Forex Trading

You may wonder if what is Forex? Forex swap is a process whereby you can buy and sell currencies. For example, you may buy British pounds (US dollars Bembadlthm owned), and after that the rising dollar exchange rate of the pound you sell pounds and buy dollars again. At the end of this process you will get the largest number of dollars than you have in the beginning.

Forex market liquidity has currently more than they might find in the stock market. Forex Trading between banks spread across the globe, which means that trading continues on the four and twenty hours a day.

Unlike stock markets, the Forex trading is performed using a large leverage, usually equal to 100. Which means that an investment of $ 1,000 you can control the $ 100,000 and then increase the chances of achieving the potential profits. Some brokers also provide the so-called Forex mini accounts, which are no more than the minimum deposit by about $ 100. Which provides the opportunity for individuals to enter this market with ease.

In Forex, the term "code" refers to two parts - one for the initial currency and the other for the second currency. for example . Van usdjpy code consists of US dollars (usd) and Japanese Yen (jpy).

As is the case with the stock - you can apply technical analysis tools on the charts of the Forex. Rolling indicators can be configured for "symbols" Forex form that allows you to apply a successful trading strategy.

Example Forex transactions

Suppose you are trading with an account with a balance of $ 25,000 and margin requirements by 1%. If we assume that the current price of the euro dollar pair is 1.3225 / 28 and you you put a trading market is to buy one lot of 100,000 Euros at 1.3228, expecting that the rise in value of the euro against the US dollar. At the same time have you put a stop loss at 1.3178 command which represents the maximum loss that can be carried and which is equal in this case 2% of the account balance, in the event that the market took a reverse your expectations a track, and then the value of this potential loss would be 50 points Without the strike price and on the other side will develop to take profit at 1.3378 which is the highest point 150 Slippage. In this treatment, you run the risk by 50 points to earn 150 points, which means that the rate of return to risk in this trade a risky one part per three parts return. Which means in another you must believe your expectations once at least in every three times so keep trading the winner.

The nominal value of this transaction is $ 132.280 (100,000 at 1.3228). The proportion of the required margin is 1% of the total value of which is equal to $ 1,322.80 ($ 132.280 * 0.01).

If ratified your expectations and the euro rose against the dollar and reached price-to-stop order at 1.3378. The trading center is closed and then the total profit on this trade is $ 1,500, where each point is equal to $ 10.

Glossary Forex

 Here we will mention some of the most commonly used terms in Forex Trading.

The asking price - sometimes called at the offered price, a market in which traders can buy the currency by price. Ask prices are displayed in the right side of the display price - for example a pair of $ 1.1965 Euro / 68 - this means that one euro can be purchased using the US $ 1.1968.

Bar graph - is a type of charts used in technical analysis. Each time division on the chart is displayed in the form of a vertical bar displays the following information - the top of the tape refers to the highest bidder, the bottom of the tape refers to the minimum price, the horizontal line on the left of the bar opening price horizontal line to the right shows the tape shows the closing price.

The base currency - the first currency in a currency pair. Show Prices how much one unit of the base currency is equal to the second currency. For example, in the quote - the dollar yen 112.13 - this means that the US dollar is the base currency and shows where US $ 1 = 112.13 yen.

Bid price - is the price at which the trader can sell currencies Bay in his possession. Tender price appears in the left side of the display price - for example the euro to $ 1.1965 / 68 - this means that one euro can be sold for US $ 1.1965.

Asebred supply demand - represents the difference between the bid price and the ask price in any offer .alasebred price represents fees charged by forex broker is different from broker to another.

Mediator - is the mediator between the seller and the buyer. Most forex brokers be associated with major financial institutions and earn money by placing Asebred or difference between the demand and supply prices.

Chart candles - is the type of charts used in technical analysis. Each time division on the chart is displayed in the image-candle in the form of a vertical bar with a red or green stretches up and down the body of the candle. The top of the extension shows the highest price in the bottom of the extension shows the lowest price. Red candles indicate the level of the lowest close of the opening levels, with green candles indicate a rise in prices.

Currency crosses - is a pair that does not include the US dollar - for example EUR / GBP.

Currency pair - it is a two currencies are included in one forex transactions - for example Eurodollar.

Economic index - is a statistical report issued by governments or academic centers to introduce economic conditions in the country.

First Ward issued first (FIFO) - refers to the closure of trading orders on the basis of liquefaction commands that were opened first order.

The foreign exchange market exchange (forex) - is the market which is the sale of a currency in exchange for another currency sale at the same time.

Fundamental analysis - is to analyze the economic and political conditions that could affect the prices of currencies.

Margin or Leverage - is the ratio of the value of the transaction required to be deposited. Usual margin in Forex Trading is 1: 100 - you can sense that you are trading worth 100 times the amount of money you have deposited.

Limit orders - trading is buying or selling a particular currency is when you reach a certain price level.

Croaker - is the size of the treatment of Forex. The standard of lots equal to one hundred thousand US dollars.

Major currencies - the euro is the German mark, Swiss franc, British pound, Japanese yen.

Secondary currencies - for example the Canadian dollar and the Australian dollar and the New Zealand dollar is a secondary currency.

One cancels the other (OCO) - means putting traded at the same time with instructions to cancel second thing is if the implementation of the first order, the abolition of any one of them in the event of the implementation of the other thing.

Open position - is the active trading center or which has not been closed yet.

Bib or point - is the smallest unit of currency can trade them.

Currency displayed - is the second currency is one currency pairs. For example, in the euro dollar pair, the dollar is the currency displayed.

Extension - means the extension of the timing of the settlement of spot transactions to the current delivery time. Extension rate is calculated using swap points based on interest rate differentials.

Technical Analysis - is a historical market data analysis in order to predict future movements in the market.

The mark - is the minimum change in price.

Treatment - is the cost of the cost of treatment Forex - usually the Alasebred between demand and supply prices.

Volatility index - is a statistical measure indicating the direction of the sharp price movements in a certain time scale.

The advantages of trading in the Forex market

 Trading in the forex market has gained great popularity during the past years. If it may be question is why Leary traders from all over the world forex market as an opportunity for a good investment? Here we will try to answer this question through this article. Also we will discuss the differences between the forex and stock market and the futures market.

Some features of trading in the Forex market include:

High liquidity.

Liquidity is what really makes the Forex market different from other markets. Forex market to the far end is the most liquid on the level of the financial markets all over the world, where it is a trade value of $ 2 trillion on a daily basis. This ensures price stability and good execution of trades. It allows investors to open and close their transactions with ease. Also this stunning volume of trading volumes makes it almost impossible to be able to any individual or entity of market manipulation on a large scale.

The market operates 24 hours.

This is also one of the best advantages of trading in the Forex market is that it runs throughout the day. The market dealings opens on Sunday at 3:00 pm EST, the United States and that while open New Zealand stock exchange dealings, while closing on Friday, five pm EST, the United States and that while San Francisco close dealings. There are also transactions are almost in all time zones, which allows traders to choose the right time for them to trade.

Leverage.

Trading in the forex market gives enormous purchasing power than the greatest imaginable in any other markets. Some forex brokers offer leverage up to 1: 400 you retain any investment does not exceed 0.25% of the volume of trade margin. For example, the rolling crane which uses 100: 1 means that he could have opened the trading center of a hundred thousand dollars just by using the balance in his account does not exceed a thousand dollars.

Low cost of transactions.

Almost all forex brokers offer their services without charging any commission. The only cost borne by the trader in the forex trading is what is called Balasebred (and represents the difference between the purchase price and the selling price of any of the currency pairs) this Alasebred himself had no more than one point (the minimum teams in any pair of currency) in some couples.

Low minimum investment.

Forex market requires small size of the capital has no parallel in other financial markets. The amount of the initial investment may not exceed $ 300, depending on the lift provided by the financial intermediary that. And this is a great feature on the basis that Forex traders can reduce the risk of their investments to a minimum.

Specialized trade.

Market liquidity will allow us to concentrate on a limited number of trading financial assets (or currency pairs) as a target Chairman of the investments (85% of all trades made on seven major currencies pairs). It is what allows us to monitor until the end to get to know more closely on all assets.

Trading from anywhere.

If you travel a lot, you can be traded from anywhere in the world as soon as you have a connection to the internet.

Some of the most important differences Pepin Forex markets and other financial markets will be explained below.

Forex market versus the stock market

Liquidity

Forex market: daily trading volume approaching two trillion dollars.

The stock market: about $ 200 billion are traded on a daily basis.

Trading Hours

Forex Market: twenty-four hours a day, 5.5 days a week.

The stock market: Monday through Friday from 8 text EST until the fifth with the same time.

Potential or prospects for profit

Forex Market: You can make a profit in both directions either bullish or bearish market.

The stock market: most or most traders and investors earn only during the rise of the market.

Transaction costs

Forex market: without any transactions and using only Asebred prices limited.

The stock market: huge commissions and fees for transactions.

Purchasing power

Forex: Leverage up to 1: 400.

The stock market: leverage ranging from 1: 2 to 1: 4.

Specialization

Forex Market: most of the trades (85% are on the following major currencies (US dollar, euro, yen, pound, franc, Canadian dollar and Australian dollar.)

Stock Market: more than 40,000 shares to choose from among them.

Forex market vs. futures market

Liquidity

Forex market: daily trading volume approaching two trillion dollars.

Futures market: about $ 400 billion are traded on a daily basis.

Transaction costs

Forex market: without any transactions and using only Asebred prices limited.

Futures market: huge commissions and fees for transactions.

Margin

Forex market: a fixed rate to the sidelines with all trading orders.

Futures market: varying degrees of trade margins vary depending on the timing of trading where those that are available in the morning for its counterpart in afternoon trading vary.

Implementation of trades

Forex Market: immediate implementation of the orders of trading.

Futures market: implementation is inconsistent transactions.

All of these things have made the forex market an attractive place for investors and traders, although I would like to draw your attention to is important is that in spite of all the advantages of Forex Trading, it still enjoys a good reputation; Where it remains difficult to achieve one's valuable real success of this market, which a lot of education, discipline and commitment and also requires patience, just as is required in other markets.

Explosive profits: Seven Reasons To Forex Trading

Explosive profits: Seven Reasons To Forex Trading

 There are a large number of profit-making opportunities around us already that we tried a number of them, such as intellectual property rights Marketing and Web Development and secure residential buildings and multi-level marketing business and others.

We have come to a few conclusions with the help of a number of well-known coaches.

Usually, people who achieve entry dissatisfied with her do not have time to enjoy them, while those who have enough time usually do not have the money they want. You do not have to sacrifice all your life style in order to earn income above average. If focused on some useful ways for several months, you can turn this dream into reality and can reap money and provide time for it to do whatever you want.

To earn money for your living it must exchange by providing a good or service, which in turn must be sold repeatedly Otherwise, your income will stop abruptly what were not an Item or service request them frequently.

Money is a means of exchange. There are no magic formulas for having always you have to exchange something of value in exchange for it.

So what if you have access to thousands of customers who already have the intention and ability to buy from you whenever you want? Now this is great at avoiding any obstacles such as collecting money problems (I've recently suffered from delay one of my payments from my work on the Internet), it makes you able to satisfy customers who are usually difficult to satisfy them (we all know how this is), competition stealing your business without In an interview to give him the equivalent value and so on.

All of these things made possible. You can also traded from anywhere that you take your laptop device and looking for a connection to the internet and then away you go wherever you want.

Another advantage is that you do not need a great experience to start. With access to traditional function requires a large accumulated experience and carry a strong biography also you have to have the appropriate contacts. Forex Van appropriate training course will allow you to start immediately.

Here and seven other reasons for trading

1.la never closes. Forex depravity open around the clock all over the world. Trading orders can be opened starting from seven in the morning GMT New Zealand and I have to shut down in the fifth appointment pm New York time on Friday. During this period, you can enter and go out of the market whenever you want it represents a continuous electronic market for the exchange of foreign currency. This is great because you can trade from wherever you have free time.

2. Leverage. Croaker Alastandrd worth one hundred thousand dollars can be traded using capital does not exceed thousand dollars. This can be achieved because of the ease in buying and selling offered by some brokers who offer leverage up to 200 times that of the capital. In the sense that using a hundred dollars you can control the 200 000 unit of currency. This is the best picture of the use of capital so that the lending banks in the field of real estate investment does not come close to achieving this ideal.

3. accurately predicted results. Currency rates usually repeat themselves according to sharp price cycles predictable and then you can always see the direction of the trend. "Technical Analysis" will help you to see these trends and then make a profit from them.

4. low-cost transactions. In other words, your mistakes will cost you a fortune in the forex market the good brokers will not get you commissions for trading or to open an account even if the account is trading microcosm in which small amounts of money.

5. unlimited possibility to make a profit. Forex trading market in which nearly 1.5 trillion dollars on a daily basis and then it is the largest financial market in the world it dwarfs the value of stock markets ($ 50 billion a day) and futures markets ($ 30 billion)

6. You can make a profit under any circumstances experienced by the market. The market is nothing more than simply trading one currency for another currency, so it while you buy a currency, you sell the other currency at the same time. And therefore there is the possibility to profit whether the currency has moved up or down. This means that it is up to you to choose the currency you want to buy or sell, as well as the possibility of making a profit, whether in the event of the ups or downs.

7. market transparency. This is one of the best features that can be found in any work environment or the area of ​​trade. That means you can risk management and implementation of trading orders within seconds as longer enough to Tjnepk any unexpected surprises.

I hope to be able to convince you that forex is the best investment types and that the best opportunity to make a profit is something not too far away from you.