FXDD, a global leader in online foreign currency exchange, is pleased to announce the launch of FXDDAuto, an automated currency trading platform based on Tradencys forex platform. The exclusive venture between FXDD and Tradency brings together cutting-edge technology, proprietary access and a global support network. FXDDAuto allows forex traders to streamline their efforts, adjust strategies and design and test portfolios using real-time and historical data without incurring prepaid subscription fees or requiring complex programming. This customized perspective greatly enhances a traders ability to manage and assess the risk in their portfolios and to make changes as the market demands. FXDDAutos basket of over 50 systems and signals adds a powerful new dimension to online forex trading.
source:-forexpros.com
Wednesday, October 21, 2009
FXDD Partners with Mazda’s Factory-supported Rolex GT Racing Team
FXDD, a global leader in online foreign currency exchange, today announced its partnership with Mazda’s factory-supported Rolex GT racing team to co-brand the GT No. 69 car that will compete throughout the 2007 Grand American Road Racing ROLEX GT series.
“It’s a privilege to partake in such a high-profile branding campaign with a prestigious racing team like Mazda’s,” commented Joseph Botkier, CEO of FXDD. “Although online trading is a much different world from that of racing, there are similarities in what drives success. In the forex business, our success is attributed to providing our online e-customers with quality service, superior execution, and technology that delivers speed and accuracy,” Botkier continued. “In racing, Mazda’s technical expertise coupled with the Mazda Grand Am GT’s light weight form and powerful engine delivers an extremely competitive package. Together, we are very optimistic about our chances in 2007 -- especially for the Rolex 24 at Daytona.”
The 2007 season begins when the green flag waves at noon on January 27th to start the world-renowned enduro ‘The Rolex 24’. The Rolex, which sees prominent drivers from every motor sport discipline compete head-to-head for 24 hours straight, ends when the checkered flag is waved at noon 24 hours later on January 28th.
British Pound Fails at 1.66 as UK Rate Expectations Slip Lower
The British pound joined the low-yielding US dollar and Japanese yen as the weakest of the majors on Friday, with GBPUSD failing to break above 1.6600, as interest rate expectations for the UK continue to fall. Indeed, Credit Suisse overnight index swaps are now pricing in 86.1 basis points worth of hikes by the Bank of England over the next 12 months, compared to 124 basis points two weeks ago. While there was no UK data on hand on Friday, traders may have kept in mind Thursday’s news, as the UK government posted a deficit of 8 billion pounds in July, the biggest since recordkeeping began in 1993, highlighting the dour state of the nation's finances. Standard & Poor's lowered its outlook on the UK's AAA credit rating to “negative” from “stable” in May for this very reason, and if we see this trend continue, the risk for an actual downgrade will grow and put greater pressure on the British pound. Next Friday, the UK will also face a second round of growth results, but Q2 GDP is not anticipated to be revised from previous estimates of a 0.8 percent quarterly contraction and a 5.6 percent annual contraction, the worst since recordkeeping began in 1955.
source:-.dailyfx.com
source:-.dailyfx.com
The silliest brokers’ mistakes ever: forex trading education on practice
Read about the cases when no can prevent you from making silly mistakes.
April 2003. The Wall Street Folly announced about a British specialist, well-known because of his successful who bought 500 thousand company stocks for 13 pounds each while the actual cost was 70 pence. The loss caused constituted over 6 million pounds.
November 2002. LSE index grew from 404,5 to 653,7 points. It was caused by a trading company mistake, who had EUR and Pounds mixed up when placing quotations for Ryanair.
October 2002. A British trader who was known for his brigt currency trading strategy
made a mistake when entering futures prices, that lead to 3 hours trade interval on derivatives trade – Eurex Exchange with index loosing 500 points.
September 2002. Eurex specialist who intended to sell one German index contract DAX, 5180 level, sold 5180 contracts, that caused the fall. Five hours later the Exchange management made decision to annul all the deals that followed that failure one.
December 2001. UBS Warburg, Swiss Bank trader, was going to sell 15 stocks of Japanese company Dentsu for 600 thousand Yens each stock. He sold 610 thousands stocks per 6 Yens each instead. USB Warburg losses were assessed as 71 million pounds.
May 2001. Lehman Brothers bank trader wanted to sell stocks for 3 million pounds. However he pressed the 0 key several times more than necessary and sold stocks for 300 million pounds.
November 1999. A broker sold 16 000 stocks of Premier Oil with total cost over 1,8 million pounds. It happened because he occasionally leaned on the keyboard of the exchange terminal.
source:-forex-trading-currency.orgDaily Update 18.08
Market Movers of the Day
Asia-Pacific
Japanese GDP up 3.7% on an annual pace
Europe
EU trade balance at 1B Euros which is lower than expected
Swiss Retail Sales Up 0.9% YoY
Americas
NY Empire state manufacturing Index at 12.1 higher than expected
Net Long term TIC flows at 90.7B pointing better than expected demand for US Dollars
The Overall Sentiment
Sentiment was strongly negative as the notion among investors all growth trades are over heated have pushed equities, commodities and high yielding currencies south. The trade in Asia pacific opened with the Japanese GDP figure pointing the Japanese economy had grown 3.7% in an annual past. Although the GDP figure was slightly lower than the projected 3.9% it was positive and most importantly was driven by a rise in exports signaling the Japanese economy has started to recover. However markets in the region encountered strong selling pressure as fears the Chinese demand which has driven markets so far, could retreat to lower levels. In the London and US sessions the combination of the weak US consumer data a week before, the negative sentiment in Asia and the overall notion equities are over heated had given short sellers the upper hand pushing equities and most commodities sharply lower. At the day’s end the Dow was down -2% the S&P was down -2.43% and the FTSE -1.46% with markets almost indifferent to the positive manufacturing data coming from the US .In the commodities arena Gold fell below 940$ and Oil bellow 67$.In the FX trade the Dollar and the Yen traded higher with the Euro falling close to 1.4$ and the Sterling dipping the 1.63$ level.
The Day Ahead
The opening sentiment in Asia pacific is expected to be effected from the Japanese leading economic index figure due at the start of the Day with investors looking for more positive data as bets on Japanese recovery gain consensus. In addition the comments coming from the Australian reserve bank outlining a rate increase is possible if the recovery continues, could also affect sentiment of the Aussie against the Yen and the Dollar. The London session will be loaded with economic data on the UK consumer with the UK CPI and Retail Sales figures due at the early trading hours, where investors will look for more evidence of a recovery. In the EU the important ZEW survey figures are due later in the day with investors hoping for positive news after the positive GDP figures in Germany and France. The concluding data for the day will be the housing data and PPI figures in the US. Investors will look closely on the Housing data as a better than expected data could balance some of the negative consumer data from a week before. Overall sentiment will largely depend on the economic data with markets potentially moving either way.
Technical Analysis
CAD/JPY
The pair which had encountered strong selling pressure around the 89 area could be heading for a rebound. Looking at the Fibonacci retracement structure it is noticeable the pair has gained support at the 85 level which is in line with the 76.4% Fibonacci level, the minimum for technical adjustment. In addition the stochastic readings bellow pointing oversold levels could suggest the pair might try and return to the bullish trend. Nevertheless only a break of the 89 will truly confirm a return to the bullish trend. A break of the 85 level downwards will point on the 83.7 level as the next support.
Support/Resistance
| Currency | Support II | Support I | Spot | Resistance I | Resistance II |
| EUR/USD | 1.3880 | 1.405 | 1.411 | 1.42 | 1.43 |
| GBP/USD | 1.6 | 1.6250 | 1.636 | 1.65 | 1.665 |
| USD/CHF | 1.0460 | 1.0575 | 1.0759 | 1.0900 | 1.1020 |
| USD/JPY | 93.2 | 94.2 | 94.91 | 96.4 | 97.8 |
| USD/CAD | 1.04 | 1.0630 | 1.105 | 1.11 | 1.1365 |
| AUD/USD | 0.81 | 0.8170 | 0.8244 | 0.8320 | 0.847 |
| EUR/GBP | 0.84 | 0.845 | 0.8620 | 0.8650 | 0.8700 |
| NZD/USD | 0.6595 | 0.664 | 0.671 | 0.69 | 0.7 |
Daily Events
| Time(GMT) | Country | Event |
| 1:30 | Australia | RBA Meeting’s Minutes |
| 5:00 | Japan | Leading Economic Index |
| 8:30 | UK | CPI |
| 8:30 | UK | Retail Sales |
| 9:00 | EU | ZEW Survey |
| 9:00 | Germany | ZEW Survey |
| 12:30 | Canada | Canadian Investment In Foreign Securities |
| 12:30 | Canada | Foreign Investment In Canadian Securities |
| 12:30 | US | Housing Starts |
| 12:30 | US | Building Permits |
| 12:30 | US | PPI |
Another fresher look at the GBPUSD
The GBPUSD pair has spent the last hour or so below the 1.6317 level. The price has also fallen below the close at the 1.6283 level now and the trendline on the daily chart at the 1.6285 area. These will be a key levels to watch today on the close. The low for the day remains at the 1.6261. The low for NY is 1.6266. Watch these levels too. A break could lead to another scoot lower.
The market is still open to sharp moves up and down. However, the move back below the 1.6317 level, back below the trendline on the daily chart and closing level from yesterday will keep the bears in the game.
Trade Spot Gold and Spot Silver with FXDD
In our continued effort to provide the best service and access to inter-bank pricing and liquidity, FXDD is expanding the choice of platforms for Spot Gold and Silver trading. You can now trade on the MetaTrader 4, MTXtreme and FXDDTrader platforms.
etaTrader4 and MTXtreme
1. Right click in the Market Watch Panel
2. Select 'Show All' for Gold (XAU/USD) and Silver (XAG/USD) to appear
FXDDTrader
* Click here to download instructions on how to add Gold and Silver.
Facts about Spot Gold Trading
* Pair symbol - XAU/USD
* Gold is measured in Troy ounces
* 1 standard lot is 100 Troy ounces
* 1 mini lot is 10 Troy ounces
Facts about Spot Silver Trading
* Pair symbol - XAG/USD
* Silver is measured in standard ounces
* 1 standard lot is 1,000 ounces
* 1 mini lot is 100 ounces
On both Gold and Silver Trading there will be no exchange for the physical product. The trading market is strictly for speculation on the change in the SPOT price for the precious metal. You will not actually be buying/selling the physical precious metal. You will not be entitled to take physical delivery or to make physical delivery of any precious metal. The pricing provided is all done on the basis of the SPOT market and all transactions are cash settled in USD. DISCLAIMER: Trading in the Foreign Exchange market involves a significant and substantial risk of loss and may not be suitable for everyone. You should carefully consider whether trading is suitable for you in light of your age, income, personal circumstances, trading knowledge, and financial resources. Only true discretionary income should be used for trading in the Foreign Exchange market. Any opinion, market analysis or other information of any kind contained in this email is subject to change at any time. Nothing in this email should be construed as a solicitation to trade in the Foreign Exchange market. If you are considering trading in the Foreign Exchange market before you trade make sure you understand how the spot market operates, how FXDD is compensated, understand FXDD’s trading policy and rules and be thoroughly familiar with the operation of and the limitations of the platform on which you are going to trade.
Inquiries
Tom O’Reilly, SVP of Sales, +1.212.791.3488
Jennifer Van Hofwegen, Head of Marketing and Communications, +1.212.791.6491
About FXDD
FXDD, headquartered in New York City, is a leading online foreign exchange trading firm dedicated to providing superior customer service and powerful technology to retail traders, hedge funds and money managers. FXDD is also a reliable liquidity provider for brokerage companies and institutional investors. The Company offers 24-hour forex trading via its trading platforms: FXDD Trader and Meta Trader (retail), Power Trader (institutional) and FXDD Auto (automated). FXDD provides true interbank pricing; no-interest accounts; fully-automated execution; 100:1 leverage for regular accounts and 200:1 leverage for mini accounts. For a free demo, please visit www.fxdd.com, or call toll-free in the U.S. at 1.866.FOR.FXDD or +1.212.791.3933.
The most important of the forex tips ever
If you are reading this article, you must probably already know something about forex. You may be considering the profession of trader as prestigious, romantic, analytical or mathematical… Or all of the mentioned. Let’s try to figure out, what is the all about?
“Nothing could be easier!” – someone may claim – “Sitting somewhere by the Caribbean sea, with a notebook and making crazy money.” Yet, if it were that easy, there would be no more professions left except specialists.
“Dull!” – someone would say – “ Who can stand working like that all day long?” But what do you say about all those people who love not only for the revenues, but for the challenge, the passion?
Both will be wrong. Yet, as always, the truth is out there, somewhere in the middle. Forex is about all of this: passion, strategy, analytics, luck. The most important of the forex tips is: don’t start doing forex if you are expecting just fun or will be relying on luck only.
To succeed you will need to be smart, to work hard, to stand challenges and to face risks.
The other tips we can provide you with, if you decided to start doing forex are as follows.
Once you decide to do forex, choose a reliable dealing company. It’s the first step to minimizing risks.
Secondly, learn as much about the forex, currencies, markets as possible. Luck is only 1% of success.
Thirdly, don’t give up! There will be losses, surely. Yet, without losses there is no revenue. Only practice brings you one step forward.
Forex Market Development
The history of the Forex market as an international capital speculation market is much shorter compared the stock, the gold, the stock, the interest market, but it is developing in an astonishing speed. Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market. Since the birth of the foreign exchange market, the fluctuation of the exchange rate of the Forex market is becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen, in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign exchange market wave amplitude has been bigger, on September 8, 1992, 1 pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged 1.5080 US dollars, in the short two months, the pound exchanged US dollar exchange rate to fall more than 5,000, depreciated 25%. Not only that, presently, everyday the fluctuation of the exchange rate of the Forex market enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly seen. On September 16, 1992, the pound exchanged US dollar from 1.8755 to fall to 1.7850, the pound on first lowers 5%.
source:-.forex.com.pk
source:-.forex.com.pk
A thing about Friday’s London close…
I received an email about a comment I made in this mornings Forex video. The question referred to a comment about “London squaring up for the weekend”. I thought I would elaborate.
London tends to close up shop at 5:00 PM London time. This corresponds with 12 PM NY time. Each day you may notice that there tends to be some extra activity between 11:00 AM and 12:00 PM. Part of this has to do with the “forex fixing” that occurs at 11:00 PM NY time. Think of it as a benchmark rate for pricing. Sometimes there is some moves in the currency pairs that may be a result of this fixing. It can cause some volatility in rates just before and just after 11:00 AM.
The period from 11:00 to 12:00 is also when European and London traders go home for the evening. Since traders may not be able to monitor the positions as closely as they would at the office, they tend to clean up some of the positions during this time period. Why? There is more risk when you are not monitoring positions.
The action yesterday afternoon is proof of the risk that can occur when London/Europena traders are in the pubs or at home. A London trader who was short the EURUSD may have had a big negative surprise when they checked the market from home that evening. Someone who was long would have been pleasantly surprised. Whether a winner or loser, the risk was increased.
On Friday’s, risk increases for all as over the weekend the market closes for everyone until Sunday night when liquidity returns. The potential exists for an event that causes the market to move dramatically from Friday 4:00 PM to Sunday 5:00 PM. It can be anything from a terrorist attack to a natural disaster to a comment from a key central banker in a Sunday newspaper. When risk increases, smart traders lessen positions. When they do this, the supply/demand equation can get out of whack in one direction and then reverse and get out of whack in the other direction. All of which for no apparent reason.
Today’s moves in the GBPUSD seems to exemplfy this dynamic. The price has been up and down with little catalyst behnd the moves. To me it simply seems to be short term flows in a more illiquid end of summer market. Standard support/resistance levels are not really slowing the moves. It just does not have the rhythm that the market “normally” experiences - at least of late.
So traders should remain aware of the dynamics of the daily London close, and in particular the Friday close, and trade accordingly. Normally that means cutting back on positions and be on the lookout for choppy trading conditions. If you are aware you can prepare and not be surprised. It may frustrate but at least you won’t be as surprised.
Thursday, October 8, 2009
The Forex Trading Basics
Trading is probably as old as mankind itself. It's been there since man learned that he could trade his extra stone knife and five arrow heads for somebody else's nice warm fur blanket. These days we call it bartering, but it's the same process.
And these days we've gotten more sophisticated with our trading. Now we use something called money to stand in for the blankets and the knives, but we're still trading our ability to work and produce something useful in exchange for somebody else's goods that we want.
But now, trading is not only about goods or services, it has grown into something much more than that.
Now we're trading one region's money for another region's money because we've learned that their relative values can vary, sometimes significantly. The first enterprising souls to notice this were the world's first currency traders, taking their profits from the buying and selling of actual banknotes and coins.
But today the whole process has been formalized into what we call the Foreign Exchange (or Forex) market. And it has attracted a lot of action. Up to $3 trillion a day worth of action, in fact.
Forex trading simply involves the buying and/or selling of different foreign currencies in the global market. Many investors today don't consider it enough to have a portfolio stuffed only with bonds, mutual funds and stocks.
One of the strongest appeals of the Forex market is its 24-hour open door. On the world clock, a trading day starts in Sydney, Australia and steps from time zone to time zone around the world until it reaches New York city, the last market to open each day. And it does this five days a week, closing only on the weekend.
Almost every country has its own currency, but on the Forex market, it's mostly the so-called "major" currencies that are traded. These currencies are highly regarded because their issuing countries are politically and economically more stable than most other currencies (most of the time).
The major currencies that are traded in the FX market are the Euro, the British Pound, the Japanese Yen and the Swiss Franc, as well as the dollars of Canada, Australia and the USA.
Most people, when they first learn of Forex trading, find it all a bit strange. Typically, money is used to buy goods and services, not other types of money. However, it's not really all that hard to understand. Just think of traveling to another country. Once you arrive, you go to a currency exchange or a bank and trade your dollars or Euros to buy ringits or yen. Then when you return home, you do the same in reverse. Sometimes the value has changed between the two exchanges, and you make a small profit or lose a bit.
Well, that's exactly what a Forex trader does, but he does it much more often, and usually with much larger sums of money. Also, he's not doing it because of travel but because he believes he foresees a coming shift in the exchange rate. In other words, he sees an opportunity to make a profit and seizes it. If he knows what he's doing, the profits can be both big and consistent.
So how do you get into the Forex market?
It's surprisingly easy to enter, although it's not quite as easy to rack up steady profits.
You'll need a computer and fast Internet connection. You'll also need seed money to cover your first trades. Minimum deposit requirements vary, but considering the opportunities available, even the higher entry fees are surprisingly low.
You can choose from among many software programs available for logging in to your account and placing your trades. The software also allows you to receive alerts on market conditions, rates, and other important information. The more sophisticated software can recommend when to buy or sell.
Forex trading can be an exciting way to make money, but when done in the wrong way, it can get very expensive. Learning what you're doing before you start trading is crucial. Do your research and your due diligence. Learn what the business is about. Set up a dummy account with a broker and do lots of paper trades so that you fully understand the entire process. Stay with this long enough to become comfortable.
In addition, read comments and advice from other traders... many other traders. It's important to have a strong grasp of the strategies you'll need day-in and day-out. This is a business, and it's important that you treat it with the respect that a sophisticated, highly profitable business deserves.
This mindset of professionalism and responsibility are fundamental to any success you expect to build. Without such a mindset, you're nothing but another gambler and you'll lose more than you win.
Forex trading is more risky than stocks and bonds. But it also holds out the promise of much higher returns. Lightning can strike within seconds or minutes sometimes.
Don't ever forget, ordinary mortals can take part in Forex trading. Just because 98% of all trading is done by huge financial institutions and multinationals, don't think there won't be any "left-overs" for you. People from all walks of life are involved in that other 2% of Forex trading. Consider - just 2% of Forex's daily $3 trillion volume leaves some very large chunks of opportunity up for grabs.
When you go looking for a system or strategy to guide your trades, don't just seize the first one you find. Do your homework. Take advantage of free trial versions of software. Look for customer testimonials. And after carefully considering all the factors involved, you can choose a system for your trading.
Another important factor - check out the brokers and choose one who can effectively help you devise a trading strategy that fits your goals and your personality.
If you truly want to make it big in the Forex market, use all available resources to learn your new business well. The average newcomer to Forex trading is impatient and wants to go straight to the "good stuff." Their impatience assures they'll never get to the good stuff and instead suffer mainly losses and disappointment.
Be determined. Be disciplined. Take the long-term view always. This will instantly set you apart from the losers. Once you have a good, solid knowledge of Forex trading basics, coupled with a well-tested strategy, you have a much better than average chance of making consistent profits in currency trading. After all, isn't that exactly what you're aiming for?
And these days we've gotten more sophisticated with our trading. Now we use something called money to stand in for the blankets and the knives, but we're still trading our ability to work and produce something useful in exchange for somebody else's goods that we want.
But now, trading is not only about goods or services, it has grown into something much more than that.
Now we're trading one region's money for another region's money because we've learned that their relative values can vary, sometimes significantly. The first enterprising souls to notice this were the world's first currency traders, taking their profits from the buying and selling of actual banknotes and coins.
But today the whole process has been formalized into what we call the Foreign Exchange (or Forex) market. And it has attracted a lot of action. Up to $3 trillion a day worth of action, in fact.
Forex trading simply involves the buying and/or selling of different foreign currencies in the global market. Many investors today don't consider it enough to have a portfolio stuffed only with bonds, mutual funds and stocks.
One of the strongest appeals of the Forex market is its 24-hour open door. On the world clock, a trading day starts in Sydney, Australia and steps from time zone to time zone around the world until it reaches New York city, the last market to open each day. And it does this five days a week, closing only on the weekend.
Almost every country has its own currency, but on the Forex market, it's mostly the so-called "major" currencies that are traded. These currencies are highly regarded because their issuing countries are politically and economically more stable than most other currencies (most of the time).
The major currencies that are traded in the FX market are the Euro, the British Pound, the Japanese Yen and the Swiss Franc, as well as the dollars of Canada, Australia and the USA.
Most people, when they first learn of Forex trading, find it all a bit strange. Typically, money is used to buy goods and services, not other types of money. However, it's not really all that hard to understand. Just think of traveling to another country. Once you arrive, you go to a currency exchange or a bank and trade your dollars or Euros to buy ringits or yen. Then when you return home, you do the same in reverse. Sometimes the value has changed between the two exchanges, and you make a small profit or lose a bit.
Well, that's exactly what a Forex trader does, but he does it much more often, and usually with much larger sums of money. Also, he's not doing it because of travel but because he believes he foresees a coming shift in the exchange rate. In other words, he sees an opportunity to make a profit and seizes it. If he knows what he's doing, the profits can be both big and consistent.
So how do you get into the Forex market?
It's surprisingly easy to enter, although it's not quite as easy to rack up steady profits.
You'll need a computer and fast Internet connection. You'll also need seed money to cover your first trades. Minimum deposit requirements vary, but considering the opportunities available, even the higher entry fees are surprisingly low.
You can choose from among many software programs available for logging in to your account and placing your trades. The software also allows you to receive alerts on market conditions, rates, and other important information. The more sophisticated software can recommend when to buy or sell.
Forex trading can be an exciting way to make money, but when done in the wrong way, it can get very expensive. Learning what you're doing before you start trading is crucial. Do your research and your due diligence. Learn what the business is about. Set up a dummy account with a broker and do lots of paper trades so that you fully understand the entire process. Stay with this long enough to become comfortable.
In addition, read comments and advice from other traders... many other traders. It's important to have a strong grasp of the strategies you'll need day-in and day-out. This is a business, and it's important that you treat it with the respect that a sophisticated, highly profitable business deserves.
This mindset of professionalism and responsibility are fundamental to any success you expect to build. Without such a mindset, you're nothing but another gambler and you'll lose more than you win.
Forex trading is more risky than stocks and bonds. But it also holds out the promise of much higher returns. Lightning can strike within seconds or minutes sometimes.
Don't ever forget, ordinary mortals can take part in Forex trading. Just because 98% of all trading is done by huge financial institutions and multinationals, don't think there won't be any "left-overs" for you. People from all walks of life are involved in that other 2% of Forex trading. Consider - just 2% of Forex's daily $3 trillion volume leaves some very large chunks of opportunity up for grabs.
When you go looking for a system or strategy to guide your trades, don't just seize the first one you find. Do your homework. Take advantage of free trial versions of software. Look for customer testimonials. And after carefully considering all the factors involved, you can choose a system for your trading.
Another important factor - check out the brokers and choose one who can effectively help you devise a trading strategy that fits your goals and your personality.
If you truly want to make it big in the Forex market, use all available resources to learn your new business well. The average newcomer to Forex trading is impatient and wants to go straight to the "good stuff." Their impatience assures they'll never get to the good stuff and instead suffer mainly losses and disappointment.
Be determined. Be disciplined. Take the long-term view always. This will instantly set you apart from the losers. Once you have a good, solid knowledge of Forex trading basics, coupled with a well-tested strategy, you have a much better than average chance of making consistent profits in currency trading. After all, isn't that exactly what you're aiming for?
Why Forex?
So what exactly is Forex, you ask?
It's the market. It's that simple.
More precisely, FOREX is a currency trading market, and it's one of the largest and most rapidly developing markets on the planet. Over 2.5 trillion dollars are turned over on Forex every single day. That's more than 100 times more than the amount turned over daily on NASDAQ. If you're intrigued, you can click here and get more detailed market information from E-Global Trade & Finance Group, Inc. So, what's a market? Simple: it's a place where goods are traded. Forex is no different, but with one little twist: the goods traded on Forex are the national currencies of the world's countries. For example, on Forex you might pay in American dollars and buy some Canadian dollars. Or, you could sell your Euros for Japanese Yen. There's nothing more to it than that.
How do I turn a profit using Forex?
Again, the answer is obvious: just as with any market, you make money by buying low and selling high! Buy for less, sell for more! All you do is take advantages of fluctuations in the relative values of world currencies. Each currency's value changes every day in the currency exchange market. All you have to do is use these fluctuations to your advantage. One thing we'd like to mention about currency exchange on Forex: on Forex, these daily fluctuations are actually 100 times greater than the actual fluctuation (for example, around 1%). Generally speaking, E-Global Trade & Finance Group, Inc. can offer trading ratios of between 1:10, 1:100, 1:200 and 1:500. So let's do the math: if the exchange rate of your given pair of currencies increased by just 0.6% over the last few hours, then you'll bag a profit of 60% on your original investment! All of this can happen over the course of a single business day, or as quickly as a matter of minutes. And best of all, you don't risk losing anything more than your margin! There's absolutely no limit to your possible profits, but you never risk losing anything beyond what you originally invested. And another thing: you have the power to choose your pair of currencies, and their amount, based on which way the market's headed, and still turn a profit. It makes no difference which way the exchange rate is headed, down or up, because you always have the choice of buying US dollars and selling Yen, or the other way around - buy Yen and sell US dollars. And no, you don't need to actually own any particular currencies, or "have" them in hand, in order to make transactions with them on Forex (to buy them or sell them).
So, just how do I get started?
You simply register with E-Global Trade & Finance Group, Inc. we offer the easiest and fastest registration out there, with absolutely no obligations. Once you're registered, just make a deposit of the margin amount you choose to begin trading with, and you begin trading on Forex. And only E-Global Trade & Finance Group, Inc. allows you to make your deposit with your credit card. It just doesn't get any simpler. But if you do need assistance, we offer as much customer service and one-on-one training as you need. And with E-Global Trade & Finance Group, Inc., your help won't come from a computer, but from a living, breathing human being, who speaks your language.
How do I trade on Forex?
For starters, you simply choose which two currencies you want to make a deal with on Forex. You choose the amount of the deal you'd like to make (called the "volume"). You make a deposit to provide the collateral needed for the deal, called the "margin." In most cases, this is just a fraction of the overall amount of the deal? for example, 1%, or 1:100. You still have the power to "freeze" the deal for several seconds before you finalize it. Freezing allows you to adjust the terms or to accept them as they are. Or, you can call the whole thing off, and cancel the deal. Freezing is a feature offered exclusively by E-Global Trade & Finance Group, Inc. While your deal is still running, you have a so-called "open position." This means that you're able to follow your deal's status and scenarios online at any time. You can make changes to the deal's terms, or you can simply cancel it and either pocket any profits, or minimize any losses. What's more, E-Global Trade & Finance Group, Inc. allows you to set a "take-profit" rate. When and if the market reaches this rate, your deal will close automatically, allowing you to be away from your computer while you have an "open position." Ready to learn more, or find additional training online. Just register with us, with no obligation, and we will lead you through the process step-by-step.
It's the market. It's that simple.
More precisely, FOREX is a currency trading market, and it's one of the largest and most rapidly developing markets on the planet. Over 2.5 trillion dollars are turned over on Forex every single day. That's more than 100 times more than the amount turned over daily on NASDAQ. If you're intrigued, you can click here and get more detailed market information from E-Global Trade & Finance Group, Inc. So, what's a market? Simple: it's a place where goods are traded. Forex is no different, but with one little twist: the goods traded on Forex are the national currencies of the world's countries. For example, on Forex you might pay in American dollars and buy some Canadian dollars. Or, you could sell your Euros for Japanese Yen. There's nothing more to it than that.
How do I turn a profit using Forex?
Again, the answer is obvious: just as with any market, you make money by buying low and selling high! Buy for less, sell for more! All you do is take advantages of fluctuations in the relative values of world currencies. Each currency's value changes every day in the currency exchange market. All you have to do is use these fluctuations to your advantage. One thing we'd like to mention about currency exchange on Forex: on Forex, these daily fluctuations are actually 100 times greater than the actual fluctuation (for example, around 1%). Generally speaking, E-Global Trade & Finance Group, Inc. can offer trading ratios of between 1:10, 1:100, 1:200 and 1:500. So let's do the math: if the exchange rate of your given pair of currencies increased by just 0.6% over the last few hours, then you'll bag a profit of 60% on your original investment! All of this can happen over the course of a single business day, or as quickly as a matter of minutes. And best of all, you don't risk losing anything more than your margin! There's absolutely no limit to your possible profits, but you never risk losing anything beyond what you originally invested. And another thing: you have the power to choose your pair of currencies, and their amount, based on which way the market's headed, and still turn a profit. It makes no difference which way the exchange rate is headed, down or up, because you always have the choice of buying US dollars and selling Yen, or the other way around - buy Yen and sell US dollars. And no, you don't need to actually own any particular currencies, or "have" them in hand, in order to make transactions with them on Forex (to buy them or sell them).
So, just how do I get started?
You simply register with E-Global Trade & Finance Group, Inc. we offer the easiest and fastest registration out there, with absolutely no obligations. Once you're registered, just make a deposit of the margin amount you choose to begin trading with, and you begin trading on Forex. And only E-Global Trade & Finance Group, Inc. allows you to make your deposit with your credit card. It just doesn't get any simpler. But if you do need assistance, we offer as much customer service and one-on-one training as you need. And with E-Global Trade & Finance Group, Inc., your help won't come from a computer, but from a living, breathing human being, who speaks your language.
How do I trade on Forex?
For starters, you simply choose which two currencies you want to make a deal with on Forex. You choose the amount of the deal you'd like to make (called the "volume"). You make a deposit to provide the collateral needed for the deal, called the "margin." In most cases, this is just a fraction of the overall amount of the deal? for example, 1%, or 1:100. You still have the power to "freeze" the deal for several seconds before you finalize it. Freezing allows you to adjust the terms or to accept them as they are. Or, you can call the whole thing off, and cancel the deal. Freezing is a feature offered exclusively by E-Global Trade & Finance Group, Inc. While your deal is still running, you have a so-called "open position." This means that you're able to follow your deal's status and scenarios online at any time. You can make changes to the deal's terms, or you can simply cancel it and either pocket any profits, or minimize any losses. What's more, E-Global Trade & Finance Group, Inc. allows you to set a "take-profit" rate. When and if the market reaches this rate, your deal will close automatically, allowing you to be away from your computer while you have an "open position." Ready to learn more, or find additional training online. Just register with us, with no obligation, and we will lead you through the process step-by-step.
Finding the Right Forex Trading Software
Forex Trading is quickly becoming the hottest niche in the trading world. The regular market has become so tumultuous that the best traders in the industry are walking around scratching their head on a regular basis. If you were ever going to get involved in forex trading, now is the time. However, you are going to have to find the right forex trading software to be successful.
If you have familiar with the regular market, you are quite aware of how quickly the market changes. This is even more so true in forex trading, but the patterns of the changes tend to be much more recognizable as you are dealing in currency.
Now while currency has a reputation of being extremely volatile, it also follows patterns over times that you can spot. The challenge is in being able to spot the trend in time to be able to take advantage of it. While there are still a few horses around that have the gift, few people can pick up trends like software can.
Unless you are able to stand at the computer 24 hours a day, it is unlikely that you are going to be able to be successful trading currency unless you have software that can do your tracking for you. While you are sleeping, the software is busy crunching numbers and evaluating trends for you. When a good trend shows up, you can have the program send you an alert that will allow you to verify the trend and take advantage of the trade.
Of course, even the best program is going to put up a dud every now and again. Sometimes there are false trends that even the computer will misread. The goal of course is to find the right software that will allow you to win on more trades than you lose. If you can do this, the odds are in your favor to make a nice profit over the long run.
Something else to keep in mind as you follow this market is to make sure that you wait for the trend to be verified before you jump on it. You do this so you don't get caught up in one of those false trends. By taking that little extra time, you are protecting yourself and your investment.
The big knock on doing this is that you are not going to be able to take advantage of the lowest support level if you are going long or the best resistance price if you are going short. In the end, you have to look at if the risk is worth the reward. By trading in this manner, you may not make the maximum profit on the deal, but you are much more assured of actually making a profit every time you do a deal.
Forex trading is a great way to lock up that future and to make a living in the current economy. If anyone tells you that it is going to be an overnight get rich quick deal, run away. What you need is a good, reliable program that spots good deals that you can make money from time and again.
If you have familiar with the regular market, you are quite aware of how quickly the market changes. This is even more so true in forex trading, but the patterns of the changes tend to be much more recognizable as you are dealing in currency.
Now while currency has a reputation of being extremely volatile, it also follows patterns over times that you can spot. The challenge is in being able to spot the trend in time to be able to take advantage of it. While there are still a few horses around that have the gift, few people can pick up trends like software can.
Unless you are able to stand at the computer 24 hours a day, it is unlikely that you are going to be able to be successful trading currency unless you have software that can do your tracking for you. While you are sleeping, the software is busy crunching numbers and evaluating trends for you. When a good trend shows up, you can have the program send you an alert that will allow you to verify the trend and take advantage of the trade.
Of course, even the best program is going to put up a dud every now and again. Sometimes there are false trends that even the computer will misread. The goal of course is to find the right software that will allow you to win on more trades than you lose. If you can do this, the odds are in your favor to make a nice profit over the long run.
Something else to keep in mind as you follow this market is to make sure that you wait for the trend to be verified before you jump on it. You do this so you don't get caught up in one of those false trends. By taking that little extra time, you are protecting yourself and your investment.
The big knock on doing this is that you are not going to be able to take advantage of the lowest support level if you are going long or the best resistance price if you are going short. In the end, you have to look at if the risk is worth the reward. By trading in this manner, you may not make the maximum profit on the deal, but you are much more assured of actually making a profit every time you do a deal.
Forex trading is a great way to lock up that future and to make a living in the current economy. If anyone tells you that it is going to be an overnight get rich quick deal, run away. What you need is a good, reliable program that spots good deals that you can make money from time and again.
10 factors to consider when choosing a forex broker
There are a number factors to consider when you choose a Forex broker and to help you do so here is a list of 10 of the key factors you should consider when you select a Forex Broker that will suite you.
1. Reputation This may seem like an obvious place to start but surprisingly this is quite often overlooked in people's quest for profits. A simple place to start is to check out several Forex forums to see what other traders have said about their experiences with brokers and this will help you to get a good idea of the general user experience as well as details about the level of service and support you are likely to get from particular brokers and probably most importantly, payments.
2. Foundation and legitimacy Most Forex brokerages are usually either associated with or are part of a bank or large financial organization but with the rising number of online Forex brokers there are a number of checks concerning their foundation that should be made. Brokerages that are associated with large financial organizations or banks are not only backed up by funds from their Forex trading but also have other income streams and investments which means they don't have all their eggs in one financial basket. Having fund insurance against fraud or bankruptcy is good to have as this means you aren't relying just on being paid from their backup investments which might otherwise mean a longer wait for your money should they be experiencing any financial difficulties. Are they registered with the appropriate regulatory organizations? Legitimate Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC) Note: It is also worthwhile checking out any parent company's website for any financial information that can assure you that your funds are covered and secure.
3. Execution Quite simply this is how they conduct their business. There are two main business models that Forex brokers use, Electronic Communication Network, (ECN), and Market Maker. The ECN model is one where a Forex Broker provides a marketplace for Market Makers, traders and banks to enter their competing bids and offers into this trading platform and have them filled by liquidity providers. All trades made in this environment are made in the name of the ECN broker which means that your trades are all performed completely anonymously. The Market Maker model provides pricing and liquidity for a particular currency pair and then stands ready to buy or sell that currency at the quoted price. A market maker takes the opposite side of whatever your trade is and has the option of either holding that position fully or to partially offset it with other market traders in order to manage their aggregate exposure to their clients. Other aspects of the Forex brokers' execution of their business are: Do they use automatic execution for trades? If they do not have this as part of their model then how fast is their average order execution? How much are you allowed to trade without having to request a quote? Do they offset client trades?
4. Trading Platforms Forex trading is a rapidly moving environment and it pays to have a home computer that can keep up with the processing involved because time lag could mean you are not trading on the latest figures. If your current computer is not as up to date as you would like it to be and you are not in a position to bring it up to a faster processing specification or replace it with a faster workstation, then it is worth considering only using Forex Brokers that operate the ECN platform because this software requires less processing power to run at full speed as it is simpler software Some Forex brokers have restrictions on the number of currency pairs you can trade so check how many of these you are allowed to trade. Get used to the trading platforms and the features they have, such as one click trading, mobile trading, orders types and other features. The best way to do this is to sign up for a Demo account as these use the same software you would use with a live trading account. These accounts are free and if you are considering several Forex brokers then why not try them out with a demo account to see which one you prefer?
5. Account Size If you are starting out you aren't going to go gungo-ho and open large live trading accounts that have high minimum trades, but having said that you might want to increase your amounts later and so need some flexibility. Ascertain what the minimum trade size is as well as whether or not you can adjust the standard lot traded. Unsurprisingly the minimum account opening balance a broker requires is important in deciding which broker to use. It is also very worth checking whether or not unused equity will earn you interest.
6. Spread The spread is the difference between the ask price (the price you buy currency at) and the bid price (the price you sell it at). These are quoted in pips. An example of this is: If you are trading the currency pair US dollars and Euros you might see a spread like this, 1.2700/05, the spread is the difference between 1.2700 and 1.2705, or 5 pips. In order to make the most from your trades you need to know the brokers spread so find out if they use a fixed or variable spread? How tight is the spread? Is the spread larger for small accounts?
Note: Fixed or variable? This choice depends on your trading pattern. If you make trades only or mostly influenced by news announcements--when markets tend to be volatile--you might be better off with fixed spreads. Although this is only if the quality of execution is good. Some brokers have different spreads for different clients. Clients with larger accounts or that make larger trades can receive tighter spreads. Clients that are referred by an introducing broker might receive wider spreads so as to cover the costs of the referral. Other brokers though might offer everyone the same spread regardless of whom they are or the size of their account. It can be difficult to determine a company's spread policy so the best way to find out is to try various brokers, or talk to other traders who have, and of course check out the forums.
7. Slippage Slippage is the time between when your order is placed and the transaction is completed, so find out how much slippage can be expected for fast and normal moving markets.
8. Commissions This is probably the simplest thing to find out. Check your prospective Forex broker's commissions to see if they are built into the spread, as with most Market Makers, or if they charge a separate commission.
9. Margin The margin is the amount of deposit required to either open or maintain a trade position. Margins are either "free" or "used". A used margin is the amount which is being used to maintain a position that is open, and a free margin is the amount that is available to open a new trade position. Check what the broker's margin requirement is. Is this margin the same for both standard and mini accounts? Does the margin change for different currency groups or change for different days of the week?
10. Rollover Policy Rolling over will either accrue you interest or cost you interest depending on whether you bought a currency with a higher interest rate or sold a currency with a higher interest rate. Check the broker's conditions or requirements regarding earning rollover interest. There may be a minimum margin requirement before can earn interest on overnight positions so make sure you know your position. visit www.forexandoil.blogspot.com for daily forex signal and powerful trading system
1. Reputation This may seem like an obvious place to start but surprisingly this is quite often overlooked in people's quest for profits. A simple place to start is to check out several Forex forums to see what other traders have said about their experiences with brokers and this will help you to get a good idea of the general user experience as well as details about the level of service and support you are likely to get from particular brokers and probably most importantly, payments.
2. Foundation and legitimacy Most Forex brokerages are usually either associated with or are part of a bank or large financial organization but with the rising number of online Forex brokers there are a number of checks concerning their foundation that should be made. Brokerages that are associated with large financial organizations or banks are not only backed up by funds from their Forex trading but also have other income streams and investments which means they don't have all their eggs in one financial basket. Having fund insurance against fraud or bankruptcy is good to have as this means you aren't relying just on being paid from their backup investments which might otherwise mean a longer wait for your money should they be experiencing any financial difficulties. Are they registered with the appropriate regulatory organizations? Legitimate Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC) Note: It is also worthwhile checking out any parent company's website for any financial information that can assure you that your funds are covered and secure.
3. Execution Quite simply this is how they conduct their business. There are two main business models that Forex brokers use, Electronic Communication Network, (ECN), and Market Maker. The ECN model is one where a Forex Broker provides a marketplace for Market Makers, traders and banks to enter their competing bids and offers into this trading platform and have them filled by liquidity providers. All trades made in this environment are made in the name of the ECN broker which means that your trades are all performed completely anonymously. The Market Maker model provides pricing and liquidity for a particular currency pair and then stands ready to buy or sell that currency at the quoted price. A market maker takes the opposite side of whatever your trade is and has the option of either holding that position fully or to partially offset it with other market traders in order to manage their aggregate exposure to their clients. Other aspects of the Forex brokers' execution of their business are: Do they use automatic execution for trades? If they do not have this as part of their model then how fast is their average order execution? How much are you allowed to trade without having to request a quote? Do they offset client trades?
4. Trading Platforms Forex trading is a rapidly moving environment and it pays to have a home computer that can keep up with the processing involved because time lag could mean you are not trading on the latest figures. If your current computer is not as up to date as you would like it to be and you are not in a position to bring it up to a faster processing specification or replace it with a faster workstation, then it is worth considering only using Forex Brokers that operate the ECN platform because this software requires less processing power to run at full speed as it is simpler software Some Forex brokers have restrictions on the number of currency pairs you can trade so check how many of these you are allowed to trade. Get used to the trading platforms and the features they have, such as one click trading, mobile trading, orders types and other features. The best way to do this is to sign up for a Demo account as these use the same software you would use with a live trading account. These accounts are free and if you are considering several Forex brokers then why not try them out with a demo account to see which one you prefer?
5. Account Size If you are starting out you aren't going to go gungo-ho and open large live trading accounts that have high minimum trades, but having said that you might want to increase your amounts later and so need some flexibility. Ascertain what the minimum trade size is as well as whether or not you can adjust the standard lot traded. Unsurprisingly the minimum account opening balance a broker requires is important in deciding which broker to use. It is also very worth checking whether or not unused equity will earn you interest.
6. Spread The spread is the difference between the ask price (the price you buy currency at) and the bid price (the price you sell it at). These are quoted in pips. An example of this is: If you are trading the currency pair US dollars and Euros you might see a spread like this, 1.2700/05, the spread is the difference between 1.2700 and 1.2705, or 5 pips. In order to make the most from your trades you need to know the brokers spread so find out if they use a fixed or variable spread? How tight is the spread? Is the spread larger for small accounts?
Note: Fixed or variable? This choice depends on your trading pattern. If you make trades only or mostly influenced by news announcements--when markets tend to be volatile--you might be better off with fixed spreads. Although this is only if the quality of execution is good. Some brokers have different spreads for different clients. Clients with larger accounts or that make larger trades can receive tighter spreads. Clients that are referred by an introducing broker might receive wider spreads so as to cover the costs of the referral. Other brokers though might offer everyone the same spread regardless of whom they are or the size of their account. It can be difficult to determine a company's spread policy so the best way to find out is to try various brokers, or talk to other traders who have, and of course check out the forums.
7. Slippage Slippage is the time between when your order is placed and the transaction is completed, so find out how much slippage can be expected for fast and normal moving markets.
8. Commissions This is probably the simplest thing to find out. Check your prospective Forex broker's commissions to see if they are built into the spread, as with most Market Makers, or if they charge a separate commission.
9. Margin The margin is the amount of deposit required to either open or maintain a trade position. Margins are either "free" or "used". A used margin is the amount which is being used to maintain a position that is open, and a free margin is the amount that is available to open a new trade position. Check what the broker's margin requirement is. Is this margin the same for both standard and mini accounts? Does the margin change for different currency groups or change for different days of the week?
10. Rollover Policy Rolling over will either accrue you interest or cost you interest depending on whether you bought a currency with a higher interest rate or sold a currency with a higher interest rate. Check the broker's conditions or requirements regarding earning rollover interest. There may be a minimum margin requirement before can earn interest on overnight positions so make sure you know your position. visit www.forexandoil.blogspot.com for daily forex signal and powerful trading system
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