Tag: "Forex Education"

What is Currency Trading?

Ever wonder… “What is Currency Trading?” Currency Trading is the act of buying and selling (trading) different currencies of the world. The Foreign Exchange (or Forex) is the market that allows you to trade currencies in volume. A currency trader – whether bank, corporation, or individual – must be well acquainted and skilled in the ways of the Forex market, monitoring and acting on the subtle changes that indicate the potential for profit. A typical scenario might go something like this: A trader is looking at the British pound (GBP) and U.S. dollar (USD). This is called a Currency Pair. The GBP is the base currency, and the USD is the secondary currency. News that the value of the GBP is up from previous reports creates a positive reaction and a spike in the value of the GBP. This, in turn, will cause a rally on the GBP/USD currency pair. However, if the opposite occurred, and a positive announcement for the USD was reported, then the GBP/USD currency pair would fall, or dip. Either scenario can offer up a profit, […]

Anatomy of a Forex Trader

For the new trader, it’s all too easy to get confused by the information that’s flying across the computer screen. Understanding what goes on during an average foreign exchange trade (also called a forex trade) will provide a number of insights. Long before the trader clicks on the button to buy or sell, there is a lot that takes place behind the scenes. Step 1 – The Set Up Before the trade, everything must be in place. The trader has opened an account for trading the forex and deposited an amount of money. He or she has installed a forex trading platform on the computer that the trader controls and manipulates where and when to place specially allocated forex funds. The trader has done enough research to know whether they want to buy or sell a particular currency. And, lastly, the trader has received the cue to make the trade via forex signal or has decided to make a trade independent of a signal. Step 2 – The Position The next step in this process is the entry into a position. […]

What is Forex?

The world runs on money. The global economy – and our very way of living – depends on the act of money changing hands. Not just in our country, but all over the world. The value of money in one country is largely based on the value of money in other countries. Forex is a term that refers to foreign exchange, which is the market of trading one country’s currency for another. When you’re in another country, trading your country’s currency for the currency of the country you are visiting is what the forex market is all about. In order to trade your U.S. dollars for another, for example – the Japanese yen, the foreign exchange rate between the two countries must be established. Forex history begins long after the establishment of coins as a method of purchasing items. Often, trade outside of a country still relied on bartering, because the value of one currency was not always agreed upon by another country. Paper money in the form of IOUs was printed against the value of metals, such as gold, in the middle […]

Why the Forex?

Money Trader? Every successful trader needs a great set of tools to help them make money when trading the markets.  The tools that we offer MTI can be used effectively to trade and make money in any market. As you have heard it said, “A chart is a chart is a chart.” If you will take the time to look around our site and take us up on our free trial offer to our services, you will soon see the value of the knowledge that we are willing to share with you. More Bang for Your Trading Dollar! You may ask yourself, “Why would I want to trade the FOREX?” … The answer is simple, it’s called “leverage”. Frankly, no market can provide you the leverage that the FOReign EXchange or FOREX can. You can effectively use US$1000 to control US$100,000. No secret formulas, no smoke and mirrors, and no Indian chants, just a sound application of technical analysis coupled with a logical money management strategy. We can’t guarantee that every trade will be a winner and you wouldn’t believe us […]

Forex 101

Introduction to the Forex The purpose of trading on any market is to buy low and sell high. The foreign currency market (FOREX) is no exception. The goods traded on this market are rates of currencies of different countries. As any other goods, the currencies have their prices. To settle transactions between businesses located in different countries, governments, speculative transactions, and so forth, banks around the world execute currency trades on the FOREX market. Depending on various trade, economical and other parameters, interest rates, central bank policies, time of the day, preferences and anticipations of the market players, and many other causes, the rates, that is prices, of currencies stay in ceaseless motion. Your task as a trader is to determine the trend of the rate and buy an appreciating currency or sell a depreciating one, and then take your profits through execution of a reverse transaction. Our dealing center gives you the opportunity to use software to obtain real time currency quotations from different banks and largest world exchanges participating in the FOREX market. At the same time, the […]

Forex Tips and Tricks for Beginners

Stepping onto the forex arena for the first time might feel a bit daunting, but keep these currency trading tips in mind and you’ll soon find yourself running with the pack. Casinos are for gamblers. The forex markets are for traders who are interested in the investment, not the big win. Study and analysis will prove a far better ally than long odds or luck. Practice makes perfect. Before you start throwing your money into an account, practice with one or more of a variety of demo accounts. This the most critical of all forex tips for the new trader. Get good at analyzing and actual trading before you start plunking down your own funds. Find a good broker. Do your homework and find a broker that fits your trading style and philosophy and offers the features and services you want. Don’t buck the trend. Trends mean that more of the same is up ahead. Keeping with a trend will help you continue to make a profit. Generally, when the trend is up, don’t sell; when the trend is down, don’t buy. […]

About The Foreign Currency Market

When discussing currency exchange rates, one must understand that it all starts with the price of one country’s currency opposed to another country’s currency. In other words, the exchange rate at which one currency can be exchanged for another. To shed some light on this potentially confusing subject, we can compare two popular currencies – the European Union’s euro (€) and the United States dollar ($). In 2006, the exchange rate of one U.S. dollar for one euro was about 0.84, which in turn, means that each dollar at that time was equal in value to 0.84 euros. The difference in the exchange rate between one euro in terms of one U.S. dollar is determined by a number of factors, a few of which are touched upon in this article. The currency market is the market in which traders are able to buy and sell currencies. This market is not centralized like the stock or futures markets, and is comprised of 4,500 world banks, companies, retail forex brokers, and individual investors in the private sector. The currency market is the largest financial market in the world, processing trillions […]

A Day in the Life of a Forex Trader

So, what does a forex trader do every day? A typical day for a successful forex trader is one of routines and schedules. Forex is all about analyzing and studying market conditions before making the first trade. Studying the charts of the particular market (U.S., Asia or Europe) that the trader wishes to trade in is critical. Knowing which live forex chart belongs to which market calls for being extremely organized and methodical in the analysis. This is extremely important when staring at a chart for hours upon end – sometimes a trader will forget what currency or market he or she is analyzing and can lose focus. The trader will then monitor the particular currency pairs that are of interest. Currencies fluctuate constantly, so the trader will usually have tools at his or her disposal to assist in tracking the market. Forex rates are determined by the values of a particular currency pair and the pip spread that the broker sets for both entry and exit, so knowing the rate at which a trade is set is critical to watching the […]

Automated Forex Trading

In the world of trading in the forex market, there are several different strategies you can utilize to maximize your profit potential. One way to minimize your efforts and potentially maximize your profit is to automate the process by utilizing what is referred to as forex robots – automated forex trading systems that can virtually trade for you. Consider it something like a “forex autopilot” program. When in the market for a forex signal service, research each service carefully. A key feature to look for when researching an automated forex trading system is the adaptability factor. Several different companies (Forex Megadroid, Fap Turbo, IvyBot and others) offer automated forex robot systems. However, the problem with trading solely with automated trading systems is the ever-changing condition of the market. In other words, the market is always changing, and to have a system that performs the same functions repeatedly can create potential problems. Adapting to changing market conditions is the mark of a good system. An automated forex system that cannot adapt is only good as long as the market is within current […]

Charting your Course in the Forex

The old saying goes, “Fail to plan, plan to fail.” This holds especially true for trading the forex. There are a variety of forex trading tools to discover and research. The tools used by today’s smart trader can help you to understand and take advantage of the market much quicker and with less risk of capital than actual trading can ever accomplish. Trading the forex is all about percentages – the percentage that a particular trade will win or lose. When stepping into the world of the forex market, the new trader has several sources to choose from to get started. Using a forex trading guide is a great way to get started. Guides are available to provide a ‘leg up’ in learning the market and taking advantage of all the great financial benefits that come from it. Each differs in approach, from step-by-step guides that provide exact formulas to follow, to those that provide theory and examples to allow the new trader to learn at their own pace. Guides also provide forex reviews, so a trader can make decisions based on other […]