Everyday, currencies are traded in an international foreign exchange market, otherwise known as the forex market, with the main marketplaces (otherwise known as bourses) existing in the world's financial centes New York, London, Tokyo, Frankfurt and Zurich. Historically, the only way to participate was from the trading floor of one of these bourses, but today, people can trade forex from anywhere through a secure internet connection and a PC.Today's traders operate in a global network, taking positions in the market and making investment decisions based on either relative value between two currencies, or a particular currency's actual price. Currency value fluctuations are constantly renegotiated through trading activity, and this activity, and the corresponding currency values are also indicators of the levels of currency supply.An example of market behaviour greater demand for the Euro might indicate a weakening supply. Low supply and increased demand will drive the price of the Euro up against other currencies like the dollar, until the price better reflects what traders are prepared to pay when short supply exists. Another way to look at this situation is this higher demand...more
There are many different advantages to trading forex instead of futures or stocks, such as:1. Lower MarginJust like futures and stock speculation, a forex trader has the ability to control a large amount of the currency basically by putting up a small amount of margin. However, the margin requirements that are needed for trading futures are...more
Forex trading is nothing more than direct access trading of different types of foreign currencies. In the past, foreign exchange trading was mostly limited to large banks and institutional traders. However recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by...more
When trading Forex you will often see a two-sided quote, consisting of a 'bid' and 'offer' The Foreign Exchange market, also referred to as the "Forex" is the biggest and largest financial market in the world. It has a daily average turnover of US$1.9 trillion- just imagine that amount of money! Don't you want to join this trillion-dollar industry?Forex is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, Forex is trading.There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the market.On one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information...more
There are a number of different robots for automated forex trading today which all promise to bring in guaranteed income around the clock without your having to lift a finger. I've tested a great deal of these programs and written a number of forex...more
Learning forex trading can be a great way to supplement your existing income. Some methods to get started are more effective and faster than others, so here is what to know to begin learning forex trading on the fast track today.First off, know that...more
Managed Forex accounts are for those who don't have the time to devote to the markets rapid pace. It's also for those who don't have the expertise to deal in the foreign exchange market. Professional CTAs and investment firms are there to help manage...more
Many people who are avid traders are working on their computers for several hours each day to make confident that they are trading when a signal indicates an entry or way out situation. Due to the fast movement of Forex, entry and way out points can...more