learn forex first

Whether you call it Forex or Fx, you are talking about the Foreign Exchange market. This is where the trading of currencies, one against the other, is done. To have an idea just how big the action is, add all the stock exchanges in the world together and the Foreign Exchange will still be bigger!

When you consider that various speculators, hedge funds, governments as well as companies, plus countless private investors who take part, it is hardly surprising that this market is so strong and that the estimated daily average turnover of the foreign exchange market is over 3 trillion US Dollars.

By far the most asked for rate is the SPOT RATE. This transaction has to be settled within two business days.

With London, New York, Tokyo, Frankfurt and Sydney as the chief trading centres, the action hardly ever closes.

When you are at an auction and you put your hand up, it means you are bidding for something at a certain price. In a similar way, the word BID refers to the price at which the buyer is prepared to buy the currency.

The OFFER means the price at which an amount of currency the seller is ready to sell.

A LIMIT ORDER is when you give instructions the buy or sell a currency at a predetermined exchange rate.

When international banks buy and sell between themselves, the bid and exchange rates are called INTER- BANK RATES.

The difference between the bid and ask price of a currency is the SPREAD.

STOP LOSS is when an order is given to purchase or sell a currency at a price level set by the client on a particular trade which if reached, will close out the particular position at the stated price.

TRANSACTION DATE is the date on which a foreign exchange trade is being done.

The date which foreign exchange contracts settle is called the SETTLEMENT DATE.

Every currency has a three letter code such as for the Euro (EUR), for the British Pound (GBP), for the US Dollar (USD), for the Japanese Yen (JPY), for the Australian Dollar (AUD), for the Swiss Franc (CHF), for the Canadian Dollar (CAD). Actually, these are the major trading currencies and all commonly traded currencies are called the MAJORS.

CABLE is a name given to the US Dollar/British Pound rate in the foreign exchange market.

EFT is the Electronic Fund Transfer which is the transfer of money between banks.

When there is a quote in currency pairs, remember that the first currency is called the BASE currency. The second currency is called the COUNTER currency. As an example when you get a quote GBP/USD at 1.96 it means that for one GBP you will get 1.96 USD. So for ten thousand pounds you will get nineteen thousand six hundred US Dollars.

The many foreign currency exchange companies which you can find on the internet will gladly give you a quote, and by phoning around you can find the best currency rates. They will be better than a high street bank is likely to offer and they will give you a very fast service. Furthermore, most of them will not charge you any commission or the cost of the electronic bank transfer.

Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.

Forex currency trading is carried out all across the world and is the largest financial market in the world. The major players in the forex market are the central banks of the country, major commercial banks such as Citibank and Bank of America etc, multinational corporations. The major portion of the trading is speculative trading while only 5% of the trading is for correcting the currency. The daily volume of the trade is worth US$3.2 trillion.

Though forex currency trading can be done in any foreign exchange, 85% of the trade is done in the major currencies. The major currencies are US Dollar, Australian Dollar, Canadian Dollar, The British Pound, The Euro, Japanese Yen and Swiss Franc. The Us Dollar accounts for nearly 28% of the total forex market.

OTC market which is operational 24 hours a day

It’s an OTC market or an over the counter market where forex currency trading is done in pairs. This means that USD would be sold to buy Japanese Yen or Swiss Francs would be bought and Euros sold consecutively. The forex market has no centralized exchange and is solely conducted through the phone and the electronic medium including the internet.

It’s a 24 hour market and the major centers of trade are Sydney, Tokyo, Singapore, Hong Kong, London, Frankfurt and New York. Investors will usually react to the changes and the fluctuations in the forex market immediately unlike the stock and the commodity markets. The changes are shown on the screen every second. Deals are done on a second to second basis.

Forex currency trading is always done in pairs and the spread is the profit

The forex trading quotes are also given in pairs and the bid and the ask rates are always mentioned together. In the pair USD/JPY, USD is the base currency. The forex currency trading that happens in non USD pairs is known as cross currency trading. The fundamental and the technical for trading in each currency pair are different.

The quote for USD/JPY will always be given as 110.3456/110.3450. This means that 1USD can be sold for 110.3456 JPY and 110.3450 JPY would be required to purchase 1USD. In forex currency trading the difference between the bid and the ask rates is the spread or the profit that the forex trader will make.

For more tips and tricks on how you can make large amounts of money by trading forex, visit our Forex Software Review site where we show you the newest and hottest Forex software on the market including our Forex Tracer Review.

The Froex was founded in 1971. Today the current turnover of the Forex is said to be between 1 and 1.5 trillion dollars a day compared to the stock market’s turnover of about 10 billion a day.

Major currencies being traded on the Forex are the US Dollar, Japanese yen, British pound, Swiss franc and the Euro.

Investors can trade on the Forex from any location, using telephone services, the Internet or secured access. Traders can also trade for long periods or decide to trade for just one day.

Another exciting fact is that the Forex market (unlike other foreign exchange services or the stock market) does not have a closing time, so you can trade 24/7 (round the clock). Forex trading includes a measure of risk. That is, you can gain a lot of money or lose money. However, you can operate on lower risks by making use of market analysis methods such as discussed below, in addition to “stop loss” and “take profit” order mechanisms available to traders.

Factors that influence the trend of the Forex market include but are not limited to transfer of capital between countries, economic factors (such as interest rate and inflation differentials, equity market flows et.c.), activities of large financial funds based on forecasts, political factors, psychological factors and market volatility (irregularity in the investment market). These factors affect the currency exchange rate and the price movements on the Forex. Two basic methods are used to analyse foreign exchange markets. These methods are frequently used to inform trading decisions on the Forex. These are:

• Technical analysis
• Fundamental analysis

Fundamental analysis involves the use of external indicators such as economic factors, political, social and psychological factors to predict price movements and trends on the Forex market.

On the other hand, technical analysis uses charts to identify price trends; these price charts are believed to have (already) taken into account the effects of external factors (such as economic, political and social factors) on prices. The implication of this is that, there is no need to study these external effects separately. Another important believe of technical analysts is that the price has a trend and this trend enables you to predict and make profitable decisions. This information leads us to the last important assumption made when using technical analysis - history repeats itself. The point being that human beings tend to react to situations in the same way they reacted when they came in contact with a similar situation in the past. All these assumptions are the bases used to analyse the Forex market and make decisions.

To trade online you need an online trading platform that includes automated online brokerage services that enables you to buy and sell via the Internet. In other words, you don’t need a physical broker; you can get an online trading platform that will provide you with all the broker services you need to trade on the Forex. There are a number of reputable broker websites online that provide this service.

One of the most common platforms is the MetaTrader 4.The MetaTrader has a user-friendly front-end trading interface. The software provides technical analysis; charts and Expert Advisors that help you build up your own trading strategy. This software is fully compatible with Forex automated trading robot. Automated trading software are developed to simplify the complication that comes with trading on the Forex; most especially to reduce risk levels and human errors while trying to analyse the market. Automated trading involves the use of Expert Advisors.

Expert Advisor are written programmes compatible with trading platform software and enables automated trading to take place without human intervention. The Advisor can notify you of profitable opportunities and also complete deals automatically on your behalf. It is important to note that you can use a demo account that does not involve real money investments to learn how the Forex works. When you are comfortable with this and you are ready to invest, you can go ahead and open a real account.

In summary, this article examined in layman’s terms, simple facts that new investors need to understand about trading on the Forex. More specifically, the article touched on the history of the Forex market, the level of risk involved, factors that influence foreign exchange rates and tools used for market analysis. We also delved into online Forex trading and what it entails.

Business-Talks:

http://www.forex.business-talks.com

Automated Forex Software Reviews:

http://www.forex.business-talks.com/reviews/

The Forex market is quite new to the investment world as compared to the stock market. The model which is used these days was built around 1970’s. now, it is one of the biggest markets around, way ahead of the stock market. The estimated trading is around $2 trillion per day. The Forex is attracting more and more investors each day.

Before trading on Forex, one should know the fundamentals of Forex. Let us start with exchange rates. Exchange rate is the rate of exchange of two currencies of two countries. Though many currencies are traded, but the most popular include US dollar, Japan’s Yen, the Euro, the British Pound, and the Swiss Franc etc. Other currencies like Australian dollar, the Hong Kong Dollar and the Canadian Dollar are also quite popular.

The exchange rate is calculated by dividing the numerator by the denominator where the numerator is represented by the currency quoted and the denominator being the base currency.

Let us take an example to make things more clear. If you want to exchange dollars for euro, here dollar is the quote currency. Quote currency specifies the amount of currency that you want to exchange. The base currency is euro here. First you have to find out the current exchange rate either through newspaper, internet etc. Now you multiply the exchange rate with the amount of dollars to exchange. If the exchange rate is 0.5, it means that you get one dollar for 0.5 euros. So multiply 1000$ with 0.5. which equals 500 euros.

Once an investor has understood these concepts, he will be able to start with currency exchanges.

While it may seem a little complicated on the surface, Forex trading can be simplified by using Forex trading software. Many of these programs, such as Forex Tracer, require no previous experience. Check out the Forex Tracer software and see how you can begin trading today.

With financial markets in turmoil, press is full of speculation regarding US dollar and Euro. A lot of coverage is given to unprecedented commodities boom, especially record prices for oil and grains. Precious and industrial metals also draw a lot of attention. Credit and debt markets have been on front pages for a couple of years now. Let’s not forget about stock markets, which, both in US and globally, are experiencing wild swings with seemingly no end in sight.

With so much going on, it’s no wonder that some very large moves in currencies have escaped attention, or at least wide coverage. British Pound, for one, has not been mentioned as often as it deserves. Same goes to Swiss Franc, and by extension, the cross of these two currencies, GBP-CHF.

Despite being one of speculator’s favorite financial vehicle, this pair seems to be living in a shadow of it’s cousin, GBP-JPY, which gets far more coverage from Forex analysts. This fact is likely due to much more vaunted stature of Japanese Yen, while Swiss Franc is so much correlated to Euro, that has been loosing trading volume to other currencies, most notably both Australian and Canadian Dollars. By some accounts, even Swedish Krone has reached comparable trading volume about a year ago.

That is when Franc started to regain some of its past luster as a safe heaven during times of uncertainty and financial turmoil. Swiss central bank started to bust interest rates and CHF staged a very impressive rally, lasting better part of a year. Combined with bearish news coming from Great Brittan, GBP-CHF has seen the most severe sell off amongst CHF crosses.

Between July 2007 and March 2008 this pair fell from 2.5000 to 1.9375. That is a staggering 5600+ pips, a huge move by any standard. In fact, it has been first time in over 10 years, and only the second time ever, that this cross fell under 2.0000, a very important psychological level. As it is often the case in such furious moves, the price rebounded sharply from the March low to about 2.0960 and has since settled into a sideways movement.

This “settled price action” is a relative term and true only in light of past few month. Comparing to other currency pairs, daily moves are still large. Average True Range still shows a reading well over 200, and 300+ pips days are the norm. Just last Thursday daily range was over 420 pips. Certainly this kind of volatility demands respect and creates trading opportunities.

Extreme price fluctuations might make it unsuitable for some traders. Also, trading GBP-CHF on short time frames, might be an expensive proposition. The spread, cost of trading, is still relatively wide. Even though over last few years spreads narrowed down, they are still minimum of 6 pips, with 8-10 pips being the norm. In frequent trading, even the larger profit potential might not offset these costs.

Trading longer time frames might be a better proposition for most traders. The recent low of 1.9375 seems to be a major low, which is likely hold for the the rest of this year. As a matter of fact, patterns on long term charts, weekly and monthly, indicate this to be a multi year low. Long term up trend is expected for the rest of the year with a target of 2.1600-2.1800 over next few months. After that next target would be 2.3000 or perhaps even 2.3500, maybe a year later.

This kind of long term expectations should be reviewed and adjusted every few months. As of this writing, the price is around 2.0470, providing us with a substantial long term trading opportunity. Due to large volatility of this pair, one shouldn’t use high leverage as there are almost sure to be severe pullbacks over time. While not suitable for everybody, GBP-CHF is certainly an exciting cross, worth of a closer look.

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on http://www.spectrumforex.com Spectrum Forex LLC offers numerous services to individual traders. With questions and comments e-mail him at kulej@spectrumforex.com

Most anybody has something that they want to be able to have more time for. We all need more hours just to be able to purchase the most basic necessities of life. Imagine a lifestyle where you chose your hours, your every detail about your daily schedule, your sleeping patterns, your vacations. Would you like an opportunity to join the most elite group of financial investors if it would give you those things? What would unlimited time with your family be worth?

Time waits for no one, and with the unstable financial markets that are raising the level of concern among investors young and old, one must start to ponder the implications of a downturn in the economy. Neighborhood banks are shutting their doors, and consider if you have savings over $100,000 it can not be guaranteed safe, as the FDIC does not insure any higher than that level.

What if you could have a second family, one that would ensure that your first family was taken care of? There is something very special coming, and it is called the Forex Brotherhood and Sisterhood. A Forex Society, this group is made up of the Grand Masters of the foreign currency exchange.

For the lucky few that are opt in to this program, and there is only room for a thousand, every question they have about trading in the Forex will be answered. How do I really use Forex automated advisors? Great tools, like anything they take time and mentoring, now you could be one of the lucky few who have that chance to learn. A Forex club made up of professional traders beckons to you and only 999 others, do you want to be left out?

This is a program launching in mid-August, and time is short, space is limited and money is shrinking nationwide. But not in the Forex. You see somewhere in the world people are succeeding, because in a free flow exchange of currency internationally the ability to make money is always there, because one currency has an advantage over another, daily and sometimes hourly. This could be you taking advantage of these fluctuations but you need guidance, and where better to get guidance than the Forex Brotherhood? The Ultimate Forex Society.

This is the ultimate money making university, like literally going to school to make money. What would it be worth to you to have daily webinars? Live reporting? Expert advisors? Even tech support! You are guaranteed a VIP trainer to host it all and you do not even have to sponsor anyone. So what are you waiting for? Opt-in while you can! Space is limited, do not be left out! For more information visit your favorite search engine.

You can also check out the following websites for more Forex Societies:

ForexBoost - Forexboost is a free forex training site and we’re here to help you learn about trading … Valid XHTML and CSS - ForexBoost sitemap.xml sitemap.html Partners
- News Trading
- Strategies
- Brokers
- Novice Forex Traders

ForexProject - Forex day trader weblog. Follows daily trends and changes. Knowledge base, trading history and podcast.
- Fibonacci Calculator
- Daily Pivot Points
- My Trade History
- My Forex Graphs
- My Forex Goal

ForexBlog - Forex news weblog with daily commentary. Has a good beginner’s article.
- 37 tutorial tools
- Top 100 Forex resources
- Euro
- British pound
- Japanese yen
- 200 plus awesome investing websites
- Exotic currencies

This author is a huge fan of Forex Brotherhood

Mac X asked:


Here is the most important part and this is something I don’t want you to feel nervous about; just give it a try.  Just trust me on this.  The last thing is, take a complete break for at least one day, preferably two days.  The ideal thing is of course, is we’re talking about going through five discs, would be to go through just one, two, three, four and five Monday through Friday, one disc per day and then take the weekend off.  Go play with the kids, go to a movie, go out with your wife, go on a two day cruise, fly to Vegas; whatever you are going to do for two days, don’t even think about it.

Then when you come back, I want you to go through the discs again but this time, you want to jot down the things that don’t make sense to you.  What have you done?  What you have done at this point is you have put the information into your brain without trying to put it into a box.  Listen, your brain learns and it knows information by association.  Think about it.  You could be walking through the Mall of America, one of the largest malls on the face of the planet; thousands, maybe tens of thousands of people there and you could spot an old friend of yours from across the room. Instantly, I mean literally in a blink of an eye, see that person’s face and out of thousands of people.  The reason why you can do that is because your brain on just a glance through a room, is going to scan each one of the faces and instantly put it up in a database.

I don’t know if you have ever seen the Discovery Channel in Las Vegas, they have got these software. Have you ever seen CSI or one of these TV shows where they are going through the faces?  That is exactly what your brain is doing.  It is trying to match up that person and all of a sudden, ding, there’s Joe.  You turn to your friend or wife and hey look, Joe.  Then you go over and talk to Joe.  You pick hit out of these thousands of people because of the associations in your brain.  So what you want to do is put the basic information inside of your mind without trying to associate it first, the first time through. Then the second time through is when now we can take this information and we can start working on associating it. You can associate different patterns.  A chart is associated with price and Great British pounds U.S. dollars is associated with currency. You are not trying to connect all of these things at the same time that you are also trying to assemble the vocabulary.