The Forex Currency Pairs
Major Forex Currency Pairs
Foreign Exchange trading is in general the trading of many currencies of the world. It is emerging as the largest and least regulated market providing the greatest liquidity to investors.
This trading is always done in pairs – Currency Pairs, one currency is bought and the other is sold. Together, they make up what is known as the "exchange rate".
For example, you may buy Euros with Dollars, anticipating that the Euro to increase in value relative to the Dollar. If the Euro rises relative to the Dollar, you sell the position and can earn a profit.
Most commonly traded currencies or the “majors” are:
US Dollar (USD)
Japanese Yen (JPY)
Euro (EUR)
British Pound (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Most commonly traded currency pairs are:
US Dollar and the Japanese Yen (USD/JPY)
Euro and US Dollar (EUR/USD)
US Dollar and Swiss franc (USD/CHF)
British Pound and US Dollar (GBP/USD)
While quoting currency pairs, the first currency is referred to as the base currency and the second as the counter or quote currency. The base currency is always equal to 1 monetary unit of exchange, for example, 1 Dollar, 1 Pound, 1 Euro.
Tuesday, June 16, 2009
Trading Forex Currency Pairs for Maximum Profit
Trading Forex Currency Pairs for Maximum Profit
It is also known as domestic currency or accounting currency and sometimes also referred to as the primary currency of a Forex currency pair. The price represents how much of the quote currency is needed to get one unit of the base currency.
When a currency is quoted against US Dollar, it is known as direct rate. Any currency not against the US Dollar is called a cross rate.
The quote currency is translated into a certain number of units of the base currency. This is also referred to as the foreign currency, secondary currency or counter currency. For example, if you find that a quote of USD/JPY is at 1.30, it says that for every 1 US Dollar, you get 1.30 Japanese Yen. When you quote for AUD/JPY of 67.73, it says that for every 1 Australian Dollar, you get 67.73 Japanese Yen.
Currency pairs are generally traded as 100,000 units of the base currency. For example, if you were buying EUR/USD at 0.95 you would be paying Dollars for Euros as follows:
100,000 x .95 = $95,000 for 100,000 Euros
When you find a quote going up, it means that the value of the base currency is rising or in other words, it is getting stronger. If a quote is going down, it means that the base currency is weakening.
The dominant base currencies are:
Euro - EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD
British Pound - GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD
US Dollar - USD/CAD, USD/JPY, USD/CHF
The currency pairs are usually traded and quoted with a ‘bid’ and ‘ask’ price. The ‘bid’ is the price at which you are willing to buy and the ‘ask’ is the price at which price you are willing to sell.
For example, if the USD/EUR currency pair is quoted as - USD/EUR = 1.5 and you purchase the pair, this means that for every 1.5 euros that you sell, you get US$1. If you sold the currency pair, you receive 1.5 euros for every US$1 you sell.
The key to successful trading lies in selecting one or two pairs of currencies that you wish to trade in as a beginner. As you gain confidence, you may wish to add more pairs in your trading portfolio. But for a new trader or investor it is always advised to have limited pair just to ensure simplicity.
It is also known as domestic currency or accounting currency and sometimes also referred to as the primary currency of a Forex currency pair. The price represents how much of the quote currency is needed to get one unit of the base currency.
When a currency is quoted against US Dollar, it is known as direct rate. Any currency not against the US Dollar is called a cross rate.
The quote currency is translated into a certain number of units of the base currency. This is also referred to as the foreign currency, secondary currency or counter currency. For example, if you find that a quote of USD/JPY is at 1.30, it says that for every 1 US Dollar, you get 1.30 Japanese Yen. When you quote for AUD/JPY of 67.73, it says that for every 1 Australian Dollar, you get 67.73 Japanese Yen.
Currency pairs are generally traded as 100,000 units of the base currency. For example, if you were buying EUR/USD at 0.95 you would be paying Dollars for Euros as follows:
100,000 x .95 = $95,000 for 100,000 Euros
When you find a quote going up, it means that the value of the base currency is rising or in other words, it is getting stronger. If a quote is going down, it means that the base currency is weakening.
The dominant base currencies are:
Euro - EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD
British Pound - GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD
US Dollar - USD/CAD, USD/JPY, USD/CHF
The currency pairs are usually traded and quoted with a ‘bid’ and ‘ask’ price. The ‘bid’ is the price at which you are willing to buy and the ‘ask’ is the price at which price you are willing to sell.
For example, if the USD/EUR currency pair is quoted as - USD/EUR = 1.5 and you purchase the pair, this means that for every 1.5 euros that you sell, you get US$1. If you sold the currency pair, you receive 1.5 euros for every US$1 you sell.
The key to successful trading lies in selecting one or two pairs of currencies that you wish to trade in as a beginner. As you gain confidence, you may wish to add more pairs in your trading portfolio. But for a new trader or investor it is always advised to have limited pair just to ensure simplicity.
Forex Market Terminology - Understanding The Basics
Forex Market Terminology - Understanding The Basics
Achieve Instant Forex IncomeWhen you first start trading the Forex market you can become overwhelmed with the amount of information there is to consume.
One of the hardest parts for a new trader is learning the lingo. Some of the terms used in currency exchange are self-explanatory, whereas others are not. In this section I provide brief definitions of some of the most common Forex trading terms.
Spot Deal
A deal taking part between two parties who can deliver a certain amount of different currencies to each other within 2 business days of each other (excluding Canadian dollar where the trade is executed within 1 business day)
Market Order
This is the execution you make when deciding to buy a currency. In other words you see a currency exchange rate quote on screen and you place a ‘market order’ when you click the button to execute the trade.
Entry Orders
This is basically and advance order, you decide at what price you want to buy or sell a currency and you place an ‘entry order’. As soon as the currencies reaches this rate your trade is executed.
Stop-Loss Order
This is a function offered by some brokers which is aimed at reducing your risk, you can decide the maximum and minimum amount of profit or loss you want to exit a trade at. In other words if you decide you are happy to make $1,000 from one trade but don’t want to lose anymore than $1,000 should the trade go the other way you can place this safety net on your trade.
Bid
This is the currency rate that you wish to buy or sell at.
Offer
This is the currency rate you will actually get when buying or selling
Free Forex NewsletterSpread
The difference between the bid and offer rates
Pip
This is the last decimal of the exchange rate with the exception of the Japanese Yen where it is the second decimal.
Lot
The amount of units of the base currency when you enter the market.
Margin
The minimum amount of money you need for each lot to trade, for example the margin may be 1 lot for $100 and therefore you would need $300 in your account to trade 3 lots.
Trend
The direction the market is currently moving in.
Long Position
This is used to describe a market in a long-term buy trend
Short Position
This is used to describe a market in a short-term sell trend
Achieve Instant Forex IncomeWhen you first start trading the Forex market you can become overwhelmed with the amount of information there is to consume.
One of the hardest parts for a new trader is learning the lingo. Some of the terms used in currency exchange are self-explanatory, whereas others are not. In this section I provide brief definitions of some of the most common Forex trading terms.
Spot Deal
A deal taking part between two parties who can deliver a certain amount of different currencies to each other within 2 business days of each other (excluding Canadian dollar where the trade is executed within 1 business day)
Market Order
This is the execution you make when deciding to buy a currency. In other words you see a currency exchange rate quote on screen and you place a ‘market order’ when you click the button to execute the trade.
Entry Orders
This is basically and advance order, you decide at what price you want to buy or sell a currency and you place an ‘entry order’. As soon as the currencies reaches this rate your trade is executed.
Stop-Loss Order
This is a function offered by some brokers which is aimed at reducing your risk, you can decide the maximum and minimum amount of profit or loss you want to exit a trade at. In other words if you decide you are happy to make $1,000 from one trade but don’t want to lose anymore than $1,000 should the trade go the other way you can place this safety net on your trade.
Bid
This is the currency rate that you wish to buy or sell at.
Offer
This is the currency rate you will actually get when buying or selling
Free Forex NewsletterSpread
The difference between the bid and offer rates
Pip
This is the last decimal of the exchange rate with the exception of the Japanese Yen where it is the second decimal.
Lot
The amount of units of the base currency when you enter the market.
Margin
The minimum amount of money you need for each lot to trade, for example the margin may be 1 lot for $100 and therefore you would need $300 in your account to trade 3 lots.
Trend
The direction the market is currently moving in.
Long Position
This is used to describe a market in a long-term buy trend
Short Position
This is used to describe a market in a short-term sell trend
How to Make Money by Forex Trading
How to Make Money by Forex Trading
Achieve Instant Forex IncomeAcheiving an income from Forex trading is said to be easy by some yet almost impossible by others. Why such a difference in opinion? Surely it is one thing or the other and not both?
Well, truth be told it is both easy and very difficult to make money by Forex trading. Lets look at an example:
Mr A and Mr B are both new to the Forex market and both have equal experiences of trading other markets. They are both equal when it comes to the amount of money the have to invest in Forex and their personal situations.
Mr A likes to rush in to things, he rarely sits back and weighs up his actions, he likes to see instant results and will do anything to get them. Mr B on the other hand is much more logical, he likes to plan things out and will always research as much as possible before making a firm decision.
Which one do you think is the better trader? If you haven't already guessed it's Mr B. Knowledge is the key in this market and Mr B's advantage is that he sits back and sees the whole picture. He knows that by rushing in to decisions that Mr A is being a fundamental error.
Mr A cannot get his head around Forex and has blown his starting capital within a few short weeks, he says that it is impossible to make money trading Forex, Mr B disagrees and has the bank balance to prove it.
Achieve Instant Forex IncomeAcheiving an income from Forex trading is said to be easy by some yet almost impossible by others. Why such a difference in opinion? Surely it is one thing or the other and not both?
Well, truth be told it is both easy and very difficult to make money by Forex trading. Lets look at an example:
Mr A and Mr B are both new to the Forex market and both have equal experiences of trading other markets. They are both equal when it comes to the amount of money the have to invest in Forex and their personal situations.
Mr A likes to rush in to things, he rarely sits back and weighs up his actions, he likes to see instant results and will do anything to get them. Mr B on the other hand is much more logical, he likes to plan things out and will always research as much as possible before making a firm decision.
Which one do you think is the better trader? If you haven't already guessed it's Mr B. Knowledge is the key in this market and Mr B's advantage is that he sits back and sees the whole picture. He knows that by rushing in to decisions that Mr A is being a fundamental error.
Mr A cannot get his head around Forex and has blown his starting capital within a few short weeks, he says that it is impossible to make money trading Forex, Mr B disagrees and has the bank balance to prove it.
Slow and Steady Wins the Forex Race
Slow and Steady Wins the Forex Race
This may just sound like a nice little anecdote but the fact is, this is not far from a real life situation I encountered when two good friends of mine decided to follow my lead and start trading currencies online.
The fact is that all professional and profitable Forex traders take time to fully understand the market before investing their hard earned cash. You can make money by trading Forex but you have to be prepared to learn and wait for your chance.
Ease yourself in easily, the first few weeks of your trading should be made up with about 75% of your time dedicated to reading and educating yourself, the remaining 25% should be invested in to practicing trading on a demo account. At this point you should not be risking your own money.
This website is here to help you for those first few weeks, if you take your time to read every page on the navigation to the left then you will be a better a trader for it. The Instant Forex Income website that these links lead to will help to educate and inform you so that when you do start trading with real money you will see much quicker, much more instant Forex profits.
Thank you for visiting us, please do carry on reading as only more profit will come of it!
Good luck!
This may just sound like a nice little anecdote but the fact is, this is not far from a real life situation I encountered when two good friends of mine decided to follow my lead and start trading currencies online.
The fact is that all professional and profitable Forex traders take time to fully understand the market before investing their hard earned cash. You can make money by trading Forex but you have to be prepared to learn and wait for your chance.
Ease yourself in easily, the first few weeks of your trading should be made up with about 75% of your time dedicated to reading and educating yourself, the remaining 25% should be invested in to practicing trading on a demo account. At this point you should not be risking your own money.
This website is here to help you for those first few weeks, if you take your time to read every page on the navigation to the left then you will be a better a trader for it. The Instant Forex Income website that these links lead to will help to educate and inform you so that when you do start trading with real money you will see much quicker, much more instant Forex profits.
Thank you for visiting us, please do carry on reading as only more profit will come of it!
Good luck!
Monday, June 15, 2009
Forex Demo Accounts - Are They Useful For Novice Traders?
Forex Demo Accounts - Are They Useful For Novice Traders?
A lot is made in forex trading about using a demo account but they won't help you win when it comes to real time trading even if you have made a profit - Why? The reason is obvious...
No money is at risk therefore emotion is absent.
Trading is an emotional game and it's emotions that make traders lose - so if there not there when you trade, you don't know what their impact would be.
A demo account is only good for learning the mechanics of trading.
A new service being offered, helps traders experience emotions, while only risking a small amount of cash and lets them trade even - if they lose and go debit!
This allows them to trade in a set period as much as they want with limited risk then at the end of the period:
The broker takes the losses and the client takes any profits.
The period is normally a couple of weeks.
Traders get a real time trading experience, with lots of trades and the experience of money on the line but they also get - strictly limited risk.
These accounts provide a more authentic experience and a more exciting one, as money is on the line.
These protected accounts are good at giving you the feel of what trading money is actually like and how you cope with your emotions.
Lets face it all traders are impacted by emotion to varying degrees and discipline is the most important variable in forex trading success.
The equation for market success is:
Your Method + Executed with Discipline = Forex Success
If you don't have discipline to execute your method you won't win, because you won't have a method at all, unless your trading signals are executed properly!
A demo account will help you get used to the trading platform - but these protected accounts, will let you feel the emotional side of trading.
Many traders think they can cope with their emotions and then get a nasty shock when they trade for real.
These accounts offer you a step up from a demo account before you trade properly and are a useful exercise for any new trader
A lot is made in forex trading about using a demo account but they won't help you win when it comes to real time trading even if you have made a profit - Why? The reason is obvious...
No money is at risk therefore emotion is absent.
Trading is an emotional game and it's emotions that make traders lose - so if there not there when you trade, you don't know what their impact would be.
A demo account is only good for learning the mechanics of trading.
A new service being offered, helps traders experience emotions, while only risking a small amount of cash and lets them trade even - if they lose and go debit!
This allows them to trade in a set period as much as they want with limited risk then at the end of the period:
The broker takes the losses and the client takes any profits.
The period is normally a couple of weeks.
Traders get a real time trading experience, with lots of trades and the experience of money on the line but they also get - strictly limited risk.
These accounts provide a more authentic experience and a more exciting one, as money is on the line.
These protected accounts are good at giving you the feel of what trading money is actually like and how you cope with your emotions.
Lets face it all traders are impacted by emotion to varying degrees and discipline is the most important variable in forex trading success.
The equation for market success is:
Your Method + Executed with Discipline = Forex Success
If you don't have discipline to execute your method you won't win, because you won't have a method at all, unless your trading signals are executed properly!
A demo account will help you get used to the trading platform - but these protected accounts, will let you feel the emotional side of trading.
Many traders think they can cope with their emotions and then get a nasty shock when they trade for real.
These accounts offer you a step up from a demo account before you trade properly and are a useful exercise for any new trader
Learn Forex Trading Online Tips
Learn Forex Trading Online Tips
Forex trading, often called "FX," is the practice of trading currencies for profit. A forex trader buys one currency and simultaneously sells another, hoping to realize a profit from any variance in valuation between the two currencies. Because currencies are the largest market in the world, there are many opportunities to profit. So, how do you learn to trade currencies? Fortunately, there are many excellent free resources that can help you learn forex trading online.
Learning To Trade Currencies Online
In the past, if you wanted to trade currencies, you were forced to buy expensive courses, attend high-priced seminars that often required traveling to other states and purchasing cost-prohibitive computer programs that allowed you to tap into the trading activities of more experienced traders.
Today, all of that has changed. You can learn forex trading from the comfort of your home without spending outrageous amounts of money on courses and seminars. There are several resources online that will not only teach you the fundamentals of trading currencies, but will share basic, intermediate and advanced strategies of trading while showing graphical examples of such strategies to ensure clarity. Further, this information is often offered free.
Watching Other Forex Traders
Many websites that offer free tips and even entire courses on forex trading principles and techniques are run by experienced currency traders. These are men and women who often have years of trading experience and can offer their insights regarding the best forex trading techniques to use in various markets. Some of these experienced traders even conduct free online workshops which allow you to virtually look over their shoulder and watch as they trade in particular markets. Watching these advanced traders is one of the best ways to learn real trading techniques that work in today's currency markets.
Preparing To Trade Currencies Live
Learning in a classroom setting is not the same as conducting live trades. Once you learn the basics of forex trading strategy, you should prepare to do a few live trades. After watching over the shoulders of experienced traders, you should have a good feel of what to expect. Part of learning how to trade currencies involves knowing what signals to watch for in your particular market and staying on top of those signals. If you know these things, you are likely ready to trade forex live.
How To Get Started Trading Forex Online
You only need a few things to begin conducting live currency trades. First, you obviously need a computer with access to the Internet. Second, you need access to an information source that can provide you with real-time signals so you can keep on top of your market. Third, you need a small amount of cash to begin trading. Lastly, you need calm nerves. Though forex trading is potentially very profitable, some people do lose money.
Once you have decided to learn forex trading online, you need to begin learning the basic strategies of trading currencies. After you have mastered the basics, begin learning some of the advanced techniques of forex trading. You can often access this type of information for free online along with clear examples that will help you understand the currency markets. Remember, although there is a high potential for profit, there are significant risks to trading currencies.
Try to learn from the best traders in the world by attending online forex trading workshops. After doing the above, you will likely be ready to start making your first few trades live.
Forex trading, often called "FX," is the practice of trading currencies for profit. A forex trader buys one currency and simultaneously sells another, hoping to realize a profit from any variance in valuation between the two currencies. Because currencies are the largest market in the world, there are many opportunities to profit. So, how do you learn to trade currencies? Fortunately, there are many excellent free resources that can help you learn forex trading online.
Learning To Trade Currencies Online
In the past, if you wanted to trade currencies, you were forced to buy expensive courses, attend high-priced seminars that often required traveling to other states and purchasing cost-prohibitive computer programs that allowed you to tap into the trading activities of more experienced traders.
Today, all of that has changed. You can learn forex trading from the comfort of your home without spending outrageous amounts of money on courses and seminars. There are several resources online that will not only teach you the fundamentals of trading currencies, but will share basic, intermediate and advanced strategies of trading while showing graphical examples of such strategies to ensure clarity. Further, this information is often offered free.
Watching Other Forex Traders
Many websites that offer free tips and even entire courses on forex trading principles and techniques are run by experienced currency traders. These are men and women who often have years of trading experience and can offer their insights regarding the best forex trading techniques to use in various markets. Some of these experienced traders even conduct free online workshops which allow you to virtually look over their shoulder and watch as they trade in particular markets. Watching these advanced traders is one of the best ways to learn real trading techniques that work in today's currency markets.
Preparing To Trade Currencies Live
Learning in a classroom setting is not the same as conducting live trades. Once you learn the basics of forex trading strategy, you should prepare to do a few live trades. After watching over the shoulders of experienced traders, you should have a good feel of what to expect. Part of learning how to trade currencies involves knowing what signals to watch for in your particular market and staying on top of those signals. If you know these things, you are likely ready to trade forex live.
How To Get Started Trading Forex Online
You only need a few things to begin conducting live currency trades. First, you obviously need a computer with access to the Internet. Second, you need access to an information source that can provide you with real-time signals so you can keep on top of your market. Third, you need a small amount of cash to begin trading. Lastly, you need calm nerves. Though forex trading is potentially very profitable, some people do lose money.
Once you have decided to learn forex trading online, you need to begin learning the basic strategies of trading currencies. After you have mastered the basics, begin learning some of the advanced techniques of forex trading. You can often access this type of information for free online along with clear examples that will help you understand the currency markets. Remember, although there is a high potential for profit, there are significant risks to trading currencies.
Try to learn from the best traders in the world by attending online forex trading workshops. After doing the above, you will likely be ready to start making your first few trades live.
Forex API / Automated Trading
Forex API / Automated Trading
For traders interested in utilizing an automated trading system or developing their own black box strategy, FOREX.com supports fully automated trade execution via a proprietary API.
The API provides users with the ability to receive a real-time rate feed, submit trade requests, set and modify stop-loss and take-profit orders, and receive automated confirmations of trade activity.
For qualified users, we provide a testing environment that enables developers to "paper trade" and test their systems in real time before using the API in a production environment with actual funds.
FOREX.com’s API is a true standards-based XML interface that can be programmed in any network accessible language, from Perl-script to C++, Excel Macro to VB.NET managed code. The API is comprised of two separate technologies:
1. Rate Data Interface
Rate data represents the tradable prices published to the client. For this role we use a direct TCP/IP socket interface to the price publication system. To assist with programming in Visual Studio.NET and JAVA, we provide native components that handle the connection and link management. Each component creates events through delegates or call backs as appropriate.
2. Trading Functions
The trading functions are initiated by the client in the form of a request. This logic is implemented using Web Services; an XML based SOAP interface that uses HTTP as its transport. Web Services have become the de-facto B2B protocol of choice through their ease of use and cross-platform portability.
For traders interested in utilizing an automated trading system or developing their own black box strategy, FOREX.com supports fully automated trade execution via a proprietary API.
The API provides users with the ability to receive a real-time rate feed, submit trade requests, set and modify stop-loss and take-profit orders, and receive automated confirmations of trade activity.
For qualified users, we provide a testing environment that enables developers to "paper trade" and test their systems in real time before using the API in a production environment with actual funds.
FOREX.com’s API is a true standards-based XML interface that can be programmed in any network accessible language, from Perl-script to C++, Excel Macro to VB.NET managed code. The API is comprised of two separate technologies:
1. Rate Data Interface
Rate data represents the tradable prices published to the client. For this role we use a direct TCP/IP socket interface to the price publication system. To assist with programming in Visual Studio.NET and JAVA, we provide native components that handle the connection and link management. Each component creates events through delegates or call backs as appropriate.
2. Trading Functions
The trading functions are initiated by the client in the form of a request. This logic is implemented using Web Services; an XML based SOAP interface that uses HTTP as its transport. Web Services have become the de-facto B2B protocol of choice through their ease of use and cross-platform portability.
SPOT METALS
SPOT METALS
Trade spot gold (XAU/USD) and spot silver (XAG/USD) at FOREX.com.
Spot metals are traded in much the same way as currencies. Click the above video tutorial to learn more.
Spot gold and silver can be an ideal alternative for traders looking for both long term and short term trading opportunities. Much like currencies, spot gold and silver allow you much of the same flexibility like a 24-hour market from Sunday 6:00 pm through Friday 5:00 pm ET and no commissions only the bid/offer spread.
You'll also enjoy low 1% margin requirements*, competitive dealing spreads and small contract sizes.
Some reasons to trade spot gold and silver include:
* Speculation on the price based on the use of fundamental and or technical analysis
* Creating a balanced, diversified asset allocation model for an overall investment portfolio
* Applying risk management as a hedge against market volatility and financial crises caused by economic, political or social turmoil
Spot metal spreads are quoted in terms of pips, where each pip is worth 10 cents.
Dealing Spreads
Pair As low as Pair As low as
XAU/USD 55 XAG/USD 4
XAU/EUR 86 XAU/GBP 76
XAU/AUD 116 XAU/CHF 116
To learn more about trading spot gold and silver, visit our FOREX 101 which covers concepts from understanding market drivers to reading quotes and calculating P&L.
Sign up for a free 30-day practice account to familiarize yourself with our pricing and execution capabilities as well as all the features of the trading platform, including real-time charts, tools and research.
Trade spot gold (XAU/USD) and spot silver (XAG/USD) at FOREX.com.
Spot metals are traded in much the same way as currencies. Click the above video tutorial to learn more.
Spot gold and silver can be an ideal alternative for traders looking for both long term and short term trading opportunities. Much like currencies, spot gold and silver allow you much of the same flexibility like a 24-hour market from Sunday 6:00 pm through Friday 5:00 pm ET and no commissions only the bid/offer spread.
You'll also enjoy low 1% margin requirements*, competitive dealing spreads and small contract sizes.
Some reasons to trade spot gold and silver include:
* Speculation on the price based on the use of fundamental and or technical analysis
* Creating a balanced, diversified asset allocation model for an overall investment portfolio
* Applying risk management as a hedge against market volatility and financial crises caused by economic, political or social turmoil
Spot metal spreads are quoted in terms of pips, where each pip is worth 10 cents.
Dealing Spreads
Pair As low as Pair As low as
XAU/USD 55 XAG/USD 4
XAU/EUR 86 XAU/GBP 76
XAU/AUD 116 XAU/CHF 116
To learn more about trading spot gold and silver, visit our FOREX 101 which covers concepts from understanding market drivers to reading quotes and calculating P&L.
Sign up for a free 30-day practice account to familiarize yourself with our pricing and execution capabilities as well as all the features of the trading platform, including real-time charts, tools and research.
USD Stronger Following G20 (Click for Chart)
USD Stronger Following G20 (Click for Chart)
The USD opened the trading week with a bid in Asia following the G20 summit this weekend. After weeks of negative talk about the continuation of the USD as the world’s reserve currency, a comment from Russia’s Finance Minister Kudrin suggesting that the role of the Dollar in the world is unlikely to change significantly in the near future and adding that Russia has confidence in the USD and will continue to hold the dollar as Russia’s reserve currency, has helped the market buy dollars against Euro’s. Also weighing on the Euro are weaker equity prices and comments from the President of the German Chamber of Commerce and Industry that the liquidity crunch is increasingly threatening the survival of companies, with the DIHK survey in Germany showing credit conditions tightening further. On the chart below we see the 21 day moving average supporting the EUR/USD pair the entire week, with further support at the 61.8% retracement.
eurusd6
PowerTrader - Forex Trading Software
PowerTrader - Forex Trading Software
PowerTrader leverages FXDD's long-standing relationships with the leading global banks and provides a complete dealing solution to meet the demands of our high volume clientele.
With FXDD's PowerTrader, professionals can access one of the deepest liquidity pools in the marketplace. PowerTrader utilizes straight-thru-processing (STP) to connect a client to a large number of global banks and ECN systems, all in one easy-to-use trading platform. PowerTrader provides pricing with no dealing desk intervention. Live, executable streaming prices come directly from large liquidity providers.
PowerTrader provides:
- Unbiased pricing - spreads are quoted exactly as received. No dealing desk intervention provides professional traders with the ultimate trading environment.
- Execute trades with one-click, allowing quick entry/exit during fast moving markets.
- Spreads on the majors normally range from 0 to 2 pips depending on amounts and current market volatility.
- Choose from a wide array of order types, including conditional and expiry orders.
- Option to trade inside the bid and ask.
FXDD Auto - Forex Trading Software
FXDD Auto - Forex Trading Software
FXDDAuto provides FXDD clients a fully automated trading system that executes signals and strategies from third party signal providers in an FXDD trading account.
With the FXDD Auto platform, traders have the ability to monitor, control and configure trades from signal providers. A trader's presence is not required to enter or exit trades. Execution and money management is automatic, and includes trailing stop losses, stop and limit orders and trade updates.
The advantages of FXDD Auto are
The advantages of FXDD Auto are:
Welcome To The Exciting World of Foreign Exchange Trading
Welcome To The Exciting World of Foreign Exchange Trading
Implement TheLFB signals with a free demo account. Follow TheLFB structure that will introduce you to the mechanics of the market, and get your Forex trading career off on the right note with trade plans and strategies to ease you into the exciting world of Forex.Stay ahead of the market movement and let your trading buddies at The LFB help you through each day. Capitalize on 30 years of institutional experience and take advantage of daily trade plans, alerts and signals, and live daily seminars. Earn as you learn.
Forex Mini Trading Profitability
Forex Mini Trading Profitability
You cannot be specific about the moment when you will have some gains. It is the trend and market saturation period within which your profit lies. If you think to consider same mechanism and operating forces between stock market and forex market – I would say it is just like comparing between a mouse and a mountain. Look stock market indicators or indices can surely affect the profitability of the forex market, but it is only a single reason among thousands of other factors that affect forex mini trading profitability. Stock trading more often deals with stock optimizing but in forex trading this is not the scenario.
How Can I Buy Penny Stocks Online
How Can I Buy Penny Stocks Online
Penny stock means those stocks that are traded at less than one dollar per share or as in some cases they are stocks that are traded for less than five dollars per share. Penny stocks are mostly stocks of small cap companies. Penny stock trading thrives on correct anticipation, prompt analysis and accurate projection. You need to study the market and watch it constantly More..
General discussion board Stock trading With Scruples
General discussion board Stock trading With Scruples
responsible investing isn't about whether you sit around with friends and gab about your stock trading picks. Nor is it about whether you've thought long and hard about each investment decision prior to executing a trade -- of course you've done that! It's also not about whether you file your brokerage statements away in a neat and timely fashion. Each of those things may be deemed "social" or "responsible" -- perhaps even admirable -- but it's not what the investment world means when it talks about SRI.
Suit Yourself with the Free Online Forex Trading Courses
Suit Yourself with the Free Online Forex Trading Courses
OOver the past few years, online Forex trading has become one of the most famous and profitable mode of business. Forex trading has recently achieved the peak credits and has become one of the biggest markets in the financial sectors.
Leaving behind all its reason which includes the huge amount of profits one gains in relatively very short time, the main reason for the Forex trading to become the king of business in the financial markets is due to the ride in member of the traders working online rather than the traditional method of trading via phone or fax.
Start a Career in Forex through Forex Training | SigmaForex
Start a Career in Forex through Forex Training | SigmaForex
Forex trading or currency trade is known to be one of the greatest ways to create and grow more and more money. It is a simultaneous buying of currency and selling of the other. In short, it is a system of exchange of currencies.
Since Forex trading systems promise sure profit at the end of the day, a lot of people have began to take Forex training. Most of them are mothers, staying at home; retired and working adults; and some students that are, at their early age, wanted to become wealthy already.
Your Luck in the Forex Market
Your Luck in the Forex Market
The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. Compare that to the $25 billion a day volume that the New York Stock Exchange trades. Making money in such a market should be easy, right? Not necessarily. But it can be done. And with the advent of the internet, its now more easier than ever for the average person to get involved in speculative forex trading. In the past, forex trades had to be carried out through a broker and the initial requirement was that you could trade only if you had about ten to fifty million dollars to start with! Today, carrying out a trade can be done by anyone from the comfort of your home or in front of any pc with internet access using an online trading accoun
Great Forex Blog For News Updates
Great Forex Blog For News Updates
I know it seems strange that I am telling you about a different forex blog that you should visit, but it is smart to have several different references. This market is rapidly changing and in order to stay on top of it you must get information from multiple places.
This particular blog, which is rather easy to find, is located at www.forexblog.org. They are constantly updating their front page with forex news and they even have a nice little forex newsletter that you can sign up for. Another great thing about this blog is that they have a separate menu where you can choose which type of currency you want to read about.
I suggest that you not only look at the recent news that this blog has to offer, but also dig through some of their archives. It is good to look at historical trends and data in order to fully understand how this market works. It is also a good way to stay on your toes so that you can begin to foreshadow what may or may not happen in the future. Once again, the website URL is www.forexblog.org and you should check it out when you have a chance.
The Importance of Money management
The Importance of Money management
Are you looking for the most simplest Forex Trading strategy?
If yes, I would recommend that you should learn first the Importance of Money Management. The key to a very effective Forex Strategy is the proper usage of your Money Management. As to the answer to the question above, I say that Money Management is the simplest Forex Trading strategy.
Why is it that Money Management is very important?
I could referrer the term Money Management as your rate of Survival. Without proper Money Management, you won't last playing the currency game inside the market. So the very first important thing is to make a plan about your Money Management so that you could survive and make profits.
Most professional Forex traders use a very skillful method of Money Management. They have a very large margin so that they could sustain a big amount of loss and still be able to continue trading. Soon enough, this losses might even end up into a profit. Others have the skills on how to manipulate their stop losses and take profit to minimize loss and acquire more profits.
There are two method on how to practice a very nice Money Management strategy. The first part is that you can take all the small losses and leave those gains to acquire more profits. The other part simply goes the other way. You simply close all your small gains and leave those losses. In this part, you just have to hope that your small gains will outweigh your big loss. The very first part is a method that includes minor psychological pain but produces a major moments of ecstasy. The psychological pain comes from closing those small losses and the moment of ecstasy is acquiring all of those current position that is in profit. The second part causes you to feel minor instances of joy but soon you will experience a nasty psychological hits. This minor joy comes in upon closing those small gains while a nasty psychological pain will hit you when you see that you are building up a huge amount of losses.
On those two part of Money Management trading style, it depends on which of those two method are you going to apply. You have to choose as to which method suits your personality as a Forex Trader. However, you can also choose to apply both of those methods which make Forex trading the best place to make an investment.
To give you a more point of view. I'll give an example in EUR/USD. Most Forex traders will cost them a 3 pip spread for this currency pair. That will cost a 3/100th of the underlying position. If the trader would like to use a worth of 10,000 units of lot then the spread cost for that unit will be $3.00, if you are going to use a worth of 100 units of lot the cost will be $0.03.
The benefit of being a Forex trader is the advantage of uniform pricing which makes them the capability of using any Money Management style that they prefer
Pros and Cons of Trading With Metatrader
Pros and Cons of Trading With Metatrader
In every item or device we use, they all have their own weaknesses and strengths. In using metatrader4 for trading, we find it useful though it also its limitations.
In using metatrader4 first, you will be able to check if there is still money available on your account. If there is not enough money on the account, the operation of opening a position will not be successful. It is for this reason that one need to have sufficient funds for investments.
With metatrader4, you can access history data by using the predefined arrays of Time, Open, Low, High, Close, and Volume. Due to historical reasons, index in these arrays increases from the end to the beginning. Another way of accessing history data is by using other time intervals and even using other currency pairs.
How to Become a Good Forex Trader
How to Become a Good Forex Trader
Setting a Forex trading business should come with a wise and strategic planning. It is important that you know what kind of business you are going into. Studying the business thoroughly is a very important strategy in order to gain success in his field. It needs good management because there are risks involved in this type of business.
Keeping your mind engaged in Forex trading means acquiring money in a progressive and truthful way. In such that you will be able to have the goal you are targeting.
The World Wide Forex Market
The World Wide Forex Market
Forex is a trading 'method' also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any Read More>>>
Foreign exchange market is different from the stock market
Foreign exchange market is different from the stock market.
The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and Read More>>>
Interest Rates Matter For Forex Traders
Interest Rates Matter For Forex Traders
Interest Rate BasicsInterest rates are crucial to day traders on the forex market for a fairly simple reason: the higher the rate of return, the more interest accrued on currency invested and the higher the profit of course, the risk in this strategy is currency fluctuation, which can dramatically offset any interest-bearing rewards. It is worth stating that while you may always want to buy currencies with higher interest (funding them with those of lower interest), it is not always a wise decision. If trading on the forex market were this easy, it would be highly lucrative for anyone armed with this knowledge.What Is Forex Scalping?
What Is Forex Scalping?
Take care if you are considering trying your hand at Forex trading for the first time. There are better ways to begin that will save you a lot of possible trouble.Do your research. Do you even know what Forex trading is or how it works? Learn these things and everything else you can about trading on the Forex market. As you learn about the market, you will learn that there are two ways to trade. You can wing it and just go with your gut or you can research and analyze the market. Become familiar with the market and the trends and then go get a demo account and give it a try.
Scalpers are people that make hundreds of trades each day based on the tiniest fluctuation in the exchange rate. Scalping is risky and not for the faint of heart. Once you decide that you would like to give it a try, come up with a long term strategy rather than just floating along with no plan. Keep in mind that the Forex market is not a get rich quick kind of thing.
If you build slowly and cautiously you will prevent yourself from taking major losses.
Scalpers are people that make hundreds of trades each day based on the tiniest fluctuation in the exchange rate. Scalping is risky and not for the faint of heart. Once you decide that you would like to give it a try, come up with a long term strategy rather than just floating along with no plan. Keep in mind that the Forex market is not a get rich quick kind of thing.
If you build slowly and cautiously you will prevent yourself from taking major losses.
Sunday, June 14, 2009
Forex Trading - Forex Profit Farm can be the answer to trading successfully!
Forex Trading - Forex Profit Farm can be the answer to trading successfully!
People struggle in Forex Trading! Thats a cold fact for 90% of traders in forex market. They struggle in making a single profitable trade, let alone making a good living.
For most of the forex traders, the problem is not that they don't have commitment or money to spare. The problem is that they receive the systems from wrong hands(with that I mean fake Gurus)
When you are going to get a system which is created by someone who doesn't know forex trading at all, do you think you can ever make money in Forex?
Thats a cold reality and yet people keep falling in the trap again and again.
All such forex trading systems are very ambiguous and they don't cover a lot of things such as there are no clear cut guidelines on when to place the trade, when to exit the trades, how to manage the trades and so forth.
They leave a lot of things for traders to figure out or make assumptions about!
But Forex Profit Farm will be much different from them.
The reason for me to say this is because Forex Profit Farm is not only an extremely profitable forex trading system, but it also contains all the necessary ingredients that a trader requires to trade in forex market.
This Forex Trading System contains -
1. Clear Cut guidelines on when to trade
2. Elaborate explaination of how to manage the trade for maximum profits.
3. Clear defined on when to exit the trade
4. Details on when not to trade.
All this is done through manuals and videos.
With all such details, I am sure Forex Profit farm will be well received by the traders and I am also sure that this forex Trading System will give run for their money to most systems out there.
For most of the forex traders, the problem is not that they don't have commitment or money to spare. The problem is that they receive the systems from wrong hands(with that I mean fake Gurus)
When you are going to get a system which is created by someone who doesn't know forex trading at all, do you think you can ever make money in Forex?
Thats a cold reality and yet people keep falling in the trap again and again.
All such forex trading systems are very ambiguous and they don't cover a lot of things such as there are no clear cut guidelines on when to place the trade, when to exit the trades, how to manage the trades and so forth.
They leave a lot of things for traders to figure out or make assumptions about!
But Forex Profit Farm will be much different from them.
The reason for me to say this is because Forex Profit Farm is not only an extremely profitable forex trading system, but it also contains all the necessary ingredients that a trader requires to trade in forex market.
This Forex Trading System contains -
1. Clear Cut guidelines on when to trade
2. Elaborate explaination of how to manage the trade for maximum profits.
3. Clear defined on when to exit the trade
4. Details on when not to trade.
All this is done through manuals and videos.
With all such details, I am sure Forex Profit farm will be well received by the traders and I am also sure that this forex Trading System will give run for their money to most systems out there.
LMT Forex Formula Review - Have you heard about lmtforexformula?
LMT Forex Formula Review - Have you heard about lmtforexformula?
LMT Forex Formula Review - Have your heard about this new product from Dean Saunders? If not, let me tell you more about it -
1. It is a system to trade on daily time frame - and so its accuracy is very high. The reason being the higher the timeframe, the more reliable and more accurate the trading signals are. I mean, have you noticed how much whipshaw is on a 5 min chart and how reliable are technical indicators are on daily chart?
2. As per my review, LMT Forex Formula is very easy to learn and use - Also, since the trading is done daily chart level, trader needs to look at the chart only after the close of the trading day and need not spend more than 15 min.
3. LMTforexformula's accuracy is very high. It is 80% which is really very nice. One of the trades that Dean told about fetched more than 1100 pips on a single trade. This is amazing.
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Now, I really feel that this system works really well. My review of this system is very positive.
So, I am offering a amazing bonus to all the folks who buy LMT Forex Formula through my link. The bonus is an amazing trading strategy that can be used by anyone.
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Let me tell you that you don't want to miss the bonus that I am offering on LMT Forex Formula.
But the bonus is only for 1st 25 folks. Thats all!!
So, don't miss it out! So, to take advantage of my amazing offer, go ahead and use my link to buy LMT Forex Formula
Learn forex candlesticks - How forex candlestick can make you better in technical analysis?
Learn forex candlesticks - How forex candlestick can make you better in technical analysis?
Forex Candlesticks are one of the most popular technical indicators in the forex market. I am a big fan of candlesticks.
When used correctly, candles can help you precisely understand what can happen next so you can decide whether you want to open a trade or you want to exit an open trade.
I have seen a lot of trades that I should have closed early, but I just ignored the warning signs given by the candle.
So, learning forex candlesticks can really be beneficial and an asset for a forex trader. There are lot of formations that are associated with the candlestick patterns that can help in analysing if the trend is about to end or is it going to continue or what is the strength?
The candles work great with a lot of other technical indicators.
To learn more about candles, visit the site - learn forex candlesticks
When used correctly, candles can help you precisely understand what can happen next so you can decide whether you want to open a trade or you want to exit an open trade.
I have seen a lot of trades that I should have closed early, but I just ignored the warning signs given by the candle.
So, learning forex candlesticks can really be beneficial and an asset for a forex trader. There are lot of formations that are associated with the candlestick patterns that can help in analysing if the trend is about to end or is it going to continue or what is the strength?
The candles work great with a lot of other technical indicators.
To learn more about candles, visit the site - learn forex candlesticks
Friday, June 12, 2009
INTRODUCTION TO FOREIGN EXCHANGE MARKET
Being the main force driving the global economic market, currency is no doubt an essential element for a country. However, in order for all the countries with different currencies to trade with one another, a system of exchange rate between their currencies is needed; this system, is formally known as foreign exchange or currency exchange.
In the early days, the system of currency exchange is supported solely by the gold amount held in the vault of a country. However, this system is no longer appropriate now due to inflation and hence, the value of one’s currency nowadays is determined through the market forces alone. In order to determine the value of a currency’s exchange rate, two main types of system is used which is floating currency and pegged currency.
For floating exchange rate, its value is determined by the supply and demand of the global market where the supply and demand is bound by all these factors such as foreign investment, inflation and ratios of import and export. Normally, this system is adopted by most of the advance countries like for example UK, US and Canada. All of these countries have a similarity where their market is well developed and stable in economic terms. These countries choose to practice this system due to the reason where floating exchange rate is proven to be much more efficient compared to the pegged exchange rate. The reason behind this is because for floating exchange rate, the market itself will re-adjust the exchange rate real-time in order to portray the actual inflation and other economic forces. However, every system has its own flaw and so does the floating exchange rate system. For instance, if a country suffers from economic instability due to various reasons such as political issues, a floating exchange rate system will certainly discourage investment due to the high risk of suffering from inflationary disaster or sudden slump in exchange rate.
Another form of exchange rate is known as pegged exchange rate. This is a system where the value of the exchange rate is fixed by the government of a country and not the supply and demand of the market. This system is called pegged exchange rate because the value of a country’s currency is fixed to another country’s currency. As a result, the value of the pegged currency will not fluctuate unlike the floating currency. The working principle behind this system is slightly complicated where the government of a country will fixed the exchange rate of their currency and when there is a demand for a certain currency resulting a rise in the exchange rate, the government will have to release enough of that currency into the market in order to meet that demand. However, there is a fatal flaw in this system where if the pegged exchange rate is not controlled properly, panics may arise within the country and as a result of that, people will be rushing to exchange their money into a more stable currency. When that happens, the sudden overflow of that country’s currency into the market will decrease the value of their exchange rate and in the end, their currency will be worthless. Due to this reason, only those under-developed or developing countries will practice this method as a form to control the inflation rate.
However, the truth is, most of the countries do not fully practice the floating exchange rate or the pegged exchange rate method in reality. Instead, they use a hybrid system known as floating peg. Floating peg is the combination of the two main systems where one country will normally fixed their exchange rate to the US Dollars and after that, they will constantly review their peg rate in order to stay in line with the actual market value.
The Foreign exchange market, or commonly known as FOREX, is the largest and most prolific financial market because each day, more than 1 trillion worth of currency exchange takes place between investors, speculators and countries. From this, we can deduce that the actual mechanism behind the world of foreign exchange is far more complicated than what we may already know, and that, the information mentioned earlier is just the tip of an iceberg.Foreign exchange development history
Foreign exchange development history - exchange market evolution foreign exchange development history - exchange market evolution gold remittance system and Bretton woods agreement
In 1967, a Chicago bank rejected to provide pound loan to a professor named Milton Friedman, because his purposed was to use this fund to sell short the British pound. Mr. Friedman realized excessively that the price ratio from the British pound to US dollar at that time was high, he wanted first to sell the British pound, after the British pound fell he buys back the British pound to repay the bank again. This family bank rejects the loan offer based on the "Bretton woods Agreement" which was established 20 years ago. This agreement has fixed the various countries' currency to US dollar exchange rate, and the price ratio between the U.S dollar and the gold is also fixed to 35 US dollars to each ounce of gold.
The Bretton Woods Agreement was signed in 1944, the purposed was to prevent the currency to escape between countries, and also to limit the international speculation, thus to stabilize the international currency. Before this agreement was signed, the gold remittance standard system which was widely used since 1876 - was leading the international economy system until the First World War. In the gold remittance system, the currency was at the stable level under the support of the gold price. The gold remittance system has abolished the old time king and the ruler which depreciates the currency value unlawfully, which will lead to inflation.
But, the gold remittance standard system is certainly imperfect. Along with a country economic potentiality enhancement, it can import massive products from overseas, until it exhausts the gold reserve of certain country. It resulted the supply of the currency reduces, the interest rate raises, the economic activity will start to decline until it reaches the recession limit. Finally, the commodity price falls to the valley, gradually attracts other countries to stream in, massively rushes to purchase this country commodity. This will pour gold into this country, this will increase this country currency supplies quantity, and it will reduce the interest rate, and will create the wealth. This is so called the "the prosperity - decline” pattern and is the circulation of the gold remittance standard system, until the trade circulation and the gold freedom was broken by the First World War.
After several catastrophes wars, the Bretton Woods agreement has appeared. The countries which signed the treaty agreed to maintain the domestic currency to US dollar exchange rate, as well as the necessity of the corresponding ratio of the gold, and only allow a small fluctuation. Countries are prohibited to depreciate the currency value for the gain trade benefit, only allows the country to depreciate not more then 10%. Enters the 50's, the continuous growth of the international trade causes the fund large-scale shift which produces because of the postwar reconstruction, this causes Bretton Woods system which establishes the foreign exchange rate to lose stability.
This agreement was finally abolished in 1971, US dollar no longer could convert to gold. Until 1973, each major industrialized nation currency exchange rate fluctuation has been more freely, mainly regulates by the foreign exchange market through the currency supplies and demand quantity. The business volume, the transaction speed as well as the price variability, have achieved a comprehensive growth in the 1970's, come along with the emerge of price ratio fluctuation, the brand-new financial tool, then only the market liberalization and the trade liberalization could be achieved.
In the 1980s, along with the published of the computer and correlation technology, the international capital has flow rapidly, and strongly related the Asia, Europe and America market. Foreign exchange business volume from 80's rises daily from 70 billion US dollars to 150 billion US dollars after 20 years.
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