The Foreign Exchange market, also referred to as the "Forex" is the
biggest and largest financial market in the world. It has a daily
average turnover of US$1.9 trillion- just imagine that amount of money!
Don't you want to join this trillion-dollar industry?
Forex is the simultaneous buying of one currency and selling of
another. Currencies are traded in pairs, for example Euro/US Dollar
(EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, Forex is
trading.
There are two reasons to buy and sell currencies. About 5% of daily
turnover is from companies and governments that buy or sell products
and services in a foreign country or must convert profits made in
foreign currencies into their domestic currency.
The other 95% is trading for profit, or what you call speculation.
Investors frequently trade on information they believe to be superior
and relevant, when in fact it is not and is fully discounted by the
market.
On one side of each speculative
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Todays current futures market is quite unlike the futures of the 19th
century. Todays future market is a worldwide one that includes
manufactured goods, financial currencies and treasury bonds, and
agricultural products.
When you speculate on futures it is not the actual good that is
speculated upon rather it is the contract for the goods that is traded
as value. Every futures contract includes a buyer and a seller. The
following is an example of a futures speculation: A farmer agrees to
deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If
the daily price of corn futures falls to $4.00 a bushel, the farmer's
account is credited with $1000 ($5.00 — $4.00 X 1000 bushels) and the
baker's account is debited by the same amount. Futures accounts are
settled every day.
Using the above as an example this is how the contract settlement would
play out: If the price of corn futures is still at $4.00 the farmer
will have made $1000 on the futures contrac
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The Foreign Exchange Market (Forex) has no central exchange location yet
it is the largest financial market in the world. It is over 3x's the
size of the stock and futures markets combined and operates via an
electronic network of a banks, corporations and investors.
Foreign exchange consists of a simultaneous buying of one currency and
selling of another. Currency is traded in pairs, in other words, one
currency is traded for another. The major currencies are:
USD — United States Dollar
EUR — Euro members Euro
JPY — Japan Yen
GBP — Great Britian pound
CHF — Switzerland franc
CAD — Canadian dollar
AUD — Australia dollar
There are 2 types of investors involved in the Forex market.The first
type of investor is the hedger. The hedger is involved in International
trades and utilizes Forex trading to protect their interest in a
transaction from adverse currency fluctuations. The 2nd type of
investor is the speculator who invests in
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You may have been hearing about the foreign exchange market (Forex) and
the investment advantages it offers. You would like to try it out, but
don't know where to start. This short guide will give you the basics
in Forex and tell you what you need to participate in this fast growing
field.
Foreign exchange used to be limited to large players such as national
banks and multi-national corporations. In the 1980's the rules were
revised to allow smaller investors to participate using margin
accounts. Margin accounts are the reason why Forex trading has become so
popular. With a 100:1 margin account, you can control $100,000 with a
$1,000 investment.
Forex is not simple, however, and education is needed to make wise
investment decisions. Although it is relatively easy to start trading
on the Forex, there are risks involved, so finding out as much as
possible about the market is a good move for any beginner.
Forex traders usually require a broker to handle transa
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Foreign exchange trading is the trading of currencies. Most currencies can be traded. Huge amounts of currencies are traded 24 hours a day, 5 days a week. On average $1.9 trillion is traded a day. The most traded are United States Dollar, Japanese Yen, Euro, Canadian Dollar, British Pound Sterling, Australian Dollar and Swiss Franc. Many brokers will let you open an account with a starting balance of just $250. Though that may seem small, remember you will be trading on margin. Your $250 investment may let you control $25,000. As with all investments there are risks so make sure you take the time to study the markets and your exposure before making your first trades. I highly recommend that you do some paper trades first to make sure you have understood how the markets work. No risk training, just write down the trades you would have done for real and chart the prices. Buy and sell and see if you have the right strategy before making real trades. A fast internet connection will a
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The question would be not whether she could but rather would she enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for educated traders with the correct education, tools, and trading strategy to make a handsome income.
Becoming a successful Forex trader basically comes down to four things; 1) attaining the correct education, 2) using Forex tools which 3) use your own personal trading strategy, and 4) finding the correct Forex broker to fulfill your requirements. Let's look at these individually:
Attaining the correct education. Your Mother may not know the difference between a Forex PIP and one of the backup singers for Gladys Knight. So would you send her to one of those infomercial Forex riches classes to find out? We hope not! There are literally hundreds of training courses and materials out there for proper training. Word of mouth recommendations might b
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