Forex is a true 24-hour market, open continuously from 5:00pm ET on Sunday to 5:00 pm on Friday. With three distinct trading sessions in the US, Europe and Asia, you can trade on your own schedule and immediately respond to breaking financial news, whether it will be morning, noon or night. So let's discuss some of the benefits that might make you want to go and learn Forex currency trading online.
There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market: no commissions and exchange fees, direct trading with no middlemen, no fixed lot size, low transaction cost, a 24-hour market, no single entity (not even a central bank) can control the market, leverage, high liquidity, mini/micro trading, free demo accounts, news, charts, and analysis. Not to mention that you're your own boss, you decide which days you wish to work, and you don't have to deal with neither customers, nor employees.
How is it all possible? In spot Forex, brokers are compensated for their services through the bid-ask spread, so you don't need to pay any additional fees. The retail transaction cost (the bid/ask spread) is built into the bid/ask spread and is usually less than 0.1 percent under normal market conditions. Dealing spreads of as low as 3 pips (.0003) are now available in currency trading. This may sound compelling enough however, you must remember that to become a successful trader you will still need to seriously learn Forex currency trading online for at least 6 month.
You can also determine your own lot size which allows to trade even with small accounts, starting as low as $250. Because of leverage, in Forex, a small margin deposit can control a much larger total contract value. For example, Forex brokers offer 200 to 1 leverage (200:1), which means that, say, a $50 dollar margin deposit would allow a trader to buy or sell $10,000 worth of currencies and so on. But leverage is a double-edged sword that can sometimes result in large losses if used without proper risk management.
Saturday, November 17, 2007
Day trading forex market behaviour
Technology advances like the internet have spawned a new craze, where anyone with a secure internet connection ............
Technology advances like the internet have spawned a new craze, where anyone with a secure internet connection prepared to undertake a small amount of training can engage in trading foreign exchange on the forex market.
Just as a day trader will closely track stock price movements on the Dow Jones Industrial Average, all over the world forex traders monitor currency fluctuations in a similar fashion.
Forex traders have the aim of using the smallest amount of one currency, say the US dollar, to purchase another currency like the British Pound. If supply of the pound lessens in a busy market, it will cost more dollars to buy pounds, and the forex trader hopes to sell their pounds at a higher than their purchase price. In many respects, this type of trading behaviour is very similar to trading in stocks, where the aim of nearly all traders is to buy low and sell high.
The trading process works under a bid/ask system. In the above example, a forex trader might bid 10 dollars in return for 5.7 British pounds, and the seller of the pounds could be asking 11 dollars for the same amount of pounds. If the seller accepts the bid, the trader then hopes the pound continues to increase in price, so that when time comes to sell, they can get in excess of the 10 dollars initially paid.
As only registered traders have access to this auction process, most online speculators will trade through a bank or broking house. Such brokerages charge a commission for facilitating the trades, and forex traders should consider these transaction costs when calculating their selling offer when time comes to exit their position, as this will influence their profit margin.
Technology advances like the internet have spawned a new craze, where anyone with a secure internet connection prepared to undertake a small amount of training can engage in trading foreign exchange on the forex market.
Just as a day trader will closely track stock price movements on the Dow Jones Industrial Average, all over the world forex traders monitor currency fluctuations in a similar fashion.
Forex traders have the aim of using the smallest amount of one currency, say the US dollar, to purchase another currency like the British Pound. If supply of the pound lessens in a busy market, it will cost more dollars to buy pounds, and the forex trader hopes to sell their pounds at a higher than their purchase price. In many respects, this type of trading behaviour is very similar to trading in stocks, where the aim of nearly all traders is to buy low and sell high.
The trading process works under a bid/ask system. In the above example, a forex trader might bid 10 dollars in return for 5.7 British pounds, and the seller of the pounds could be asking 11 dollars for the same amount of pounds. If the seller accepts the bid, the trader then hopes the pound continues to increase in price, so that when time comes to sell, they can get in excess of the 10 dollars initially paid.
As only registered traders have access to this auction process, most online speculators will trade through a bank or broking house. Such brokerages charge a commission for facilitating the trades, and forex traders should consider these transaction costs when calculating their selling offer when time comes to exit their position, as this will influence their profit margin.
How Forex Trading Can Earn You A Living?
For your information, Forex Trading is the LARGEST market in the world. Yes! You read it right, it’s larger than stocks, future, options combined together. Forex Trading have over USD1.3 trillion per day and the amount is increasing now and then.
Forex Trading or currency trading or foreign exchange (short form for forex) simply means buy or sell a pair of currency. In forex trading, we buy or sell in a pair of currency. For example, in EUR/USD pair, if you’re buying this pair, you’re buying EURO while selling USD and the other way around.
The best thing about forex trading is that you earn no matter the market is up or down provided you are in the same side of the market movement.
You might be asking, is it easy to trade forex? Well, it’s simple yet not easy. However, if you have certain knowledge about it, you will have a handsome of profit. Warren Buffet gaining big profit in forex!
If you’ve been to bank or watch the business time tv news, you’ll notice that there are figures like 1.2345 up or down. That’s the price of currency pair. One move of the last digit (we called it “pip”) is either approximately $1 or $10. Everyday the average of the price move is around 70 to 130 pips.
Forex Trading or currency trading or foreign exchange (short form for forex) simply means buy or sell a pair of currency. In forex trading, we buy or sell in a pair of currency. For example, in EUR/USD pair, if you’re buying this pair, you’re buying EURO while selling USD and the other way around.
The best thing about forex trading is that you earn no matter the market is up or down provided you are in the same side of the market movement.
You might be asking, is it easy to trade forex? Well, it’s simple yet not easy. However, if you have certain knowledge about it, you will have a handsome of profit. Warren Buffet gaining big profit in forex!
If you’ve been to bank or watch the business time tv news, you’ll notice that there are figures like 1.2345 up or down. That’s the price of currency pair. One move of the last digit (we called it “pip”) is either approximately $1 or $10. Everyday the average of the price move is around 70 to 130 pips.
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