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.
Be on the FOREX market
FOREX is the largest market trading market worldwide. It produces an average annual turnover of $ 1.9 trillion daily and the figure is nearly 30 times the total volume of equity in trade and in the 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 stock or futures markets and trades are done around the clock. FOREX day begins when the trade centers in Sydney start the day, and moves all over the world to Tokyo, London and then in New York. Operators are always connected to the local market, irrespective of the 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 fact in FOREX trading, FOREX is mainly traded in large international bank. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non financial institutions.
Why FOREX is popular?
There are several reasons why FOREX had became such a popular investment among world wide 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.
Getting started in FOREX trading
You dont need much to get started with FOREX trading. 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. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. 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. As quoted from his informative newsletter -- Daily chart will help you define the overall trend from a position trading point-of-view, and the hourly (one hour) chart will give you a feel for the intraday trend. The 15-minute chart is used for entry and exit " with assistance from the five-minute chart, where price is moving quickly, and you need to be closer to the action.
Being one of the technical method, FOREX graphics are based on the principle 'history repeats itself'. FOREX traders who study charts predict the market future by evaluating past market performance. The time used for graphics may differ for different operators, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the last five to ten years before getting involved in a FOREX trade. A variety of FOREX charts are available on the market. Some graphical methods are very simple, with some indicators showing the direction of FOREX trading, other charts may include up forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and the price are just some of the well-known graphic indicators.
Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all the same way regulated. Although foreign exchange dealers must be regulated by law, companies and individuals can solicit retail foreign exchange dealers and manage those accounts without regulated. As a dealer, you should take responsibility to find out whether your foreign exchange dealers are regulated. If not, you may be exposed to additional risks. Also beware of the dealers with plants, which sounds too good to be true. Award warns dealers that you first knew and always in the investment. If you are from the United States, you can always CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for more 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! - 23196
Be on the FOREX market
FOREX is the largest market trading market worldwide. It produces an average annual turnover of $ 1.9 trillion daily and the figure is nearly 30 times the total volume of equity in trade and in the 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 stock or futures markets and trades are done around the clock. FOREX day begins when the trade centers in Sydney start the day, and moves all over the world to Tokyo, London and then in New York. Operators are always connected to the local market, irrespective of the 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 fact in FOREX trading, FOREX is mainly traded in large international bank. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non financial institutions.
Why FOREX is popular?
There are several reasons why FOREX had became such a popular investment among world wide 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.
Getting started in FOREX trading
You dont need much to get started with FOREX trading. 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. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. 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. As quoted from his informative newsletter -- Daily chart will help you define the overall trend from a position trading point-of-view, and the hourly (one hour) chart will give you a feel for the intraday trend. The 15-minute chart is used for entry and exit " with assistance from the five-minute chart, where price is moving quickly, and you need to be closer to the action.
Being one of the technical method, FOREX graphics are based on the principle 'history repeats itself'. FOREX traders who study charts predict the market future by evaluating past market performance. The time used for graphics may differ for different operators, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the last five to ten years before getting involved in a FOREX trade. A variety of FOREX charts are available on the market. Some graphical methods are very simple, with some indicators showing the direction of FOREX trading, other charts may include up forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and the price are just some of the well-known graphic indicators.
Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all the same way regulated. Although foreign exchange dealers must be regulated by law, companies and individuals can solicit retail foreign exchange dealers and manage those accounts without regulated. As a dealer, you should take responsibility to find out whether your foreign exchange dealers are regulated. If not, you may be exposed to additional risks. Also beware of the dealers with plants, which sounds too good to be true. Award warns dealers that you first knew and always in the investment. If you are from the United States, you can always CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for more 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! - 23196
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