Wednesday, October 14, 2009
Tuesday, August 4, 2009
DEFINATION OF FOREX
Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another. Speculators in the FX market wish to purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the investor, whether from market news or events that take place in the world.
Saturday, August 1, 2009
BID and ASK Prices
When trading forex you will often see a two-sided quote, consisting of a ’bid’ and ’ask’. The ’bid’ is the price at which you can sell the base currency (at the same time buying the counter currency). The ’ask’ is the price at which you can buy the base currency (at the same time selling the counter currency).
Commission-free, but with spreads
Most Forex brokers offer commission-free Forex trading. Spread - The difference between the bid and ask price of a currency. Normally 3-5 pips on the Majors
Commission-free, but with spreads
Most Forex brokers offer commission-free Forex trading. Spread - The difference between the bid and ask price of a currency. Normally 3-5 pips on the Majors
Forex trading basics
The Foreign Exchange market (also referred to as the Forex, FX market, “Cash” Forex or Spot Forex market ) is the largest financial market in the world, with more than $1.5 trillion changing hands every day — 30 times larger than the combined volume of all U.S. equity markets. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Forex Trading: The Perfect Forex Trading System
Trading the Forex market has become very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only about 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.
Perfect Forex Trading System
Most Forex trading systems are made off technical indicators. But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover made the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Perfect Forex Trading System
Most Forex trading systems are made off technical indicators. But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover made the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Why Trade Forex with ForexGen
As you probably know, choosing an online broker is the first challenge youare faced with when considering trading forex online. Well, you've come to theright place! With ForexGen, you can rest assured; you are in the best of hands!There are many reasons why trade forex with ForexGen. One ofthem is that we are always ahead of the competition by constantly adding newproducts and upgrading our online trading platform for better performance andease of use. Very few forex brokers offer the level of reliability andprofessionalism that characterize ForexGen. In fact, no other forex broker willattend to you like we do. It is important for us that you feel comfortabletrading forex and other financial products on our system and that you feel youcan trust us: that's why our business practices are based on values such asexcellence, reliability and proficiency. Those ForexGenValues are at the core of our company's identity.
When you start trading with ForexGen, you won't want to trade anywhere else.And this is because we offer products and service of the highest quality in asecure and user-friendly environment.
When you start trading with ForexGen, you won't want to trade anywhere else.And this is because we offer products and service of the highest quality in asecure and user-friendly environment.
RISKS IN FOREX
As there is increased profit potential, there is alsoincreased loss potential. If you are not careful, your entire margin accountcould quickly be wiped out. If your margin account is 1% and the currency movesjust one cent against you, you lose $1000.
FOREX trading, however, has several methods to limit loss.Stop loss orders automatically close your position if the value of the currencycrosses a pre-determined point. Stop loss orders allow you to limit your lossesto a specified amount while still allowing potential profit taking.
An often overlooked risk is the possibility that your brokermay close your position if your potential losses approach the balance of yourmargin account. You may be riding out a down trend with the expectations of amarket reversal, but unless you replenish your margin account you may find yourposition has been closed. If this happens, you lose all of your margin.
FOREX trading, however, has several methods to limit loss.Stop loss orders automatically close your position if the value of the currencycrosses a pre-determined point. Stop loss orders allow you to limit your lossesto a specified amount while still allowing potential profit taking.
An often overlooked risk is the possibility that your brokermay close your position if your potential losses approach the balance of yourmargin account. You may be riding out a down trend with the expectations of amarket reversal, but unless you replenish your margin account you may find yourposition has been closed. If this happens, you lose all of your margin.
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