency to another at a specified futures price at the last the closing date. The contract currency futures are bought and sold on the forex market just like any other instrument such as shares or currencies.

For example, say you used to use the dollars to take a long position in euros on the forex market, but you are worried that the price of euro fell against the dollar. One thing you could do is buy a futures contract dollars using euros. As external factors affecting the prices of currencies, the price of futures contracts up and down as well, allowing your contract to Euro-dollars to offset your long position in euros. If the euro weakens, the price of futures contract rises, and vice versa. Thus, you have therefore eliminated the risk of your investment money.

Another form of hedging in the forex market is practiced regularly by companies who trade internationally with many clients in Europe. A weaker euro would cost money in the long run because the original price quoted in euros does not result in as many dollars. Taking a long position in dollars using the euro, the company would just as much money on the Forex it lost to fall on the value of the euro. Similarly, if it loses money on the forex market due to a fall in the dollar, the company would compensate the increase in profits due to the greater value of the euro on the sale of its products.

Miscellaneous Ramblings in Forex Trading

November 8, 2009 by  
Filed under Forex Trading

Figures, curves, risks, losses, gains, a language … it is not so simple to invest and make money in the Forex market!

But what is it that Forex? When you travel, when a government must pay foreign invoices when a company acquires a property abroad, it must pay in local currency. For the local currency, it must exchange its own currency in foreign exchange. The currency market has also become the first financial market in the world with over one trillion dollars traded each day.

The Forex is the international market where sold and bought currencies 24/24, 5 / 7. It is possible to earn money between the time you buy dollars and when you claims or vice versa, you also earn money from the time you sell dollars and the time you redeem short, you can save on rising or falling dollar, euro, yen … but it is a choice to make a very precise moment, a minute, depending on analysis, statistics, numbers , curves! The specialist speculate on the Forex via 2 main analysis: fundamental analysis and graphical analysis, this is a long learning, do not overestimate your abilities, control your emotions.

You have capital and want it grows a little, why not make a good operation with a multiplier of 2 or 3 hours. Yes but now you can also be losses with the same multiplier if your strategy is wrong or if you failed to halt your operation in time to completely control the risk.

We want to act alone to have rapid and substantial gains without the “medium” Brokeur. Yes but it takes a market experience of three to four years to know properly analyze data and act quickly. It must also contain specific language properly as the pit, spread, bid, ask, srd, shorts, vad … The Forex is nevertheless a very dangerous market to which it alone approach, even through private trading platform via Internet.

To minimize risks, there are financial companies that act as online intermediaries, featuring a team of professionals and experts in investment in major currency markets, and whose function is to provide investors access to market currency without the need to have knowledge of this market and make great investments. You invest money with the least amount varies from $ 50 to $ 5000 there and ‘group’ of members of registered capital, which still represents for the company that manages your capital, hundreds of thousands to millions of dollars each month are assigned to their team of professionals and experts who can properly analyze data and use leverage. These companies can save you 14 to 21% every month.

Choosing Online Broker

June 7, 2009 by  
Filed under Forex Trading, Stock Trading

It is necessary to make a mix of his personal priorities to choose a broker who is both the most efficient in terms of management tools, the cheapest and most generous with information. Rates vary from one broker to another, both in terms of transaction fees at the level of care costs and subscription services …

Compare and find the intermediate cheaper becomes increasingly complicated. The pricing plans are complex enough to get lost. Many packages and packages available. The rates usually vary according to size of orders means that you make and the number of monthly orders rose. This usually involves a fixed and a variable part. Also some dealers display prices excluding taxes. In summary the most competitive broker will not be the same after the investor profile. Establish a check list is required.

Examples
:
Account opening: free or not. What is the minimum required?

Service Access: Is there a limit to the Internet or is it possible to pass his order by phone?

What type of products can I trade? Purchase sale of French equities, warrants, bonds, …

Round trip is made in intraday billed? (in a single day of trading)

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