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Foreign Currency Desk

tips and strategies on foreign currency trading

Updated: 2014-10-02T22:05:40.974-07:00


Developing A Trading Plan - Pt 4


Testing a trading Plan Before they begin in the market, some traders find it helpful to 'papertrade' the market for a while. This involves taking 'hypothetical' positionsin the market and then monitoring these to see what the outcome will be. Before doing any physical futures trading at all, the first move is to startby paper trading. A trading plan must be able to be measured. E.g. "I'llrisk no more than 2% of my capital on any given trade". It can't say "Iwon't use too much of my equity for margin." Traders whose systems are more technical in nature will 'back test' theirsystem against historical market data to determine the success of the systemin that particular market. A trading system can be as simple as a few rulesor as complex as a Black box technical analysis package. The key is that thesystem matches your personal trading style. You can either create a systemfrom scratch or buy a readymade package. Either way it is advisable to testthe system with dummy trades before doing the real thing. Some expertsrecommend 10 years of back testing with historical data (black box systems)where as others recommend a shorter time span for the testing of a simplersystem. It is very important to perform your own testing on any 'off theshelf' systems, and not rely purely on the seller's recommendations. While all of these techniques are beneficial, prospective traders need to beaware that simulated trading - no matter what its form, does have itspitfalls. Experienced traders will often say that there is no substitute for havingreal money in the market. Depending upon traders own discipline, the waythey react in this circumstance could be very different compared to when thetrade was purely hypothetical. In addition, while a market's pastperformance can provide some general clues as to its price behavior, thereis no guarantee that this will be repeated in the future. Individuality Trading plans are individualistic, based on such factors as personalexperience, education, risk capital and tolerance toward risk. For thisreason, trading plans may differ greatly from one trader to another. Atrading plan may work better with some people than others. Consequently, youmust develop a trading plan that works best for you. Among other things,this requires patience, rigid adherence to the rules that you establish,meticulous record keeping of trading performance (which provides valuablefeedback) and an open mind to try new methods. There are no guarantees ofprofitability in the world of futures investing, but the discipline of atrading plan goes a long way toward making you a successful futures trader. Now let's look at some of theSAMPLE TRADING PLAN (GENERAL SUMMARY OF MARKET ACTION) Trading Philosophy / Trading Psychology: I believe that Financial Markets are 100% psychology driven.Price patternsare a reflection of the collective psychology of a large number oftraders.Trading psychology also a major factor in my own trading. It isidentified as my trading state. Fear and Greed are powerful enemies toprofitable trading and I can overcome this by training my subconscious mindto be focused on following a defined trading plan versus focusing on winsand losses.I am a disciplined trader committed to trading only for profitstrictly adhering too my trading rules, plan and standard operatingprocedures.My style of trading is aggressive with my preference to tradedirectional, and pattern set ups. I will trade full time as a day trader andalso seek other trading opportunities especially dealing with Options.I willnot have a bias as to where the market may or may not head, I will react tothe price, patterns and my tools as they present themselves applying mytrading rules.I trade what I see… Not what I think!I understand that Icannot control the market, I can control only myself. My trading state andmindset is the key to the success of trading. I must be rested, fit, healthyand mentally alert. Accepting the stress of trading by keeping focused,calm, disciplined and [...]

We Should All Be Grateful To Day Traders


Day traders play an essential and often uppreciated role in our economy. And
do not most things and events in life come back to the subject of "money ".
Day traders allow the stock market to put a price on the companies that are
a constant, vital part of our lives. We know these companies. As they touch
our lives in many ways. They build our homes, produce our food, make our
clothing and build our cars. They broadcast our TV show we watch and pipe
the internet as well as telephone and cable service into our homes. They
provide jobs for our friends and families. As an integral part of our
economic cycle, these are companies that need capital to develop the
products that will improve that will improve the quality of our lives in the
years to come.

The stock market allows day traders to put a price on these companies every
second of the trading day. By actively trading, day traders provide the
liquidity that is the cornerstone of our markets. Without liquidity,
companies would not be able to raise the money they need to produce the
goods and provide the services that we demand. Without liquidity, investors
would not be able to commit capital. It is this capital that allows these
companies to grow and prosper in our economy. And it is the day trader who
plays a pivotal role in creating the markets that allow our economy to

Day traders add immense depth and liquidity to the stock markets. Liquidity
enables any individual, institution or financial institution to rapidly sell
its stock for fair value and that is a direct consequence of the large
relative numbers of day traders providing active financial markets.
Liquidity does not just mean a rapid turnover: it means a rapid turnover at
fair value. It could be said that anyone could sell a Rolex watch on the
street for $ 25 dollars, but this would not constitute or represent a fair
price for the product and therefore could not be said to represent fair and
present value. Thus to blow out product at prices below fair and reasonable
value does not constitute true and trustworthy liquidity. Other products of
wealth such as Real Estate or large expensive boasts may sits for many
expensive years before buyers appear on the market that are willing to pay
fair value for the product to be liquidated into cash... On the other hand,
the stock market allows trader to place a value on capital investments and
more importantly affords investors and traders the opportunity to enter or
exit their equity positions efficiently in an effective manner. The economic
functions of the markets, coupled with unparalleled liquidity and a myriad
of constantly arising new opportunities, communication tools and ongoing
technological advances make the stock market the ultimate way to speculate
and as well provide a value function of the value of assets as well as a
quick means of liquidation and accumulation of vital capital

About The Author: Amy F. Goodmann Senior Financial Analyst Forex Forex Forex

How To Start Trading The Forex Market? (Part 8)


HOW TO predict the Future ?

by studying the Past (Technical Analysis):

1) The best traders don't discount one or the other but understand that
having an understanding how the fundamentals influence market sentiment
gives him/her an edge over those traders who don't.

2) In my opinion, TECHNICAL analysis is the easiest and most accurate way of
trading the FOREX market.

3) "The number's don't lie" - all available information and its impact on
the market, are already reflected in a currency's price.

4) Prices move in trends - the foreign exchange market is mostly composed of
trends and therefore a place where technical analysis can be very effective.

5) History repeats itself - over time, certain chart patterns become
consistent, predictable and very reliable. The question is SEEING them.


The traders who don't believe this obviously have no need to implement a
trading methodology on technical analysis. But, research has shown that
those who trade "with the trend", greatly improve their changes of making a
profitable trade.

Finding the prevailing trend will help you become aware of the overall
market direction and offer you better visibility,especially when
shorter-term movements tend to clutter the picture.

HOW does technical analysis help to determine what the trend is and HOW to
trade with then trend versus against it?

Even though, you learn you how to use and read various technical indicators
to identify a long- term trend, spot predictable chart patters and use
certain rules to enter and exit a high-probability trade, and even though a
ll this involves sound logic, parameters, methods, formulas, data, and
research, these technical indicators, by themselves, are not the Holy Grail
of FOREX trading.

It takes discipline and emotional control to stick with trading following
through the inevitable market ups and downs. Keep in mind, good technical
traders expect ups and downs.

Which technical indicators are the BEST?

NONE - technical indicators should simply be components of your overall
customized, personalized trading system, and not a stand alone system.
The objectives as a FOREX Technical Trader are:

1) To figure out the price action of the currency pair. Price is the main
concern. If the EUR/USD is at 1.2224 and goes to 1.2020, 1.1980, 1.1940- the
market is in a down trend.

Despite what every technical indicator might predict, if the trend is down,
stay with the trend. Indicators showing where price will go next or what it
should be doing are useless.

A trader should only be concerned with what the market is doing, not what
the market might do. The price tells you what the market is doing.

2) Always remember that technical indicators are only giving you
confirmations based on what the market is telling you. So listen to the
market and let it tell you which method, strategy or techniques you should

About The Author: Veteran Trader Martin Maier is the Founder of .He is the developer of various
futures and commodities trading programs and has received many Trading

Forex Trading: Do You Have It In You


Forex is short for Foreign Exchange, where money from one country is
exchanged for that of another or the simultaneous buying of one currency and
selling of another.

When one deals in forex trading the profit or loss, he incurs is the
increased or decreased value of an investment caused solely by currency
movements. For example, if an investor thought that the US dollar was weak,
he might purchase German Mark. The investor's, the real profit or loss could
then be in how the Mark moves against the US$.

Being the largest financial market in the world, the Forex market has a
volume of more than $1.5 trillion daily. Also the Forex market, unlike other
financial markets, has no permanent location, no central exchange and just
happens 'Over the Counter.' It operates through an electronic network of
large banks, central banks, currency speculators, multinational
corporations, governments and other financial markets and institutions.
Retail traders are individuals who are a small part of this market. They
participate indirectly through brokers or banks.

The foreign exchange market is unique because of its trading volume, the
extreme liquidity, the large number and variety of traders in the market,
its geographical dispersion, its long trading hours i.e. 24 hours a day and
a host of factors that affect exchange rates etc.

Currencies are traded against one another. Each pair of currencies are
traditionally noted as XXX/YYY, where YYY is the ISO 4217 international
three-letter code of the currency into which the price of one unit of XXX
currency is expressed. For example, EUR/USD is the price of the euro
expressed in US dollars, as in 1 euro = 1.2045 dollar.

73 % of the forex trading is done by 10 top international banks. These large
banks continually provide the market with both "bid or buy" and "ask or
sell" prices. The difference between the price at which a bank or broker
will sell and the price at which a broker will buy from a wholesale customer
is called the "spread". This spread is very less for actively traded pairs
of currencies, usually only 1-3 pips. One pip is the smallest unit of price
move used in forex trading. For example, if the currency pair EUR/USD is
currently trading at 1.4000 and then the exchange rate changes to 1.4010,
the pair did a 10 pips move. The pip is the smallest unit regardless of the
fractional representation of the currency exchange rate.
Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10
For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum
trading size for most deals is usually $1,000,000.

Whew! What a market!

About The Author: NamSing Then is a regular article contributor on many
topics. Visit his other websites at, and

How to Find a Successful Forex Trading System


How to Find a Successful Forex Trading System The Foreign Currency Exchange
Market, or more commonly known as the Forex market is the largest financial
market in the world. Over $2 Trillion dollars are traded on the Forex market
every day. Forex traders make money in the currency exchange market by
playing one currency against another. They play currency pairs and bet that
one currency will either increase or decrease in value and the other
currency (or cross currency) will go in the opposite direction.

As I mentioned, Forex traders trade currency pairs. For example a trader
might play the Euro against the US Dollar (EUR/USD pair). If the trader
thinks the EUR will increase in value over a certain period of time, the
trader will go "long" the EUR/USD pair. If the trader goes long this
currency pair, he/she is betting the EUR will "increase" in value against
the USD. If the trader is right, they make money. If they're wrong, then
they lose money. Successful traders always employ a good forex trading
strategy so they consistently profit from their trades.

There are two ways to play the Foreign Currency Exchange Market that all
experienced Forex traders use. One is called Fundamentals and the other is
called Technicals.
Fundamentals refer to news events that move the markets.
For example if a country increases interest rates, then most likely that
will cause the currency to increase in value. If a country releases poor
housing numbers then that could cause the currency of that country to
decrease in value.

The technical side of trading the Forex markets refers to using charts and
indicators. Price charts and other technical tools are used to determine a
possible trade.
Indicators like MACD, Stochastics, moving averages and more are just a few
of the tools in the technical traders toolbox. The best Forex traders use a
combination of both fundamental and technical trading. Great traders never
rely on just one side.

Some traders trade longer term and some trade short term. A long term trader
is considered a position trader. Position traders take a longer term
approach to trading the forex market. For example if one currency looks like
it could be bullish over the next few weeks or months, they may place a long
position trade and let it ride for weeks or months until they exit their
trades to take profits.

Traders who take a short term approach to trading are considered day traders
or intraday traders. These traders only have open trades for a short period
of time and most of these Forex traders open and close their trades in the
same day or within hours. Most technical traders don't like to have open
position around news time because some major news events can actually cause
a great technical trade to fail because of an unexpected news surprise.

No matter what style of trading you use, as long as you use a great forex
trading strategy and stick with the rules of those strategies, trading the
forex market can be a very profitable way to make a living. Not only is a
good forex trading strategy important but good money management plays a big
role as well. As long as you manage your winners and losers and set the
appropriate stop losses and profit targets, you will quickly find that
trading the Forex market can be a very profitable business.

Andrew Daigle is the owner, creator and author of many successful websites
including ForexBoost at , a Free Forex Training
Resource for the Novice and Advanced Forex trader.

Global Forex Trading - The Easy Way To Make Money


Global forex trading was founded in 1997 and is today one of the world's
leading providers when it comes to forex real time trading. Global forex
trading offer you the chance to deal in real time online currency trading
that is making millions of forex brokers rich each day.

Global forex trading serves over 100 countries, using its DealBrook FX2
software and 24 hour market access with one of the highest levels of
customer service available in the forex trading industry. With Global forex
trading forex brokers have access to pricing for more than 60 currency pair
and excellent analytical services from renowned experts. There are up to the
minute currency news bulletins and advanced forex charts available. Global
forex trading boasts that they provide the only forex trading platform that
is suitable for both beginners and professionals.

Forex Trading Advantages

The forex trading market is open 24 hours a day and is today the most liquid
market in the world. With forex and the available leverage strategy you can
use 100 to 1 leverage which in turn reduces the need for large amounts of
capital to be placed in your account. Forex trading is also commission free
and trading is available on more than 60 currencies worldwide.
Another advantage of forex trading is of course the fact that it is global
and there are not restrictions placed on shorting which means that you can
enjoy your profit opportunities no matter what the market condition.

Prior to reading this information you may have assumed that forex trading
was only available for large investors but thanks to Global forex trading
smaller transactions are now available which allows all traders to take part
giving everyone the opportunity to profit from forex trading. Don't you
think it's time you started profiting? Well, it is. Start forexing and have
fun doing it.

About The Author: Our mission is to gather all Forex info on one place. Find
it only on All
about forex trading on LeanderNet -

An Introduction To Day Trading


Many people often get confused by the financial terms such as currency,
forex exchange, trading etc. It's a big complex financial world and one of
the new trading concepts is day trading.

Day trading in its simplest term means buying and selling securities, stock
and other financial investment within a single trading day. It covers a wide
variety of financial products such as stocks, currencies, forex, equity
index, futures and commodities.

The financial products that are brought are only held with a trading day and
must be sold at the end of a trading day

Due to the short time period in which to buy and sell stocks, day trading is
considered risky. If you are interested in day trading, be prepared to have
sufficient capital. You need to purchase at least 1000 shares of a stock. Be
prepared for this capital to be expendable.

Although day trading is risky, it does have big rewards if you know how to
play in this game. Many day traders never allow themselves to get emotional
with any one stock. They should know when to cut their losses when the need
arises as well as able to analyze the current market trend particularly in
the short term.

One advantage of day trading is that the intraday margin is 50 to 1. That's
means you are allowed to trade up to 50 times your initial capital.

So what if you do not have the necessary capital to invest in day trading.
Thankfully, you could try day trading currencies.
Trading currencies requires less capital. You only need a couple of hundred
dollars to be able to open a forex mini account.

One major disadvantage of day trading is the stock market is only open for
about 8 hours each day. However for currency trading, the forex market is
open 24/7. That means you can trade just about any time of the day.

Another advantage of day trading currencies is that most day traders get an
intraday margin of 4. That means with the same capital, you can trade up to
4 times your capital. For example, if you have $10,000 as capital, you can
trade up to $40,000.
This gives you more leverage if you decide to buy higher price currencies.

Day trading currrencies are also easier to monitor and predict compared to
stocks as there are less of them and the factors influencing global forex
market are lesser

In day trading, you can lose big as well as win big all in a single day so I
would not recommend anyone to take up day trading until you have sufficient
experience and knowledge in the stock or forex markets. Wise and quick
decision making is needed as well as the usual stock research analysis,
market analysis etc.

About The Author: Ricky Lim runs a day trading guide site.
Visit his site today at for more info on how day trading
works and day trading training software.

Learning The Basics At A Forex Seminar


The Forex seminar is an essential commodity to the novice trader and the
experienced professional. Seminars of note are hosted by professionals
within the Forex market. Whether these experts are themselves investors or
traders, or whether they are analysts or forecasters they all add value to
the knowledge of attendees.

In fact, gaining insight from as many groups of people could prove to be the
decisive factor in the success of any trader.
Analysts can offer well rounded knowledge that is based almost purely on
fact whereas traders can give excellent advice based on their own first hand
experience of Forex trading.

First time traders may find some of the more technical seminars to be
daunting to say the least. Seminars have been established that cater solely
to beginners and are presented in such a way that novices will gain a lot of
information from every step of the program.

Coversely, a Forex seminar designed for experienced traders will be more
likely to discuss impending fundamental news or new patterns that have been
discovered during technical analysis. Again, this is all excellent
information, but a little premature for the inexperienced Forex trader.
Traders should ensure they utilize the right seminars to get real value.

Webinars are the latest addition to the Forex education arena.
They are basically seminars hosted on the Internet. These are generally
recorded to be played back at will by visitors to the website. While these
may not present the usual question and answer sessions they do still impart
news, information and resources upon the visitor.

Seminars are also usually broken down further than by technical experience
or trading level. There will often be a separate Forex seminar for the
technical analysts and further seminars for fundamental analysts and
intermarket analysts. Traders often do choose to buck their own trend by
visiting seminars they wouldn't usually consider relevant to themselves.
This provides them with information that may prove beneficial and that they
would not have otherwise accessed.

As well as covering basic topics on Forex trading, seminars also help to
identify the important aspects of data. This is true of fundamental and
technical seminars. They will also teach traders that the actual result of
certain fundamentals on markets are not as important as the perception that
the market will take from that particular item. That is, data might be
released that will mathematically see the price of the USD increase in the
short term, however, if traders see that it will decrease over the long term
the market may still predominantly lean towards the falling dollar. As a
trader it is imperative to spot this kind of information.

Forex Trader Education, at,
provides a valuable resource of information on many aspects of Forex
trading. A lot of the content will have been covered in a Forex seminar in
the past but the theory receives much more attention on the Forex Trader
Education site than it did previously. This attention can help traders to
determine how relevant the information really is.

About The Author: is dedicated to
helping traders with Forex Seminar as well as futures and options about
trading and important concepts.

All About Forex - What You Need To Know


In order to succeed successfully in forex trading you need to know what the
purpose of trading forex is. Forex trading as you know is the trading of
online currency and the key to success is to buy low and sell high just as
with any other market. You task as a forex trader is to try to determine the
trend of the particular currency you are looking to either buy or sell and
to utilise the forex trading strategies to ensure that a profit is made.

Now that you know the purpose of forex trading the next step in knowing all
about forex is to understand the codes, definitions and numbers used when
trading. All currencies used in forex trading are assigned a three letter
code. An example of this is the US dollar which is USD or the Euro EUR.
Online currency trading is done in combinations that are known as a cross
and these are represented by 6 letter words with the more expensive currency
coming first. An example of this is GBPUSD which will show you how many US
Dollar you will need to pay for one British pound. These rates are shown as
five digit numbers for example GPBUSD = 1.6262 which means that 1 British
pound is worth 1.6262 US dollars. When the rate changes the change will be
displayed in bold, eg GPBUSD = 1.6264 which will mean that the rate has
moved by 2 points. Knowing this is the key to successful forex trading and
your key to profit.

When you enter the forex trading market you will enter as a buyer or a
seller of a particular currency. If you are a seller you price is known as
the ASK price and the buyers price is known as the BID. You can only buy
currency from a seller with an asking price the same as the BID price.

These are the main beginner's points to note when it comes to forex trading
and knowing what the purpose of trading forex is and knowing all about forex
before you enter into the market can make a big difference when it comes to
your profits.

About The Author: We have made the most comprehensive research on Forex
trading. Check it out on All about Forex on

Finding The Most Effective Forex Trading System


The Forex trading system comes in many different guises ranging from the
genuinely useful to the appallingly useless. As well as the genuine but
still profitless systems that exists there are also the equally common scams
from people trying to earn money for providing no valuable service. Traders
who are interested in finding a profitable system will have to do their

Systems are only as valuable as their results. Traders should never purchase
any system or software, for that matter, that doesn't show previous results
or offer a reasonable trial period to paper trade the results. Almost all
genuine systems will provide some sort of credentials about the service on
offer because they want to persuade traders to purchase from them. Check the
website of the system in question for historical results.

As well as looking at the results themselves traders should pay particular
attention to the validity of the results. By checking some of the results
against the criteria of the system it is possible to verify the selections
easily and quickly. In the long run, this can save a lot of heartache. A
failed system won't necessarily lose an investor the money they spend on the
system itself. Any money invested on the back of a bad system is also lost

A Forex trading system should give some idea as to how the selections are
determined. While some secrecy is obviously required to ensure the creator
retains the integrity of their system, there should be some information
pertaining to the selection criteria used. An astute trader will look at
this information and either be able to form their own decision on whether it
sounds like a viable system or at least research the theories. It is
unlikely that any system is so unique that no supporting evidence can be

Buyers should never rely on the testimonials that appear on websites. It
doesn't take much to write these testimonials and without some kind of
verification this means there is absolutely no guarantee they weren't
written by the webmaster themselves.

As well as the Forex trading system, there are also software packages and
forecasts available. The same principles apply to these as to the trading
systems. The most sensible thing a trader can do before taking the plunge
and paying hundreds of dollars for any system or software package is to
conduct thorough research into the theories, the selections, the results and
the service itself.

If somebody has already been stung by a particular scam then there is likely
to be information all over the Internet.
Similarly, a proven Forex trading system is also likely to have generated
some interest from numerous parties.

The Forex Trader Education website has its own software called VantagePoint.
VantagePoint has fully documented results and also offers free forecasts to
anyone interested in purchasing the software. This gives traders the
opportunity to conduct their research and to even paper trade the forecast
and determine the effectiveness of the software. Visit for more information and to receive your
free Forex forecasts.

About The Author: is dedicated to
helping traders with Forex Trading System as well as futures and options
about trading and important concepts.

How To Pick A Good Forex Broker


If you are doing forex trading, then you know the importance of a good forex
broker. This is especially true if you are just starting out and do not have
a lot of experience. A good forex trader will work with you and provide the
information and tips you need to make the best trading.

Even though your forex broker will be offering you tips and advice, they do
not make the final decision to buy or sell. You do. Therefore it is
important you know what you want and make your own decision. It is ok to ask
a lot of newbie forex questions to your broker if you are new to forex
trading but make your own mind and accept the results.

As you can see, a good forex broker is important as you will be seeking
his/her advice and you certainly want someone who's the best in the forex
business. So how do you go about choosing one? Here are some tips to help

1. Registered Forex Broker.

It is important that your forex broker is a registered member of a financial
institution. Ask for his/her credentials. You want the assurance that he/she
will be able to act on your decision and access the funds needed.

Check with the NFA (National Futures Association) if you doubt your forex
broker is registered.

2. On-call Broker.

Your forex broker should remain in contact at all times.
Whether it be via cell phone, email, instant messaging etc.
Your broker should know forex trading is a 24 hour standby job and
fluctuations in trading can happen quite quickly. Therefore it is important
you can get hold of your forex broker when you need him/her

3. Experienced Broker.

Before you select a forex broker, ask for his/her references.
Call those references and ask them about their opinions on the forex trader.
By doing this, you can assert whether the forex broker is experienced and
whether he/she is able to execute a trade effectively and successfully.

It would be best to contact more than one references to get an accurate
feedback on the forex broker.

4. Cost of Broker

Many people when looking for a forex broker are overly concerned about the
cost. Usually more experienced forex brokers as well as those with a good
track record of successful trades demand a higher price.

My recommendation is to select a few forex brokers that you are comfortable
with, have credentials, have a proven good track record. Once you have done
that, then you can talk about cost.

Sometimes the price for a forex broker with the above qualifications can be
high, however you need to keep in mind, they can help you make more money in
the long run and offset the cost.

About The Author: Ricky runs an forex trading site at Visit his site today for more
forex trading tips as well as other investing topics such stock investing,
day trading etc

E Currency Exchange, DXinOne Scam ??


I wasn't going to weigh in the scam articles and angles regarding E CurrencyExchange, but I felt I had to because of a couple of emails I received.One was from a rather frustrated gentleman regarding the DXinOne system thatis promoted and utilized via the many E-Currency Exchange learning programson-line. This guy is certain that the DX system is a scam and that the wellknown e-currency guru with whom he signed on to learn the system, basicallyjerked him around. I won't use the term he used.... I really felt this guy'sfrustration, and completely understand it! Many of us just want to find whatworks, build it, and make some money. The money is, after all, out there tobe made! And, E-Currency exchanging makes sense; as the E-Commerce industryis burgeoning globally, so goes E-Currency trading, right?Another gentleman sent this email to me:"Sweetie, I have seen this before and also read an articlethat it was a SCAM! Why do you portray it to be legal? Iwill be praying for you."While I don't believe this man is genuinely concerned for me, I do get thesense that he got caught up in all of the back and forth hype aboutE-Currency. All you have to do is just Google E Currency and jump into therabbit hole.There's a never ending stream of information, much of it contradictory. Youcan read one review, believe it's a scam and walk away satisfied that youdidn't buy in. Or, you can read another, feel positive and buy into it.The problem with some of these "Learn E-Currency Exchange"opportunities is that they present the trading of E-Currencies as an easy,quick "investment" opportunity, a sure thing. and the more you can invest,the more you can make. But the DX system claims to be a "credit and storagesystem" not an "investment scheme" - their words. The money is always inyour account and the DX simply uses it in the daily trading of E-Currencies.The only profits the DX makes is on the premiums they charge. With the aftereffect of the recent DX internal changes, premiums are now taken up frontand newcomers don't see profits right away, like you did prior to thesechanges. Still, you are "investing"your hard earned dollars into a profit building portfolio.Otherwise, why would you do it???DX initially grew too quickly and has had to re-organize from being drainedby quick-profit seekers who found holes in the system and benefitedfinancially. DX is going through growing pains and would buckle under ifthey didn't re-organize. They have had to fill in the holes in order to growand prosper as an organization.DX knows they have a good thing going and are growing and shiftingaccordingly. The many get-rich-quick people who abused the system will havebeen weeded out and moved on.This is actually one of the many benefits of the re-organization. DX neededto clean up and weed out. This creates a healthier organization.It's important to view E-Currency Exchange on the whole as a long termopportunity. As with all trading systems, there are profit-up days andprofits-down days. The DX system's internal reorganization will make themeven stronger in the long haul. Those who honestly teach and inform aboutthe system will have evolved with the changes and instruct accordingly.Those looking for a quick buck will have moved on. DX Synergy is simplyanother viable way in which to build a profitable portfolio over time, whileparticipating in the on-going E-Currency trend.When it's your money, it's always important to do your own due diligence inorder to make informed decisions. Decide for yourself if E Currency Exchangeis right for you. But make sure you're not getting caught up in the hype!----------------------------------------------------The Heather Wolf Resource Network wants you to make informed decisions thatsave you time and money! Heather Wolf prowls around [...]

Online Forex Trading - Beginners Guide


When it comes to forex trading, understanding the terminology and the forex
trading strategies before you begin is vital.
There are many web based companies that provide online forex trading
tutorials that revolve around real time forex trading.
Using a forex tutorial will give you the beginner knowledge you need to take
part in trading forex.

After you have completed your forex tutorial there are some basic forex
trading tips that all beginners will find useful.
The most important thing to remember when trading forex and the most
important forex trading strategy is to remember to always place stop loss
orders. Using this strategy in your online forex trading will help to
prevent and limit your losses.

The next important step for online forex trading is to take profit orders at
the same time as placing your stop loss orders. This is done by using the
OCO order function that is available with most online forex trading systems.
Take profit orders work on the same basis as the stop loss orders and help
to eliminate the risk of locking into a profit too early.

Another beginner's tip is to use a positive risk/reward ratio.
This means that you should choose the amount you are willing to make on your
forex trade beforehand and it should be more than or equal to the amount
that you are willing to loose. This tip is essential if you want to be
successful in your forex trading.

It is important for any forex trading beginner to note that successful
online forex trading takes patience and is a long term investment. It takes
controlled forex trading along with discipline and patience to make your
forex trading profitable.
Continued research and forex tutorials and guides will help you to learn
more and remember as with all successful ventures; knowledge equals power.

About The Author: We have made the most comprehensive Forex trading
strategies research. Find it only on . All about forex
trading on

Expect Success With Your FOREX Software


Advances in foreign exchange technology have dramatically influenced various
trends in the market. And with the arrival of improved computer systems,
real-time streaming and better business service, currency trading is
increasing at a rapidly growing pace.Multinational corporations, global
money changers and an increase in private speculators give evidence that
involvement in foreign exchange is not what it was even a decade ago.

FOREX is a twenty-four hour market that allows you to trade any time of the
day or week and anywhere in the world. This obviously contributes to the
booming effect FOREX has had on the market. To attract traders and gain
their trust, FOREX websites must be reputable and abide by Foreign Exchange
regulations. FOREX utilizes foreign exchange trading software that assures
compliance. As such, dreadful information is uncovered to avoid any

Using software for foreign currency trading should not be overlooked. This
software plays an important role in building up the trading endeavor and
establishes trust in a website. A foreign exchange website must have
everything necessary to obtain the information that traders are searching.
The information must be accurate and factual.

With foreign exchange software, information is always accessible. There is
no need for a trader to be burdened down when vital information is needed.
No matter what information needs to be discovered, the information will be
right at the searcher's fingertips. When visitors find an exchange website
to have a solid reputation, is informative with services paramount, they
will stay with you.

Traffic is highly important to your venture. The more visitors you have, the
better the possibility of trading and therefore you will have a greater
gain. There are numerous search engines available on them internet. Make
sure you know how to get visitors to the site by using significant key words
and tags.

FOREX can be a venture that is very rewarding and exciting.
success depends a great deal on planning and strategy. Among the best
strategies is to obtain reliable currency trading software. This can be your
venture's leading edge for success.

About The Author: Geoff Spencer is a staff writer at and is an occasional
contributor to several other websites, including

Choosing A Forex Trading System


Forex market or Foreign Currency Exchange market is one of the biggest
trading market in the world with over USD 1.3 Trillion traded in a day. It
is drawing attention ever since it is open to Online trading. Forex trading
can be very profitable if you take your time to do a proper research,
understanding various options and choose a system that works for you. The
most used Forex trading system may not be the most suitable for your needs.

There are many different kinds of Forex Trading Systems and you need to know
a few facts as mentioned below, before choosing and funding a system.

1. Testimonials: Is there anyone out there who is trying to sell a system
and show you testimonials from the people who actually didn't like the
system? Highly unlikely. You should do proper research before indulging into
a system that is completely new to you.

2. Impression: Do not be over impressed from high percentage of winning
forex trades because a 90-95% winning trades with with average value $10
gets you $900. If you have 10% losing trade and unfortunately average losing
trade is $200, then your account is reduced by $2000. This is an explanation
that people often tend to ignore while doing Forex Trading or any trading in

3. Profit: Do you want to work with a Forex Trading system that breaks even?
Why? If you keep the money in your home, you will still break even, then why
take all the hassles of setting up an Forex Trading account and do all the
work. Really speaking, you should always do some research on how profitable
a particular trading system is?

4. Drawdown: The maximum drawdown of trading system is defined as the
greatest peak-to-valley drawdown in a trading system's equity. Maximum
drawdown gives us a measure of the survivability of the trading system.

5. Time to profit: The actual time it takes to achieve the results with a
particular trading system. You should plan to have a long and profitable
relationship with your trading system.

Try to use a trading system that let you open a Demo account so that you can
practice and learn about Forex Trading without risking any money.

About The Author: Girish Jaju is an affiliate marketer and webmaster of and blog.

What Is Forex Trading?


Forex Trading, also technically referred to as Foreign Exchange Trading, is
the financial market of the world. Forex consist of selling and buying
currencies on the market. Forex generally used by businesses and
entrepreneurs looking to conduct international business and transactions.

To give you an example of Forex Trading, let us say that the United States
is selling products to Canada. Canada would have to convert their money, the
Canadian Dollar (CAD) into the United States Dollar (USD) to perform the
transaction. So, essentially, what is happening is that Canada is buying USD
currency with CAD currency for the conversion.

How can I trade in the Forex Market?

The Forex Trading market, works very similar to our stock market, with the
exception that it deals with currencies. In order to trade on the Forex
market, you must have a broker.
Just like with the stock market, not just anyone can enter the market for
trade. The Forex Market does differ from the stock market in that there is
not a centralized exchange or clearinghouse to trade from. You must have a
Forex Broker in order to take part in the trading.

How can I make a Profit?

To make a profit you will need to obtain a Forex broker specialized in the
area. In some cases, in less serious trading cases, some people will use
their local bank to handle the trade. However, if you are looking to hedge
risks, convert receipts or profit at all in the Forex market, the first
thing you need is a broker.

It takes a large amount of experience to begin earning large profits in
Forex trading. Some people enjoy a thirty-percent return on their
investments each month. To do this you must learn everything you can about
Forex trading and speak with your broker about investment strategies. The
internet can be a valuable tool in this area as well, there are many online
Forex trading courses where you can learn just what it takes to become a
competitive, profitable investor.

About The Author: Van Whitsett has published a number of articles, both
online and off. See for more information
about this topic.

Jedi Mind Games For The Forex


"Your worst opponent is yourself Young Jedi" When it comes to marketing on the forex exchange, victory is a matter of themind instead than mind atop matter. Any dealer wh's been in the game for anyextent of time shall recount you that psychology has a lot to do with bothyour own execution on the trading floor and with the way that the exchangeis progressing. Playing a superior hand depends on understanding your ownshrewdness and comprehending the way that psychology moves the exchange. Studying the psychology of the exchange is not anything new. It doesn'trequire a genius to be aware that any arena that rides and falls ondecisions made by folks is bound to be thoroughly bested by the minds offolks. Few individuals take into account all the different levels ofintellect games that galvanize the exchange, albeit. If you keep your eye onthe way that psychology influences others including the mass psychology ofthe folks that use the currency on a regular period but overlook tocomprehend what moves you, you're eventually to end up hurting your ownstance. The superior forex coaches shall relate you that before you cangenuinely become a well-heeled dealer, you have to grasp yourself and thetriggers that control you. Understanding those will aid you suppress them oruse them. Are you saying Huh? about now? Believe me, I recognize. I felt theselfsame way the first time that some person tried to elucidate how the mindgames we frolic with ourselves control the trades and decisions that wecontrive.Let me split it down into other teachable pieces for you. Anything involving winning or losing big sums of currency becomesemotionally electrifying. All precise. You've heard that playing the exchange is a mathematical sport.Plug in the fitting numbers, devise the perfect calculations and you'lladvance out ahead. So why is it that so innumerable traders end up on theungainful end of the exchange? After all, every tom has entry to the samenumbers, the same information, the same rumour ! if it's math, there's justone precise answer, isn't it so? The rejoinder lies in diagnosis. The numbers don't lie, but your intellectdoes. Your hopes and fears can contrive you see things that simply aren'tthere. When you sink in a currency, you're investing more than just savingsyou forge an emotional investment. Being accurate becomes significant. Being wrong doesn't simply cost youcurrency when you let yourself be ruled by your feelings it costs youself-esteem. Why else would you let a loser fly in the hope that it shallleap back? It's that minuscule object inside your head that says, I KNOW I'mcorrect on this, dammit! Bottom line: You can't push feelings out of the scenario, but you candiscover not to let them govern your decisions. To many folks, being correct is more significant than making revenues. Here's the deal. The way to rake in real currency in the forex exchange isto cut your losses short and let your winners ride.In order to do that, you must GOT to accept that various of your trades aregoing to fail, cut them free and advance on to supplemental trade. You'vegot to allow that picking a lemon is NOT an implication of yourcompetence-worth, it's not a image on who you are. It's merely a loss, andthe superior way to deal with it is to refrain losing currency by moving onand really progress on. Moving on implies you don't keep a running aggregateof how numerous losses you've had that's the way to paralyze yourself. Thisbrings us to the following mark: Profitless traders see loss as failure. Victorious traders see loss aserudition. Not too long ago, my twelve year old son told me that previously ThomasEdison conj[...]

What Is Day Trading?


This guide is aimed at beginners in the financial trading industry. Day
trading is the buying and selling of a security within the single or the
same day. Day trading can occur in any market place in the world but most
common in the stock market and FOREX.

1. Don't Believe The Hype

First and foremost, don't believe the hype surrounding day trading. If it
were that easy to make quick cash with no risks attached, wouldn't everyone
be doing it? The sharp reality is that while lots of day traders do make
lots of money, the reason why they are able to do it is because of years of
experience and a constant finger on the pulse of the market trends. The
complete beginner is unlikely to make money without great amounts of aid.

2. Manage Your Money

In order to sucessfully manage a day trade, it is recommended that you
consult with a financial professional - at least, for the first month or so.
Keep in mind that some people are immovably convinced that day trading
demands strategies for making even a single dollar. Most day traders are
well educated and funded. They use high amounts of leverage and short term
trading strategies to capitalize on price changes in highly liquidated
stocks and currencies. Also, because there are so many traders, you can
always be sure that there will be a buyer for whatever you are selling.

3. Trading Tips

- Expect to lose money if you don't have the proper training
- Have a lot of capital at the ready
- Only trade with money you can afford to lose
- Limit your losses as much as possible
- Use high tech tools such as software

4. A Turbulent Market

True, there is a lot of money out there to be had, but that's also the
problem. There is a reason why all that money is out there - people are
losing it. You must be ready for the consequences that can affect you
emotionally and financially.
Even as it is becoming hugely popular among inexperienced traders, consider
knowledge and preparation your two best friends.

About The Author: For more great day trading related articles and resources
check out

How To Make A Well-balanced Investment Portfolio


Getting a good investment portfolio is something that everyone needs whodoes any kind of investing. Having a good spread of investments is also agood idea, in the event that one area of investments takes a loss. Here aresome tips about how to get an investment portfolio that is well balanced andshould enable you to weather most storms. By investing in only one area of the market, you are more apt to run into alarger loss if that part of the market does poorly during a given timeperiod. On the other hand, if you diversify enough, other profitable areascan make up for poor growth in one area. This allows you to continue doingat least reasonably well in some areas - in other words - all is not lost. Diversify Into More Than Type of Market A balanced portfolio will not resort only to trading in various types ofstocks, but should also include some items that are more financially sound,even though they may not yield such a high increase. To your stock trading,you need to include bonds, trust funds, and possibly even property. Theprincipal, simply stated, is that you do not want to risk losing everything.Though the interest rates are not as good on the bonds, yet they are stableand will provide a good hedge against loss - even in a rather economicallystrapped time.Trust funds do even better with interest than bonds, they are much morestable than stock in general, but they also can have their bad days, too. A general rule in investing in stock is that you should never invest morethan you want or can afford to lose. The reason is obvious - you could loseit all. But by taking a percentage of your investments and dividing them upbetween these various investment instruments, you should be able to gain amuch more stable portfolio, and still end up with some for retirement. Market Transactions By Sectors The market is generally made up of a number of sectors - each one consistingof several groups of industries, and each one with their own share ofstability and instability. While one sector, such as telecommunications, maynot be doing as well as it once was, other areas may really be thriving.Only by a constant watching of the market will you be able to discern thesedevelopments, and know which one is worth investing in. A safer way to pickstocks is to be careful what advice you receive (the best being those whohave successfully traded for years), as well as the means used to determinewhich ones are "good investments." Instead of just going out and buying the stock of a particular company, itis a real good idea to use stock options. These "tickets" (my word for acall option, or a put option) allow you to be ready to make stock purchasesor sales, depending on what you want to do. They can save you a considerableamount of money and give you a window to see what may transpire with thecompany you are looking at. For instance, if you buy a "ticket," and itcosts you $400, you have a window of opportunity that will give you a littletime to make your transaction. It is not an actual commitment to do so -just a readiness. Instead of just going and buying that $5,000 worth ofstock, and possibly losing thousands, by using this ticket method, you mayonly lose the cost of the ticket. Learn the Options Available To You When you want to create a really stable portfolio, it is a real good idea tomake a strong effort to learn all you can about the various techniques ofinvesting, understanding the stock market and mutual funds, as well asproducts that you can successfully invest in. You may even want to invest inforeign properties, such as in Costa Rica, or cons[...]

Forex Online Currency Trading


FOREX is an international online currency exchange that was established in
1971. It is now the premier foreign currency exchange market in the world,
with an average daily trading volume reaching as high as one and a half
trillion. Three types of traders make use of FOREX-banks, individuals, and
corporations. When they have need to exchange currency online, FOREX is the
number one place to do it.

There are two basic reasons to do your online currency trading with FOREX.
First and foremost, FOREX trading is done to make a profit. Depending on
the market, a bank, corporation, or individual can make a windfall profit
through FOREX trading. Another reason to do currency trading is to get into
a secured position by eliminating trading risks arising from foreign
exchange rate movement.
In other words, FOREX online trading can help a bank, corporation, or
individual to weather changes in foreign exchange rates by already having
the foreign currency they need on hand.

FOREX is unique in terms of trading exchanges. Rather than the typical
exchange like Wall Street or the Tokyo Exchange, FOREX is an entirely
digital foreign currency exchange system. The rate of foreign exchange
changes so quickly that traders must be able to react to market shifts
within seconds. Online FOREX trading makes this possible by eliminating the
classic stock broker. Rather than trading telephone calls and trying to
catch a great deal by shouting and waving papers, FOREX trading is
accomplished with a touch of a button on the computer.

The ease of online FOREX trading appeals to many, both businesses and
individuals alike. All the information one needs to get started with FOREX
trading is available online. FOREX exchange rates are continually updated
on many websites. It is simple to buy one currency when it is low and sell
it when it is high. However, what goes up can also come down, and new
traders on the FOREX online markets must be prepared for losses. Still,
despite the risks, more and more people are participating in online FOREX
trading every day.

Keeping updated with the world market is the best way to prevent losses with
currency trading. Learning which countries are experiencing economic growth
or recession is essential to make the best currency trading decisions. It
is always good to invest in currency from nations who are experiencing
growth. Likewise, avoiding countries that are historically unstable or are
experiencing war or international economic sanctions is only wise. FOREX
online trading is not for everyone, but with some knowledge and skill, it
can be very lucrative.

David O'Connor Researches the best online opportunities so he can help
people get started in online marketing. The need to be successful.
This is the bottom line for us all.

Forex Trading - The Basics


Is forex trading for you? Well, the fairest way to answer that is by
explaining the basics of foreign exchange trading to you.

First things first, the Forex is a market on which the currency of one
country is "compared" to the currency of another country in order to
determine a value. This value is what you will be trading.

The forex, or foreign exchange market is open and availalbe for trading 24
hours a day, 5 days a week. This gives the currency trading markets a
distinct advantage over all other financial markets available to investors.

Also, the size of the forex absolutely dwarfs all other financial markets
combined. This massive size creates unique advantages over all other trading

According to most forex brokers, all stop orders (with few exceptions) will
be filled at their enetered price. In trading terms this means no slippage.
I can't even begin to put a value on this feature.

Due to this quality you can have orders filled of up to $20 million of
currency at the market price. Again, an almost unnatural feature when
compared to other trading markets.

A more advanced feature is the ability to sell short with no regulations.
Ok, technically you are never selling currency short, but I won't get into
that in this article.

What this means is that, if at any time you believe the value of a currency
is going to decrease, you will be able to take act on your hunch without

Another one of a kind characteristic of the forex market is it's amazingly
accurate technical analysis. Like all other financial trading tools, the
forex market has all of its' "stocks charted". This is no big surprise, or

However, unlike other tools, all points on a chart in the forex are based on
the bid price. So, Eddie, why does this matter to me? Because this means
that the spread is not factored into the chart price. This leads to a much
more accurate and readable chart.

In fact, the spread is constant on all forex currency pairs. Some have
spreads as low as 2 pips and others as high as 10 or even more. However,
they remain constatn with almost all forex brokers and forex banks. This is
yet another reason to look at the forex markets.

In my incredibly humble opinion, there is no market that provides the
opportunity and benefits like the foreign exchange. The forex has been
traded by banks and financial institutions for decades. Now, you, as an
individual can climb into the ring and take your shots.

Ok, hopefully this gives you some sort of direction of whether or not forex
trading is right for you.

Stay tuned, there will be much more info to come in the near future.

Eddie's Trading Tools:
Forex Seminar | Forex Trading Course | QQQ

What are Your Options Regarding Forex Options Brokers?


Forex option brokers can generally be divided into two separate categories:forex brokers who offer online forex option trading platforms and forexbrokers who only broker forex option trading via telephone trades placedthrough a dealing/brokerage desk. A few forex option brokers offer bothonline forex option trading as well a dealing/brokerage desk for investorswho prefer to place orders through a live forex option broker.The trading account minimums required by different forex option brokers varyfrom a few thousand dollars to over fifty thousand dollars. Also, forexoption brokers may require investors to trade forex options contracts havingminimum notional values (contract sizes) up to $500,000. Last, but notleast, certain types of forex option contracts can be entered into andexited at any time while other types of forex option contracts lock you inuntil expiration or settlement. Depending on the type of forex optioncontract you enter into, you might get stuck the wrong way with an optioncontract that you can not trade out of. Before trading, investors shouldinquire with their forex option brokers about initial trading accountminimums, required contract size minimums and contract liquidity.There are a number of different forex option trading products offered toinvestors by forex option brokers. We believe it is extremely important forinvestors to understand the distinctly different risk characteristics ofeach of the forex option trading products mentioned below that are offeredby firms that broker forex options.Plain Vanilla Forex Options Broker - Plain vanilla options generally referto standard put and call option contracts traded through an exchange(however, in the case of forex option trading, plain vanilla options wouldrefer to the standard, generic option contracts that are traded through anover-the-counter (OTC) forex dealer or clearinghouse). In simplest terms,vanilla forex options would be defined as the buying or selling of astandard forex call option contract or forex put option contract.There are only a few forex option broker/dealers who offer plain vanillaforex options online with real-time streaming quotes 24 hours a day. Mostforex option brokers and banks only broker forex options via telephone.Vanilla forex options for major currencies have good liquidity and you caneasily enter the market long or short, or exit the market any time day ornight.Vanilla forex option contracts can be used in combination with each otherand/or with spot forex contracts to form a basic strategy such as writing acovered call, or much more complex forex trading strategies such asbutterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanillaoptions are often the basis of forex option trading strategies known asexotic options.Exotic Forex Options Broker - First, it is important to note that there acouple of different forex definitions for "exotic" and we don't want anyonegetting confused. The first definition of a forex "exotic" refers to anyindividual currency that is less broadly traded than the major currencies.The second forex definition for "exotic" is the one we refer to on thiswebsite - a forex option contract (trading strategy) that is a derivative ofa standard vanilla forex option contract.To understand what makes an exotic forex option "exotic," you must firstunderstand what makes a forex option "non-vanilla." Plain vanilla forexoptions have a definitive expiration structure, payout structure and payoutamount. Exotic forex option contracts may h[...]

The Top Four Forex Brokers


This article contends that the best forex brokers are: Saxo Bank, GAIN
Capital, GCI Financial Ltd., and CMS Forex. CMS Forex accepts no commission,
demands a small amount of only $200 to establish a mini account, provides
users with a Free Demo account, provides leverage as high as 400:1, and has
a 3 to 4 pip spread on major currencies.

Saxo Bank's offers 24 hour online trading, streaming news
from three major providers, detailed analysis from in-house experts, direct
online chat to dealers, and a secure trading environment.

GAIN Capital gives its asset managers robust technology, wholesale dealing
spreads, consistent liquidity, fast execution, and access to a wide range of
sophisticated tools. GAIN Capital's proprietary trading technology today
supports over $60 billion in monthly trade volume. GAIN Capital's
FOREXTrader has streaming prices in 14 currency pairs, real time profit and
loss account information, sophisticated risk management tools, a variety of
simple and complex order types, and full reporting capabilities.

Professional dealing practices and a service-oriented approach has earned
GAIN Capital a reputation as a world class provider of foreign exchange
services. Client and partners from over 110 countries currently rely on
their technology, execution and clearing services, and administrative tools.

For individual investors, GAIN Capital operates, which offers
advanced, yet easy-to-use trading tools along with lower account minimums
and extensive educational resources.

GCI Financial is one of the world's largest online brokers offering
commission-free trading in Forex. GCI Financial offers Internet trading
software, fast and efficient execution, and the low margin requirements. GCI
Financial's free trading software gives the investor the edge in execution,
market information, and account management.

GCI Financial offers forex and indices on an online dealing platform. In
their forex trading platform the trader can add and remove instruments from
the ""dealing prices"" window to fully customize the trading.

Forex Broker Info provides detailed information on forex brokers, forex
trading and market makers, and other forex-related topics. Forex Broker Info
is the sister site of Incorporating in Florida Web.

FOREX 101: Make Money with Currency Trading


For those unfamiliar with the term, FOREX (FOReign EXchange market), refersto an international exchange market where currencies are bought and sold.The Foreign Exchange Market that we see today began in the 1970's, when freeexchange rates and floating currencies were introduced. In such anenvironment only participants in the market determine the price of onecurrency against another, based upon supply and demand for that currency.FOREX is a somewhat unique market for a number of reasons. Firstly, it isone of the few markets in which it can be said with very few qualificationsthat it is free of external controls and that it cannot be manipulated. Itis also the largest liquid financial market, with trade reaching between 1and 1.5 trillion US dollars a day. With this much money moving this fast, itis clear why a single investor would find it near impossible tosignificantly affect the price of a major currency. Furthermore, theliquidity of the market means that unlike some rarely traded stock, tradersare able to open and close positions within a few seconds as there arealways willing buyers and sellers.Another somewhat unique characteristic of the FOREX money market is thevariance of its participants. Investors find a number of reasons forentering the market, some as longer term hedge investors, while othersutilize massive credit lines to seek large short term gains. Interestingly,unlike blue-chip stocks, which are usually most attractive only to the longterm investor, the combination of rather constant but small dailyfluctuations in currency prices, create an environment which attractsinvestors with a broad range of strategies.How FOREX WorksTransactions in foreign currencies are not centralized on an exchange,unlike say the NYSE, and thus take place all over the world viatelecommunications. Trade is open 24 hours a day from Sunday afternoon untilFriday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almostevery time zone around the world, there are dealers who will quote all majorcurrencies. After deciding what currency the investor would like topurchase, he or she does so via one of these dealers (some of which can befound online). It is quite common practice for investors to speculate oncurrency prices by getting a credit line (which are available to those withcapital as small as $500), and vastly increase their potential gains andlosses. This is called marginal trading.Marginal TradingMarginal trading is simply the term used for trading with borrowed capital.It is appealing because of the fact that in FOREX investments can be madewithout a real money supply. This allows investors to invest much more moneywith fewer money transfer costs, and open bigger positions with a muchsmaller amount of actual capital. Thus, one can conduct relatively largetransactions, very quickly and cheaply, with a small amount of initialcapital. Marginal trading in an exchange market is quantified in lots. Theterm "lot" refers to approximately $100,000, an amount which can be obtainedby putting up as little as 0.5% or $500.EXAMPLE: You believe that signals in the market are indicating that theBritish Pound will go up against the US Dollar. You open 1 lot for buyingthe Pound with a 1% margin at the price of 1.49889 and wait for the exchangerate to climb. At some point in the future, your predictions come true andyou decide to sell. You close the position at 1.5050 and earn 61 pips orabout $405. Thus, on an initial c[...]

The Size Of The Forex Market


Most of the experienced traders around the world consider the Forex market as the best and most profitable of the capital markets. During many years forex trading had been the great and exclusive domain of major banks, very large financial institutions and the countries central banks; a good example of such a bank would be the U.S. Federal Reserve Bank. But over the last few years, thanks to the internet era, the market has been opened to anyone willing to learn the right techniques in forex trading and with the intentions of making substantial profits as the above mentioned institutions, that annually and consistently make pretty high profits from
trading in the Foreign Exchange market.

The foreign exchange market (FOREX) will exist wherever one currency is being traded for another. This market, also known as "currency market", is by far the largest market in the world in terms of all the cash value traded per day, this trading includes all that is being performed between large commercial banks, central banks, currency speculators, governments, and other financial markets and institutions. The trades taking place in the forex markets across the globe it's known to exceed on average $1.9 trillion/day. Retail traders, this is, small speculators are only a small part of this market, but this doesn't mean they can't grab huge profits if they have learn the right way to trade the Forex. These individual traders participate in the market through broker firms.

According to many experts, the foreign exchange market will have doubled in size in just three years, this thanks to increased participation by fund managers and pension funds. A financial services research firm said it expected the total global average daily volumes on the forex market to exceed $3,000bn next year (2007). Forex volumes, which rose from $1,770bn in 2004 to $2,000bn last year, were set to rise to $2,600bn this year and $3,600bn next year.

With these numbers you can easily realize why they say that the Forex market is a huge market that offers great opportunities for traders of all sizes.

Adrian Pablo is a Forex freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of forex trading , visit: