subject: How to Get Started in the Forex Market [print this page] Forex - How to Get Started in the Forex Market
Making your own solar and wind power for less than $200 The very first thing you must do if you plan on becoming a forex trader is study and understand the tons of terminologies and quoting conventions used. For instance, 3-letter codes are used by foreign exchange traders for all currencies. These codes are referred to as ISO or SWIFT codes. The following are the primary ISO codes: - USD (US Dollar)
- GBP (British Pound)
- CAD (Canadian Dollar)
- EUR (European Euro)
- CHF (Swiss Franc)
- AUD (Australian Dollar)
- JPY (Japanese Yen) To express a relational value between two currencies, you should combine the two ISO codes in the format XXX/YYY where XXX is the ISO code of the base currency and YYY is the ISO code of the quote currency. For example, if you see the notation "100 USD/JPY," you must be able to tell that it means that the exchange rate from US Dollar to Japanese Yen is 100. In layman's terms, one dollar is worth one hundred yen. In addition to some standard notations, you also need to become aware of certain important terms. You will find many useful resources online that tackles the basics of forex intended primarily for beginners. Most of the time, a glossary of the important terms is provided.
Making your own solar and wind power for less than $200 Once you are au fait with the jargon involved in foreign exchange, you have to begin familiarizing yourself with the actual price quotes. You have to know what it means when a currency pair experiences a price movement, and what is the difference between pairs quoted to two decimal places as opposed to those quoted to four decimal places. These very small details could mean a lot for your success as a trader. When you have done all of this, you can then proceed to the trading part itself. You need an account with a forex broker to start. Your broker will act as a mediator; you will be making your trades through him. Opening a bank account is quite easy. You have to remember some things when opening an account though. These include the minimum deposit needed if any, the spreads, the commissions if any, the execution, the flexibility of the transaction size, the amount of leverage tolerable, the available currency pairs that can be traded, the deposited funds' security, and the trading platform's level of usability. Good news is that a lot of brokers are offering trial periods of their trading platforms which would allow you to evaluate their system first before you actually hire them. This way, you will be able to tell beforehand if a certain broker is not likely a good choice. In addition, you should browse through the discussion forums implemented in the brokers' websites so you can see what others are saying. Make friends and ask important questions. Find out if they are saying something against the broker involved, and what their grounds for saying so are.
