Thursday, April 17, 2014

Forex Information .Forex Basics

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Forex  Information ,LEARN fOREX BASIC FREE HERE 

Forex Basics

How does Forex trading work?
Forex trading is conducted in pairs. The trader always trades one currency against another. Some examples of the major pairs include the EUR/USD, USD/JPY, EUR/JPY, GBP/CHF, and CAD/USD among others. When you open a Forex trade, you go "long" on one currency and go "short" on the other. The Forex market does not have a centralized location and is therefore a very flexible trading option for people around the globe.

2  What is Forex trading?
The foreign exchange market, also known as Forex, or FX, is the world's largest financial market with over three trillion Dollars traded every day. The Forex market is based on the trade of the world's currencies.

3  Is Forex trading Risky?
Forex trading is conducted in pairs. The trader always trades one currency against another. Some examples of the major pairs include the EUR/USD, USD/JPY, EUR/JPY, GBP/CHF, and CAD/USD among others. When you open a Forex trade, you go "long" on one currency and go "short" on the other. The Forex market does not have a centralized location and is therefore a very flexible trading option for people around the globe.

4. When is the Forex market open?
The Forex market has the most flexible hours with true 24 hour trading. The Forex day starts in Sydney and moves around the globe first to Tokyo, then London, then NY.
5. How does Forex trading compare to stocks or mutual funds?Forex and stocks have a lot in common but generally speaking, Forex is shorter term trades than other markets. Most Forex traders do not leave positions open overnight, which involves a fee called a ?Rollover Fee?. In addition, the stock market is significantly smaller than the Forex market making it a more difficult trade to master.

6. How long are Forex positions maintained?
This very much depends on the preferences of the trader but statistics show that over 80% of Forex trades last for seven days or less and over 40% for two days or less. Generally speaking, Forex traders close their positions when they have achieved their profit goals for that trade, the Stop Loss is triggered as a result of reaching a maximum level of loss, or a new position has become available and the trader wants to reallocate the funds.

7. How often are Forex trades made?
Since most brokers do not charge commission on opening a new position and the Forex market is open almost around the clock, most trades open multiple positions throughout the day. According to recent studies, the average Forex trader opens approximately ten to twenty new positions every day.

8. What is Forex leverage?
Leverage in Forex is a loan that is provided by the Forex broker to an investor. When an investor decides to invest in the Forex market, he/she must first open up a margin account with a broker. The broker then allows the investor to trade over and beyond the actual amount of money he has on deposit. Usually, the amount of leverage provided is either 50:1, 100:1 or 200:1, depending on the broker and the size of the position the investor is trading. In Forex, investors use leverage to profit from the fluctuations in exchange rates between two different countries. The leverage that is achievable in the forex market is one of the highest that investors can obtain.

9. What is a Forex Islamic account?
Islamic Accounts, also referred to as swap-free accounts, are Forex accounts whose owners exercise Islamic religion. According to the rules of Islam any business transactions which involve interest of any sort are prohibited. Islamic or swap-free accounts allow the position of a currency pair to be rolled over past midnight so that a trader does not earn interest.

"Forex First Steps"

10. What do I need in order to start trading Forex?
As opposed to other markets, you really do not need much to trade Forex. No license is required, and you can trade Forex with a very small initial capital. However, it is not recommended to jump into Forex trading without massive preparation before. This should include reading, studying, and familiarizing yourself with the ins and outs of the market as well as choosing a top reliable broker with whom you can trade.

11. What is the best way to learn Forex?
The Web is overflowing with trading webinars and articles about Forex, but we have worked long and hard to be the most informative source of Forex information for the beginner trader. You can read our best Forex articles or see a complete list of our Forex articles.

"Forex Currencies"

12. How are the prices of the currencies determined?
The Forex market is among the most volatile markets on the globe and with its 24 hour schedule, the market never rests. The prices are based on a wide spectrum of factors both economic and political. Anything can affect the movement of the Forex market, but the main factors that drive the currencies are interest rates, inflation, and political stability. Governments often jump into the Forex trading arena in order to affect the prices of currencies. They do this by flooding the market with their currency in order to lower its price or buy out large sums of their currency in order to raise its value. However, as a result of the Forex market's size, there is no one entity that can truly affect the market is a serious manner.

13. What do terms like Bid, Spread, Rollover and others mean?
There are many terms you must understand before your trade Forex. To become aquanited with the basic lingo, see our complete Forex glossary.

Forex Profits
14. How can I manage my risks in the most efficient way?
There are many ways to avoid high Forex risks, but the primary tools used by most traders are stop losses, take profits, and limit orders. Using these tools, you can minimize your risks while maximizing your potential for profits.

15. Is Forex trading lucrative?
The possible rewards of Forex trading are pretty much endless. Most Forex brokers offer high leverage offering the ability to trade tens and hundreds of thousands of Dollars with as little as a few hundred Dollars of equity. Some brokers offer a leverage as high as 500:1. Obviously, the higher the leverage, the larger the potential for profit, but with that potential comes a higher level of risk as well.

16. Is Forex an expensive habit?
Well, that very much depends how you trade. However, unlike many other markets, Forex trading can be a very inexpensive habit. With most brokers offering at least a 100:1 leverage, traders can trade tens of thousands of Dollars with as little $500.

17. What is the best Forex strategy to use?
This is a question that occupies the minds of the world's most well known Forex experts. There is no one right answer to this, but there is one basic principle when it comes to a Forex trading strategy. The important thing is that a trader has some sort of strategy. This is what differentiates Forex trading from gambling. You can use one of hundreds of available Forex trading strategies to maximize the potential of the Forex market. Many traders find it challenging to stick to their strategies when it dictates to pull out of a trade even when it is a winning trade. The important thing is that traders use strategies and stick to them.

 "Forex Trading Brokers"

18. How to choose A Forex broker?
Choosing an online Forex broker might be the most important decision a trader makes. It is therefore very important to make an educated decision. The Web is overflowing with reviews of Forex brokers. It is crucial that traders read them before choosing a broker. DailyForex has put together a comprehensive list of Forex broker reviews for your Forex research.

19. What features should I look for in a Forex broker?
There are a lot of characteristics a trader should look for in an online Forex broker. This can be anything from the website, to their customer support, their trading platform, their platform's features, and their Forex trading spreads. It is important to read in depth reviews before selecting your broker, and a good start is reading DailyForex's thorough Forex broker reviews.

20. Why should a Forex broker be regulated?
Proper financial regulation provides traders with a certain level of basic protection. For instance, traders depositing with brokerages regulated in the European Union will feel safe in the knowledge that some of their funds are insured through an authorized regulartory organization. Should the brokerage suddenly collapse or the broker abscond with the funds, a large percentage of the monies may be refunded to the broker’s clients. Among the most accepted Forex regulators are NFA, CySec for Cyprus, ASIC for Australia, FSA for the UK, MiFid for the European Union

21. How do I know if a Forex broker is a scam?
Forex scams are very common, and it is the trader?s responsibility to do the necessary research before selecting a Forex broker. Reading online Forex reviews is the first step, but then a trader should also read forums and experiences from other traders who used the specific broker.

"Forex Trading Information"

Forex — the foreign exchange (currency or FOREX, or FX) market is the biggest and the most liquid financial market in the world. It boasts a daily volume of more than $5.3 trillion (as of April 2013). Trading in this market involves buying and selling world currencies, taking profit from the exchange rates difference. FX trading can yield high profits but is also a very risky endeavor. Everyone can participate in foreign exchange trading via the Forex brokers. With our broker rating & reviews system, we can help you choose the one that fits your needs.

Don not hesitate to check and bookmark our Forex blog to get the latest updates about the FX market and this website. You can also join a friendly community of traders at the Skype with us.

The Foreign Exchange Market for Beginners

The foreign exchange market or Forex market as it is often called is the market in which currencies are traded. Currency Trading is the world’s largest market consisting of almost trillion in daily volume and as investors learn more and become more interested, the market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets. In addition, there is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter. Unlike the stock market, this decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients. The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers. Learn more about currency trading online.

All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency. The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency. Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold. The opposite is true, when the sale of a currency pair takes place. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market. Registering for a demo account allows a new trader to download the online trading platform that is used by the company’s clients trading live accounts and make trades as if they were doing it with real money. The demo account is an excellent way to experiment with the foreign exchange market while learning your way around the trading platform. It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.

Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders. These “educational webinars,” as they are called are run by experienced financial strategists and range in topics from trading specific news events to trading the Euro. In addition to the webinars, FXCM also offers numerous online courses that teach investors how to trade the currency market.

"General Forex Information"

1. "Forex market timing"

Forex market is open 5 day's in a week 24/7. 5days

No trading at Saturday and Sunday close Forex market.

2. "Major currency pair's"


3. "Top Commodities"


4. "What is PIP"

4rth digit to the right of the decimal is a PIP.

For Example = 1.4431  ....   (1) is called PIP.

5. "Pair"

(EUR/USD) ... this is called Pair of currency.

6. "Base and Quote"

Example:  GBP/USD=1.4232

(GBP) is a Base Currency of pair. (USD) is a Quote Currency in Pair. And (1.4232) is

a Ratio of Pair.

7. "Orders Type's"

"Instant Executive Orders" 

      1.Buy,   2.Sell

"Pending Orders"

1.Sell Limit , 2.Buy Limit , 3.Sell Stop , 4.Buy Stop , 5.Trailing Stop

8. "The (SL) and (TP)"

(SL) stands for "Stop Loss" Limit,  and  (TP) stands for "Take Profit".

9. "Understanding of Forex Prices"

Two different price Quoted in the Forex Market.

1. Bid ...> Price you Sell at,

    Traders will always Sell at lower price (Bid).

2.Ask ...> Price you Buy at,

   Traders will always Buy at higher price (Ask).

The different between Bid and Ask Prices is called (PIP Spread) , this is your

cost of business and broker's money become there is often no commission is FX.

10. "Influences Price's"

1. International trade

2. Investment Flow

3. Equity and bond markets

4. Economic and political conditions

Interest rates inflation,political stability some time instability that causes

daily price volatility.

 C Chaikin Oscillator Commodity Channel Index (CCI) Commodity Select Index D Detrended Price Oscillator Directional Movement Index (DMI) E Ease of Movement Elliott Wave Exponential Moving Average (EMA) Exponential Ribbons F Fibonacci Retracements Fibonacci Arcs Fibonacci Fans Fibonacci Time Extensions


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Risk Warning

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.