Forex Made Easy ( part 3)
Which currencies are traded on FOREX?
The US dollar is the most frequently traded currency in almost 90% of all trades, followed by the Euro with 38% of all trades, the yen with 20% of all trades and the pound with 17% of all trades. The leading currency has nothing to do with the currency ratio; it is a permanent arrangement made by the commercial banks that goes to simplify the form of speech for FOREX traders. There are seven major currency pairs which are the most liquid currency pairs in the world (EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD and NZD/USD), those currency combinations cover around 95% of all FOREX trades.
Do I pay any commissions while trading on FOREX? Same as the stocks market have brokers, in FOREX there are both dealers and firms who take the traders' order and implement them on the market according to the client's directions. Unlike the stock market, the FOREX market is a principals-only market and therefore does not have any commissions. FOREX dealers are not brokers - unlike brokers, dealers serve as a counterpart to the investor's trade. Don't worry, your FOREX dealer does bring some food home, FOREX dealers make their profits off of the bid/ask spread, aka pip (Pip= percentage in point, it's the smallest rise of a change in price) without any additional fees or commissions.
A quality the FOREX holds in contrary to other financial markets is the possibility of buying or selling an unlimited amount of currency, supplied that you have the required funds for it
What is the meaning of "carry" in FOREX?
When traders taking about pulling the "carry" they mean using a FOREX trading strategy that take action when an investor sells a currency with a rather low interest rate to buy another currency yielding a higher interest rate. The carry is a common and popular trading system; by using the carry strategy the trader basically try to capture the gap between the rates
What should I do before starting to trade on the FOREX?
It is highly recommend that you study the lingo used in the FOREX world, by reading and comprehending a FOREX glossary. Take you time and study the market - choose the currency you'll invest in and go as far as learning that specific country's economy. Do your homework and then open a FOREX demo account. It is very important to study the market from all possible aspects, and by using a demo account you can acquire skills that on the real FOREX can gain you some big bucks. After some training, when you feel you have learned as much as necessary, it is strongly suggested that you start by opening a mini-lot - as good as the demo accounts is for practicing, they aren't the real deal.
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded http://www.theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's website at http://www.theforexblogger.com.
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's websit
FOREX made easy (Part 2)
A quality the FOREX holds in contrary to other financial markets is the possibility of buying or selling an unlimited amount of currency, supplied that you have the required funds for it. Unlike the stocks market in FOREX there isn't such a thing as an "inside tip". No one will prosecute you for "insider trading" since there isn't such thing in the FOREX market. Furthermore, traders and investors use economic reports, charts, employment figures and financial forecasts to predict currency movements and trends, and so if you heard a hot tip, a based one, go for it and collect your profit. To sum things up on a bright note, the Foreign Exchange market is the largest financial market in the globe, growing every day with more than $1.5 trillion changing hands everyday, a fact which gives you endless opportunities to increase your funds.
What is actually being traded in the FOREX market?
In one word? Air. There isn't any material exchange as the exchange takes place over the Internet. The FOREX market came as a solution to multinational corporation and governments' need to trade currencies continually for closing internationals deals. Today the multinational corporations' needs represent only about 20% of the FOREX market while the other 80% are large monetary institutions, hedge fund companies and individuals traders.
Currencies are always traded in pairs, so basically you are investing in two currencies' ratio. Understanding that fact can simplify the explanation that when investing in a certain pair, the investment will always long one currency and short the other one. To emphasize what the meaning of going long or going short, here is an everyday and physical example: If you went into a CD store and purchased a CD for $10, by doing that you are basically exchanging your dollars for a CD. You would be "short" $10 and "long" 1 CD. The store would be "long" $10 but now "short" 1 CD in its supply. This is the basic idea behind FOREX trading.
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded http://www.theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's website at http://www.theforexblogger.com.
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's websit
FOREX Made easy (Part 1)
The FOREX market has become the largest financial market on the face of the planet. The Internet world and the FOREX world merged into one trading unit, which caused the FOREX to gain much popularity. It quickly became accessible for everyone, and a common way to profit opportunities for individual traders. A few years ago, the FOREX market was used mainly by major banks, hedge funds companies, financial institutions and multinational corporations. Today any broker firm offers free online simple-to-use FOREX trading software. The foreign currency exchange market is still an unfamiliar territory for new traders and can be an extremely risky market for the inexperienced. Whether you are a fresh FOREX trader or an experienced one who simply wants to refresh your memory, here are some explanations for common questions:
What is the FOREX market and whet is its distinction from other financial markets?
The main difference between the FOREX market to the stocks, options and futures markets is that the FOREX doesn't have any physical location or main central exchange. The market can not be influenced or manipulated by any organization including the government. There isn't an upper factor that controls the foreign currency exchange market, and no mediator exists besides broker or firm you choose to trade with (it is necessary for any individual trader to use an NFA registered firm, - the NFA is an organization of highly regarded retail FOREX dealers who agree to obligatory arbitration in the event of any argument). People from all over the world are buying, selling and trading money based upon credit agreements at any given time, the FOREX market doesn't have any time limits, its open 24 hours 7 days a week. This unique market structure may seem confusing for other-market investors but the FOREX works fluently and has came to be the most popular market due to the fact that all the FOREX users compete and cooperate with each other.
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's website a
The Latest Investment
Stocks Online Articles
Mutual
Funds
A mutual fund is perhaps one of the most
popular means of long term
investing and is the vehicle
of choice in IRAs and 401k
accounts. A mutual fund is
basically a way of investing
in a pool of different companies
in order to minimize risk.
Forex
Trading
Forex
traders rely on several parameters
to conduct their trade. The
more successful or experienced
traders follow their instincts
based on years of experience
of trading in the forex market.
Online
Stock Trading
With
so many services being
offered on the net, it
is rather difficult to
find a site that will
best work for you. When
choosing one, you have
to make sure to look
into the fees that they
charge, the commissions
and of course their reliability.
More
articles coming soon!
Investing
Stock Online Resources
Yahoo
Finance
Goo
Investing News
Forex Trading Software
