forex world

All successful traders have forex trading strategies that they follow to make profitable trades. These forex trading strategies are generally based on a strategy that allows them to find good trades. And the strategy is based on some form of market analysis. Successful traders need some way to interpret and even predict the movements of the market.

There are two basic approaches to analysing market movements, in both equity markets and the forex market. These are technical analysis and fundamental analysis. However, technical analysis is much more likely to be used by traders. Still, it's good to have an understanding of both types of analysis, so that you can decide which type would work best for your forex trading strategies.

In fundamental analysis, you are basically valuing either a business, for equity markets, or a country, for forex. If you think it's hard enough to value one company, you should try valuing a whole country. It can be quite difficult to do, but there are indicators that can be studied to give insight into how the country works. A few indicators you might want to study are: Non farm payrolls, Purchasing Managers Index, also known as PMI, Consumer Price Index, also known as CPI, Retail Sales, and Durable Goods.

Most traders in the forex market only use fundamental analysis to predict long term trends. However, some traders do forex trading strategies that trade short term on the reactions to different news releases. There are also quite a variety of meetings where you can get quotes and commentary that can affect markets just as much as any news release or indicator report. These meetings are often discussing interest rates, inflation, and other issues that have the ability to affect currency values.

Even changes in how things are worded in statements addressing these types of issues, such as the Federal Reserve chairman's comments on interest rates, can cause volatility in the market. Two important meetings that you should watch for are the Federal Open Market Committee and the Humphrey Hawkins Hearings.

Just by reading the reports and examining the commentary, forex trading strategies in fundamental analyst can get a better understanding of most long term market trends. Keeping up on these developments will also allow short term traders to profit from extraordinary happenings. If you do decide to follow forex trading strategies in fundamental analyst, you want to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also be able to provide you with real time access to this kind of information.

Just like their counterparts in the equity markets, technical analysts in the forex market analyze price trends. The only real difference between technical analysis in forex and technical analysis in equities is the time frame. forex markets are open 24 hours a day.

Because of this, some forms of technical analysis that factor in time have to be modified so that they can work in the 24 hour forex market. Some of the most common forms of technical analysis used in forex are: Elliott Waves, Fibonacci studies, Parabolic SAR, and Pivot points.

Many forex trading strategies in technical analysts combine technical indicators to make more accurate predictions. The most common tendency is to combine Fibonacci studies with Elliott Waves. Others prefer to create entire trading systems in an effort to repeatedly locate similar buying and selling conditions.

Whichever form of forex trading strategies in any kind of analysis you choose, it's best to make sure you learn as much as possible about it and your market. Then you will be able to use you knowledge to create a trading system that will suit your needs, and help you to become a profitable trader in the forex market.

The foreign exchange market (Currency, Forex, or FX) market is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. [1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched tofloating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.

Forex
Foreign Exchange

While the value of a country's currency remains stable within its own borders, in the same time its value can widely fluctuate compared to that of other countries.

Exchanging rates keep on changing constantly and supply and demand for any given currency, and thus its value, are influenced by economic factors, political conditions and market psychology.

Betting on the spreads between countries' currencies by placing "buy" or "sell" orders is what Forex trading is all about.

Although, the value of the daily turnover in the forex markets substantially exceeds those of other markets, this is not the domain of the big players only. Small investors can also participate

Trading is conducted through an "over-the-counter" network of traders from major commercial and investment banks linked by computer terminals.

Participants include importers and exporters, as well as traders, portfolio managers and foreign exchange brokers.

Major trading centers include London, New York and Tokyo, with total trading volume in excess of $2 trillion dollars of foreign currency per day.

More than half of all trading directly involves the exchange of U.S. dollars and other currencies are traded against U.S. dollars since currency dealers quote other currencies against the dollar when trading among themselves.

This article will explain what a currency exchange is, services provided by an exchange, and the impact of the internet on currency exchanges.

What is a currency exchange?

Simply put, to exchange currency means to exchange one country’s monetary legal tender for the equal amount in another country’s tender.

Every country’s currency has an exchange rate in relation to every other currency in the global market. This price relationship is called an “exchange rate”. This rate is determined by supply and demand.

There are three main reasons why someone would want to exchange currencies.

What services does a currency exchange offer?

1. For the tourist. When you travel to another country, you exchange your country’s currency with the local currency so you can buy in the local markets. How much money you get in exchange depends on the market relationship at the time.

Most currency exchanges adjust their rates on a daily basis, even though price fluctuations occur every second.

2. Foreign Business. Businesses who conduct commerce overseas will setup a bank account, or multiple bank accounts, to conduct transactions. If a businesses wishes to convert the local currency into another currency, the bank’s currency exchange function will handle it.

3. Investors/Speculators. Futures speculators can buy and sell foreign currency in an attempt to profit from the difference in two separate currencies. Investors use currency exchanges to hedge their market investments. An investor may invest in foreign companies and hedge those investments in the foreign currency markets.

The Internet’s impact on currency exchanges

The Internet has certainly made a huge impact on currency exchange operations. Instead of visiting a physical currency exchange location, tourists can exchange their money online and pickup the cash at a local business.

As for the currency futures markets, investors no longer hail from large institutions or banks. The retail investor-the guy sitting at home in front of his high speed enabled computer-can buy and sell currency at the click of a mouse. This has created an explosion in the currency trading industry.

Currency exchanges provide essential services to three types of customers-tourists, businesses, and investors. By using the latest technologies, currency exchanges are at the forefront of online financial markets.

Foreign exchange is market where exchange of currencies takes place for another currency. Foreign exchange is the market where exchange of currencies takes place for more and different number of foreign county. Foreign exchange is nothing but buying and selling of foreign currencies in exchange of another. In the foreign exchange market, more of number of foreign currencies will be exchanged by the members and other traders with fluctuations of market price.

The rate of exchange fixed for the foreign currency varies as per the demand and fluctuation of foreign exchange market. Foreign currencies will be exchanged based on the requirement and demand for other foreign currency. The entry of any foreign currency is free and any number of counties can enter the foreign exchange market by buying and selling foreign exchange currencies. Sometimes, the foreign exchange market may finds fluctuations for the foreign currencies listed with respect to political and economic condition of the foreign currency in the market.

Finding Investment Opportunities in Currency Exchange

Excecutive Sumarry about Finding Investment Opportunities in Currency Exchange By Y. Tilden

Having an understanding of global market behavior will save investors from losing valuable investments and improve their odds for profit. Interest in the currency exchange market is growing, and investors with knowledge of global market behavior have an added advantage, as the money exchange is highly influenced by the global market activity. The currency exchange market differs from the NYSE in several ways. This difference in market opening time is one of the reasons why trading volume is so much larger on the currency market. Unlike the NYSE where transactions are centralized, the currency market is completely decentralized. Many factors make the currency market a highly lucrative investment market over the NYSE.

The Euro is the official currency of 13 countries in Europe. Finland, Italy, Austria, Belgium, Germany, Spain, Portugal, Slovenia, France, Greece, Ireland, Luxembourg and the Netherlands all use the Euro. There is approximately €610 billion Euros in circulation right now. That amounts to about $800 billion in USD. The Euro rate is the current value and exchange rate of the Euro. Whether you are a businessperson or you are just traveling or shopping, it is important to know the Euro rate when dealing financially with those 13 European countries.

More than 320 million Europeans use the Euro, so knowing the Euro rate will help you to do business with those people. The value of the Euro rate is greater than that of the US dollar rate. What that means is right now, one US dollar ($1) converts to only .69 Euros. The Euro rate ultimately affects a great deal of the foreign exchange, or forex, market. The economy of those 13 European countries serves as the main basis for the Euro rate. Negative factors such as war, drought and recession also affect the Euro rate. On the other hand, positive factors also affect the Euro rate. These positive factors can include an economic boom and lower interest rates.

Knowing the value of the Euro rate is vital if you are interested in or are planning to invest in the foreign exchange market. The foreign exchange market is the single most pervasive market in the world, and exists anywhere where people can exchange one nation’s currency for another nation’s currency. If you need more information on the Euro rate and the foreign exchange market, you can find a wealth of information on the Internet.

Traditionally, stock trading has been carried out at an exchange, places where buyers and sellers get together and decide on a price. Day market online stock trading is no more risky than any other sort of trading, but even so, extremely large losses or gains can happen in a very short space of time.

Online

The term “online stock trading” describes the easy way to buy and sell stock from the comfort of your computer chair, and is a good starting point for anyone interested in gaining from the big opportunities the stock market can offer.

Online stock trading is quickly becoming a way of life for a lot of people and, eventually may render stock brokers obsolete, with several online companies opening their doors to cater for the rising client demand. These stock market websites usually have a lot of extra services on their websites, and they are able to provide online market traders with stock market insight, and other good info.

So, as more people trade in stocks online and are joining the online trading fraternity than ever before, it must be remembered, that stock trading is still a form of gambling and unfortunately can have the same outcome. With the volatile and fluctuating online stock trading market, investors need to be able to make quick and informed investment decisions. Online stock trading is all about selecting the best stock opportunities and following your buy and sell signals.

Educating Yourself On Online Stock Trading

Excecutive Sumarry about Educating Yourself On Online Stock Trading By Michelle Bery

With the enormous presence of the Internet, life’s daily activities have been given a shortcut. We bank, shop, communicate, and work online. So it stands to reason that online stock trading has also become a popular service that the Internet has afforded us.

If online stock trading is something that interests you then you should begin by thoroughly researching its procedures. In this way you can familiarize yourself with the environment and begin your online trading slowly and with thought.

Not only does online trading afford you unlimited power of our own financial portfolio, it can be quite affordable. A single trade often costs less than $20. So your commitment and risk can be significantly less than if you began trading in the typical manner.

Before online stock trading, start by performing research on those companies that interest you. You can use a stock research provider or visit a professional stock broker who can expertly guide you through the research process.

Online stock trading - when done right - can bring you tremendous success. However, be sure to act with caution and educate yourself as much as possible before beginning your journey into online stock trading.

Buying and selling of forex in forex trading is done in pairs of currencies. One currency is called the base and the second constitutes the quote or counter currency.

For example, EUR/USD is one pair of currency. Under this pair, EURO is the base currency and USD or US dollar is the counter currency. Trading always takes place in combination of two currencies or currency pairs.

One buys Euro (long) in exchange for yen (short) or sell sterling pound (short) in exchange for Euro (long). The seven main currencies are USD, JPY, EUR, GBP, CAD, AUD, CHF (Swiss Franc). The most important currency pairs called the majors are EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/AUD and USD/CAD.

While undertaking Fx trading, one should also understand symbols and trading terminology. Other terminology terms are Euro, dollar yen, Swissy, dollar Canada, Aussie etc. Every position involves the selling of one currency and the buying of another, e.g. USD vs. Yen or USD vs. Swiss. Traditionally, the stronger currency is the base.

Anyone who has followed the Forex market in the past few weeks has noticed that the us dollar has plummeted versus the Euro. In fact, the Euro has recently broken records high, and the dollar is crashing against all major currencies in the world. This is due to the financial crisis which the US is facing and which leaves a great deal of uncertainty over the markets.

What will happen between the Euro and the American Dollar?

In the past week I’ve heard many people say that the worst has passed, and that the dollar will now strengthen gradually. I believe this is false and that these people will lose a lot of money. As far as I can tell, the economic indicators support the continuing strengthening of the euro versus the dollar:

• The European economy has been least affected by the current crisis in the US financial sector
• The European interest is much higher than the American, and while the Fed will likely continue to lower interest rates in the near future, the European central bank shows no signs of following suit.
• We have likely not seen the last repercussion of the financial crisis in America

All of these things say one thing: The euro will become stronger Vs. the US dollar, and not the other way around. I would hold a position on the Euro. It will likely continue to make profit in months to come.

When investors want to begin small in the stock exchange, they might discover that penny stocks are a good investment funds - but, are they?

Primarily because penny stocks trade very infrequently, and they don’t deal via the huge and familiar stock exchange systems, making it tough to buy and sell them. When you save in penny stocks, you have frequent “progress reports,” so you are aware precisely how your investment is doing. You need to get frequent updates relating to your investment funds, because if you save in penny stocks you will wish to observe them carefully. If you enjoy the chance and wish to take that gamble on a large return by setting up just a small initial investment funds, then penny stocks may be the correct choice for you. There are numerous Internet scams to do with penny stocks, and a good many individuals regularly experience spam e-mails on these and other sorts of investment. If you feel comfortable with your chances and like what you hear regarding penny stocks, then it’s a worthwhile thought for you to invest.

What Is A Currency Pair?

A currency pair refers to the two currencies that are involved in a foreign exchange trade. For example, if you want to buy the Japanese Yen using U.S. Dollars, you would look at the quoted price for the USD/JPY currency pair (USD = U.S. Dollar; JPY = Japanese Yen).

What Is A Base Currency?

A base currency is the currency that is first mentioned in a currency pair. In the USD/JPY currency pair for example, the base currency is the USD. In the EUR/USD currency pair (EUR = Euros), the base currency is EUR.

The base currency is the currency with which the quoted price refers to. For example, the quote USD/JPY 110.00 means that one unit of the base currency (i.e. USD) is worth 110.00 JPY.

What Are Bid And Ask Prices?

The base currency is traded at 2 different prices at any one time, depending on whether you want to buy or sell it. For example, if you want to sell the USD/JPY currency pair (i.e. sell the USD and buy JPY), you’ll receive 110.00 JPY. However, if you want to buy the USD/JPY pair, you may need to pay 110.03 JPY.

Notice how the buying price is higher than the selling price. This difference between the buy and sell price is known as the ’spread’. If you first buy a currency pair and then immediately sell it, you’ll incur a loss equal to the spread.

In forex trading terminology, cross currency refers to a pair of currencies that do not include the U.S. dollar. It is commonplace in the forex market to exchange any foreign currency to U.S. dollars before trading. Cross currency is a technique that aims to completely bypass the need to convert currency to American dollars before converting it back to the desired foreign currency. The four major currency pairs: GBP/USD (British pound-U.S. dollar), EUR-USD (euro-U.S. dollar), USD/CHF (U.S. dollar-Swiss franc), and USD/JPY (U.S. dollar-Japanese yen) are highly affected by the movements of the U.S. dollars. Trading the U.S. dollar leaves one with no other option other than waiting for the dollar to weaken.

Cross currency allows profitable currency trading regardless of the performance of the U.S. dollars. Ninety per cent of forex market players trade in the four major currency pairs that involve the U.S. dollar.

It is possible to buy and sell money from different countries on the foreign exchange market called Forex. Forex currency traders can profit by taking advantage of the dips and swells in the foreign currency market. Forex currency trading is done in amounts of currency called lots, that are usually $100,000 each, and can be purchased on margin. Forex currency trading strategies can be based on technical analysis of the history of the currency price or it can be based on analysis of a particular country’s political climate, tax policy, jobless rate, inflation rate, and other factors of the country. There are many different systems of Forex currency trading.

Forex currency trading is a huge market. Forex currency trading is also not overseen by one central agency like the Security Exchange Commission, and each country oversees the Forex currency trading activity within it’s own country.

Stock market trading through trading stock options

The stock market is the place where the buyers and sellers converge to trade stocks.

Stock market mechanism

The place where the buying and selling of stocks takes place between stocks investors is called the stock market.

Trading
Stock investors can make a profit by selling the stocks either at a lower price or at a higher one. In order to illustrate this point, there is a stock investor A who plans to sell his stocks. This technique of selling stocks is generally termed as being bearish on the stock market price.

Day trading
The trading of stocks that is done before the stock market closes is called day trading.

Options trading
There might be more then two stocks with stocks investor then it is necessary to weigh the profit margin from one stock to another that will provide the stocks at a suitable price.

One can utilize the services of stock trading through stock trading companies. Trade stock options can be facilitated through stockbrokers who provide a better outlook of stock market

For your own protection, being new to trading or having traded before, always research and ask questions before purchasing any software. Read through the pro’s and cons of the software to start learning stock trading online. Keep in mind any stock that drive upward at a fast pace can tank out just as fast.

There are stock trading system available that involves online trading, which is the fastest growing professions on the Web. Stock Broker firms have realized how many people prefer to learn stock trading online and do their trading online. Many firms still offer brick and mortar offices where clients can come in and speak face to face with their broker.

Introduction

The foreign exchange (also known as “forex” or “FX”) market is the place where currencies are traded. The overall forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.

Forex autopilot trading software offers robot-driven automatic trading of the forex market. Creators of these automatic trading systems claim that you can make easy profits with little time invested, and without having to understand complex algorithms.

First of all, any forex trading system software that guarantees easy, consistent profits is an outright scam. The forex market, like the stock market, consists of too many random factors. Anyone who therefore promises to be able to read the future like a fortune teller is clearly a liar. Forex trading is similar to gambling. But what successful forex robot systems can do, is boost the odds slightly in your favor. Then, there will be a slight probability that you will make money over the long run.

FAPTurbo

FAPTurbo is a forex robot that hit the forex market tremendously and is causing quite a stir in the forex world by trading forex totally on auto pilot. No forex experience or technical knowledge required. This is an honest review based on personal experience on the much talk about forex money doubling robot; The FAPTurbo and the Forex automated trading industry.

FAPTurbo is a very high-end automated trading system, often referred to as a Forex robot, with capabilities rivaling institutional grade systems. Fortunately, FAPTurbo will not cost you the millions that’s typically spent by the big industries to develop these systems because Fapturbo lets you get in on the action for pennies on the dollar compared to it’s worth. Do Forex Robots Really Work?

Before I go any further I want to address what is probably the biggest question on the

Does FAP Turbo Work?

The truth is there is nothing in the market that even comes close to the performance FAPTurbo claims to delivers. The willingness to show you live updates every 15 minutes on its performance is a huge step to the credibility of skeptics

Can it double your money in 30 days?

The important point is that if you use FAP Turbo properly you will very likely make some very serious money in a relatively short period of time. The good news is you don’t need to trade real money without having tested the robot on a demo account and the support crew is marvelous. Any trading system that is reluctant or unwilling to show live proofs of its activities is probably not as good as it claims. Worse of all, if they cannot have a money back guarantee period to try out the software risk free, then you probably should not even waste your money on such products.

FAPTurbo Live Trading Proof-Why is it important?

FAPTurbo has done something unprecedented in the retail Forex robot industry and that is to show live PROOF of its performance claims by posting live trades for a real money account to its website at regular 15 minute intervals! Most trading systems on the market show back-tested results designed to amaze us into a purchase, but the truth about back-tests is that they are often used to deceive less knowledgeable traders into thinking a trading system is better than it actually is.

There is simply no other trading system I know of that is willing to stand behind their claims like FAPTurbo is doing and it’s probably one of the reasons why FAPTurbo has become one of the biggest selling Forex robots in history.

Conclusion

Before buying FAPTurbo or any other forex robot, it is important to know its potential by reading about it and analyzing objectively its claims. There must be a 100% money back guarantee which is good for atleast 8 weeks, More than enough time to decide for yourself with absolutely no risk whether the product is your money’s worth.

Being new to FOREX trading? 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/JPY…you get ’short’ in a currency every time to buy another and the profit is made when you buy-low and sell-high.

FOREX market is the largest trading market in the world. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. Although FOREX trading involves such a big volume of trades nowadays, it is not made available for the publics until year 1998. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market’s extraordinary liquidity and strong trending nature of world’s main currency exchange rates. As a fact in FOREX trading, FOREX is mainly traded in large international bank. To start trading on FOREX, one must first learn how to read FOREX quotes. It means the value USD had been increased when USD/JPY quote goes up

The ‘bid’ price is the price at which you can sell the base currency; while the ‘ask’ price is where you can buy the base currency. You don’t need much tools to trade in FOREX market. A computer with Internet access, a funded FOREX account with foreign currency exchange broker, and a trading system should be sufficient to get things started.

To reduce the risks of losing money, some basic charting knowledge is as well recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of exchange rate fluctuations. As stated by expert FOREX trader Peter Bain, charting is an essential tool in FOREX trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minute charts are used while trading in FOREX. FOREX traders who study charts predict the market future by evaluating past market performance. A huge variety of FOREX charts are available in the market. Trading in FOREX is not as simple as it seen from outside. I wish you good luck and good profit making in your FOREX trades.

Excecutive Sumarry about Common Currency Pairs in Global Currency Trading by Brent Crouch

Generally speaking, any two currency pairs can be traded back and forth. Even if common information is not kept about two specific currency pairs with respect to each other, that currency information can be obtained by comparing both of those currencies to the American dollar.

American Dollar and European Dollar This particular currency pair is also known as the EUR/USD or the USD/EUR depending on the particular point of view to trading that you bring to the table. American Dollar and British Pound: This particular currency pair is also known as the USD/GBP or the GBP/USD currency pair. This used to be the most common currency pair traded in the world and might still be the most common one traded if you put the conventional large traders back into the picture. European Dollar and British Pound: Also known as the EUR/GBP or GBP/EUR. Chinese Yuan and Japanese Yen: This is the CHY/JPY or the JPY/CHY currency pair. This trade is very popular in Asia and like the CAD/USD trade also occurs quite often outside of conscious currency trading with the number of people that travel back and forth between areas that have these two pairs.

Currency exchange rates reflect the economy of one country as compared to another country. With foreign currency traded in pairs, the rate changes when the values of either of the currencies change.

A country’s economic status has a big impact on demand for the currency. Demand for the currency decreases, and foreign currency exchange rates fall. Worldwide interest rates also directly affect currency rates.

The most commonly traded currencies are known as the Majors - USD (US dollars), JPY (Japanese Yen), EUR (Euro), GBP (British pound sterling), CAD (Canadian dollars), AUD (Australian dollars) and CHF (Swiss francs). Currency exchange quotations always give 2 prices for each currency pair - the Bid price (the rate at which a buyer is prepared to buy currency), and the Ask price (the price at which a seller is willing to sell the currency). Currency rates change all the time. Studying currency conversion rates is only half the battle.

Excecutive Sumarry about What You Need to Know about a Forex Currency Trading System By Dan Ho

Finding a forex currency trading system may seem like a daunting task to anyone who is just starting off trading currencies. Everywhere you look you see an endless variety of different forex trading systems. You see, forex trading strategies need to be adapted to the individual trader. Others like to base their forex currency trading system on technical analysis and charting in the hopes of predicting future moves based on what currencies have already done in the past.

And yet others like to employ a forex trading system that is a combination of both fundamental and technical analysis. Some currency pros recommend that you keep your forex trading strategies simple, while others recommend multiple charts and a plethora of forecasting tools.

Whatever you decide on for your forex currency trading system, however, you almost certainly can’t go wrong by subscribing to some of the forex newsletters written by professional currency traders. In time, you will probably develop your own forex trading strategies and hopefully attain the success that you seek.

It is possible to buy and sell money from different countries on the foreign exchange market called Forex. Forex currency traders can profit by taking advantage of the dips and swells in the foreign currency market. Capturing these differentials is easier in Forex currency trading than in other trading because the Forex market is open twenty-four hours a day, except for weekends, and it is global, so there are always buyers and sellers available. The traders can be diverse. They can be traders looking for short-term gains, such as day traders or slightly longer investment periods, or they can be foreign investors who are looking to hedge their investments with long term Forex trades.

Forex currency trading is done in amounts of currency called lots, that are usually $100,000 each, and can be purchased on margin. Forex currency trading strategies can be based on technical analysis of the history of the currency price or it can be based on analysis of a particular country’s political climate, tax policy, jobless rate, inflation rate, and other factors of the country. There are many different systems of Forex currency trading.

Excecutive Sumarry about FX Trading System - Evaulation and Selection by Tim Barnby

Whether you are trading stock, commodities, or a Forex market, following the overall trend should be your first priority. Trading against the trend might get you a few winning trades, but a prudent trader sticks with the overall trend. Chasing retracements is okay if you want a rush. If you want to make money, you need to manage your trading like a business. That means that we make purchases at a lower price than the projected sale price. Counter trend trading goes against that rule. There are several methods for determining a trend. I recommend the Blue Zone, or a similar method for determining the health of a trend.

The ideal FX trading system will provide you with an iron clad set of rules for trading. Your trading results will be tightly correlated to your adherence to rules. When selecting a trading system, make sure you can live with the rules. If you cannot, find another system. If you find that your emotions will not allow you to follow these rules, find another way to make money. A system will only work if you use it correctly and consistently.

When reviewing messages in the Forex trading forums, you’ll often see charts. Some of these charts are so covered with indicators that you can hardly see the price action! The best FX trading system will only use a couple of indicators. The Blue Zone system, as an example, only uses three simple moving averages (SMAs). It uses these to determine the health of the trend. The best FX trading systems will couple these few indicators with setups that are incredibly simple and easy to identify. There are systems that use ascending triangles, multi-candle setups, and complicated crossovers. Those are just too complicated to be of much value, and in my opinion, lack consistency. The Blue Zone system uses a single candle setup. This single candle is highly predictive of reversals and will provide consistent results. Of course you have to know which times to trade it.

You have heard the old saying, “It takes money to make money.” I began investing and trading in 1997, shortly after the markets were deregulated allowing private investors in for the first time. At that time there were not any classes, programs or course that would help you learn Forex trading.

Today, there is almost an endless number of currency courses offered online. Is there a lot of money to be made, yes? Are people becoming millionaires each and every day investing and trading in the markets, yes? Is it easy, well if it was easy, then everybody would be doing it, wouldn’t they? Do you need a great deal of money to start, no? To learn how to trade Forex you will defiantly need to enroll in one of the many exceptional currency courses offered online today. That is you first step and investment. Next, you will need to acquire a top rated Forex trading system. Third, you should open a demo account at a Forex brokerage firm and start practicing everything you learned in the class and with your new software. After a little while, when your consistently making money in the demo account it is time to fund your real money account and move up to the big time. If you follow the short format mentioned above, are reasonably intelligent and possess the personality traits of being disciplined and determined then more than likely you have a good chance of making some real good money.

Considered as the largest trading market on earth, currency trading is pegged to be trading over USD 2 trillion everyday. This figure greatly dwarfs the performance of the New York Stock Exchange, which gathers an estimated USD 50 billion each day. This comparison alone while help you imagine just how big a business currency trading is. Before anything else, you might be prompted to ask, “What is currency trading?”

Also known as Foreign Exchange, Forex, or FX, currency trading attracts a lot of investors in that it is a very liquid market to invest in. The potential for profit is huge but the risks too, are very high. Unlike the stock exchange, forex accumulates a huge volume of traders. The margins may be low, but the significantly big number of traders makes up for it. In effect, when you profit, and you invested a significant amount, you’d cash in on a very high profit. What is currency trading to some investors who can afford to lose is such a big risk to those who aren’t too fluent about the business yet.

A nation’s currency has a value in relation to another currency. As one buys and sells currency, one finds out that there are pairs of currencies that get traded 85% of total volume: US Dollar (USD) and Japanese Yen (JPY), Euro (EUR) and USD, USD and Swiss Franc (CHF), USD and Canadian Dollar (CAD), Australian Dollar (AUD) and USD, and British Pound (GBP) and USD.

Current values fluctuate due to its movement. Simply put, when one is in a foreign country and wishes to shop, he will have to convert his native currency to the currency of the country where he is. When he goes back home, he will then have to convert any remaining foreign currency in his pocket back to his domestic currency.

Another reason why there is constant fluctuation in currency values is speculation. Investors, who speculate about how strong or weak a currency will perform at a given time, buy or sell currencies accordingly. Drastic buying or selling has significant impact in a nation’s economy.

Excecutive Sumarry about How To Become A Successful Trader by Ash Naeck

The most vital piece of forex education that you must learn as a Forex Trader is which strategy best suits your style of trading.

As an aspiring trader, you will be tempted to test all the indicators available to you and read about all the different strategies you may come across. I call it the DDP (sounds like a wrestler i use to watch on televison) DETERMINATION, DICIPLINE and PATIENCE.

An important point to remember:

Always choose a strategy in accordance to your account size. Pick a strategy that suits your style and experiment it on the time frame you feel most comfortable with. Do not jump from strategy to strategy, this is a recipe for disaster. Stick to one strategy and back test and demo test it until you are comfortable with it. If it suits your style of trading then you have a possible winner.

You will be amazed to how effective those simple points when applied to your trading routine may help you become a profitable trader.

Check out our other review on euro exchange rate and currency convert

Almost all internet marketers have heard of forex trading or online currency trading as it is sometimes referred to and many are curious about how the forex trading system works and where they can go to learn forex trading.

In order to become a successful forex trader you need to know what forex trading is and how to successfully trade forex. Many online forex companies offer free training and demonstrations that resemble that of real time forex trading. There are also forex trading courses available and these are also a valuable way to learn forex trading as you can refer to these course time and time again.

The most important aspect when it comes to forex trading is to learn forex trading so that you understand how to trade and how to trade successfully. Finding a forex tutorial or forex trading course is simple. If you are serious about succeeding as a forex trader, then it’s down to you, learn forex trading now and learn to succeed.

Excecutive Sumarry about Introduction to Forex By Matthew Bass

The Foreign Exchange Market - better known as FOREX - is a world wide market for buying and selling currencies. The most important is trading in multiple currencies in multiple markets. Online trading has made the market fully transparent. The trading is instantaneous. This makes online trading both exciting and dangerous. This involves working with a forex brokerage or with a forex trading firm.

The forex market is the largest market in the world where trade is conducted round the clock in real time. The forex market is by far the world’s most volatile market. Forex trading therefore becomes a major challenge for even the most experienced forex bankers and traders. Earlier, only large banks were allowed to trade in currencies. The volumes of currency that get traded during this period jumps; so does the number of trades.

Forex traders rely on several parameters to conduct their trade. The more successful or experienced traders follow their instincts based on years of experience of trading in the forex market.

Check out our other review on option trading and learn forex

Trading, in general, is a great “business” opportunity. But why is currency trading the forex market the greatest of them all. Did you know that the forex (foreign exchange) market is 30 times larger then all other US markets combined. Did you know that trillions of dollars are traded on the forex. And, no, it’s not all traded by huge banks making huge trades and huge currency exchanges.

Forex trading, like all other trading, is about timing and money management. However, trading currency on the foreign exchange does come with some very unique characteristics. The recognize that by using the same skills they are learning to trade equities, or futures, or bonds, they can be trading the forex and make an exponentially greater amount of money. Until then, trade a demo account, eliminate all risk and build your skills.

You’re probably thinking that demo accounts are worthless since they don’t mimic live trading very accurately, but in the case of currency trading the forex, you would be wrong. The demo accounts mimic live foreign exchange trading perfectly. So there really is no reason to make any live trades until you can consistently make money trading a demo account.

Excecutive Sumarry about Foreign Exchange Rate By Eddie Yakubovich

The official currency of the European Union (EU), the Euro, was launched in 1999 with coins and banknotes issued in 2002. This World recession effectively killed any growth in FX speculation as disposable income was at a premium. Euro is a floating exchange rate, therefore market demand and supply controls the value of the currency.

Placing a foreign exchange hedge can help to manage this foreign exchange rate risk. At the end of WWI there was a brief period of massive currency speculation. Stock trading is similar to owning part of a company or organization. All other currencies were pegged to the dollar at a certain rate.

The exchange rate refers to the value of the US dollar against the values of currencies of other countries. If the US INFLATION rate is HIGHER, investors are LESS likely to prefer the US even with higher interest rates because of the expectation that the value of the dollar will be ERODED by inflation.

Check out our other review on option trading and currency exchanges

In the Forex market the value of two separate currencies and how they relate to one another is what is known as the Forex exchange rate. Usually the Forex rate is how much of one currency is needed to buy a unit of another. Just to give you an example of how the Foreign exchange rate can work and to help you better understands it we can compare the United States dollar with the Japanese yen. This ratio in the exchange rate is also known as pairing. A few other terms used in the Forex exchange are pips or basis points, which are actually two terms used for the same thing. In using the Forex exchange rate you are required to use two currencies and this means they are quoted as ‘two tier’ rates. Also in the Forex market its price basis is called a bid/ask. One thing you should remember however when it comes to the Forex is that only Forex traders who are licensed can access official quoted rates. One last thing concerning the Forex exchange rate is that it is independently determined. With the benefits and knowledge of how the Forex exchange works you can decide if entering the Forex market is the right move for you.

There are many ways to make money through online trading. There is the obvious option of trading or selling possessions that you have. But if you want to make money without selling everything that you own, then you might be interested in online stock trading.

Online stock trading is a risky business; everyone accepts this, except the few who choose to delude themselves into believing otherwise. Shares can go up as much as down, which means you must have the self-discipline to buy and sell at appropriate times without relying on emotional triggers. Being greedy in the online stock trading world can cost you a lot of money; however, you will be able to find advice everyone on the internet about online stock trading and if you follow the advice properly, then you may be able to make your living off of the stock market alone.

Stock trading websites are everywhere your computer and your Internet connection, for instance, are one gateway to the stock market. You can buy and sell shares all at the click of a button, and all these buying and selling transactions are executed within one second on most websites.

he stock markets are complicated, but you can educate yourself. If you are interested in getting involved with the stock markets then one of the first things that you will want to learn about is Forex trading.

The forex market is basically the foreign stock exchange. This is where parties purchase stocks in one currency by exchanging payment in a separate currency.

Forex trading is done on one of the biggest financial markets in existence. Forex trading is done between corporations, large banks, and even different governments.

Forex trading is particularly challenging because it trades in such large volumes, and it is trading things from a wide geographical area. One of the greatest things about forex trading is that you can trade 24 hours a day during the business week.


Trading on any stock exchange can be a risk, and forex trading is just as risky. Though there are not typically as many losses as some of the ones found on the smaller markets they do still exist within forex trading.

Additionally, given the larger volumes that are currently traded within forex trading there is the potential for investors and traders to pull down larger margins of profits from their trades.

The Foreign Exchange Market is an inter bank spot market for currency. It is run, bound to a network of banks, electronically, all through the day. It is commonly known as the market closest to absolute ideal competition, which is affected by any alteration in rates made by the central banks.About ten years back, currency trading had high obstacles to function, so the access to the tools and systems required to trade in the forex market was only provided to large banking and institutional firms. But now, technology has been developed to this level that any individual investor can jump into the trade with any of the online platforms.Forex trading is carried in currencies of different countries and the instances of buying or selling are carried out in spots and futures. While using spots trading, currencies are delivered and paid for immediately after a sale and that futures are contracts for assets (shares).The business of currency trading is very profitable, if done with proper intelligence. Forex is usually traded based on a Forex trading signal or Forex alerts.The foreign trading signals help to build up the forex strategy system, which are sent for two types of currencies; Western and Asian. Trading Signals for Asian countries are sent out in the night, where as for western countries, they are sent in the day.Forex trading is always done in currency pairs. Two currencies that make up an exchange rate are called currency pair. Investors who trade currency pairs require rapid buy and sell Forex signals. External factors like trade reports, GDP, unemployment, manufacturing, international trade etc. affect the forex currency trading.Forex currency trading has an advantage over stock market. Statistical information affecting a particular currency becomes known to everyone in the trade. Also there are many forex trading signal platforms online to get information and act within time.To become a successful trader, all you must know is how to limit risks, while making the best constructive moves and you can do wonders with forex.Exchanging one currency for another is known as currency trading and the quoted price is now many of one currency is worth one of the other currency. The forex has to play an essential role in world economy and the need for forex will always be deific. It encourages international trade with technology and communication. Japan sells its products in the United States and is able to receive Japanese Yen in exchange for US Dollar. It is all possible only because of forex trading.

The price of a currency (in terms of the counter currency), is called "Quote". There are two kinds of quotes in the Forex market:The Direct Quote: the price for 1 US dollar in terms of the other currency, e.g. - Japanese Yen, Canadian dollar, etc.The Indirect Quote: the price of 1 unit of a currency in terms of US dollars, e.g. - British pound, euro.The market maker provides the investor with a quote. The quote is the price the market maker will honor when the deal is executed. This is unlike an "indication" by the market maker, which informs the trader about the market price level, but is not the final rate for a deal.Cross rates - any quote which is not against the US dollar is called "cross". For instance, GBP/JPY is a cross rate, since it is calculated via the US dollar. Here is how the GBP/JPY rate is calculated:GBP/USD = 1.7464USD/JPY = 112.29Therefore: GBP/JPY = 112.29 X 1.7464 = 196.10

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements

by: Rich McIver
For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.
FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

Rapid and fair trade execution. Market orders are confirmed within seconds at prices clicked on or accepted by the client. Furthermore, GCI has a "zero slippage guarantee" for all Forex Stop and Entry Stop orders that are placed at least one minute before the market reaches your specified price.Zero commissions for all accounts. Client trading performance is enhanced by eliminating all commissions.State-of-the-art trading software. The GCI trading software provides real-time prices in 23 major currencies, 5 equity indices, plus gold, silver, and crude oil. Live charts, and real-time P&L and account equity tracking are fully integrated into the free software. Windows-based and Java-based versions are available

The execution of fundamental analysis in the Forex market is done through the use of economic indicators. These indicators point to the state of some economical factors in the country whose currency you wish to trade with.Economic indicators are published by various sections of the government and private companies. These statistics are analyzed by market investors to predict the direction of the Forex trading market. Forex economic indicators are published at fixed time intervals, and are followed by any serious online Forex trader.Since so many people are tuned to use them, Forex economic indicators have a large impact on prices of currencies of the Forex trading market. Most traders do not use fundamental analysis because economic indicators seem difficult. This however is wrong because following simple guides can help you stay updated with the important Forex economic indicators easily

Perhaps no other market in the world has the universal appeal of the gold market. For centuries, gold has been coveted and traded for its unique blend of rarity, beauty, and near indestructibility.
Nations have embraced gold as a store of wealth and a medium of international exchange; individuals have sought to possess gold as insurance against the day-to-day uncertainties of paper money. COMEX Division gold futures and options provide an important alternative to traditional means of investing in gold such as bullion, coins, and mining stocks.
The United States first assigned a formal monetary role for gold in 1792, when Congress put the nation's currency on a bimetallic standard, backing it with gold and silver. During the Great Depression of the 1930s, most nations were forced to severe their currency from gold in an attempt to stabilize their economies.

Trading on margin means that you can purchase and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with comparatively small margin deposits. This is useful since it permits investors to develop currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or "gearing"). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being totally wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.

Forward Outrights
For forward outrights, settlement on the value date chosen in the trade means that even though the trade itself is carried out instantly, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.

A currency trade is the synchronized buying of one currency and selling of another one. The currency mixture used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called "majors" - EURUSD, USDJPY, USDCHF and GBPUSD.
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or "on the spot". In practice this means two banking days.

24 hour trading
One of the chief advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a distinctive opportunity to react instantly to breaking news that is affecting the markets.

Superior liquidity
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
No commissions
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the "majors" is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
100:1 Leverage
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the