Currency Trading Pros Show You How To Make Money Trading Forex Online

By Richard Busbridge

Normally we supply our readers information about the stock markets, today we thought we would take a closer look at a different area of the finance world. We get a few emails every day from individuals asking related to currency trading, so we thought to produce a brief article showing how individuals earn cash in the currency markets.

Because you can trade forex directly from your computer, there's a great deal more people making cash with forex trading.

As you probably are aware of, currencies will shift in price frequently. A currency trader wants to be able to anticipateorecast when these changes will take place so that they are able to time when they should purchase or sell a currency.

How about we take a look at what causes certain currencies to shift in price. We will explore a few of the major key factors, but there are a lot causes.

One of the largest elements in defining exchange rates is interest rates. If rates increase in a country this will cause more outsiders to make investments in that country. This new investment leads to an increased demand for that money and it rises in value. There's a great deal of cash that can be made if you can anticipate when interest rates will jump in a certain country.

Commodity prices will also play a sizeable role on some currencies. Canada is a large exporter of oil and other natural resources. If these resource prices increase, this causes a bigger demand for the Canadian dollar as more of the currency is needed to make purchases of these resources. If the price of oil rises, it is highly likely that the Canadian currency will appreciate as well.

My biggest advice for people wishing to be started in forex trading is to buy a computer currency trading program. There are now programs that study the currency markets based on all available market information and then find profitable trades. There are lots of currency traders make use of only these sorts of programs to make their cash, however I like to utilize them in addition to transactions based on my own ideas.

Currency trading is not only thrilling, but there is a great deal of money that can be made when you use the proper tools. - 23196

About the Author:

Click Here to see how people who are making cash trading forex online. You can also see reviews on the most successful Forex Trading Robots.

All About Forex Trading

By Kelly Yiu

Oil, Gold and the foreign currency exchange market are three different markets that are reliant on each other. If you are interested in Forex trading, knowing what one does may give you an insight where the other markets may be going. It would be greatly advantageous to become familiar with those different markets as a trader and have some Forex education.

Let's have a look at those separate markets and how they are all interconnected.

GOLD

There is an inverse correlation for markets such as gold or oil that are priced in U.S. dollars in the commodities markets. When the U.S. dollar declines, not only do foreign currencies increase in value, but gold prices also rise. Studies have shown a negative correlation between gold and the dollar that is, they almost never move in in-step, but almost always move in opposite directions.

The value of EUR/USD versus gold, on the other hand, shows a very high positive correlation, this means that the value of the euro and gold prices often go hand-in-hand, suggesting these markets are both beneficiaries when funds are flowing away from the U.S. dollar.

Gold prices may be considered as an important component in looking at the forex market. A trend change in gold price may give a good clue to where the US dollar may be heading in the foreign exchange market.

OIL

A rise in crude prices directly relates to a weakness in the US. Foreign oil producers view the increase in oil prices as a way to maintain their purchasing power in U.S. dollar terms. Forex brokers will tell you to counter the impact of higher oil prices a weaker dollar could ultimately give rise to inflation.

Oil is a key commodity causing global economic growth, and oil prices and the foreign exchange have a key relationship in the global market.

Now lets have a look at the impact an increase in the oil price may have on the different major trading currencies around the world.

Japan: Economy suffers as it relies on imports for most of its energy needs, therefore the Yen weakens.

UK: Benefit the economy as UK produces oil. British pound strengthens.

Oil in world business has a heavy impact on the Forex market. Thus any disturbance in supply is likely to affect the foreign exchange market.

Some of these factors may be terrorist attacks, natural disasters and wars. In such times a shift from the dollar to the euro as the designated currency in crude oil could occur thus causing an immediate decline in the value of the U.S. dollar.

Gold and oil are not the only commodities affected by changes in forex rates. Exports of agricultural produce account for a large share of U.S. domestic income.

When the value of the dollar rises, it tends to limit buying interest from an importing nation as the commodity becomes too expensive in terms of that nation's domestic currency.

When the value of the dollar declines, it reduces the price to an importing nation in terms of its currency and encourages it to buy more U.S. agricultural products. The influence that one market has on another market naturally shifts over time so these relationships are not static but should be the subject of ongoing study.

You as a Forex trader should be aware of the influence that those different markets have on the Forex. Though the changes may not be instantaneous, it may however give you an insight on any possible trend changes in the near future. Happy trading. - 23196

About the Author:

For more forex trading information and forex eduction, visit http://www.forex-trading-domain.com/ BSFT220409

Getting The Best Google Stock Price

By Anne Durrell

Google stock price started out at an initial public offering of just $85 per share in August of 2004. At the time analysts debated whether or not the company was worth it.

Google value was intellectual property instead of real property, and that time the market was not ready to the idea how online companies can be so on demand and valuable.

Well in hindsight there was certainly no reason for debate as five years later, the Google stock price is five times its initial value and the company as a whole has a market value of $175 billion dollars.

Can you imagine, google stock price rose to over $100 in the first day and even doubled within 3 months and that is absolutely impressive.

Analysts still debate the value of the company but it is more a matter of how much more it will grow and how quickly.

Though the early growth of the company was unsustainable and unrealistic, but over the past few years their stocks has settled into a traditional pattern growth, but with the exception of the recession which has been detrimental the entire marketplace and tech sector.

No stock comes with a guarantee, but investors have shown that they are confident that Google is a solid, reliable company that is not likely to significantly lose value, at least not relative to the market as a whole.

The up to date Google stock price can be found at any time by searching using the company's exchange symbol "GOOG."

It is also important to note that there are two types of Google stock, Preferred and Common. Preferred stock prices are traditionally higher because these stock holders are paid dividends before dividends are distributed to all the common stock holders. Both types have voting rights. - 23196

About the Author:

Anne Durrell has written many articles about online trading . She comes from USA. We suggest you check out her other guide on forex trading training tips, and stock trading account guide!

Trade Exotic Currency Options

By Ahmad Hassam

Currency Options are used by companies as risk management tools. What are Options? Simply stated, it is a contract that gives the buyer the right but not the obligation to buy an underlying asset under specific conditions on payment of a premium.

The buyer may or may not exercise the right. However, if the buyer of an options contract exercises his/her right, the seller is obligated to perform.

In every foreign exchange transaction, one currency is purchased and another is sold. Consequently, every currency option is both a call and a put. A call conveys the right to buy the underlying currency. A put gives the buyer the right to sell.

Why options are important as a risk management tool. Suppose a Japanese company is going to make the payment for its import of raw materials in 3 months time in USD.

The Japanese company can stay unhedged and purchase US Dollar in prevailing spot rate in three months time. On the other hand, it can hedge by buying USD forwards or it can use an options strategy.

One of the strategies available to the Japanese company is to buy JPY put/USD call option. The effect of buying the JPY put option is to put a ceiling on the cost of imports in case JPY depreciates. The exporter limits the cost to a maximum while not limiting the minimum. Now lets discuss five exotic options that you can trade to make profits under different market conditions.

Digital options are simple and inexpensive. If you believe the EUR/USD rate is going to be above 1.0900 after two months, buy a digital option if you are not sure when this will happen. If after two months, the EUR.USD rate is indeed above 1.0900, you can earn your predetermined payoff. If not, your digital option will expire with a loss of a small premium.

One Touch Options are perfect for those currency traders who believe that there will be a retracement and the price of a given currency pair will test a support/resistance level with a false breakout. The one touch options will pay a profit if the market touches the predetermined barrier level.

A No Touch Option is a great way that you can use to profit from a trending market. The no touch option pays a profit if the market never touches the barrier level that you choose. All you need to do is to determine the desired payoff, the currency pair that you want to trade, the barrier price and the expiration date of the option.

A Double No Touch Option is perfect for you if you have the successful record of identifying and profiting from breakouts but always lose money when the market is ranging. On the other side, you can use a Double One Touch Option if you know how to pick the tops and bottoms in a ranging market but have always lost in a breakout market. - 23196

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

The Right Forex Trading Course Can Make You Forex-Savvy

By Bart Icles

If you have your heart set in making a living in the forex market, you should be armed with all the knowledge about forex trading. You will be able to learnt he basics and more when you take advantage of a forex trading course. Enrolling in one, may it be online or not, will make tons of difference once you get involved in the forex market.

A good forex trading course will:

1. Be able to teach you what you need to know about forex trading - how it all started, what the characteristics of the forex market is, the different forex trading jargons, how to compute for losses or gains, etc.

2. Be able to equip you with a workable strategy along with a structure that is easy for you to follow or track.

3. Provide an area for advancement of your forex trading skills by providing you with different options for forex trading strategies.

4. Be able to present to you the whole forex market and forex trading scenario in an easy to follow manner, making everything simple and to the point. This way, you would not have to struggle to understand and just simply be able to absorb what you need to absorb.

5. Be able to give you the confidence to trade since the knowledge that it will inculcate in you will put you a step ahead of forex traders who have not undergone a forex trading course.

6. Allow you to develop techniques and strategies that will pave the way to your forex trading success by teaching you when to call stops, how to read forex signals - basically how to weigh the pros and cons of all the shots you will be calling during forex trading.

7. Teach you how to open a demo account so that you will get a feel of how it goes with forex trading. It will also teach you how to set up the software/s needed for you to be able to play with your forex trading cards.

8. Inculcate in you the discipline that you need to acquire to be able to not lose too much when you're on the losing end.

9. Teach you how to spot a forex trading scam by letting you know what the real picture is. Too good to be true offers should usually be avoided.

The most important thing to consider in a forex trading course is that it should be simple, clear-cut, and to the point. This way, you are assured that you will be able to get equipped with everything that you need to know before you get your feet wet in forex trading. - 23196

About the Author:

A forex online system trading is powerful when coupled with a desire to learn and a drive to become a great trader. Learning an automated forex trading system takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.