Sunday, March 8, 2009

A History of Trading the Forex Market

Forex currency trading has made massive advancements over recent years and is becoming on the Internets most searched for trading opportunities. Technological advancements have made Forex an opportunity to make money for everyone from small individual speculators to large multi-national companies.In reality the principles of Forex trade have existed for centuries but it wasn't until 1967 when the idea of a global system of currency exchange first began to be put together.

Buying and Selling in Foreign Exchange Market | ForexGen

In the foreignexchange market, currencies are always priced and traded in pairs. Yousimultaneously buy one currency and sell another, but you can determine whichpair of currencies you wish to trade. For example, if you believe the value ofthe euro is going to increase vis-รก-vis the U.S. Dollar, then you would go longon EUR/USD instrument (currencypair). Obviously, the objective of foreign exchange currencies trading isto exchange one currency for another in the expectation that the foreign exchangemarket rate or price will change so that the currency you bought has increasedits value relative to the one you sold. If you have bought a currency and theprice appreciates in value, then you must sell the currency back in order tolock in the profit. An open trade or position is one in which a trader haseither bought / sold one currencypair and has not sold / bought back the equivalent amount to effectivelyclose the position.

Forex traffic is all about putting your income in to pick currencies, so you can good the charisma for the night, for time generation or the inadequac

Forex traffic is all about putting your income in to pick currencies, so you can good the charisma for the night, for time generation or the inadequacy in traffic income all around. Forex traffic does rivet pick resources along with money, yet given you have been investing in pick countries as good as in pick [...]

What is Forex?

The system of global trading in foreign currency is known as the Foreign Exchange Market, Forex, or just FX. Over the last three decades the foreign exchange market has become the world's largest financial market, it trades over $1.5 trillion USD daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Forex is part of the bank to bank currency market known as the 24-hour Interbank market.

24 Hour Access to the World

Select the forex market, select the time, and start trading. The massive liquidity of forex, combined with a true 24-hour forex market that's traded 5.5 days a week, offers you exceptional independence and forex currency trading when you want to, not when the market wants you to. The forex market literally follows the sun around the world, moving from major banking and financial centers of the United States to Australia and New Zealand to the Far East, to Europe and finally back to the United States.
During each trading day, overall foreign currency trading volume is determined by what markets are open and the times each of these markets overlap one another. With each passing second, minute and hour, forex currency trading volume remains high, but peaks highest when the British, European and U.S. markets are open at the same time - from 1 p.m. GMT to 4 p.m. GMT. The volume of the Pacific Rim markets, such as Japan and Hong Kong, subsides compared to the crest of the U.S. market, but still offer the forex trader the ability to analyze the highly traded Pacific Rim currencies

Forex Open Market Time and Volume

Forex Trading

When you buy a currency in the forex market, you are actually doing two trades. You are selling one currency and buying the other. You have known what currency you are betting for/against, as opposed to the stock market where you only need to know one stock.
Unlike stock trading, most online forex firms don’t charge commission. They make money by giving you a worse spread then they get and by charging you interest on margin. This spread is usually two or three pips (explained below).
Margins are huge in currency trading; you can easily be accepted for 200 to margin on-line. Some forex firms will give you up to 400:1 margin. To be honest, there is very little regulation in this industry, which means you can move $2,000,000 worth of currency with only $10,000 in your account. You can even open an account with as little as $300.
Profits in forex are measured in “pips” or “points.” A pip is 1/1000 of dollar. For example if you buy the dollar (USD) against the euro (EUR), and it went in your direction from $1.300 to $1.299, you have made a 1 pip profit. On a $10k order at full margin (200:1), this is equivalent to $50 in profit.