Forex Exchange Blog

jummy o asked:


I would be greatful if you guys can tell me what you know about it and how it works

DUNMIRE

Roman Sadowski asked:


You have traded Forex exchange market for quite a while now. You have read hundreds of Forex guides and ebooks or Forex trading advice widely spread over internet. Those gave you basic knowledge about forex. Now you know the terminology, rules, currency movement trends and all factors influencing whole Forex market.

There is a lot to take at once.But let me tell you something here,Forex is something people learn all their lives and still there is something left.

You have probably wondered many times before which tactic to take.

Will I rely on technical analysis?

Should I look at the bigger picture and consider all economic conditions?

Will I trade news for quick profits or maybe invest long term.

I believe you went through many demo trading accounts to try them out.

If you picked up your strategy and you decided to go and trade technical chart analysis here is so much else left to consider. At this stage your knowledge should extend to whole terminology including:

support, resistance, chart names. You should know about moving averages, Bollinger band, Fibonacci or Elliot wave theory, Pivot points etc. Now all you have to do is apply all the above rules on your chart and here we go happy pips. Well it is not as easy as it seems to be!

There is one piece of advice that we would like to give you.

Not all the rules apply to all the currencies. That is right. If you have had enough experience and spent thousands of hours watching charts moving you have probably noticed that almost every single combination of currencies have their own flings and this makes them difficult to predict. Not all pairs would create head and shoulders, double top or bottom to signal the potential major movement. Some of them will but that may mean nothing.

Another combination would not necessarily bounce back from 55 or 200 hours moving average or follow pivot points. Other will not create hammers to indicate diversion. All above rules would apply to successful technical analysis trading.

We strongly advise you to do your homework and research. Before you select certain rules for certain pairs make sure that there is a pattern to follow. Adjust moving averages, Play with a few values and backtrack to see where there is a rule that you could use in the future forex trade.

There are many examples to learn from. If you study eurjpy and euraud pairs you will see how different they are. Euraud seems to have a strong trend on daily charts where eurjpy has not got one.

Take also eurusd and we will see that there was strong head and shoulder with the bottom formed on 22 Jan 2008 and instead moving significantly up it did not. Compare the daily chart of eurchf which on the other hand follows nicely its double top and bottom pattern.

We encourage all beginner traders to consider those factors before trading real money.

Select your indicators to your pairs in the way they are most suitable for each one of them.

Make sure it is backtracked and there is evidence for such a selection.

Remember: plan your trade and trade your plan.



SCANTLIN

Star Smith asked:


Online forex trading is one of the hottest investment opportunities around simply due to the fact that it’s a market where people can get very rich in a short amount of time. While standard exchanges (like the New York Stock Market) are open for specific periods of time, the global forex exchange is hopping with activity around the clock.

This makes trading available to most people who have to work a full-time job and juggle other responsibilities. Trades can be made at the ***** of dawn, during lunch and even in the midnight hour. How’s that for flexibility?

Foreign currency exchange trading has attracted this kind of buzz, because of all those stories making the rounds about people literally becoming wealthy after making a few lucky trades. I mean, the thought of having thousands of dollars flooding into your bank account is enough to make anybody giddy.

Can the average person really make this kind of money in forex?

Sure, you can absolutely make a bundle.

You can do this by learning how to study the currency market and pick out winners. However, you won’t make a dime without some serious study on how this market works, or before getting lots of practice in making trades.

Was that a buzz kill?

Hope not. I’m just splashing a little cold water in your face to keep you from getting overly excited. Listen, the truth is that online forex trading can be compared to gambling in Vegas. Picture having that cash just burning in your hot little hands. You’re sitting at your computer admiring all those graphs and charts for various currencies: dollar, yen, euro, etc.

Even though you just recently learned what forex is, you’re practically jumping out of your chair looking to make a trade on that hot tip you got from a forex insider. Yeah, that money is just burning in your pocket, and you figure the rent and bills can wait for now, because you’ve got a sure winner – you’re gonna make big moolah!

Okay, this is where excited new traders bet the rent money and then . . . lose every single penny.

Ouch. That’s gotta hurt.

Meanwhile, experienced traders are happily counting the profits they made on that hot tip. The new traders are big losers because they didn’t take the time to learn how to make wise trades in this very complex market. Yes, forex is exciting, but you can easily lose your life savings with too many bad trades.

A common mistake that many newbies make is that they invest for emotional reasons – fun, excitement, greed, desperation or even revenge. One thing you need to learn right now before you go any further is that you should NEVER make one single trade based on pure emotion. If you do, you might as well be sitting at the slot machine, endlessly popping in money, hoping that you’ll hit that elusive jackpot.

The best traders are cool as a cucumber when making decisions on what to put their money on.

So, of course, forex online trading is going to be very profitable for those who learn how to study the market and make smart and informed decisions based on good analysis and judgment. This will get you a lot further than throwing good money away on a hunch. You also need to use common sense. There are plenty of stories about people who have lost their life savings because they made bad decisions and bad trades.

Most successful forex traders risk no more than 2-3% of their trading account - even on a good tip. You see the way to get rich in forex is to learn how to make good trades, learn when to get out and take your profits, then use those profits to make more trades, and so on and so on. This way, you are building wealth the smart way and you won’t be gambling with money you need for rent, food and expenses.

Aha!

That’s how they do it. A good forex training course will teach you how to make successful trades the slow and easy way. The learning curve is steep in currency trading and you don’t need to rush. In fact, it’s highly recommended that you use a demo trading account while you are learning forex so that you can see exactly what you are doing right when you make money, as well as, what you are doing wrong when you lose money – without risking a dime.

This learning experience will be invaluable to you, because when you do start using real money to make trades, you’ll know what you’re doing and will have a cool head and steady hand. If you choose to follow the example of the 10% of successful forex investors, you will soon find yourself basking in the glow of a new lifestyle.



BUERGER

A traczion asked:


Forex is considered to be the leading marketplace globally with transactions of more than 1.8 trillion dollars taking place everyday. Forex prices keep on changing because of factors like world economy and political events that takes place in different countries. Though forex trading is not easy and has lots of intricacies, a person trading for a particular country’s currency, has to study and observe the present scenario and future prospects of that country’s currency.

Forex trading is a wide market place for selling and buying currencies and is also known as over-the-counter trading market. Global money managers, international money brokers, registered dealers, huge multinational corporations, private speculators and traders are the participants who are mostly involved in Forex markets.

A market order type is basically an order which is carried out to sell and buy at the current market price. Those customers, who are using AC Markets’ online currency trading platform, can click on the selling and buying button after completion of a specific deal size. The execution of the order is instantaneous, which means that the customer gets the same price as seen at that point of time.

The process of Forex trading involves certain steps that include:

A customer specification to the dealer about the deal size and currency pair

The dealer basically gives a two-way price, one is the Ask for price and the other is by bidding

The customer may ask for re-quote

The dealer then confirms the trade. Usually under normal market circumstances ACMarket dealers respond to market orders within five to ten seconds.

Limit order is also an order which is basically placed to buy and sell at a certain price. This order contains two components, namely duration and price, where the trader specifies the price at which he wants to sell or buy a certain currency price.

Stop orders are also placed in order to buy and sell at a specified amount or price containing same two variables, duration and price. This order is basically used for a limit loss potential on a transaction. An OCO which is an acronym for ‘Order cancels Other’ stands for an order which is a mixture of two limit or stop orders. Two orders having price and duration variables are also placed below and above the current price.

For more information on Forex Currency Exchange, Online Currency Trading, Online Forex Market, Forex, Forex Trading, Online Forex Trading, Online Forex Currency Trading, Silver Trading and Forex Exchanges, visit www.ac-markets.com



PARROTT

ali s asked:


FOREX stand for forign exchange

SPARLING

Forex Training asked:


Once you become somewhat familiar with how the forex market works, and you understand to a point what is involved in trading on the Foreign Exchange Market, you would want to start to gauge market trends in order to profit from your business ventures on the open market.

The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to “guessing” what will happen next.

Forex trading is a lot like gambling. If you can keep track of the cards that have already been played, you are more informed, statistically, regarding what is likely to be dealt next, meaning you can place a bet with greater insight than someone who has no clue what has already been played. With the forex market, if you have information as to what has already occurred over the past few days, months, or even years, you are again placed in a better position to more logically conclude what will happen next. You simply learn the pattern and follow it to the end, reaping the financial rewards.

Charts And Chartists

Wait, did you think you were going to have to research and map out the market’s past all by yourself? Of course not! There are people who get paid to do that sort of work. They monitor the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders with the same knowledge mentioned before. The more a trading company knows about the market, the more money they can make.

The best part of this is that you have access to the same information as these VIP clients. Chartists, who are essentially market analysts that publish their findings in easy to read charts, produce what is referred to as a candlestick charts. These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other interests over a specified period of time. Therefore, you can easily determine if the currency is on an uptrend or if it is taking a downturn, when the last major change occurred, and how long it is predicted that the currency pair will continue on the current path.

If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.

It is recommended however that you learn at least the basics of charting and statistics before you start trading live.



INABINET

David Mclauchlan asked:


It is possible to day trade currencies along with trading stocks. In case you have ever wondered how the foreign exchange market, or Forex, works, here is an overview of some of the markets basic features:

First and foremost there are the foreign exchange rates, which is the proportional value of two currencies. To be more specific, it’s the required quantity of one particular currency to sell or buy a unit of another currency. There are two methods used to express a foreign exchange rate. The most common method would express the amount of foreign currency that is needed to buy one U.S. dollar. For instance, if a foreign exchange quote expressed as USD/CND at 1.4300, this means that one U.S. dollar can be exchanged for 1.43 Canadian dollars, and vise versa. The second method is when the foreign exchange rate is expressed under the terms that the USD amount can be exchanged for one unit of a foreign currency. For instance, if a quote of CND/USD at 0.6700 means that one Canadian dollar can be exchanged for the same 0.6700 USD. When the USD is not used to convey an exchange rate, then the “cross rate” term is used to convey the proportional values between the two currencies. For instance, if the quote is DEM/SFR at .7000, this means that on German Mark can be exchanged for only .7 Swiss Francs.

Basis points are normally when the foreign exchange rate is expressed by a whole number followed by four decimal points. For example, 0.0001 is called a basis point. Therefore, if an exchange rate rises from 1.4550 to 1.4590, then the currency is said to have changed by 40 basis points.

The Forex market is used to invest in other countries or even to buy foreign products. Sometimes individuals or firms who wish to buy foreign currencies or products, may need to get hold of some of the currency, beforehand, from the country in which they wish to do business with. Also, the exporters may require payment for services or goods in their own currency, or in USD, which is accepted throughout the world.

In the Forex market, a majority of selling and buying of foreign currencies throughout the world is taken place, mostly by the large commercial banks, who are the major traders in the Forex market. With five major institutions based throughout the world in New York, London, Frankfurt, Zurich and Tokyo, the Forex market is considered the largest financial market in the world by far, with the multitude of trading volumes exceeding 1.5 trillion USD on most days.

The foreign exchange spreads are when the exchange rates in the Forex market are cited as a two-tier “bid” or “ask” rate. For instance, when a USD and a DEM is cited as 1.6000/15, the Forex trader who cites this exchange rate is agreeing to buy the DEM’s at 1.6000 and sell them at 1.6015. The “spread” is the actual difference between cites of purchase and cites of sale and also illustrates the profit expected from the transaction for the Forex trader. The “spread” may vary comprehensively on any specific currency; all depending on the currency’s strength or weakness, and even it’s past history or prospective volatility.

Forex traders who consist primarily of world wide network interbank traders are connected together by computers and telephone lines and are constantly negotiating prices among one another. These artful negotiations normally ensue in a market bid, or asking price, for a specific currency that is then introduced continuously into computers to be displayed on official quote screens. When the Forex exchange rates are quoted between banks, this is called “Interbank Rates.”

Many individuals may not be able to get hold of some foreign currencies at Forex rates unless they become licensed traders through Forex. Instead, those individuals may be able to come across foreign currency through a commercial bank, which may charge the individuals with either a commission or a higher spread than those reigning in the Forex market. Sometimes these commercial banks will even charge individuals both commission and higher spread as to enable the bank to make a reasonable profit from the transaction.

The world is big and so is the world of the Forex market.



EMLER

Wannabe007 asked:


Does anyone know what license a foreign exchange trader needs… if any? I have a series 7 and 66.. what about Forex?

PISCHKE

Jim Pretin asked:


The Foreign Exchange market (Forex) is truly the largest exchange in the world. The amount of dollars traded on the Forex market on a daily basis is in the trillions. Most of this currency trading takes place between between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. However, individual traders are starting to get in the mix, using internet discount brokers such as Etrade to participate in the currency exchange market.

There is no central exchange or meeting place for the Forex. All trading is done over computer networks between traders in different parts of the world. Also, unlike the stock market, the foreign exchange market is open 24 hours per day, because it is a global market. A trader in Hong Kong may be exchanging currency with a trader in Australia while an American trader is sleeping.

There are several different markets within the Forex exchange system. First, there is the spot market. The spot market deals with trades that are based on the current values of currencies. One person trades a certain amount of currency with another trader in exchange for an equivalent amount of a different foreign currency. Spot trades take two days for settlement.

The other two types of foreign exchange markets are the forward and futures markets. In the forward market, the buyer and seller agree on an exchange rate and a transaction date is set for a specific time in the future, at which point the trade is executed regardless of what the rates are at that time. On the futures market, futures contracts are bought and sold based upon a standard contract size and maturity date. Futures trades take place on public commodities markets.

A currency quote is listed differently from a stock quote. Stocks are quoted in terms of price per share. Currency exchange prices are listed as either a direct quote or an indirect quote. A direct quote uses the domestic currency as the base and the foreign currency as the quote. An indirect quote works the exact opposite way. So, if you were to view a quote in an American newspaper that said USD/JPY = 75, that would be a direct quote and would mean that $1 of U.S. currency is equal to 75 Japanese yen. If that same quote appeared in that same American newspaper and was listed as JPY/USD = 0.013, that would be an example of an indirect quote.

As with stock prices, currency exchange prices have a bid and ask spread. The current bid is the amount of foreign currency that someone is willing to spend in order to buy $1 U.S. base currency. The ask is the amount of foreign currency that someone is demanding in order to be willing to sell $1 U.S. base currency.

The Forex markets are generally considered to be less volatile than then stock market because within the course of a trading day, it is highly unlikely for the value of a single currency to move all that much. With equities, it is not uncommon for a trader to buy a stock, and then a negative press release causes the stock to lose considerable value within a day or even a couple of hours. Sometimes, however, the Forex can be volatile. If there is a significant economic or political development with a certain country, the currency of that country can lose value quickly. There is a higher degree of liquidity on the currency exchange then there is on the stock exchange because the currency exchange is open 24 hours per day and because the very nature of currency exchange is to bet on when certain currencies will go up or down; so, it is easy to sell your position in a certain currency even when the value of that money is going down. A plummeting stock is more difficult to unload, but not impossible.

I hope this information has helped you to become familiar with foreign currency trading and the Forex markets. If you want to partake in this kind of trading, try to set aside some money and open up an account with an online broker. Start slowly, then as you get the hang of it, work your way up to larger trades and higher volume. However, do not gamble your nest egg on currency trading because inexperienced traders can lose everything they have rather quickly in spite of the relative safety of the Forex market.



GEBEL

koolkeynan asked:


i want to buy an online stock trading program i have narrowed it down to forex– foreign money exchange, or smarttrade- you follow the red and green arrows and buy or sell stock accordingly. i have no experience in stock or foreign money so i need a simple program has anyone tried one that worked. or had any success with any other programs

HENKENSIEFKEN