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Forex Secret - Forex Fundamental Analysis Authority In FX Rates Movement

2009-06-09T14:25:00.000-07:00

The chapter’s abstract: a trader attains much greater success at FOREX unless he is reading analytics by non-trading economists. Here’s some information for meditation below:

What useful can one be taught by FOREX reviews, cooked up by analytical economists, who are incapable of teaching themselves to be FOREX successful?

FOREX economic indicators (released news statistics) are compiled the way required to be interpreted by analysts, who, by the end of the day, may explain any rates travel as the only naturally determined one.

Important objective economic indicators (GDP, Balance of payments, etc.) are leveled up with the subjective ones (University of Michigan, Chicago sentiment, etc.) which in no way may be checked up.

Economic statistics is frequently forged even at the supreme level.
Here is my attitude as a trader towards FOREX fundamental analysis and to its impact upon exchange rates dynamics.

At the outset, we’ll get to scrutinize the gambling done by FOREX analytical economists, who are striving to convince traders in exchange rates being tied up to some ersatz fundamental analysis data, viz. to economic indicators being released under daily streaming news.

We will also present technique background used by the banks’ Consortium to manipulate news and forecasts the way to vector the rates as any certain day requisite.

The earlier example dated April, 01, 2005 (when the trend has reversed against the logics of all the news released that day). The situation is an absolutely typical occurrence at FOREX, where in 50% cases rates are going DOWN the news vector while in 50% cases – AGAINST the news released. Any analysts’ venture to far-fetch the fundamental analysis to FOREX rate quotes has long caused me nothing but smile.

The FOREX analysts’ logics is as follows: as soon as the rates reverse against the news, next day they have the explanation that nothing unexpected has occurred with the market having already been anticipating the news, and these news have already been accounted for by traders in current quotes.

Or, else, the market (or traders or other) spotted in the news release not at all what it has read earlier in the streaming news. As a result, the rates by, normal logics, staged a sharp swivel to move in sort of a wrong direction.

But, my God, are traders really in need of the above analysts’ para-economic freaks on fundamental or other analysis, once THE RATES HAVE ALREADY MADE THEIR WAY in the said wrong direction?

And why, during uptrend, no analyst has recommended going short on a currency instead of going long in case actual news is superior to the estimate? I have never come across the case.

Analysts should have better derived a simple mathematical formula (hopefully they did have studied at universities) as to a FOREX pair average points travel prior and post critical news (National Bank percent rate hike, Balance of payments, etc.).

By virtue of this formula we, traders, could do some calculations to estimate whether either everything is already accounted for in the current rates or further 100-200 pts grow/decline is to be expected.

But there’s nothing of the kind!

And now, here’s my standpoint as a FOREX trader on why traders will never end up by being supplied with the above mathematical prognosis formula by analysts. I will also provide backgrounds of when pro-news and counter-news entries should be effected.

Fundamental Analysis CRITERIA BIASED INOBJECTIVE NATURE. Fundamental Analysis BEING ABANDONED IN FAVOR OF DAILY NEWS SUBSTITUTE.

1. All the Fundamental Analysis economic indicators are made a muddle of. See, for instance, 54 US economic indicators, ABC-arranged by analysts instead of being USD importance-rated http://www.forexite.com/forex_for_ beginners/us_economic_indicators.html

2. No difference is made between Fundamental Analysis, the state monetary policy and ersatz fundamental data-related current news (viz.: Chicago business activity index, Michigan University consumer sentiment index, National Managers’ Association business activity index, etc.). But, in what way is the Michigan University consumer sentiment index relevant to the US economy Fundamental Analysis? Is there any other name to be applied to this index besides the name of an ersatz Fundamental Analysis?

3. A portion of economic indicators organic to the above ersatz Fundamental Analysis evoke my personal uncertainty as regards their figures’ objective nature and as regards not being tailored to order of those supplying quotations to the FOREX market.

Let us go attentively once again look into these indices with the view to clarify their manipulation capability with no exposition danger.

- PHILADELPHIA FED INDEX constitutes the polling results of Philadelphia manufacturers as to their sentiment towards the current economic situation:

- Why Philadelphia, not California or Texas.

- May there be any difference in obtained figures depending upon the type of manufacturers being interrogated?

- Is there anyone in position to verify and confirm the above manufacturers’ polling results?

- Consumer price index (CPI), reflects consumer price level per a “basket” of goods and services. But the CPI may be properly built up, if prices differ supermarket to supermarket, from supermarket to conventional shop, from shop in the center and shop in an outskirt, from shop in a capital to shop in a province, from sell off period to new articles presentation period, etc.?

Is it imaginable, how figures can be manipulated in favor of those, requiring them so badly? Or is there anyone to convince me that it’s very hard to change 0.4% into 0.2% or 0.6% depending upon a customer’s demand at any given moment?

- Michigan consumer sentiment index constitutes the results of customers’ polling on current economic situation confidence. No comments, since it looks like interrogating no-one-knows whom on a no-one-knows subject.

- Consumer confidence. A doubtful attempt to measure consumers’ optimism.

-NAPM (National Association of Purchasing Managers) services index is representative of service managers polling results, purported at estimation of in-branch changes taking shape. Very often this index is dictated rather by psychological factors, than by actual state of affairs (???).

- Chicago PMI index. It is closely tracked due to being released shortly prior to NAPM. The index exerts strong authority over the market by prompting a real NAPM value to be released. Please, refer to NAPM above.

- Atlanta Fed index presents polling results of Atlanta industrials on current economic situation (???).

As understandable, the list of these ersatz Fundamental Analysis economic indicators may go on along with buildup of questions and doubts.

4. There’s a so-called factor of anonymous economists’ estimates in relation to economic indicators preceding values.

I wonder WHO are these anonymous economists, each time allegedly interviewed by Dow Jones on their expectations from news to be released the following calendar week? And WHY is THEIR opinion exactly presented to be the whole market’s anticipation of THAT data exactly, but not any other? Below are some sample potential manipulating the world traders’ opinion, frequently encountered by myself:

a frankly superior estimate leading to benign actual data being inferior to the prediction (I repeat, a no-one-knows whose prediction) and resulting in a sharp rates reversal by “disappointed” traders as later on indicated by analysts.
a frankly inferior estimate leading to malignant actual data being superior to the prediction, thus pushing the rates forward with no other market’s objective grounds.
TO SUM IT UP, leveled with objective economic indicators (GP, etc.) are ersatz Fundamental Analysis ones, manipulation by virtue whereof creates simulacrum of the rates being tied up to daily news and the state’s Fundamental Analysis. With prediction manipulation capability added hereto, it turns feasible to faultlessly project traders’ activities throughout the world. But is it accidental or not that worldwide traders’ training programs are as similar as 90-95% losers figures?

FUNDAMENTAL ANALYSIS CLASSICAL MACROECONOMIC INDICATORS

A true Fundamental Analysis, based on leading world economies comparative macroeconomic characteristics as well as on their currencies power/weakness, may be experienced not through indices of universities and various US managers’ associations, BUT through economic indicators, recognized by all the world leading economists. These are:

- GROSS DOMESTIC PRODUCT (GDP), the principle national economy condition reflector. According to economy development Keynesian model, GDP=C+ I + S + E – M, where: C is consumption, I is investments, S is state expenditures, E is exports, M is imports. GDP is expressed on terms of an index in relation to a previous period.

- STATE BUDGET, constituting a correlation between state’s incomes and expenditures.

- BALANCE OF PAYMENTS, correlating the country’s incoming and outgoing payments and falling into three major components: trade balance, balance of services and non-commercial payments (invisible transactions balance) and balance of capitals and creditors flow.

- UNEMPLOYMENT RATE in the country, being a 3D structure of:

frictional unemployment, related to higher remuneration job hunting or expectation after layoff (not a negative factor, since it leads to more rational labor resources allocation);
structural unemployment, emerging from labor demand decline in any industrial branch due, for instance, to technological development or change on consumer demand structure;
cyclic unemployment, arising during overall economic recessions.
- MONEY SUPPLY INDICES (M0, M1, M2, M3). M0 = cash circulation; M1 = M0 + cheque deposits; M2 = M1 + cheque less saving accounts + money market deposit accounts + minor deposits (less than USD100K) + money market mutual funds; M3 = M2 + large deposits (in excess of USD100K). These are practically no market influential.

- NON-FARM PAYROLLS.

- GOLD AND CURRENCY RESERVES, being a state’s gold and currency backup stored in central bank and in financial institutions, as well as state’s gold and currency assets with international creditors.

- NATIONAL DEBT, constituting state liabilities to physical persons, legal entities, foreign countries, international institutions and outstanding international law subjects.

- REFINANCING RATE, being percent rate utilized by the central bank in granting credits to commercial banks on a refinancing basis, etc.

MACROECONOMIC INDICATORS MANIPULATION ATTEMP AT FOREX.

Macroeconomic indicators are of objective nature, thus being “uncorrectable”, the way it may be done to various Chicago, Atlanta and Michigan indices.

That is why at FOREX we often come across surprising interpretations of the above objective indicators, recognized by the world’s leading economists.

1. Macroeconomic indicators are leveled with ersatz Fundamental Analysis ones, viz.: the University of Michigan one, as above indicated.

2. Absolutely in objective criteria are selected to estimate macroeconomic indicators. For instance, weekly number of jobless claims is released instead of its monthly fluctuation dynamics analysis per its three aspects (frictional, cyclic and structural). This data s released on Thursdays, 08:30 EST, New-York with a disclaimer that “the figures are not always reflective of the actual situation”. The data is under frequent perversion due to short-term factors such, as federal or local holidays. The question is WHAT IS IT ALL FOR?

3. The macroeconomic indicators role is being undermined in every manner. See below:

State budget exerts but an insignificant authority over the market (?!). Curious to know WHY? Is it that the UMich index is more important in understanding the US economy prospects and its perspective currency rating?

http://www.forexite.com/forex_for_beginners/us_economic_indicators.html

Balance of payments is of limited influence on the market (??).

http://www.forexite.com/forex_for_beginners/us_economic_indicators.html

4. Totally different indicators are being quoted when analyzing the leading economies’. See:

the USA: M1, M2, M3 money supply, whereas M3 only for Germany with no indicator as such for the UK; the UK: PPI output, PPI input with no indicator as such for other countries.
RELATION BETWEEN Fundamental Analysis MACROECONOMIC INDICATORS AND FX RATES

Certainly, the relation between Fundamental Analysis and current FOREX rates does exist, however it is greater in depth and mediation, than presented to traders by the majority of analysts, starting from dealers’ basic training.

In my opinion, this DIRECT relation between Fundamental Analysis and FOREX trending finds manifestation on W1 and MN charts only.

Those, supplying us with FOREX quotes, may be “playing” and “fooling” traders within H1 and even H4. But changing trend at W1 and MN timeframes in favor of the USD and establishing the EUR price, say, cheaper than that of the USD in 2005 means going AGAINST depth fundamental data. Those will never be off to commit sort of a thing.

A currency price and that level of fundamental data are permanently coincident. This is not at all the ersatz Fundamental Analysis, whereto the Consortium has schooled the majority of traders (not the University of Michigan index, not the Chicago Managers Association index, not the last month Consumer Confidence index (?!), etc.), and by virtue whereof the aforesaid traders majority have got completely confused in a seemingly elementary issue of entry in favor of the news and against the news.

Hence, below is the USA and Europe macroeconomic indicator related PRACTICAL CONCLUSION for traders: data as of early summer, 2005 are definitely indicative of the incapacity of the long-term USD downtrend change for its uptrend (W1 and MN charts) within the year relative to the EUR, the GBP and outstanding “allies” (See chapter on “Which FOREX indicator is the most impartial and accurate. Ally and adversary currencies”).

Thus, following each short- or medium-term EUR’s recess, its new growth will be witnessed with earlier historic peaks potential breakthrough. The contrary option of the EUR being cheaper than the USD is a NO-NO, exactly due to fundamental macroeconomic indicators, where under European economies enjoy faster development than the USA.

RELATION BETWEEN ERSATZ Fundamental Analysis AND FOREX QUOTES.

Any ersatz Fundamental Analysis indicator data release (UMich, Chicago indices, etc.) is but the GROUND to urge currencies up-down reciprocation, as a function of tactical objectives of those supplying FOREX quotes.

A PRACTIAL CONCLUSION for traders: I claim no relation between ersatz Fundamental Analysis and FOREX quotes from the intraday trading standpoint.

Upon the above news the banks Consortium may drive the rates in any direction, whereas FOREX analytical economists will snatch on You proving and explaining that there is no unexpected occurrence and that the market with proper advance account has been long anticipating the news released, etc., etc, see aforesaid.

That’s the reason for no analyst to venture to recommend entry against the news prior to its release. NO ONE knows in advance where the rates will travel under the Consortium’s will after the news.

This is the level of technical analysis, not that of Fundamental Analysis.

Being a trader, I observe 3 rules when jobbing on news:

exit all positions prior to the news release; if not – then place pending orders behind resistance and support levels to be a stop-loss “safety cushion” as per B. Williams.
don’t enter upon the first candle after the news release;
enter immediately after the Consortium has definitely indicated the way it interprets the news released (see “Entry and exit manual” on entries and exits under the news released).
IN CONFIRMATION OF MY CONCLUSION ON POTENTIAL CURRENT NEWS AND OTHER STATISTIC DATA FORGERY, I refer to “Dawn of dollar empire and end of “Pax Americana”” by A.B. Kobyakov and M.L. Khazin, (“Veche” publishing house, 2003, 368 pages), see on http://paxamericana.narod.ru/book/paxamericana.zip.

The authors thereof have arrived at conclusions still more aggravating for traders and quoted facts on STATISTICAL DATA FORGERY AT THE LEVEL OF THE USA STATE STATISTICS, see CHAPTER V. STATISTICS AT CURTESY OF ECONOMICS:

“The earlier published data summary maintained, that during seven years from 1995 to 2001 inclusive, the USA boasted positive balance of payments of USD203.2 BN, while the revised data uncovered negative balance of payments of USD89.8 BN (chart 24) within that period. With the account to Q1 2002 the above deficit amounted to USD100 BN already.

EVERYONE IS FREE TO READ IT IN GREATER DETAIL AND TO DRAW UP ONE’S OWN DEDUCTIONS!

A serious Russian “Novaya Gazeta” newspaper (08.09-11.09.2005, in “Writings on the water”, see p. 15) has reiterated on another stock market vivid instance, where for the sake to meet some national (or, probably, SOMEBODY’S) interest, the US governmental circles and information agencies have set on a worldwide advertising of a “greatest modern discovery of nanotechnology: a single-molecule transistor”.

The newspaper quotes: “Prospects were breath-taking. The “fourth wave” subject attained unusual fashion and attraction for investments. Nanotechnologies fell under the US government strictest attention being the issue of strategic importance. Hardly imaginable was the fact that all the sensation would end up in a classic “panama” or a shady enterprise similar to our default. Scientific companies share prices skyrocketed off-scale, whereas 30-yo Jan Hendrik Shone, the main publications author has been thought to be next year’s Noble Prize nominee. It all would have been sliding on smoothly, unless the results of over 100 Shone’s articles turned out to have not obtained confirmation. Tampering has been proved as regards three key reports on single-molecule transistor.

As a result Shone faced being fired along with sharp decline in scientific companies share rates. The companies have been stung for USD100BN approximately, the amount being suspiciously close to the Iraqi war (started only 3 months later) US government expenditures.

An infinite number of similar sample situations may be drawn, with statistics turning into a falsifier.

Hence, the question is natural: what’s the way of a trader using Fundamental Analysis statistics to build up FOREX strategies, provided that at least part of data is forged to someone’s benefit?

I don’t hold it reasonable to go deeper into the issue. A FOREX trader’s gains may not be facilitated by this issue’s deep study.

To get a comprehension of FOREX currencies logics, the simple knowledge is indispensable of WHO, HOW and BY WHAT REASON supplies FOREX quoted to traders. By far we have but only answered WHO are those Internet users to furnish quotes to traders.

Identically, no use sinking into the “BY WHAT REASON” the quotes are supplied at FOREX. Please, attempt yourself to answer by virtue of a counter-question: if You (not the Consortium) have invented a financial result-oriented game with clients – WHO IS SUPPOSED TO BE THE WINNER (the game organizer or clients)?

Hopefully, I have beaten off some green traders’ lust for instant gains at FOREX. You are facing a professionals market and becoming a profi yourself is the only way to earn money at this market.

The underlying chapters are concentrative of the attempt to elucidate the core question: HOW are the FOREX quotes presented, to enable the extra-exchange FOREX market traders to attain steady gains.

Below I will purportedly and repeatedly resort to examples from books by Viktor Suvorov (“Ice-breaker” et al.). Our target at FOREX is a twin sister of V. Suvorov’s one in history: to use official sources (i.e. absolutely verifiable materials) in legal understanding of what is camouflaged by the world’s richest market half-truth and falsehood in Fundamental Analysis and Technical Analysis methods, in published FOREX literature, in websites analytics and predictions, in actions of dealers making millions USD by means of their client traders’ accounts, etc.

Now, please, find below an intermediate conclusion being the starting point in understanding of currencies quote logics as well as in pinpointing of CORRECT and ERRONEOUS method of operation at FOREX proposed by Bill Williams and other scholars:

A trader is to be aware of one single thing – as different from stock markets, FOREX traders are not opposing each other, but they fight against the almighty FOREX Game Organizer – the world banks Consortium being capable of swiveling any national currency to any direction and at any moment by way of using numerous economic indicators, news releases, whose authenticity is not doomed to ever be verified by anyone.

Thus, how is one to realize, at a trend beginning, but not by its end, WHAT FOR and BY HOW MANY POINTS the Consortium is pushing currency rates?

Bearing the above in mind we will dedicate the following book chapters and the Masterforex-V Academy training to this issue exactly.

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.

President of Masterforex-V Trading Academy

Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market

http://www.masterforex-v.su
http://www.masterforex-v.org

Source

Forex Secrets - Delusion No1 - Forex Currency Rate And Economic Factors Impact On Exchange Rate

2009-06-09T14:19:00.000-07:00

The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the state’s economic situation. But in reality, even in case the actual Forex news is superior to the estimated one, the FOREX quotes up/down movement is of 50/50 probability.

This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit:

FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)
Factors imparting growth/decline to FOREX rates (up/down from point X).
Thus, having understood the FOREX rates factors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.

So, what are these factors?

FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:

Forex rate constitutes a demand-supply balance for a given goods (currency).
Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.
Referring to the B. Williams (“Trading Chaos 2” Chapter 1 “The market is what you are thinking of it”):

Each world market is dedicated to distribute or share limited amount of something… among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer’/sellers’ power absolute equilibrium point.

The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any misbalance being detectable by you or by me or even by traders at the exchange floor.

With this scenario holding true – and it really does – we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance”.

Thomas Demark was more laconic in “Technical analysis - an emerging science”:

“Price movement is governed by demand and supply. Should demand exceed supply, there’s a price rally and if visa versa, there’s a price decline. All economists do share these underlying principles”.

Hence, the role of fundamental analysis for FOREX market is readily apparent.

In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country’s economic fundamental data, viz. by tracking the factors reflective of the country’s economy condition as below:

State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators – the faster the economic and the currency price growth);

Stock indices, via average arithmetic index of the country’s securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price of shares of the country’s 30 leading companies.

The country’s interest rate, since the higher the rate, the greater number of investors is eager to invest into the country’s economy and hence into national currency strength.

Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.

Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.

The country’s gold and currency reserve assets.

Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.

Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)

Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)

Labor statistics (unemployment rate, new jobs, etc.)
Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)

To be considered additionally are the country’s political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.
Conclusions:

Progress in economy results in the currency exchange rate rally.

Decrease in economic indicators leads to the national currency rate decline.
To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to misbalance and causing the currency rate fluctuations.

In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates (“rumored trade”), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;

Forex rate grows if actual news are better than the estimated one;
Forex rate declines if actual news are worse than the estimated one.
ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?

Do you accept that one can earn money by way of using these basics, known to every trader?

Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners.

Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.

The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders’ funds by Forex brokers, via buy-sell difference especially during strong trends). Then, www.forexite.com reads: “Trading is performed without actual currencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency” http://www.forexite.com/forexite_advantages/forex_advantages.html.

Comment: Have you ever met any book-makers;

- whose logics was coincident with that of THEIR clients (traders),

- whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?

And what extent of doubt and skepticism should be attached to THEIR free “recommendations”, “advice”, “surveys” and “forecasts”, laid out at THEIR sites through THEIR analysts?

As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that “All the economists share these underlying principles”.

Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these “underlying principles, shared by all economists including Thomas Demark” have possibly turned into dogma, alien to life and practice?

Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?

FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity.

Please, think over A. Elder words, that: “FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this eventuality”. Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an experienced professional trader (level 3 of his trader’s skill rating as per “Trading Chaos 2”): “On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the market’s basic, usually invisible structure. You no longer need to refer to others’ opinions. You needn’t read “Wall Street Journal”, watch market-oriented TV programs, and subscribe to information bulletins, waste money on information channels”.

Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous “Wall Street Journal”, to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go.

Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.

Below are some examples:

Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.
See Note below

In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).

All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.

Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well…

And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.

It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, - down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a “down” direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).

The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.

Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.

Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: “in spite of certain data, traders decided that the currency has already worked-off this side”. But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?

Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy… But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries’ economy statistics.

I wonder if I’ll ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes.

The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?

Such reading-matter is, but hammering a single question into one’s head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.

Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. You’ll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.

Another example:

Fig.2. GBPUSD movement as of May 13, 2005.

See Note below

This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:

Most indices have dropped down: DJI at NYSE – by 49.36 pips (-0.48%) to close at 10140.12; S&P500 – by 5.31 pips (-0.46%) to 1154.05. NASDAQ has grown by 12.92 pips (+0.66%) to1976.80. 30yr US Bonds yielded 4.484 (0.047 drop from previous close)

There is a fall in Michigan sentiment index. In May UMich was 85.3 with med est 90.0 and prior 87.7. So it was worse than the estimate, reaching the low since March, 2003. The index decline was being observed for the fifth month.

The April US export price index was +0.6% with prior of +0.7%.

Below are other similar examples of that same day.

Fig. 3. EURUSD chart as of May 13, 2005.

See Note below

Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above.

Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.

Author of Books:

1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.

2. Technical analyses in Trading System MasterForex-V.

3. Entry and Exit Points at Forex Market

http://www.masterforex-v.su
http://www.masterforex-v.org

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Forex Trading Course - A Must for Forex Beginners

2009-06-09T14:18:00.000-07:00

In the world's major economic Marketplace where exchanges achieve up to trillions of dollars each day, many people would really want to take part in this Marketplace. Aside from being the major financial Marketplace in the world, Forex is also the most liquid Marketplace in the world where trades are completed 24 hours a day.

A lot of Traders have turn out to be extremely wealthy Trading in the Forex Marketplace. And, many people who trade in the Forex Marketplace on a daily basis have found a great way to replace their day jobs. Some even became millionaires almost overnight by just Trading in this economic Marketplace.

Trading in the Forex Marketplace can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex Marketplace. It is true that the Forex Marketplace offers a very good money-making opportunity to a lot of people, but it also has its risks.

It is a fact that people who didn't have the right knowledge and skills Trading in the Forex Marketplace suffered huge financial losses and some even went into debt. So, before you enter the Forex Marketplace, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.

Many people who were doing well in the Forex Marketplace have went through a Forex Course to get the knowledge and skills needed to successfully trade in this very liquid and very large economic Marketplace.

In a Forex Trading Education, you will learn about when it is the right time to buy or sell, chart the movements, spot Marketplace trends and also know how to use the different Trading platforms available in the Forex Marketplace.

You will also be familiarized with the terminologies used in the Forex Marketplace. Even the basic knowledge about Trading in the Forex Marketplace can be a great help with your money-making venture in the world's largest Marketplace.

There are different Forex Trading lessons offered, all you need to do is select one that suits your requirements as a trader. Even crash courses where all the basic things about Forex will be taught to you in a short period of time, full time online courses, where you will learn all about Forex through the internet and there are also full time real life classroom courses where you can learn the ropes about Forex in a real classroom with a live professor.

You can also become an apprentice. On the other hand, in order to become skilled at a lot about Forex as an apprentice, you need to make sure that you have a seasoned Forex trader who can share a lot of things to you about the Forex Marketplace.

Forex Trading Online - 5 Reasons Why You Should.

• Forex never sleeps

• Forex Trading online offers great leverage

• Forex prices are predictable

• Forex trading online is commission free

• Forex trading online is instant

The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds.
Since this is all done electronically with no humans involved, there is little to slow it down!

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

A high-quality Forex Trading lessons will also clarify a lot about the primary and technical analysis of charts. As a trader, knowing how to analyze a chart is an essential skill that you should have. So, when you are looking for a Forex Trading lessons, you should look for a lessons that offers essential and technical analysis instruction.

Stress plays a vital part in Forex Traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex Trading Education should teach you how to deal with stress and trade successfully and efficiently.

As much as possible, you should look for a Forex Skill that offer real Trading systems where students can trade real currency on the Forex Marketplace or at least trade on dummy accounts in a simulated Forex Marketplace. This hands-on knowledge will greatly benefit you. In addition, the best way to learn about anything is by actually experiencing it. Live Trading and simulations should be offered in a Forex Trading course.

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

Zevs Borealis is the founder of a number of Forex Trading Sites. You can find more info about Forex Trading Online on: More Forex Trading Info You may publish the article on your website. If you do, not change the article, and include all html as direct links to our site.

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Forex Options Market Overview

2009-06-09T13:39:00.000-07:00

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.

Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."

The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.

The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.

On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.

Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is "out-of-the-money." In simplest terms, a foreign currency option is "out-of-the-money" if the underlying foreign currency spot price is lower than a foreign currency call option's strike price, or the underlying foreign currency spot price is higher than a put option's strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.

The Forex Option Seller - The foreign currency option seller may also be called the "writer" or "grantor" of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market.

Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.

Just like the buyer, the foreign currency option seller has the choice to either offset (buy back) the foreign currency option contract in the options market prior to expiration, or the seller can choose to hold the foreign currency option contract until expiration. If the foreign currency options seller holds the contract until expiration, one of two scenarios will occur: (1) the seller will take the opposite underlying foreign currency spot position if the buyer exercises the option or (2) the seller will simply let the foreign currency option expire worthless (keeping the entire premium) if the strike price is out-of-the-money.

Please note that "puts" and "calls" are separate foreign currency options contracts and are NOT the opposite side of the same transaction. For every put buyer there is a put seller, and for every call buyer there is a call seller. The foreign currency options buyer pays a premium to the foreign currency options seller in every option transaction.

Forex Call Option - A foreign exchange call option gives the foreign exchange options buyer the right, but not the obligation, to purchase a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.

The Forex Put Option - A foreign exchange put option gives the foreign exchange options buyer the right, but not the obligation, to sell a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.

Plain Vanilla Forex Options - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic forex option contracts that are traded through an over-the-counter (OTC) forex options dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or a forex put option contract.

Exotic Forex Options - To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Intrinsic & Extrinsic Value - The price of an FX option is calculated into two separate parts, the intrinsic value and the extrinsic (time) value.

The intrinsic value of an FX option is defined as the difference between the strike price and the underlying FX spot contract rate (American Style Options) or the FX forward rate (European Style Options). The intrinsic value represents the actual value of the FX option if exercised. Please note that the intrinsic value must be zero (0) or above - if an FX option has no intrinsic value, then the FX option is simply referred to as having no (or zero) intrinsic value (the intrinsic value is never represented as a negative number). An FX option with no intrinsic value is considered "out-of-the-money," an FX option having intrinsic value is considered "in-the-money," and an FX option with a strike price at, or very close to, the underlying FX spot rate is considered "at-the-money."

The extrinsic value of an FX option is commonly referred to as the "time" value and is defined as the value of an FX option beyond the intrinsic value. A number of factors contribute to the calculation of the extrinsic value including, but not limited to, the volatility of the two spot currencies involved, the time left until expiration, the riskless interest rate of both currencies, the spot price of both currencies and the strike price of the FX option. It is important to note that the extrinsic value of FX options erodes as its expiration nears. An FX option with 60 days left to expiration will be worth more than the same FX option that has only 30 days left to expiration. Because there is more time for the underlying FX spot price to possibly move in a favorable direction, FX options sellers demand (and FX options buyers are willing to pay) a larger premium for the extra amount of time.

Volatility - Volatility is considered the most important factor when pricing forex options and it measures movements in the price of the underlying. High volatility increases the probability that the forex option could expire in-the-money and increases the risk to the forex option seller who, in turn, can demand a larger premium. An increase in volatility causes an increase in the price of both call and put options.

Delta - The delta of a forex option is defined as the change in price of a forex option relative to a change in the underlying forex spot rate. A change in a forex option's delta can be influenced by a change in the underlying forex spot rate, a change in volatility, a change in the riskless interest rate of the underlying spot currencies or simply by the passage of time (nearing of the expiration date).

The delta must always be calculated in a range of zero to one (0-1.0). Generally, the delta of a deep out-of-the-money forex option will be closer to zero, the delta of an at-the-money forex option will be near .5 (the probability of exercise is near 50%) and the delta of deep in-the-money forex options will be closer to 1.0. In simplest terms, the closer a forex option's strike price is relative to the underlying spot forex rate, the higher the delta because it is more sensitive to a change in the underlying rate.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

Article Source:

Forex Trading 101: Learning Guide for FX Beginners

2009-06-09T13:35:00.000-07:00

Being new to FOREX trading? Don’t worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go ‘live’ with real money. To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the world. A FOREX deal is made when one buys one currency and sells another at the same time. It is always traded in pairs, Euro/USD, CHF/USD, USD/JPY…you get ‘short’ in a currency every time to buy another and the profit is made when you buy-low and sell-high.

Facts on FOREX market

FOREX market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday FOREX trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.

Although FOREX trading involves such a big volume of trades nowadays, it is not made available for the publics until year 1998. In the past, the FOREX market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market's extraordinary liquidity and strong trending nature of world's main currency exchange rates. Only until the late 90s, FOREX brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me. Nowadays with the rapid growth of Internet and communications technology, FOREX trading has become one of the hottest make-money-at-home-businesses for those who wish to avoid conventional 9-5 day job.

As a fact in FOREX trading, FOREX is mainly traded in large international bank. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non financial institutions.

Why FOREX is popular?

There are several reasons why FOREX had became such a popular investment among world wide speculators.

In FOREX trading, you can always use technology for your own advantage. The FOREX market has made an amazing transformation since the advent of the internet. Technology has now made it possible for smaller investors to play on the same level as larger corporations and banks. Anyone with a computer and a will to succeed can start trading currencies from the privacy of their home or office. Online FOREX trading has changed the way that investors do business. With access to your portfolio 24-hours a day, it is really very simple to get started. You can choose whether to hire a professional to handle your transactions, or you could choose to do them yourself.

Also, FOREX trading provides relative large leverage rates to individual traders. FOREX traders can do business with up to 200 to 1 leverage rates. With this advantage, ROI is escalated dramatically and traders can always start up small with capital as little as $1,000.

Getting started in FOREX trading

You don’t need much to get started with FOREX trading. A computer with Internet access, a funded FOREX account with foreign currency exchange broker, and a trading system should be sufficient to get things started.

To reduce the risks of losing money, some basic charting knowledge is as well recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. As stated by expert FOREX trader Peter Bain, charting is an essential tool in FOREX trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minute charts are used while trading in FOREX. As quoted from his informative newsletter -- “Daily chart will help you define the overall trend from a position trading point-of-view, and the hourly (one hour) chart will give you a feel for the intraday trend. The 15-minute chart is used for entry and exit – with assistance from the five-minute chart, where price is moving quickly, and you need to be closer to the action.”

Being one of the technical method, FOREX charting is based on the principal ‘history repeats itself’. FOREX traders who study charts predict the market future by evaluating past market performance. The time frame used for charting might differs for different traders, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the past five to ten years before getting involved in a FOREX trade. A huge variety of FOREX charts are available in the market. Some charting methods are very simple, using a few FOREX indicators to show trading direction; other charts may include up to forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and price are some of the well known indicators in charting.

Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all regulated the same way. Although FOREX dealers must be regulated by law, firms and individuals can solicit retail accounts for FOREX dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your FOREX dealers are regulated. If they are not, you may be exposed to additional risks.
Also, beware of dealers with investment schemes that sounds too good to be true. Pay extra cautions to dealers that you first knew and always look into the investment offers. If you are from United States, you can always refer to CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for further information.

Conclusions

You come to this article probably because of you are new to FOREX and were looking for some readings on the Internet. To be frank, FOREX can be very profitable but the risk lie beneath is equally great. Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealer’s demo account to get yourself ready. Trade smartly, and gain the maximum out of FOREX – good luck!

Teddy, experienced writter and webmaster. Learn more on Forex trading education on his latest work at http://www.golearnforex.net.

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What are Your Options Regarding Forex Options Brokers?

2009-06-09T13:25:00.000-07:00

Forex option brokers can generally be divided into two separate categories: forex brokers who offer online forex option trading platforms and forex brokers who only broker forex option trading via telephone trades placed through a dealing/brokerage desk. A few forex option brokers offer both online forex option trading as well a dealing/brokerage desk for investors who prefer to place orders through a live forex option broker.

The trading account minimums required by different forex option brokers vary from a few thousand dollars to over fifty thousand dollars. Also, forex option brokers may require investors to trade forex options contracts having minimum notional values (contract sizes) up to $500,000. Last, but not least, certain types of forex option contracts can be entered into and exited at any time while other types of forex option contracts lock you in until expiration or settlement. Depending on the type of forex option contract you enter into, you might get stuck the wrong way with an option contract that you can not trade out of. Before trading, investors should inquire with their forex option brokers about initial trading account minimums, required contract size minimums and contract liquidity.

There are a number of different forex option trading products offered to investors by forex option brokers. We believe it is extremely important for investors to understand the distinctly different risk characteristics of each of the forex option trading products mentioned below that are offered by firms that broker forex options.

Plain Vanilla Forex Options Broker - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic option contracts that are traded through an over-the-counter (OTC) forex dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or forex put option contract.

There are only a few forex option broker/dealers who offer plain vanilla forex options online with real-time streaming quotes 24 hours a day. Most forex option brokers and banks only broker forex options via telephone. Vanilla forex options for major currencies have good liquidity and you can easily enter the market long or short, or exit the market any time day or night.

Vanilla forex option contracts can be used in combination with each other and/or with spot forex contracts to form a basic strategy such as writing a covered call, or much more complex forex trading strategies such as butterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanilla options are often the basis of forex option trading strategies known as exotic options.

Exotic Forex Options Broker - First, it is important to note that there a couple of different forex definitions for "exotic" and we don't want anyone getting confused. The first definition of a forex "exotic" refers to any individual currency that is less broadly traded than the major currencies. The second forex definition for "exotic" is the one we refer to on this website - a forex option contract (trading strategy) that is a derivative of a standard vanilla forex option contract.

To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Exotic forex options are generally traded by commercial and institutional investors rather than retail forex traders, so we won't spend too much time covering exotic forex options brokers. Examples of exotic forex options would include Asian options (average price options or "APO's"), barrier options (payout depends on whether or not the underlying reaches a certain price level or not), baskets (payout depends on more than one currency or a "basket" of currencies), binary options (the payout is cash-or-nothing if underlying does not reach strike price), lookback options (payout is based on maximum or minimum price reached during life of the contract), compound options (options on options with multiple strikes and exercise dates), spread options, chooser options, packages and so on. Exotic options can be tailored to a specific trader's needs, therefore, exotic options contract types change and evolve over time to suit those ever-changing needs.

Since exotic forex options contracts are usually specifically tailored to an individual investor, most of the exotic options business in transacted over the telephone through forex option brokers. There are, however, a handful of forex option brokers who offer "if touched" forex options or "single payment" forex options contracts online whereby an investor can specify an amount he or she is willing to risk in exchange for a specified payout amount if the underlying price reaches a certain strike price (price level). These transactions offered by legitimate online forex brokers can be considered a type of "exotic" option. However, we have noticed that the premiums charged for these types of contracts can be higher than plain vanilla option contracts with similar strike prices and you can not sell out of the option position once you have purchased this type of option - you can only attempt to offset the position with a separate risk management strategy. As a trade-off for getting to choose the dollar amount you want to risk and the payout you wish to receive, you pay a premium and sacrifice liquidity. We would encourage investors to compare premiums before investing in these kinds of options and also make sure the brokerage firm is reputable.

Again, it is fairly easy and liquid to enter into an exotic forex option contract but it is important to note that depending on the type of exotic option contract, there may be little to no liquidity at all if you wanted to exit the position.

Firms Offering Forex Option "Betting" - A number of new firms have popped up over the last year offering forex "betting." Though some may be legitimate, a number of these firms are either off-shore entities or located in some other remote location. We generally do not consider these to be forex brokerage firms. Many do not appear to be regulated by any government agency and we strongly suggest investors perform due diligence before investing with any forex betting firms. Invest at your own risk with these firms.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

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Who Should Trade a Mini Forex Trading Account?

2009-05-29T10:08:00.000-07:00

A mini forex trading account is designed for those who are new to forex trading or when the trading account balance is less then $10.000.

Mini forex account key points

- Only $250-$300 to open

- Up to 200:1 trade leverage

- 1 pip = $1 for EUR/USD and GBP/USD

- Smaller trade size

Mini forex account advantages

Build up confidence starting small

A trader can trade a mini forex account using 1 mini lot and building up lot size slowly when he makes profits in his account. A general rule is to trade ONLY 1 mini lot for every $1000 a trader has in account. For example, if an account is worth $5000, trader can take up to 5 mini lots.

Develop a forex trading strategy

Because on a mini forex account, pip value is $1 = 1 pip, trader can pay more attention on building a solid trading strategy without focusing on floating profit & Loss (P/L).
Most traders with a small account balance trading on a standard account will tend to base trading decisions on profit &Loss and not on their trading strategy, they are emotionally too involved.

Their account balance fluctuations are so important that they even can’t think developing a proper trading strategy.
Their account size is too small for the lot size they take and every small pip loss can lead to a painful loss in their trading account.

Such traders will tend to take profits (too) soon and cut losses too late because they always hope the trade will make a reverse and come back.

Consider the following example:

A trader has a $2000 trading Account.

When trading a forex standard account, a 37 pip loss will result in a $370 loss in his trading account or 18.5% of his account balance. When taking the same trade on a forex mini account, a 37 pip loss will result in a $37 loss in his trading account or 1.85 % of his account balance.

Conclusion

By starting with a Mini account- a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy, in the long rum, this will lead to much better trading results.

Toby Smitz - Daily Operations Mini Forex Trading

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Forex: Money Management Principles

2009-05-29T09:47:00.000-07:00

Trade With Sufficient Captial

One of the worst blunders that forex traders can make is attempting to trade without sufficient capital.

The trader with limited capital not only will be a worried trader, always looking to minimize losses beyond the point of realistic trading, but he will also frequently be taken out of the trading game before he can realize any sense of success trading the method(s) or patterns.

Exercise Discipline

Discipline is probably one of the most overused words in forex trading education. However, despite the cliché, discipline continues to be the most important behaviour one can master to become a profitable trader. Discipline is the ability to plan your work and work your plan.

It’s the ability to give your trade the time to develop without hastily taking yourself out of the market simply because you are uncomfortable with risk. Discipline is also the ability to continue to trade the methods and patterns even after you’ve suffered losses. Do your best to cultivate the degree of discipline required to be a world-class trader.

Employ Risk-to-Reward Ratios

The following shows you possible risk-to reward ratios, and the win ratios required to break even in a trading system.

Risk-to-Reward Ratio (in pips)and Win Ratio Required to Break Even(%)

40/20 (2 to 1) = 67%, 40/40 (1 to1) = 50%, 40/60 (1 to 1.5) = 40%,

40/80 (1 to 2) = 33.5%,

60/20 (3 to 1) = 75%,

60/60 (1 to 1) = 50%,

60 /90 (1 to 1.5) = 40%,

60/120 (1 to 2) = 33.5%

Important Note

Never risk more pips on a trade then you plan to make. It doesn’t make sense to risk 100 pips in order to make only 10. Why? See below example.

Profit taking level (pips): 10

Stop used or pips at risk: 100

You win 10 times which makes 100 winning pips.
You ONLY lose once and have to give back all profits!!!

This type of trading makes no sense and you will lose on the long term guaranteed!

Toby Smitz - Daily Operations
Forex Trading with free education

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Ways to Learn Foreign Exchange Trading

2009-05-29T09:45:00.000-07:00

Being successful in forex means being open to learn foreign exchange trading in every way possible. One of the things you need to understand when it comes to forex is that it is very dynamic. It always changes and it has many different things in store for you. Every currency fluctuates depending on a lot of factors, so the best way you can keep up with it is if you keep yourself informed of the changes.

There are actually many different ways in which you can try to learn more about the forex trading business and here are some of them:

1. Joining online forums - There's a lot to be learned about forex that you might only be able to experience when you join a forum. What's even better is that most online forums become a venue where people can freely express their opinions and even share vital information with each other. If you are looking for a cheap yet valuable way to learn more about the business of doing forex, this is definitely one of the things you can consider. You simply need to sign up or register to be able to utilize the benefits of an online forum. You can also feel free to visit threads and browse through the responses of the members.

2. Browsing through article directories - If you are looking for reference articles that you can compile and read, then you can try looking at article directories online. Just the same as forums, most of them can be accessed for free. You can also try looking through the articles linked into social bookmarking sites. Most of these websites already have the finest articles that complement what you have in mind. The thing about article directories is that they are created by experienced writers so you can also be assured of the quality of that which you read.

3. Enrolling through an online course - If you really wanted to learn foreign exchange trading the hardcore way, you can also try enrolling yourself in a short course online. Doing this online makes it easier for you to manage your time between work, studying, and of course your other responsibilities. One of the strong points of online courses is that they are very flexible. You can also take more than one course at a time so long as you can still squeeze it in your schedule. Just make sure you check out the course outline first so you can really see what's in it for you.

4. Getting the consultancy services of a forex broker - Forex brokers are one of the most sought after individuals in the forex industry. This is because they can turn out to be a good source of both expertise and professional knowledge on the subject of forex. One of the most distinct factors that you can experience with forex brokers is that they will give you a bigger picture of how the industry works. Aside from being able to learn about forex trading you can also learn about the importance of networks and expanding your business contacts.

Looking for the one secret to be a professional forex trader?

Be a pro trader by consistently knowing what's new on the forex market with the finest online currency news trading site today.

And stay updated with online forex scam reviews, to protect yourself from misleading programs.

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What is RSI in Forex? - How to Use the RSI Indicators

2009-05-29T09:42:00.000-07:00

One of the most used indicators in forex trading is to as the RSI. New traders often do not know what the RSI even is, and so this article is written to give a basic understanding for those newbies who may most appreciate an explanation. Basically, the RSI is the Relative Strength Index." Again, it is one of the most used indicators in forex trading. It is best used together with other indicators to enter and exit trades (I use it along with knowing where the basic hourly and daily support and resistance points are.)

I am going to explain how to use RSI in the simplest of terms. Basically, when the RSI falls below 30, the currency pair is considered to be "oversold." When an oversold condition presents, the trader of course will use this information along with other indicators to assist with determining when to place a buy order on the oversold pair. On the other hand, when the RSI is above 70, this indicates an overbought market. In an overbought market, the trader will be looking for an entry point to place a sell order on the currency pair.

You can check the RSI by various time intervals on the charts (i.e. hourly, daily, weekly, 30 minutes, 15 minutes, etc.). Daily and weekly time frames seem to be the ones most traders will analyze and seem to give the most useful and reliable information.

The RSI in forex trading is a very simple indicator that can be used, along with other indicators and signals, to assist the forex trader in make higher probability trades.

Have you discovered the forex strategy or strategies that are BEST for you? Visit Ann Pevey's site http://www.fxstrategyhub.com to see a free video explaining using RSI in forex trading. You will also find information on forex strategies, worldwide forex news, free forex training videos and more - all about FOREX.

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FAP Turbo by Steve Carletti - Is This Forex Trading Robot a Scam?

2009-05-28T08:18:00.000-07:00

There are many forex trading robots in the market, but only a few of them actually work. FAP Turbo is probably the most popular Forex software ever released. Created by Steve Carletti (an IT programmer) and his team after intensive research and testing, this system is designed to work with the Metatrader4 platform and can trade without any human intervention.
But how is FAPturbo better than its competition?

It's a plug & play system that runs completely on autopilot.
You can host it on a Virtual Private Server and it will work even if you turn off your computer.
It provides you with live trading on real money accounts and not just back test results.
It offers lifetime membership access and the possibility to receive all the future updates of the program free of charge.
Its winning percentage is over 90% and its drawdown is less than 1%!
FAP Turbo works non-stop 24 hours a day 5 days per week.
It requires a very small investment. You can start with only $50.
It's very user-friendly and easy to install.
They have a very good customer service and are very responsive to emails.
This software has very tight risk prevention settings and can minimize losses.
It provides you with great learning material that can help you set up the system.
The robot uses complex algorithms to identify profitable trends.

FAP Turbo offers a 60 days money-back guarantee, so that leaves you with enough time to download the system and test it on a demo account. After that you can decide if want to keep it or not.

It seems that FAP Turbo is actually a reliable Forex software Click Here to learn more about this system.

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FAP Turbo Review - Taking a Closer Look at FAP Turbo

2009-05-28T08:15:00.000-07:00

There are many of us who do not indulge in online Forex trading because of little or no knowledge about it. Of course, no one would like to see his/her hard-earned money going down the drain by randomly investing it in the trading market.

However, do you realize that online trading is one great way to make tremendous profits! The fact that no one is born with knowledge about everything should be compelling enough for you to gain more information about Forex trading and be one of those who rake dollars by investing money here. However, it is not just the knowledge that can help you get profits; you need to be able to search for the right trading options and invest in them. This can really be a tedious task.

Not anymore! With the launch of FAP Turbo, you can now lay aside all the effort that you had to go through in trying to search for the best Forex trading options. You can install FAP Turbo in less than five minutes and quite easily too! FAP Turbo review has been quite amazing; this automated forex software is really easy to understand and can generate enormous profits for you.

People who have installed this software and have performed live trading have been fascinated by the results. FAP Turbo review has shown that these people have literally managed to double their money in 30 days! The most unique and interesting thing about this Forex robot is that you do not have sit for hours in front of your computer. You can eat, sleep, go for a vacation, or spend your day at the beach while this intelligent program does all the Forex trading for you. Unbelievable, isn't it! Indeed, it is very much true.

A detailed FAP Turbo review has shown that the extensive online video tutorials that show how to use FAP Turbo are really useful and helpful. People who have little or no knowledge about Forex trading can gain information from these exhaustive video tutorials. Therefore, with FAP Turbo you do not need to be an expert in trading. You can install this product and view the online tutorials to learn about the settings for this software and let the program do the rest.

A detailed online FAQ section also helps you out with any additional queries that you may have about this Forex robot. FAP Turbo review has revealed yet another great feature of this software; unlike other Forex robots, FAP Turbo has an online forum that you can use for any issues or queries that may arise while using this software.

For more information about FapTurbo review, you can visit the following link: http://automated-forex-software.com/best-forex-trading-software-products.html

Are you ready to make money with automated forex software? Be amaze what this software can do!

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Forex MegaDroid by John Grace & Albert Perrie - Is Forex MegaDroid a Scam Or Does it Work?

2009-05-28T08:13:00.000-07:00

Forex MegaDroid system was developed by 2 professional traders named John Grace and Albert Perrie. With 38 years of combined experience in the trading rooms of commercial banks, these two people managed to create a system never seen before.

But, what makes this robot stand out from the rest?

Mega Droid has been tested extensively for more than 8 years and its consistency has been proven. That makes it one of the very few systems on the market that can actually return your investment over a long period of time.
Its accuracy is extremely high (95.82%).
In 2009 this software has made a net profit of 330.20% and it's estimated that it will hit the 1000% mark until the end of the year. Its performance in previous years is equally amazing. In 2008 it was 623.84%, 2007 810.70%, 2006 333.20%, 2005 810.70%, 2004 677.67%, 2003 656.52%, and finally in 2002 441.28%.
It uses the completely new RCTPA (Reverse Correlated Time and Price Analysis) technology, which allows it to see into the immediate future (2-4 hours) and predict the market's behavior.
Mega Droid has the unique ability to adapt itself to any market condition and this is the reason why this software can actually outperform every other robot out there.
It offers a 5 minutes guarantee, which means that you can download, install and start trading with it in 5 minutes or less.
You can use it no matter how small your account is. Mega Droid will give you a list of brokers, which allow you to open an account with just 1 dollar.
It's indeed a "Plug and Play" software that will trade automatically for you. This means that you can make huge profits, even if you have no previous experience.
They have a great support staff that will promptly offer their help and answer any questions you may have.

FOREX MEGADROID is different. Its Artificial Intelligence Capabilities make it almost infallible.

To learn more about this software, read this Forex Megadroid Review!

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Forex Ambush 2.0 System - Is Forex Ambush 2.0 Actually Effective?

2009-05-28T08:10:00.000-07:00

Forex Ambush 2.0 is an FX signal provider, which means that it won't execute trades automatically, but will send you signals via sms or email, so you can place the trades yourself. This system is the ideal choice for all those people who want control over their trading and don't want to leave everything in the hands of a software.

Here are some of the advantages of using this service:

Their trading signal service has a 100% winning rate and absolutely no losses.
It's not based on statistical analysis alone, but it also uses advanced artificial intelligence.
This system produces returns in excess of 1.600% monthly.
This tool can work worldwide. The only thing you need to have is a forex account.
You don't have to be an experienced trader, the messages will tell you exactly what to do.
It has the ability to adapt to any market condition.
All the members receive the signals immediately via email or sms, so that they will be able to take advantage of any opportunity to make a profit.
This expert advisor can trade all the major currency pairs like the Euro, the Pound, the Australian Dollar, the Swiss Frank and the Canadian Dollar.
They provide live trading results in real money accounts.
This is not some poorly written eBook that just weakly guides you. It's a powerful tool that tells you exactly when to trade, which currency to buy and when it's time to sell and exit the market.

FOREX Ambush 2.0 is an amazing artificial intelligence engine that took 3 years and $2.000.000 to develop.

Read this FOREX AMBUSH 2.0 REVIEW and find out what other people are saying about this revolutionary forex system. Just Click Here

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10 Minute Forex Wealth Builder Review - Can You Build Wealth in 10 Minutes a Day?

2009-05-28T08:04:00.000-07:00

Dean Saunders 10 Minute Forex Wealth Builder is a very affordable eBook and video currency trading training course that is written for people who want to learn currency trading but who only have ten or fifteen minutes a day to spare for trading. But does it work and is it worth the money?

Your Currency Trading Training - Currency Trading Basics and Beyond

The course is written in an interesting, straight to the point manner. Your currency trading training begins with the currency trading basics - currency pairs, the bid and the ask, and information about the Forex market itself.

Dean Saunders then recommends a specific broker who offers both free charting software based on the Meta Trader 4 (or MT4) charting platform along with very narrow spreads between the bid and the ask.

Spreads vary from one broker to the next. Some can be three times as much as another. Using a broker who offers narrow spreads can have a huge impact on your bottom line.

He also recommends this specific broker because they allow you to trade micro lots. This is especially good news for the beginning trader because if you start trading micro lots you do not have to risk a lot of money while you're learning to trade.

The importance of money management, risk calculation, and the trader's mindset cannot be overstated and the 10 Minute Forex Wealth Builder spends ample time on all of those along with a realistic approach to helping you to determine your short and long term Forex trading goals.

This information alone is worth the price of the course, and that's before Dean Saunders's 10 Minute Forex Wealth Builder has even begun to teach you his trading techniques.

Learn Currency Trading with the 10 Minute Forex Wealth Builder's Two Forex Trading Strategies

Now you're in for a treat as he proceeds to teach you two different types of trading strategies - a breakout system and a swing trading system.

He then goes beyond currency trading basics as he shows you exactly what to look for in order to initiate your trades, where to enter, where to place your stops, and where to take your profits. The included videos show you live trade examples of what you've learned.

The 10 Minute Forex Wealth Builder is a very good place for you to begin to learn currency trading. And, as your currency trading training and experience grows, you will see how worthwhile this course truly is.

Next, to get a more in-depth 10 Minute Forex Wealth Builder Review along with reviews on more than a dozen other Forex trading courses and software, go to http://www.FXOnlineTradingReport.com

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How to Get Started on Your Online Forex Trading

2009-05-28T08:02:00.000-07:00

Forex trading is a very flexible business and you're the one calling the shots. Still, if you're not careful, you can find yourself losing your modal as well. Therefore, here are a few things that you should know before you get started.

1. Having a broker

You will first need a broker to execute your orders and sometimes, to advise you in your trading decisions. There are many brokers out there and you'll need to be extra careful in finding one who can execute your orders anytime. Consider looking at each brokers' trade records and see how they've done in forex trading over the years. Most important thing is you need a broker that you feel comfortable with and who is also comfortable with you.

2. Diagrams

Next thing that you need to do is to understand how to read the diagram. You will need to understand the diagrams as only then you know the movement of the market. By choosing shorter time frames, you can clearly see the progress of the market by the minute. Usually, diagram software will use bars and lines to represent progress. Take your own sweet time figuring out each style and which one you are most comfortable with.

3. Using a demo account

Previously, you have to take risk without the experience or expertise to invest in forex trading. Nowadays, there are mock accounts which enable you to earn valuable experiences before going into live trades. As you would have a broker by now, he/she will usually let you have a trial in trading by using mock money. So, know your way around the software before you jump into the money making channel.

4. Going into live trades

So you've figured out everything you need to go into live trade. First rule is: don't be greedy. You might earn some the first few times but it doesn't mean you'll always score in the forex market. If you do lose, keep calm and do not give up completely but to see it as a learning experience or a mistake that you wouldn't do next time. Learning never stops so keep trying and it wouldn't be long before you earn your real satisfying profit.

It's easy to start trading Forex online, BUT you will lose money without proper education.

Find out more tips on trading currency online at Optimindzer.com now and start making your live changing income!

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How to Find the Best Automated Forex Software For You

2009-05-28T08:01:00.000-07:00

How to find the best automated forex software can be hard to do. With so many out there you find yourself asking this question over and over. All you know is that you want a program that help to make better trades so you can profit from them. You may have bought a program recently that didn't live up the hype o the price since some of these auto programs can be quite expensive. But not to worry there are some out there that fulfill on the promises. Now I will show you what to look at when purchasing one.

Tips to look out for when buying an Automated Forex Software

The interface of the program: Look for the easy to use ones. The more complicated the harder it is to operate and if you have trouble operating the program than the potential of losing money is higher. Like the motto goes "Keep it simple"

Instructions: Now that that your looking for a simple program, you need to make sure there is a manual or better yet a video demo showing all the features and options for the product. It may be easy but to use it properly you still need help with it. The more you know about the product you're using the smoother things will work.

Refund policy: Last but certainly not least the refund policy. Refund policy is crucial to have one. Look for the refund policy about 30 to 60 days. Try it out and if it works than great but if not simply get your money back.

The best automated forex software I have used is Fapturbo. After numerous other programs I found this one to be the best for me. Take a look at the video at http://www.automatedforexgrail.com to see other peoples experiences.

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Currency - Forex Online Trading - Can Newbies Make Money With Forex Online Currency Trading?

2009-05-28T07:57:00.000-07:00

Do you want to learn to trade in the nearly two trillion dollar a day Forex market by doing Forex online currency trading? Are you concerned because you are a beginner and you don't want to lose all your money? Are you worried that it could just be too tough to make a profit?

This mini-guide to currency Forex online trading gives you an overview of the risks and rewards of Forex online currency trading. Read it and you'll probably see that if you're willing to put in a little bit of work, this can be a great market to trade in - even if you're a newbie.

What Is the Forex and What Is Currency: Forex Online Trading?

The Forex stands for the foreign exchange. The commodity you will be trading online is currency. The Forex market deals with only one activity - buying and selling currencies for the express reason of making a profit.

When you are involved with Forex online currency trading, your money can travel around the world in seconds.

For example, when you buy (go long) a currency you strengthen that country's economic position and raise the value of their currency. If the value of the currency increases, the pip (percentage in point) goes up. The more the pips increase the more money you can make.

One of the nice things about trading the Forex is that you do not have to be overloaded with information, as you could be if you were trading stocks and bonds.

This does not mean that you should just jump in and start trading. There are still things to learn in order to be a successful trader. However, the learning curve is a not nearly as steep.

When Does the Forex Market Operate?

The Forex is in business twenty-four hours a day, almost five-and-a-half days per week - from Sunday afternoon through Friday. This means you can do currency Forex online trading pretty much according to your schedule - at any time during the day or night.

Keep in mind, though, that there are more advantageous times of the day to trade.

Because you are trading online you can access the foreign exchange from anywhere in the world where there is an Internet connection.

How Much Does It Cost to Get Started?

Most people who learn Forex online currency trading start with a small account, so they do not risk a lot of money. You can start an account with as little as three hundred dollars.

And, unlike trading stocks, most Forex brokers do not charge a commission. This means you can earn more money from your successful trades and lose less on your losing trades. These savings can really add up over the course of a year.

How Can You Learn Forex Online Currency Trading?

Some people try to learn by signing up at an online brokerage account. If you're new to trading it can even be a bit confusing picking the best broker because although brokers do not charge commissions, they control the spread between the bid and the ask on the currency pairs that are traded. Bottom line is that the spread affects the amount of profits and / or losses in your account.

That's why a lot of newbies like to find a good source of quality information such as a highly recommended eBook or video course.

Next, here is a highly rated beginners course on Forex online currency trading. And go to http://www.FXOnlineTradingReport.com for reviews on more than a dozen additional courses and software that can help make you a profitable Forex trader.

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A Beginner's Guide to FOREX

2009-05-28T07:55:00.000-07:00

FOREX is the abbreviation for the Foreign Exchange market. FOREX is basically an international exchange market where currencies from all over the world are bought and sold for profit. The market today began in the 1970’s. FOREX is a very unique market because it is not based in any particular place, and it also has very few qualifications for investing. FOREX is also free of external controls, and the investors (participants in the market) largely determine how much a currency is worth based on demand. Almost anyone can invest in FOREX, and there are strategies for investors who want to have long-term gains, and strategies for investors who desire short-term gains. The vast array of investors makes FOREX quite unique in the financial community.

The Workings of FOREX

FOREX is not centered at one place like the NYSE. The specific hours for FOREX trade are 24 hours a day from Sunday afternoon to Friday afternoon. FOREX transactions can take place at almost any time, anywhere, all over the world. There are FOREX dealers in almost all of the time zones, and it is simple to find them. Many dealers can be found online. All an investor does is decide what currency he or she wants to purchase, contact the dealer, and then makes the purchase. Many investors purchase using a credit line (money they do not have). This is called marginal trading.

What is Marginal Trading?

Marginal trading is a term used for trading with borrowed capital. FOREX investments can be made without actually having the money. All an investor needs to do is borrow the money for a certain currency. The investor wants to choose a currency that will increase in value quite rapidly. Once the currency increases, the investor pays back the money he or she borrowed and makes sheer profit. This is a high-risk investment, but the rewards are great (as with most high risk investments).

Two Types of FOREX Analytics

FOREX traders often have to analyze the market. Like all investments, FOREX involves a certain amount of calculated risk. Two ways to calculate these risks are though Technical Analysis and Fundamental Analysis.

Technical Analysis is based on the idea that trends through history will continue. A FOREX investor will notice that a certain currency is very strong and seems to be rising at a normal rate. The same investor will also suppose that the currency will not decline in value, and will continue to rise, as it has done in the past. The investor then purchases a large amount of that currency and expects to make a profit. This investment entails a large assumption but is relatively safe.

Fundamental Analysis is an analysis of an entire countries situation. Investors utilizing this technique look at the situation of the country in which the currency finds its base. Factors such as the countries economic status, political status, and global status are taken into account. For example, a Fundamental Analysis investor would not invest in currency from a country that just overthrew its leader and is in political shambles. Although this investment seems logical, it does not take into account one of the fundamental elements of FOREX trading. FOREX currency values are largely determined by the investors. That being said, Fundamental Analysis assumes that other FOREX traders will view a countries situation in the same way and respond accordingly.

Benefits of FOREX

FOREX can be very beneficial to a variety of people. FOREX trading can gain investors a large amount of money either over a long period of time, or in a short period of time. Investors who choose to invest in FOREX are generally well informed about the market and understand the current situations in many countries of the world. Investing in FOREX is simple and highly recommended for anyone who wants to enjoy profits from top-notch investments.

Mary McDowski is very interested in investments and finances. Learn more about FOREX at ( http://www.forexreader.com ).

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Forex Trading Best Practices

2009-05-28T07:51:00.000-07:00

FOREX, the term for the FOReign EXchange market, is an international exchange market where currencies from many different countries are bought and sold. Both long-term hedge investors and short-term investors that seek quick profits use FOREX. Trade reaches between 1 and 1.5 trillion US dollars per day. Needless to say, FOREX is a very lucrative market. Many wonder how to gain the most profits by trading with FOREX. There are a few simple trade practices that can help any trader, either an amateur or a professional make significant profit from FOREX.

The best traders firstly understand the intricacies of FOREX trading. In order to be successful, one must understand how FOREX works. FOREX transactions are not centered in an exchange, unlike the stock market. Many transactions can take place at different times all over the world. This is important to note if one is going to invest in FOREX. In order to trade, one must simply find a trader (there are many around the world, some can even be found online), decide the currency to purchase, sell currency, and make profit. However, if FOREX was this simple, everyone would do it. In reality, most people have to gamble with FOREX because no currency is completely stable, and there is always the risk for losing money.

One of the best FOREX practices, but also the most potential hazardous is marginal trading. Marginal trading is when an investor speculates on currency prices by getting a credit line. This can lead to a vast gain, as well as a potential loss. Because FOREX can be traded without real money, trading with borrowed capital (marginal trading) can be very appealing. Using this techniques, an investor can invest more money without having to deal with as many money transfer costs. Marginal trading also allows bigger positions to be opened with a smaller amount of actual capital. This trading practice is certainly for the short-term investor.

The best long-term practices with FOREX are Technical Analysis and Fundamental Analysis. It is a good idea for small and medium sized investors to invest in technical analysis. Technical Analysis assumes that all information about the market and future fluctuations of a currency can be found in the price chain. In other words, technical analysis involves looking at the past events in the market and assuming that these trends will continue. This is a very good strategy because, quite simply, history has a habit of repeating itself. This is also safer because it entails less guesswork than marginal trading, since the investor assumes that history will continue and therefore makes a safe investment in a strong currency that seems likely to continue a positive trend.

Fundamental Analysis is the process of considering the current situation of the country of the currency. Elements such as a countries economy, political situation, and future must all be taken into account in Fundamental Analysis. Investors then make investments based upon this knowledge. The best investors not only analysis a countries current situation, but the rest of the world’s interpretation of that country. Like any stock market, the value of the commodity is not merely based on exact numbers, but on perceptions of that commodity. If a country is believed to be on a positive path economically, than it’s currency will do well in FOREX.

FOREX can be a potentially lucrative investment. However, the success of FOREX trading depends on the practices and knowledge of the investor. It is important for any investor to analyze the market and determine what exactly he or she wants to achieve in investing. Long-term gains and short-term gains require different strategies. The best investors are always well informed about the market, the world economy and have the best traders available. If one follows these practices, FOREX will certainly prove to be a very rewarding investment.

Diane McDee is a knowledgeable investor and contributes to the Forex Blog ( http://www.forexblog.org ).

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What is Forex Trading?

2009-05-28T07:49:00.000-07:00

Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another.

The way it works is an investor who wishes to purchase or sell one currency for another with the hope of making a profit when the value of the currencies change in favor of the investor. This can happen either from market news, or events that happen across the globe. For example, If you bought currency and the price appreciates in value, then you will earn a profit by closing your position. When you do this and sell the currency back in order to lock in the profit, you are in actuality buying the counter currency in the pair. By trading currency pairs, one currency valued against another, a rate of worth has been established. The reason is because a country's currency has value only relative to the currency of another country.

There are many different tools that can help a Forex trader out. Advanced charting programs are a major tool, as well as the FOREX traders guide. Along with these tools, global interactive training rooms with live video feeds, and the daily world bank FOREX report help investors get the most out of FOREX trading.

For more information on FOREX trading check out Forex Resources

Tyler D Falls - Inforesearcher.com

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Example of a Profitable Transaction in FOREX

2009-05-28T07:46:00.000-07:00

To make a profit, in the FOREX, a trader can enter the market as a *buy position* (known as going "long") or a *sell position*(known as going "short").

For discussion, let's assume you've been studying the EURO.

Your trading methods, rules, strategies, etc., tell you that prices will rise during a particular timeframe. So you buy the EUR/USD pair (or, technically, you will simultaneously buy euros, the base currency, and sell dollars).

You open up your handy trading station software (provided to you for free by the online broker), which resides on your desktop, and you see that the EUR/USD pair is trading at:

<<>>

REMEMBER: the quote to the left of the / (1.3242) refers to the bid or "sell" price (what you obtain in USD when you sell EUR). The quote to the right of the / (1.3245) is used to obtain the ask or "buy" price (what you have to pay in USD if you buy EUR).

So, since you believe that the market price for the EUR/USD pair will go higher, you will enter a *buy position* in the market. For simplicities sake, let's say you bought one lot at 1.3245. As long as you sell back the pair at a higher price, then you make money.

But, no worries. This seemingly elaborate process is handled, and even calculated for you, via the broker's software mentioned above. The chart software and the quote board are in agreement with all sides of the currencies.

To illustrate a typical FX SELL trade, consider this scenario involving the USD/JPY currency pair:

REMEMBER ~ Selling ("going short") the currency pair implies selling the first, base currency, and buying the second, quote currency. You sell the currency pair if you believe the base currency (USD) will go down relative to the quote currency (JPY), or equivalently, that the quote currency (JPY) will go up relative to the base currency (USD).

NOTE: while the Profit Calculations, on the Short-sell trade scenario below, may seem somewhat complicated if you've never been in the FOREX market before, trust us when we say, "this process is nearly seamless through your broker trade station (software). We're just showing you this thought-process below so you can SEE how a PROFIT occurs even when

SELLING a currency pair.

The current bid/ask price for USD/JPY is 105.26/105.30, meaning you can buy $1 US for 105.30 Japanese YEN or sell $1 US for 105.26 YEN.

Suppose you decide that the US Dollar (USD) is overvalued against the YEN (JPY). To execute this strategy, you would sell Dollars (simultaneously buying YEN), and then wait for the exchange rate to rise.

So you make the trade: selling US $100,000 and purchasing 10,526,000 YEN. (Remember, at 1% margin, your initial margin deposit would be $1,000.)

As you expected, USD/JPY falls to 104.26/104.30, meaning you can now buy $1 US for $104.30 Japanese YEN or sell $1 US for 104.26

Since you're short dollars (and are long YEN), you must now buy dollars and sell back the YEN to realize any profit.

You buy US $100,000 at the current USD/JPY rate of 104.30, and receive 10,430,000 YEN. Since you originally bought(paid for) 10,526,000 YEN, your profit is 96,000 YEN.

To calculate your P&L in terms of US dollars, simply divide 96,000 by the current USD/JPY rate of 104.30.

Total profit = US $920.42

Omar Vargas is a freelance writer with articles published in a number of places. You can learn more about Forex trading and its great advantages over other kind of business at this useful website: http://www.1-forex.com

Source

Two Timeless Rules in FOREX Investing

2009-05-28T07:45:00.000-07:00

RULE #1) ~ Cut your losers; let your winners ride.

One important thing that every new trader must know before entering this highly profitable business is that life is not perfect, even in FOREX land, and you should always know one fact: YOU WILL HAVE LOSING TRADES.

Every FOREX trader does. The key to being a consistent, predictable, reliable trader is to, at the end of the day, add up more wins than losses. And, when you KNOW(based off your trading rules), without a doubt, that YES, indeed you are, in a losing trade, don't keep losing money (lowering your stop loss) just to *prove you are right* or
your rules are wrong (however you want to look at it).

Let's face it - you can't turn a sow's ear into a silk purse. You can't change the spots of a leopard and you can't turn chicken poop into chicken salad. The best trades are usually "right" immediately (the techniques, rules, methods and strategies you can learn in our resources list will be your best indicator for just what a "right" trade really is).

Remember, people have been trading the markets for a hundred and sixty years. The smart traders know there's going to be another trade. Cut your loses short and compound those winning positions.

RULE #2) ~ Thou Shall Not Trade the FOREX Without the Placing of a Stop Loss Order.

When you place a STOP order, right along with your ENTRY order, via your online trade station, you've just automatically prevented a potential loss from "running" too far.

Before initiating any trade, if you haven't already figured out at what point you would be wrong and would want to cut your loses or, at the very least, reevaluate your position from the sidelines, then you shouldn't be putting on the trade in the first place.

Show us a FOREX trader who doesn't use stop loss orders and we'll show you someone who loses a lot of money.

Omar Vargas
Forex trader and freelance writer
http://www.1-forex.com

Source

Forex Trading

2009-05-28T07:43:00.000-07:00

Foreign exchange market, or better known as FOREX, is the world's largest and most prolific financial exchange market originated on 1973. Bearing the status of largest and most prolific currency exchange market, FOREX is the center stage where a vast majority of the currency trading or FOREX trading takes place, with a total daily turnover of currency worth more than $1.2 trillion.

For having such an enormous sum of total turnover everyday, FOREX can be considered as a liquid market ideal for Forex trading. Unlike many other securities, FOREX does not trade on a fix exchange rate, instead, currencies are traded primarily between central banks, commercial banks, non-banking international corporation, hedge funds, private investors and not to forget, speculators. Previously, smaller investors are precluded from trading in FOREX due to the large amount of deposit required. However, until the recent years, with the continuous growing of Internet and the rise of competitions, smaller investors can now trade in FOREX as the requirement to trade in FOREX has been amended.

Truthfully, there are a few factors why FOREX trading is starting to attract more and more medium and smaller sized investors. One of the main reasons is due to the fact that FOREX trading operates at 24 hours per day, 5 days per week. In addition to that, unlike the old days where trading is done only through telephone, it can now be done...

The full article available at http://www.forex.labuan.net/Forex-trading.html

Alvin Han is the editor of http://www.forex.labuan.net

Source

The Seven Most Traded Currencies in FOREX.

2009-05-28T07:40:00.000-07:00

Currencies are traded in dollar amounts called “lots”. One
lot is equal to $1,000, which controls $100,000 in currency.
This is what is known as the "margin". You can control $100,000
worth of currency for only 1,000 dollars. This is what is called “High Leverage”.

Currencies are always traded in pairs in the FOREX. The
pairs have a unique notation that expresses what currencies
are being traded. The symbol for a currency pair will always
be in the form ABC/DEF. ABC/DEF is not a real currency pair,
it is an example of a symbol for a currency pair. In this
example ABC is the symbol for one countries currency and DEF
is the symbol for another countries currency.

Here are some of the common symbols used in the Forex:

USD - The US Dollar

EUR - The currency of the European Union "EURO"

GBP - The British Pound

JPN - The Japanese Yen

CHF - The Swiss Franc

AUD - The Australian Dollar

CAD - The Canadian Dollar

There are symbols for other currencies as well, but these
are the most commonly traded ones.

A currency can never be traded by itself. So you can not
ever trade a EUR by itself. You always need to compare one
currency with another currency to make a trade possible.

Some of the common PAIRS are:

EUR/USD Euro / US Dollar

"Euro"

USD/JPY US Dollar / Japanese Yen

"Dollar Yen"

GBP/USD British Pound / US Dollar

"Cable"

USD/CAD US Dollar / Canadian Dollar

"Dollar Canada"

AUD/USD Australian Dollar/US Dollar

"Aussie Dollar"

USD/CHF US Dollar / Swiss Franc

"Swissy"

EUR/JPY Euro / Japanese Yen

"Euro Yen"

The listed currency pairs above look like a fraction. The
numerator (top of the fraction or "left" of the / however
you want to SEE it) is called the base currency. The
denominator (bottom of the fraction or "right" of the
/however you want to SEE it) is called the counter currency.
When you place an order to buy the EUR/USD, for instance,
you are actually buying the EUR and selling the USD. If you
were to sell the pair, you would be selling the EUR and
buying the USD. So if you buy or sell a currency PAIR, you
are buying/selling the base currency. You are always doing
the opposite of what you did with to base currency with the
counter currency.

If this seems confusing then you're in luck. You can always
get by with just thinking of the entire pair as one item.
Then you are just buying or selling that one item. Thinking
like this will still enable you to place trades. You only
need to be aware of the base/counter concept for Fundamental
Analysis issues.

So why is it important to know about the base/counter
currency? The base/counter currency concept illustrates
what is actually taking place in a Forex transaction. Some
of you reading this, know that short-selling was restricted
in the stock market *(Short-selling is where you sell a
stock/currency/option/commodity first and then try to buy it
back at a lower price later). But in the FOREX you are
always buying one currency (base) and selling another
(counter). If you sell the pair you are simply flipping
which one you buy and which one you sell. The transaction is
essentially the same. This allows you to short-sell with no
restrictions.

You want to be able to short-sell with no restrictions so
you can make money when the market drops as well as when it
rises. The problem with traditional stock market trading is
that the market has to go up for you to make money. With
FOREX trading you can make money in all directions.

http://www.1-forex.com

Omar Vargas; FOREX Trader and Freelance writer.
http://www.1-forex.com

Source

The Margin Advantages of Trading FOREX.

2009-05-28T07:38:00.000-07:00

There is one aspect that is considered as one of the best advantages of FOREX Trading. This is related to the amount of money you need to place a trade, this is known as "margin", and in short, this is all that can be lost in a the case you had a bad trade.

I state it like this because, even though I know with
proper self-taught education you're NOT going to lose as
much as you win anyway, I want you to know that despite the
super-high leverage associated with FOREX trading (200:1 is
possible; meaning that if you put up $1 the trading vendor will
allow you to trade like you really have $200), it's still
arguably less risky than futures (commodities) trading. And, forget stocks, you'll never get this type of LEVERAGE
in the equities market.

Futures markets are often prone to sudden and dramatic
moves, against which you can not protect yourself, even by
trading with protective stops. Your position may be
liquidated at a loss, and you’ll be liable for any resulting
deficit in the account. But because of the FX markets deep
liquidity and 24-hour, continuous trading, dangerous trading
gaps and limit moves are eliminated. Orders are executed
quickly, without slippage or partial fills. And finally,
there are no margin calls -- for your protection, ALL our
recommended brokers will automatically close out some or
all of your open positions if your account equity falls
below the level required to hold the positions. Think of
this as a final, automatic stop, always working on your
behalf to prevent a debit balance. In fact, if you pick from
our list of recommended brokers, we guarantee that you will
never lose more than you have in your FOREX account.

http://www.1-forex.com

Omar Vargas; Forex trader and freelance writer. http://www.1-forex.com

Source

What are Your Options Regarding Forex Options Brokers?

2009-05-28T07:37:00.000-07:00

The trading account minimums required by different forex option brokers vary from a few thousand dollars to over fifty thousand dollars. Also, forex option brokers may require investors to trade forex options contracts having minimum notional values (contract sizes) up to $500,000. Last, but not least, certain types of forex option contracts can be entered into and exited at any time while other types of forex option contracts lock you in until expiration or settlement. Depending on the type of forex option contract you enter into, you might get stuck the wrong way with an option contract that you can not trade out of. Before trading, investors should inquire with their forex option brokers about initial trading account minimums, required contract size minimums and contract liquidity.

There are a number of different forex option trading products offered to investors by forex option brokers. We believe it is extremely important for investors to understand the distinctly different risk characteristics of each of the forex option trading products mentioned below that are offered by firms that broker forex options.

Plain Vanilla Forex Options Broker - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic option contracts that are traded through an over-the-counter (OTC) forex dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or forex put option contract.

There are only a few forex option broker/dealers who offer plain vanilla forex options online with real-time streaming quotes 24 hours a day. Most forex option brokers and banks only broker forex options via telephone. Vanilla forex options for major currencies have good liquidity and you can easily enter the market long or short, or exit the market any time day or night.

Vanilla forex option contracts can be used in combination with each other and/or with spot forex contracts to form a basic strategy such as writing a covered call, or much more complex forex trading strategies such as butterflies, strangles, ratio spreads, synthetics, etc. Also, plain vanilla options are often the basis of forex option trading strategies known as exotic options.

Exotic Forex Options Broker - First, it is important to note that there a couple of different forex definitions for "exotic" and we don't want anyone getting confused. The first definition of a forex "exotic" refers to any individual currency that is less broadly traded than the major currencies. The second forex definition for "exotic" is the one we refer to on this website - a forex option contract (trading strategy) that is a derivative of a standard vanilla forex option contract.

To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Exotic forex options are generally traded by commercial and institutional investors rather than retail forex traders, so we won't spend too much time covering exotic forex options brokers. Examples of exotic forex options would include Asian options (average price options or "APO's"), barrier options (payout depends on whether or not the underlying reaches a certain price level or not), baskets (payout depends on more than one currency or a "basket" of currencies), binary options (the payout is cash-or-nothing if underlying does not reach strike price), lookback options (payout is based on maximum or minimum price reached during life of the contract), compound options (options on options with multiple strikes and exercise dates), spread options, chooser options, packages and so on. Exotic options can be tailored to a specific trader's needs, therefore, exotic options contract types change and evolve over time to suit those ever-changing needs.

Since exotic forex options contracts are usually specifically tailored to an individual investor, most of the exotic options business in transacted over the telephone through forex option brokers. There are, however, a handful of forex option brokers who offer "if touched" forex options or "single payment" forex options contracts online whereby an investor can specify an amount he or she is willing to risk in exchange for a specified payout amount if the underlying price reaches a certain strike price (price level). These transactions offered by legitimate online forex brokers can be considered a type of "exotic" option. However, we have noticed that the premiums charged for these types of contracts can be higher than plain vanilla option contracts with similar strike prices and you can not sell out of the option position once you have purchased this type of option - you can only attempt to offset the position with a separate risk management strategy. As a trade-off for getting to choose the dollar amount you want to risk and the payout you wish to receive, you pay a premium and sacrifice liquidity. We would encourage investors to compare premiums before investing in these kinds of options and also make sure the brokerage firm is reputable.

Again, it is fairly easy and liquid to enter into an exotic forex option contract but it is important to note that depending on the type of exotic option contract, there may be little to no liquidity at all if you wanted to exit the position.

Firms Offering Forex Option "Betting" - A number of new firms have popped up over the last year offering forex "betting." Though some may be legitimate, a number of these firms are either off-shore entities or located in some other remote location. We generally do not consider these to be forex brokerage firms. Many do not appear to be regulated by any government agency and we strongly suggest investors perform due diligence before investing with any forex betting firms. Invest at your own risk with these firms.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

Source

Forex Market Overview

2009-05-28T07:34:00.000-07:00

"FX" is an abbreviation of "forex" or "foreign exchange." Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that's over 30 times the daily volume of NASDAQ and NYSE combined). The forex market is a cash interbank/interdealer market. In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide. CFOS/FX clients can trade through online forex trading platforms and/or over the telephone directly with a forex broker on our trading desk.

Until recently the forex market has not been available to the small speculator. The large minimum foreign currency transaction sizes and financial requirements left this market in the hands of banks, major foreign currency dealers and the occasional large fx speculator. Now, with the ability to leverage large positions with a relatively small amount of capital (margin), the forex market is now more liquid than ever and available to most investors.

Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs, also known as crosses, in the forex spot market. For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar. Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar. Official figures show the U.S. Dollar is on one side of 83% of all spot foreign exchange transactions. The "spot" market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days.

Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated. New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies. Today, supply and demand for a particular currency is the driving factor in determining exchange rates. Many factors such as regularly reported economic figures and unexpected news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency. It should come as no surprise that many shrewd investors have already taken advantage of the fluctuation in exchange rates to profit handsomely.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Option Brokerage

Article Source: http://EzineArticles.com/?expert=John_Nobile

Forex Options Market Overview

2009-05-28T07:32:00.000-07:00

Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."

The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.

The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.

On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.

Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is "out-of-the-money." In simplest terms, a foreign currency option is "out-of-the-money" if the underlying foreign currency spot price is lower than a foreign currency call option's strike price, or the underlying foreign currency spot price is higher than a put option's strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.

The Forex Option Seller - The foreign currency option seller may also be called the "writer" or "grantor" of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market.

Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.

Just like the buyer, the foreign currency option seller has the choice to either offset (buy back) the foreign currency option contract in the options market prior to expiration, or the seller can choose to hold the foreign currency option contract until expiration. If the foreign currency options seller holds the contract until expiration, one of two scenarios will occur: (1) the seller will take the opposite underlying foreign currency spot position if the buyer exercises the option or (2) the seller will simply let the foreign currency option expire worthless (keeping the entire premium) if the strike price is out-of-the-money.

Please note that "puts" and "calls" are separate foreign currency options contracts and are NOT the opposite side of the same transaction. For every put buyer there is a put seller, and for every call buyer there is a call seller. The foreign currency options buyer pays a premium to the foreign currency options seller in every option transaction.

Forex Call Option - A foreign exchange call option gives the foreign exchange options buyer the right, but not the obligation, to purchase a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.

The Forex Put Option - A foreign exchange put option gives the foreign exchange options buyer the right, but not the obligation, to sell a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."

Plain Vanilla Forex Options - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic forex option contracts that are traded through an over-the-counter (OTC) forex options dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or a forex put option contract.

Exotic Forex Options - To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.

Intrinsic & Extrinsic Value - The price of an FX option is calculated into two separate parts, the intrinsic value and the extrinsic (time) value.

The intrinsic value of an FX option is defined as the difference between the strike price and the underlying FX spot contract rate (American Style Options) or the FX forward rate (European Style Options). The intrinsic value represents the actual value of the FX option if exercised. Please note that the intrinsic value must be zero (0) or above - if an FX option has no intrinsic value, then the FX option is simply referred to as having no (or zero) intrinsic value (the intrinsic value is never represented as a negative number). An FX option with no intrinsic value is considered "out-of-the-money," an FX option having intrinsic value is considered "in-the-money," and an FX option with a strike price at, or very close to, the underlying FX spot rate is considered "at-the-money."

The extrinsic value of an FX option is commonly referred to as the "time" value and is defined as the value of an FX option beyond the intrinsic value. A number of factors contribute to the calculation of the extrinsic value including, but not limited to, the volatility of the two spot currencies involved, the time left until expiration, the riskless interest rate of both currencies, the spot price of both currencies and the strike price of the FX option. It is important to note that the extrinsic value of FX options erodes as its expiration nears. An FX option with 60 days left to expiration will be worth more than the same FX option that has only 30 days left to expiration. Because there is more time for the underlying FX spot price to possibly move in a favorable direction, FX options sellers demand (and FX options buyers are willing to pay) a larger premium for the extra amount of time.

Volatility - Volatility is considered the most important factor when pricing forex options and it measures movements in the price of the underlying. High volatility increases the probability that the forex option could expire in-the-money and increases the risk to the forex option seller who, in turn, can demand a larger premium. An increase in volatility causes an increase in the price of both call and put options.

Delta - The delta of a forex option is defined as the change in price of a forex option relative to a change in the underlying forex spot rate. A change in a forex option's delta can be influenced by a change in the underlying forex spot rate, a change in volatility, a change in the riskless interest rate of the underlying spot currencies or simply by the passage of time (nearing of the expiration date).

The delta must always be calculated in a range of zero to one (0-1.0). Generally, the delta of a deep out-of-the-money forex option will be closer to zero, the delta of an at-the-money forex option will be near .5 (the probability of exercise is near 50%) and the delta of deep in-the-money forex options will be closer to 1.0. In simplest terms, the closer a forex option's strike price is relative to the underlying spot forex rate, the higher the delta because it is more sensitive to a change in the underlying rate.

John Nobile - Senior Account Executive
CFOS/FX - Online Forex Spot and Options Brokerage

Source

Advantages of Trading FOREX Over Stocks and Commodities

2009-05-28T07:31:00.000-07:00

There are many advantages to Trading FOREX as your main income generator. Let’s start by something that may be worrying you already.

“Do I need a Diploma or some kind of Certification to trade FOREX?” The answer is this:

When attempting to make more profit than losses on the
fluctuation of exchange rates between major currencies
(i.e., Trading the FOREX), nobody is going to ask you for a
diploma, a formal license or verify the amount of hours
you've spent studying the Foreign exchange market and
banking industry. All you need is the proper training.

But this is not the only advantage you get when trading FOREX, compared to other ways of investment and speculation; i.e. Stocks and Commodities. You have a whole bunch of advantages over these other options that will be enumerated in the following paragraphs.

The Main Benefits of Trading the FX Spot Market:

1): FOREX is the largest financial market in the world.

With a daily trading volume of over $1.5 trillion, the spot
FOREX market can absorb trading sizes that dwarf the
capacity of any other market. In fact, when compared with
the $50 billion daily market for equities or the $30 billion
futures market, it becomes quickly apparent this gives you,
and millions of other FOREX traders, almost infinite trading
liquidity and flexibility.

2): FOREX is a TRUE 24-hour market.

The FOREX Market never sleeps. Trading positions can be
entered and exited at any moment - around the globe, around
the clock, six days a week. There is no waiting for an
opening bell as in the case of trading stocks. It is a 24-
hour, continuous electronic (ONLINE) currency exchange that
never closes. This is very desirable for you if you want to
trade on a part-time basis, because you can choose when you
want to trade: morning, noon or night.

3): There is never a Bear Market in FOREX.

You can have access to a seamless, mutually-inclusive (two-
way) exchange of currencies. Meaning, because currencies
trade in "pairs" (for example, US dollar vs. yen or US
dollar vs. Swiss franc), one side of every currency pair
(for example, USD/JPY - JPY = YEN) is constantly moving in
relation to the other. Thus, when you buy a particular
currency, you are actually simultaneously selling the other
currency in that particular pair. As the market moves, one
of the currencies will increase in value versus the other.
Of course, it is up to you to choose the correct currency to
be long or short. Since currency trading always involves
buying one currency and selling another, there is no
structural bias to the market. This means you have equal
potential to profit in both a rising or falling market.

4): High Leverage - up to 200:1 Leverage.

You are permitted to trade foreign currencies on a highly
leveraged basis - up to 200 times your investment with some
brokers. This is primarily attributed to the higher levels
of liquidity within the currency markets. Standard 100,000-
unit currency lots can be traded with as little as 1%
margin, or $1,000. Mini FX accounts are permitted to trade
with just 0.5% margin -- in other words, just $50 allows you
to control a 10,000-unit currency position. Futures traders,
who are accustomed to margin requirements generally equal to
5%-8% of the contract value, will immediately recognize that
the FOREX market provides much greater leverage, and for
stock traders, who must post at least 50% margin, thereâ€™s no
comparison. If you are looking for an efficient use of
trading capital, this is it!

5): Price Movements Are Highly Predictable.

Although currency prices in the FX market may be volatile,
they generally repeat themselves in relatively predictable
cycles, creating trends. The strong trends that foreign
currencies develop are a significant advantage for traders
who use the correct "technical" methods.

Unlike stocks, currencies rarely spend much time in tight
trading ranges and have the tendency to develop strong
trends. Over 80% of volume is speculative in nature and, as
a result, the market frequently overshoots and then corrects
itself. As a technically-trained trader, you can easily
identify new trends and breakouts, which provide for
multiple opportunities to enter and exit positions.

6:) Commission-free Trading and Low Transaction Cost

When you trade FOREX, through one of our recommended brokers
(this info is in our private resources section), you'll do
it totally commission-free! These brokers don't charge
commissions to trade or to maintain an account, and that
goes for all clients trading the FOREX through them,
regardless of your account balance or trading volume. Even
Mini FX traders can buy and sell currencies online,
commission-free.

What about trading fees? There are none of the usual fees to
which futures and equity traders are accustomed -- no
exchange or clearing fees, no N_F_A or S_E_C fees. Because
currencies trade over-the-counter (OTC), via a global
electronic network -- in FOREX, what you see is what you
get, allowing you to make quick decisions on your trades
without having to worry or account for fees that may affect
your profit/loss or slippage.

In the equities markets, you must pay both a commission and
exchange fees. The over-the-counter structure of the FX
market eliminates exchange and clearing fees, which in turn
lowers transaction costs.

So, if FOREX broker don't charge commissions, how do they
make money? Like all traded financial products, over-the-
counter currency trading involves a bid/ask spread, which
represents the prices at which your counterparty is willing
to trade. Because the currency market offers round-the-clock
liquidity, you receive tight, competitive spreads both
intra-day and night. Stock traders can be more vulnerable to
liquidity risk and typically receive wider trading spreads,
especially during after-hours trading.

7): Instantaneous Order Execution and Market Transparency.

Market transparency is highly desired in any trading
environment. The greater the market transparency, the more
efficient the market becomes. Unlike other markets where
transparency is compromised (like in the Enron scandal),
FOREX markets are highly transparent (i.e., analyzing
countries, and having access to real-time research / news,
is easier than companies).

Because of this transparency, as an FX trader, you will be
able to exercise risk management strategies in accordance to
the fundamental and technical indicators we teach at
RapidForex.com

The FX market offers the highest level of market
transparency out of all the financial markets. Because of
this, order execution and fill confirmation usually occur in
just 1-2 seconds. Markets that do not offer executable
prices and force traders to absorb slippage obviously
compromise the trader's profit potential considerably.

In the forex world, order execution is all-electronic and
because you'll be trading via an Internet-based platform,
instantaneous execution is routine. There are no exchanges,
no traditional open-outcry pits, no floor brokers, and
consequently, no delays.

http://www.1-forex.com

Omar Vargas
Forex trader and freelance writer
http://www.1-forex.com

Article Source: http://EzineArticles.com/?expert=Omar_Vargas

Forex2u Forex Strategy On Successful Forex Trading

2009-05-28T07:28:00.000-07:00

The essence of the FX2u Forex strategy is that it does not have any Forex trading system but could forecast the market trend accurately.

Every set of Forex trading system available has its disadvantages. The market trend could not be forecasted. If the market could be forecasted, by depending on the RSI, PAR, MOM analysis techniques and some other theories, Forex traders could easily make a fortune.

Many Forex traders could not obtain the anticipated outcome by using these analysis tools, and suffer huge losses. The main reason is relying on some imperfect tools to forecast the unpredictable market trend is just a waste of effort. Therefore the FX2u Forex strategy spirit is to abolish the entire subjective analysis tool.

To survive in the market is to follow the market trend, following the market trend is the essence of the FX2u Forex strategy. By using the opposite theory to enter the market, will only lead to lost. The reason is that if the market rises, it may continue to rise. If the market drops, it may continue to drop. No one is able to forecast when the market trend will stop.

By following the market trend, the market risk could be reduce to the lowest, the FX2u Forex strategy will advance the following the ten principles:

fully understand the how market function and the market trend, else don’t trade

After entering the market, the Forex trader MUST immediately put a market stop.

If the stop order has been hit it MUST be executed immediately, NEVER make changes by lowering the stop order price.

If the forecast is wrong, Forex traders should leave the market immediately, then analyze again.

If the forecast is wrong, Forex traders should stop loss and should not increase trading.

Forex traders should admit mistakes, do not continuously make mistakes.

All analysis tools are imperfect, mistakes could always occur.

If the market rises Forex traders should buy, if the market drops Forex traders should sell, always follow the market trend.

Forex traders should not forecast the market price because such forecast will not be as easy as forecasting the market trend.

If the forecast is wrong, once the loss reach 10%, Forex traders must stop loss immediately, do not let it surpasses 10%, otherwise it would be difficult to recoup the capital again.

Alvin Han is the editor of http://www.forex2u.com; http://www.forex2u.com/fx2u-forex-strategy.html

Article Source: http://EzineArticles.com/?expert=Alvin_Han

A Short Introduction To FOREX

2009-05-28T07:25:00.000-07:00

FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.

Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.

But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind
has to be open and the slate has to be clear for starting out fresh with the CORRECT information.

So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.

As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry
have also said, Trading FOREX is like having an ATM machine on your own computer.

Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it:

The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.

But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.

What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.

So, you're probably wondering where it's at ... or ... how to access the FX market?

The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.

Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:

Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is
simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate
between the two currencies.

In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.

Example:

EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.

There's plenty of money to be made using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them to profit immensely. And, with only 5% of the daily turnover of volume coming from banks, government and large corporations who need to hedge, the other 95% is for speculation and profit.

http://www.1-forex.com

Omar Vargas; Forex trader and freelance writer. http://www.1-forex.com/

Article Source: http://EzineArticles.com/?expert=Omar_Vargas

FOREX 101: Make Money with Currency Trading

2009-05-28T07:22:00.000-07:00

For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies: Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

Rich McIver is a contributing writer for The Forex Blog: Currency Trading News ( http://www.forexblog.org ).

Article Source: http://EzineArticles.com/?expert=Rich_McIver

Choosing A Forex Broker

2009-05-28T07:20:00.000-07:00

With currency trading becoming ever more popular, the number of brokers is growing at a rapid rate. What should one look at when deciding which broker to open an account with? These are the important points to consider.

Spread

Because currencies, unlike futures and stocks, are not traded through a central exchange, the spread can be different depending on the broker you use, so it's well worth checking a few out before you open an account. Most forex brokers publish live or delayed prices on their websites so you can compare spreads, but check if the spread is fixed or variable. A fixed spread means exactly that - it will always be the same no matter what time of day or night it is. Some brokers use a variable spread, which might appear to be nice and small when the market is quiet, but when things get busy they can widen the spread which means the market must move more in your favor before you start to make a profit. Fixed spreads are generally slightly wider than the variable spreads are when at their narrowest, but over the long term fixed can be safer.

Execution

Some brokers will show live prices on their trading platform, but will they honor them when it comes to pushing the Buy or Sell button? The best way to find out is to open a demo account and give them a test drive. This will also give you the opportunity to see what the speed of execution is like - when you want to buy, you want to buy now, not sit around waiting for ten minutes whilst your order is confirmed!

Trading Platform

Good trading software will show live prices that you can actually trade at, not just indicative quotes. It will offer Limit and Stop orders, and ideally will let you attach these to your entry order. One-Cancels-Other orders are another useful feature - they mean you can set up your trade and then leave the software to get on with it. And the most important feature of all - can you actually understand the platform? Having all the bells and whistles is of no use if you can't use them, so again, get a demo account and give it a go.

Support

Forex is a 24 hour market, so your broker should offer 24 hour support. You might not be trading at 3am, but that could be what time it is in your brokers head office on the other side of the planet, so make sure there will be somebody there to pick up the phone if things go wrong. You should also check if you can close positions over the phone - essential in case your PC or internet connection crash at a critical moment.

Backing

Finally, before opening an account do a little homework and find out about the company. Forex brokers are regulated, but that doesn't mean they all have equal backing. If the market collapses, you want to know that they've got the reserves to cope with it and will still be around when you decide to withdraw your cash. If a broker is elusive when it comes to questions about their parentage and financial backing, then steer clear.

In Conclusion

Choosing a forex broker isn't difficult, but don't rush the decision. Check out a few, and always get a demo account first to make sure you're happy with the way everything works before sending off your opening balance.

About The Author

Geoff Turnbull is a full time day trader, and a contributor to http://www.forexheaven.com

Article Source: http://EzineArticles.com/?expert=Geoff_Turnbull

Forex Signal, Forex Signals Advice

2009-05-28T07:18:00.000-07:00

here are lot's of Forex signals providers out there. New Forex traders might be thinking of looking for a reliable Forex signals provider. Is there any reliable Forex signals providers available?

Personally, I will say do not pay for Forex signals. Think about it - if a Forex signals provider sells Forex signals for living, you can doubt their Forex trading skills? Or else if they are pretty good in Forex trading and making lot's of profit, I am wondering why do they still bother to sell Forex signals for money. Thus, what would be the value of such Forex signals providers? The answer is ZERO.

There are Forex traders who have been relying on Forex signals arguing those Forex signals providers really help them making money in Forex trading. These Forex traders can even show their Forex trading logs as evidence. After some though, I came out with the assumption that assuming I am the owner of a Forex signals provider, in order for my business to be in black, obviously I need some satisfying customers......

Full article available at:

href="http://www.forex.labuan.net/forex-signal.html">http://www.forex.labuan.net/forex-signal.html

Alvin Han is the editor of http://www.forex.labuan.net

Article Source: http://EzineArticles.com/?expert=Alvin_Han

Why Forex Traders Plan To Fail Before They Even Place Their First Trade & How You Can Know It & ...

2009-05-28T07:16:00.000-07:00

Have you heard the wise saying that a trader who fails to plan, plans to fail? I have, and I was once that trader! However, did you know that even though traders who have constructed a plan, which incorporates their trading stategy (their "edge"), they have a plan that is likely to fail?

If we look at all traders who participate in the market: we have one group that fails to plan and therefore plans to fail; another group whose plan is failed; and a third group who properly plans and therefore does not fail.

Is it any wonder that the success rate for forex traders is so slim?

Well it doesn't have to be.

Here's a list of reasons why those whose plan is destined for failure fail:

1. They become emotionally attached to their ideas about how the market should be with minimal or inadequate testing;

2. They fall in love with their back-tested net profit results without fully understanding other key statistical data;

3. They don't admit they're plan is wrong.

Let's explore each point in a little more detail.

1. Becoming emotionally attached to your ideas without adequate results

Most new traders when they realize the importance of obtaining a trading plan and sticking to that plan immediately begin to use the knowledge they have been taught and haphazardly throw it all together into what they deem their "trading plan".

When they are questioned on whether they have a trading plan most of these traders answer with an unequivocal "Yes!".

Most of these traders are destined for failure because their strategy is untested. They rely on blind faith to guide them through the trading jungle to make their untold millions. Would you walk from one length of the Amazon jungle to the other blind-folded? Of course not! You'll have to watch out for all the snakes, tarantulas, and other creepy things that go bump in the night, so why would you approach trading in the same fashion? I mean all you're really doing is placing the blind-fold on your capital!

Why do traders do this?

Because it's easy. That's right... it's easy. They don't need to learn a computer language to type their system into some piece of software that will take them the better part of 6 months to a year to learn, and they don't have to spend any money on buying historical data. Therefore it's easy and it's cheap and it also conserves time!

So does success meet lazy people like this?

Not many! However I will admit that it does meet a fortunate few - only those lucky enough to start their trading during roaring markets where even a monkey can make money! To repeat again: don't wear the blind-fold. Your success may be great at the start, but given time and trades, you'll be the one out of the game - having depleted all your capital.

So what do you do if you KNOW that your method is untested?

If you have the time, the money and the learning capacity I would strongly encourage you to purchase some back-testing software (such as Wealth-Lab Developer), acquire some forex data, ask heaps of questions on the Wealth-Lab forum on how to code your ideas and within 3-6 months you'll be safely coding your own forex system and testing adequately.

If you do not have the time, the money nor the learning capacity I would strongly suggest that you manually write down your system into clearly defined steps that you MUST follow. Then, after opening a DEMO forex account you would trade your system according to the rules you have set out. Trading your rules until about 20 trades have been completed.

After traders obtain their results from their testing period they unfortunately look at only one figure and make a rash conclusion about the system based on that one performance figure, namely, the net profit. This then leads us into the next problem of why traders plans are failed prior to placing their first live trade...

2. They fall in love with the net profit result and no longer question it any further!

The net profit is only one statistic among thousands, however, to keep things simple we will look at the top 3 results that you need to make sure you fully understand.

Here are the other statistical pieces of data that you should look at when your system has completed its testing period:

I. How many trades did it have? If you have made a nice profit, but have only had 3 trades during the testing period you do not have a sufficient sample space to arrive at any safe conclusions. Can you imagine what would happen to Neil Armstrong if NASA had only done 3 computations on how they would arrive on the moon??!! If it's not good for NASA then it's probably not good for you either, however, as NASA do zillions of computations you would only need to conduct about 20 trades as the bare minimum before you can arrive at any safe conclusions;

II. What was your money management procedure during the testing phase? This is by far the most important point, however, you need to make sure your system is properly working prior to even embarking on this difficult area (hence the reason why it is a CLOSE second to the above point). Be sure you fully understand what I am about to explain (read it several times to absorb it if need be)...

If you test a method whereby you rely on a percentage amount of capital on a trade you can be biasing your results!

How?

Let us look at the following comparison sheet where we plot 21 trades with their pip return (we'll assume that each pip = US$1), and compare the returns against using 10 contracts per trade, 10% capital per trade, or 2% risk per trade...

Example Trade Sheet

Now as you can see from the results they can easily be doctored according to the different type of money management technique you use and what variable you decide to use it on (i.e. who is to say that we not use 20 contracts per trade, or 20% capital, or 5% risk per trade - all of these would inflate the net return figures).

It is best when you trade to stay at a fixed quantity. If you use any results that require a percentage calculation of the equity balance prior to the trade quantity being calculated you will BIAS the last trades more than the trades at the start. Hence, using a fixed quantity throughout the entire sample is one of the true indications of whether your system is profitable or not.

III. What was the drawdown? This is the largest peak to trough distance on your equity curve. In other words, if you were to enter in on the day the equity curve made a peak, how much would you have lost if you bailed out at the lowest point? To test this manually you would obtain an equity curve peak trace how far the equity curve goes down until it moves higher that the peak you started from - the lowest point made between these two points will be your trough figure which you will then subtract from your starting peak figure. The figure with the largest % loss would be your drawdown.

You would then need to look at this drawdown figure and determine whether or not it fits your risk profile. Would you be okay mentally if your account was down the drawdown % figure? If not, then you're going to have to re-create another system. As a rule I don't like systems that generate more than 30% drawdown.

One other statistic that incorporates drawdown that I like to check to determine whether the system is profitable or not is the recovery factor. The recovery factor divides the net profit by the drawdown (without the negative sign). As an example, if the net profit were $5,659 and the drawdown were -$3,542 dividing the net profit by the drawdown would result in a recovery factor of 1.597 (get rid of the minus sign). I generally prefer systems to have this statistic above 3.

So even though we have created our system that fits our personality and risk tolerance level well trades can still fail by not heeding the third and final statement...

3. Don't fall in love with the system

Most traders once they have designed a system cannot believe that their system is making a loss, or worse yet, a loss greater than the system's historical drawdown.

So, to combat this they dig their head in the sand hoping that the problem will go away. Just as trades fall in love with their position, at their own peril, falling in love with their system is also to their detriment.

Treat this as a business with your system as one of your salesmen. If the salesman is costing more than he is bringing in then you need to fire him and find another one.

How do you know if your system is no good?

As a rule I look at the historical drawdown of my system and add 10%. As an example, if my system had historical drawdown of 20% once the system reached 20% x 1.1 = 22% I would stop trading this system and move onto another. And sometimes you can still trade the same system, just with different variables, or a minor tweak.

Be sure that you fully understand the implications presented to you in this article. Trading is a business, therefore conduct it like one, as it is one of the most difficult endeavors you could ever undertake.

Ryan Sheehy is the author of Currency Secrets.com and Forex Zoo

Article Source: http://EzineArticles.com/?expert=Ryan_Sheehy

5 Questions You Need To Have Answered Before You Back-Test Your Forex System

2009-05-28T07:12:00.000-07:00

s 90-95% of new forex traders lose money within the first 3-6 months this article helps to guide new forex traders by asking 5 questions that the forex trader needs to know prior to back-testing their forex system.

Let us jump right in...

1. What data type are you using (or going to use)?

I know this sounds strange, especially if you have experience from another market such as stocks as their generally is only one type of data source available. However, in the forex market you can have up to 4 different data types: bid, ask, mid and indicative. Each have their own little nuances.

If you would like to know more about the data types then visit the article written about the perils of indicative prices. As this will save me from having to repeat the information again and boring those who've already read it.

So, if you know you have indicative prices then you know you're in for some good results! However, if you have any of the other three you need to be careful on how stop and limit orders are placed.

As an example: If we had bid price history and we were looking to place a buy entry stop at 0830 EST according to the day's high, then we know that the bid price will not accurately reflect what the actual price of our order should be. You would have noticed that if you placed a buy entry stop at the exact same price as that of the day's high you would have entered prematurely - you would have entered 4 or 5 pips before the high or the low of the day was touched (the exact same amount as the spread your broker offers!).

This leads me into the next most important question...

2. What spread is your broker offering on the currencies you are bask-testing?

You need to know this as this can help you set your slippage settings on each currency.

As our example in question 1 pointed out. We found that our buy at the day's high method did not exactly work because we bought at the BID PRICE high, not the ASK PRICE high - the price that we need when we place our order TO BUY.

Therefore, we enter in a slippage setting representing the spread that would be exhibited by this trade on this currency.

But knowing at what price to buy is only half the problem... how do we know what quantity to buy?

3. What margin does your broker offer?

If we know at what price to buy our currency at we need to inform our broker on what quantity to buy to fulfill the order. We only know what quantity to buy by the margin that the brokerage firm offers.

Most brokerage firms offer 100:1 leverage, however, some firms offer mini accounts with 200:1 leverage, others only 50:1 leverage.

Find out the margin required.

4. What restrictions does your broker impose?

Now, I don't just mean margin and spread restrictions as I have mentioned above. These are important in their own right, what you need to find out are the details.

This is probably the most important question of all as the fine line between success and failure can be found in the details. Now you can have this questioned by one of two ways:
1. You can find out through experience (generally the most expensive way unless done through the demo account!); or
2. You ask your broker (the cheapest and best way).

Why is this so important? I hear you ask. Well let's say you have a system that trades any gaps that might form on Sunday at 1700 EST, but your broker does not open until 1730 EST. You either need to factor this restriction in to your system, or move onto another system completely. Or, you may have a system that has 10 pip stops, but you find out that your broker will only let you place 15 pip stops from your initial entry price. Once again you will need to change your system to see whether it still performs well, or throw out your system (or change your broker)!

In fact one of the most devastating restrictions imposed by FXCM is that they do not accept stop entry orders if price never happens to trade at your entry stop price! FXCM will honor and "take the loss" of your OPEN stop positions, but if the liquidity is not there and price has shot straight through your stop price then you will miss out. This can have disastrous effects on your system results as you are left wondering on trades where you made good returns - "Would FXCM have got me in?". You may want to read of some of the quirks I use when placing entry stop orders on FXCM that could be of huge benefit to you to help you possibly get around this problem.

The restrictions by your broker are only half your systems' success, you also need to find out about another more important restriction... yourself. This leads me to the final point...

5. What restrictions do you have?

This is a vitally important question. Most people test their systems and fall in love with the results but find when they trade their system they have lost their account and that most of the best signals occurred while they were sound asleep!

As the forex market is a 24 hour market, you need to put into place restrictions in your system that will be realisticly conducted by you during the course of a normal trading day. There is no use operating a trailing stop method that changes your stop points during times when you are asleep and cannot possibly do so.

I hope this article has made you aware of some of the important things that need to be known prior to testing your system.

Article written by Ryan Sheehy from Currency Secrets.com. Where you will find reviews on forex data vendors, signal providers, brokers, and popular forex resources, along with more quality articles... all for f*ree!

Article Source: http://EzineArticles.com/?expert=Ryan_Sheehy

How To Trade Price Consolidations

2009-05-27T06:18:00.000-07:00

rading on price consolidation breakouts is a popular choice among Forex traders. In this article, I will present to you one of the most effective and simplest ways to trade consolidations.

What Is A Price Consolidation?

Price consolidation occurs when there is no obvious uptrend or downtrend in short-term time frames. Ranging markets are not considered to be consolidating because prices are still fluctuating up and down. In a true consolidation, market prices don't fluctuate and typically stay within a 10 to 15 pip range.

What Time Frames Should I Trade?

Consolidating prices don't usually last very long. That's why you'll usually trade using intraday time frames (i.e. hourly charts or minute charts). Occasionally, daily charts may show flat prices as well! but these are more the exception rather than the norm.

How Do I Trade It?

Most people enter into a trade when prices break out of the highest price (or lowest price) of the consolidation. If prices break upwards, they buy. If prices break downwards, they sell. The decision to trade on breakouts is based on the assumption that the momentum of the break will be strong enough to push price further in the same direction.

How Effective Is It To Trade Breakouts?

In my experience, breakout trading can yield rather consistent profits. This is because they usually follow through. The hard part is deciding when to exit your trade once it's in-the-money, because breakouts sometimes reverse directions quite quickly.

What Should Be My Profit Target?

Usually, a profit target of 30 pips is good enough. Sometimes, you may want to try for 50 pips. I don't usually hold breakout trade positions after I'm in-the-money for 50 pips because then the price action will usually turn erratic.

by Harold Hsu

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How To Trade The Trend

2009-05-27T06:14:00.000-07:00

If you haven't heard of the phrase "the trend is your friend", you're either new to trading, or have been living under a rock. Trend trading is one of the most popular methodologies used by most people today.

What Is Trend Trading?

As the name suggests, it simply means trading in the direction of the prevailing trend. You buy in an uptrend, and sell on a downtrend. It's a simple concept.

However, the specifics of this way of trading are often overlooked by amateur traders. Also, there are some complications about trend trading that they don't know about. In this article, I hope to be able to explain to you a little bit more in detail about how to trade trends.

When To Buy/Sell

I've known many people who enter into trades at the wrong time while trend trading; and I found out that the reason for this is because they listen to the advice of so-called online "experts".

Here's what these "experts" tell you: in an uptrend, buy on a downward retracement. Although this piece of advice is probably well-intentioned, it's actually quite dangerously misleading. The people who follow this advice often end up finding themselves right at the top of a reversal.

The RIGHT Way To Trade Retracements

When trading a trend retracement, you should first identify significant support/resistance points where the retracement is likely to end, such as at Fibonacci levels or at pivot points. Wait for the retracement to hit that level.

Next - and this is the part most people ignore - you must wait for a confirmation candle/bar before you enter into the trade. This means that on an uptrend retracement, you should wait for a green up-closed candle to form before you enter. Never enter into the trade before the candle/bar is completely formed!

The reverse is true for downtrend retracement.

by Harold Hsu

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3 Aspects of Confident Trading

2009-05-27T05:32:00.000-07:00

When you open up your trading charts each day, do you feel calm and confident or do you feel uncertain and nervous? Many traders often find themselves feeling the latter.

To be a successful trader, you'll need to constantly feel confident about the happenings in the market. Good traders are certain about whether it's a bull market, a bear market or a ranging market. They either understand what they're seeing in the trading charts today, or they don't. They're confident about their opinions, and aren't afraid to say that they're uncertain when they are.

Gaining Confidence

One of the best ways to start each trading day with confidence is to keep to a concise, carefully-considered 'plan of action' just before you begin bring up your trading charts. Here are 3 aspects you should consider to include in your 'plan of action'!

Aspect #1: Monitor the market with a check list

Have a list of news websites and analyst reports where you can find out the latest happenings all over the world. This is helpful in alerting you of world events that occurred while you were sleeping. The Forex market runs around the clock and doesn't go to sleep at all, except on weekends. You'll thus need to have a handy list of news sites to update you on the events that you've missed out on.

Aspect #2: Be an expert of few setups

Most new traders spend too much time trying to learn all the different trade setups in the hopes that they can have the most money-making opportunities. Unfortunately, they usually get mixed signals and mess up their trades. You should instead strive to master two or three types of trade setups and become an expert on them. Don't worry about the lack of trading opportunities; the market is large enough and you'll find usually be able to find good trade entries at least once every week.

Aspect #3: Money Management

It's almost impossible to over-stress the importance of this aspect. A reliable money management system will make it almost impossible for a trader to feel scared and uncertain. It's your safety net. Never trade without one.

by Harold Hsu

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The Foreign Exchange Market

2009-05-27T04:41:00.001-07:00

The Foreign exchange market deals with the trading of different foreign currencies. One currency is traded for another in the foreign exchange market only. Presently the foreign exchange market is by far the largest financial market in the world. The trade in a foreign exchange market includes trading of different currencies between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. Individuals constitute a very small fraction of this foreign exchange market and they participate only through brokers or banks and most of the times they are subject to forex scams. The foreign exchange market is unique because of many factors such as its trading volumes, its geographical dispersion and the extreme liquidity of the market. Beside that the large number and variety of traders in the market and its long trading hours that is round the clock operation throughout the week except on weekends make it unique. The average daily turnover in traditional foreign exchange markets is estimated to be over $3 trillion. This is more than ten times the size of the combined daily turnover on all the world's equity markets. Foreign exchange trade has more than doubled since 2001; this is largely due to the growing importance of foreign exchange as an asset. The internet trading platform has also made it easier for retail traders to trade in the foreign exchange market. Essentially the foreign exchange market is an over the counter market where the dealers negotiate directly with each another. The biggest foreign exchange trading centre is the UK. Majority of the foreign exchange trade is handled by the institutions like Deutsche Bank, UBS AG, Citigroup incorporated, Royal Bank of Scotland, Barclays Capital, Bank of America, HSBC, Goldman Sachs, JP Morgan, Morgan Stanley. These large international banks frequently provide the market with buy and sell prices of the different currencies. Minimum trading size for most of the deals is usually kept at 100,000 units of that particular currency; this is a known popularly as a standard lot. Unlike a stock market, the foreign exchange market is divided into levels of access. This is due to volume of transactions. Central banks of various countries also participate in the foreign exchange market to align currencies to their economic needs. The bank may trade on behalf of customers, but much of the trading is done by the banks for their own account. A major fraction of this market comes from the financial activities of various companies seeking foreign exchange to pay for goods or services, their trades often have small/ big short term impact on market rates. There are two types of retail brokers who participate in the foreign exchange market such as the brokers offering speculative trading and brokers offering physical delivery of the bought currency. The foreign exchange rate fluctuations are generally caused by actual currency flows as well as by expectations of changes in currency flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficits or surpluses and other economic conditions of that particular country. The foreign currencies are traded against one another; each pair of currencies thus constitutes an individual product. Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces, thus its value, are not influenced by any single element, but rather by several. There are few specific terms that are used frequently in the foreign currency trade like spot. A spot transaction is a two-day delivery transaction, this trade represents a direct exchange between two currencies, it involves the shortest time frame. Next is the Forward, in this type of transaction, money does not actually change hands until some agreed upon future date. Another is the swap, in a swap; two parties exchange currencies for a certain length of time and agree to reverse the transaction at a later date. Speculation also plays a major part in the foreign exchange market and it may cause some currencies to fall or gain for a short time period.

by Murtaza Khan

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How Does Online Forex Work?

2009-05-27T04:26:00.000-07:00

The forex market is a huge international exchange where different currencies are traded; it came into existence way back in the year 1997. Previously the forex market was restricted to the big players like the large banks, financial institutions and the central banks of different countries as the requirement for the investment were very high and most of the times it used to be in the millions of dollars. Still it is estimated to be the largest financial market in the world and the forex market is not governed by the rules of any particular country. The forex market is usually open from Sunday to Friday, on 24 hour basis. In general Forex trading is the buying and selling of different currencies. The currencies are bought and sold in pairs and this is done simultaneously. There are people who make a lot of money with forex trading after the forex trading became possible for the small investors due to the popularity of the internet which ultimately gave rise to the online forex trading. Online Forex trading is getting very popular as the days are passing by.

Mostly the currencies like Euro, Japanese Yen, U.S. dollar, Canadian dollar, British Pound, Australian dollar, and the Swiss franc rule over the forex market and most of the transactions are done in the market include them. The U.S. dollar is considered to be the strongest of them all as many commodities are internationally priced in Dollars like the gold and petroleum products and these products always require the payment in U.S. dollar only. The Forex exchange is quite different from Stock Exchanges; the forex exchange does not have a physical location. There are a lot of factors that influence the Forex rate like economic factors including the interest rates and inflation, political factors such as political unrest in other countries and major changes in government cause up and down changes in the Forex rate. However, these things tend to be short-term, and don't affect it for long. The major factor that affects the fluctuation in the rate of the forex is the surplus or the shortage of any particular currency.

Online Forex trading is usually done through various sites that are easy to find by surfing on the Internet. Most of these sites provide a wealth of information for the first time trader. Most of these sites are managed by the forex brokers or the forex dealers. They tell you about the history of Forex trading, how to invest in the trade, tips on being successful, etc. These sites allow you to open a forex trading account with as little as $300 and you are ready to start trading in the forex market. These sites are open for anyone who is interested in foreign currency trading. There is lot of information available on the net that may help you to formulate your own set of strategies for earning the profits. But, there are no guarantees that you will make money or that you won't make money. It is only you and your sheer intelligence that leads you to earn the great riches from the forex market. The online forex trading provides you the opportunity to earn as much as you can from the online Forex trading. These sites also provide you the opportunity to learn and feel the real market before investing any money by allowing you to trade in the virtual forex market. The online forex trading allows you to feel the real throbbing and pulsating international forex market once you get an account with the online forex dealer to reap the benefits of the trade.

by mq

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