Posts Tagged ‘currencies’

The Foreign Exchange Market has other names, notably the FX market and the FOREX market. Trading that takes place between two counties with different currencies is the basis for the FOREX market. Trading in this market depends on the daily (sometimes hourly) differences in the exchange rate between the two currencies. The FX market, established in the early 1970′s, is over thirty years old. The FOREX market is not based on one business or commodity or investing either, but involves the trading and selling of many currencies.

The difference between the Stock Market and the FOREX market is the vast trading that occurs on the FOREX market. Daily, the equivalent of millions and millions of US dollars trade on the market: almost two trillion dollars a day. The amount is much higher than the money traded on the daily Stock Market of any country. The Foreign Exchange market involves governments, banks, financial institutions and similar types of institutions from other countries.

What is traded, bought and sold on the FOREX market is easily liquidated. It can be turned back into cash fast, or often times, it actually is cash. From one currency to another, an increase on a cash investment in the FOREX market is can happen fast for any investor from any country.

Another difference between the Stock Market and the FOREX market is the FX market is global, worldwide. The Stock Market has a connection to one country. The Stock Market trades stock for businesses and products within a country; the FOREX market takes that a step further to include any country.

The stock market has set business hours. Generally, this is going to follow the business day. It closes on banking holidays and weekends. The FOREX market is generally open twenty four hours a day because the vast number of countries involved in FOREX trading, buying and selling spread across so many different times zones. As one market is opening, another countries market is closing. Forex market trading occurs continuously.

The Stock Market in any country is going to use only that country’s currency. Say for example, the Japanese yen for the Japanese stock market, or the United States stock market uses the dollar. However, the FOREX market, involves many different of countries, and many currencies. You will find a variety of currencies in trade, and this is a big difference between the Stock Market and the FOREX market.

Learning to trade forex can be a daunting challenge because of all the resources and information that is readily available. It is important to learn as much as you can before you start trading, either through a forex trading tutorial, books, and courses, but there’s a point where you need to just take the plunge and start trading. Often you will end up learning more by trading, making mistakes, making money, losing money, and reviewing your trades, than you ever will by reading a book.

You need to continually develop your trading skills and knowledge if you are to consistently make money trading forex. But it is just as important to learn the basics of forex before you do anything else. Without understanding the fundamentals, you will be left well behind when it comes to the more advanced strategies and lessons you will learn further down the track.

Some of the basics of trading forex include:

Currency pair: this refers to two currencies that are involved in some kind of foreign exchange trade. For example, if you wanted to buy US Dollars using Euros, you would analyse the price for the EUR/USD (Euro/US Dollar) currency pair. Whichever currencies you want to trade are the currency pairs you have to deal with.

Base currency: this is basically the currency that is mentioned first in a currency pair. So for our first example using the EUR/USD currency pair, the Euro would be the base currency. The base currency is also the currency that a quoted price refers to. Continuing with our example, if the quote for a pair was EUR/USD 1.4400, this would mean that 1 Euro is worth 1.44 US Dollars. So to buy 1 Euro you would need to sell 1.44 US Dollars. Similarly for the price quote of USD/JPY 108.00, this means that 1 US dollar will buy you 110.00 Japanese Yen.

Bid and Ask prices: these are the two different prices that the base currency is traded at, depending on whether you are buying or selling that currency. So if you want to sell Euros against the US Dollar, with the price quote for the EUR/USD 1.44 pair, you would receive 1.44 dollars. But if you wanted to instead buy the same pair, you will need to pay a different price, the ask price, which is generally a little higher. The difference between the bid and ask prices is known as the spread, which is what you pay your broker as a transaction fee.

These are only a few fundamentals you need to understand before you can be serious about making money trading forex. Any good forex trading tutorial will cover the basics, and then once you are ready, go more in depth with more advanced strategies and concepts.

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ForexAutopilotSystem.org – Forex Trading Strategy – The Ultimate Momentum Indicator for Huge Profits Many traders in their forex trading strategy simply pick levels and buy or sell into them and hope they hold. This simply sees them lose, as they are hoping levels will hold and NOT acting on confirmation of price momentum to put the odds in their favor. Here we are going to look at the ultimate momentum indicator that will help you time your trading signals with laser accuracy. The momentum …

www.trading-strategies.info In this Forex Strategy Video you will see a detailed description of how I trade the Asian session range break out. … FX Forex breakout range ranges system strategy day course currency learn live best trader currencies systems courses information training online trading strategies pnewton69 Phil Newton gbp pound eur euro cad usd dollar chf swissy jpy yen sterling

www.trading-strategies.info Today’s video shows the scenarios that I’m anticipating for Mondays trading prior to the session. Thinking about several scenario’s that could develop so that I’m prepared to take action. Updating those scenario’s Monday morning will aid me to see which of those scenarios is most likely to refine my days trading plan Buy the dips and breaks of resistance in an up trend Sell the rallies and breads of support in a down trend Have fun trading Phil…

www.trading-strategies.info Another trading tip with trend lines and Fibonacci retracements to give you a time reference for when you could expect a retracement and where it could retrace to.

www.trading-strategies.info A short Foroex video showing when to stay out of the market and wait until trading conditions are more favourable to trade with.