The Best Forex Guide on the Market The Ultimate Currency Trading Guide
Being new to FOREX trading? Dont worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go live with real money. To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the world. A FOREX deal is made when one buys one currency and sells another at the same time. It is always traded in pairs, Euro/USD, CHF/USD, USD/JPYyou get short in a currency every time to buy another and the profit is made when you buy-low and sell-high.
Facts on FOREX market
FOREX market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday FOREX trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.
Although Forex Trading involves a large volume of trade today is not made publicly available until the year 1998. In the past, the FOREX market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the foreign exchange market and liquidity extraordinary strong trend of the natural world leading currency exchange rates. Only until the end of anni'90, FOREX brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me. Today, with the rapid growth of Internet and communication technologies, Forex Trading has become one of the hottest make-money-at-home businesses for those who wish to avoid conventional 9-5 days.
As a matter of fact in Forex Trading, Forex is mainly traded in large international banks. According to the Wall Street Journal Europe, 73% of the volume of trade is covered by the major ten. Deutsche Bank, covering the table, had covered 17% of total foreign exchange transactions, followed by UBS in the second and third group Citi, taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, JP Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For participants in the market segment, about half of all transactions were strictly done between dealers (eg Bank, currency dealer or large), others are mostly between the dealer and not financial institutions.
Why FOREX is popular?
There are several reasons why FOREX had become such a popular investment among the world speculators.
In Forex Trading, you can always use technology to their advantage. The FOREX market has made a remarkable transformation since the advent of the Internet. Technology has made it possible for small investors to play on the same level of large enterprises and banks. Anyone with a computer and a will to succeed can start trading currencies privacy of their home or office. Online Forex Trading has changed the way they do business investors. With access to your portfolio 24-hours a day, is very easy to get started. You can choose to hire a professional to handle your transactions, or you may choose to go it alone.
Also FOREX trading offers a relatively large leverage rates to individual traders. FOREX dealers, the company with up to 200 to 1 leverage rates. With this advantage, ROI is escalated dramatically and traders can always start with little capital with as little as $ 1,000.
As started in Forex Trading
You do not need much to start with Forex Trading. A computer with Internet access, a funded FOREX account with a broker of foreign currency exchange, and a system of exchange should be sufficient to get things started.
To reduce the risk of losing money, some basic graphics are also recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of fluctuations in exchange rates. Many variables affect currency exchange rates, as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. As stated by experts FOREX trader Peter Bain, is a graphical tool in Forex Trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minutes, while the charts are used in FOREX trading. As quoted from his newsletter - "Daily chart will help you define the general trend from a position trading point of view, and time (hour) chart will give you a feeling of intraday trend. The 15-minutes chart is used for entry and exit - with the help of five minutes chart, in which the price is moving quickly, and you need to be closer to the action. "
Being one of the technical method, FOREX charting is based on the principal history repeats itself. FOREX traders who study charts predict the market future by evaluating past market performance. The time frame used for charting might differs for different traders, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the past five to ten years before getting involved in a FOREX trade. A huge variety of FOREX charts are available in the market. Some charting methods are very simple, using a few FOREX indicators to show trading direction; other charts may include up to forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and price are some of the well known indicators in charting.
Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all regulated the same way. Although FOREX dealers must be regulated by law, firms and individuals can solicit retail accounts for FOREX dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your FOREX dealers are regulated. If they are not, you may be exposed to additional risks. Also, beware of dealers with investment schemes that sounds too good to be true. Pay extra cautions to dealers that you first knew and always look into the investment offers. If you are from United States, you can always refer to CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for further information.
Conclusions
You come to this article probably because of you are new to FOREX and were looking for some readings on the Internet. To be frank, FOREX can be very profitable but the risk lie beneath is equally great. Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealers demo account to get yourself ready. Trade smartly, and gain the maximum out of FOREX " good luck! - 23208
Facts on FOREX market
FOREX market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday FOREX trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.
Although Forex Trading involves a large volume of trade today is not made publicly available until the year 1998. In the past, the FOREX market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the foreign exchange market and liquidity extraordinary strong trend of the natural world leading currency exchange rates. Only until the end of anni'90, FOREX brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me. Today, with the rapid growth of Internet and communication technologies, Forex Trading has become one of the hottest make-money-at-home businesses for those who wish to avoid conventional 9-5 days.
As a matter of fact in Forex Trading, Forex is mainly traded in large international banks. According to the Wall Street Journal Europe, 73% of the volume of trade is covered by the major ten. Deutsche Bank, covering the table, had covered 17% of total foreign exchange transactions, followed by UBS in the second and third group Citi, taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, JP Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For participants in the market segment, about half of all transactions were strictly done between dealers (eg Bank, currency dealer or large), others are mostly between the dealer and not financial institutions.
Why FOREX is popular?
There are several reasons why FOREX had become such a popular investment among the world speculators.
In Forex Trading, you can always use technology to their advantage. The FOREX market has made a remarkable transformation since the advent of the Internet. Technology has made it possible for small investors to play on the same level of large enterprises and banks. Anyone with a computer and a will to succeed can start trading currencies privacy of their home or office. Online Forex Trading has changed the way they do business investors. With access to your portfolio 24-hours a day, is very easy to get started. You can choose to hire a professional to handle your transactions, or you may choose to go it alone.
Also FOREX trading offers a relatively large leverage rates to individual traders. FOREX dealers, the company with up to 200 to 1 leverage rates. With this advantage, ROI is escalated dramatically and traders can always start with little capital with as little as $ 1,000.
As started in Forex Trading
You do not need much to start with Forex Trading. A computer with Internet access, a funded FOREX account with a broker of foreign currency exchange, and a system of exchange should be sufficient to get things started.
To reduce the risk of losing money, some basic graphics are also recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of fluctuations in exchange rates. Many variables affect currency exchange rates, as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. As stated by experts FOREX trader Peter Bain, is a graphical tool in Forex Trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minutes, while the charts are used in FOREX trading. As quoted from his newsletter - "Daily chart will help you define the general trend from a position trading point of view, and time (hour) chart will give you a feeling of intraday trend. The 15-minutes chart is used for entry and exit - with the help of five minutes chart, in which the price is moving quickly, and you need to be closer to the action. "
Being one of the technical method, FOREX charting is based on the principal history repeats itself. FOREX traders who study charts predict the market future by evaluating past market performance. The time frame used for charting might differs for different traders, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the past five to ten years before getting involved in a FOREX trade. A huge variety of FOREX charts are available in the market. Some charting methods are very simple, using a few FOREX indicators to show trading direction; other charts may include up to forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and price are some of the well known indicators in charting.
Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all regulated the same way. Although FOREX dealers must be regulated by law, firms and individuals can solicit retail accounts for FOREX dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your FOREX dealers are regulated. If they are not, you may be exposed to additional risks. Also, beware of dealers with investment schemes that sounds too good to be true. Pay extra cautions to dealers that you first knew and always look into the investment offers. If you are from United States, you can always refer to CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for further information.
Conclusions
You come to this article probably because of you are new to FOREX and were looking for some readings on the Internet. To be frank, FOREX can be very profitable but the risk lie beneath is equally great. Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealers demo account to get yourself ready. Trade smartly, and gain the maximum out of FOREX " good luck! - 23208
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posted by X - Men @ 4:25 AM
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