Trading Currency Blog

JBarleycorn asked:


If economic stats and indicators of many countries are available to anyone (or are they?), why isn’t it commonplace for people to be trading up on different currencies and getting rich? Is it transaction costs alone? What are some other factors that make it risky?

FULLAM

ruffrider asked:


I currently trade on the stock market but I am interested in currency trading. I would like to know if it is similar to trading stock in which you trade using an online broker and if so what brokers are the best to use with the lowest commission fees?

KOPPLE

Ian Armstrong asked:


There are a lot of advantages to trading currency on the foreign exchange market that stock market trading doesn’t have. Here are a few.

A twenty-four hour market - Foreign exchange markets are open to do business around the clock. Small investors who are starting out doing trades in their spare time can benefit from this, since they don’t need to juggle their schedules around opportunities to trade. This means that if you choose Forex, you can schedule trading when it works for you. It doesn’t matter if you’re a night owl who wants to trade at one in the morning. There’s a bank open in Tokyo.

Low cost of transaction - Since Forex brokers don’t work on commission, and no hidden fees are lurking in the fine print, you won’t pay a lot to trade. Broker fees are directly build into the trade as the bid/ask spread. This spread is the difference between the buying price and selling price of the currency, and it’s expressed in what are called pips.

Leverage/margin - Trading on margin means that Forex traders have greater leverage in trading. It also offers the ability to make a very high profit on only a small investment. If you find a broker allowing a margin of a hundred to one, you can buy a hundred thousand dollars in currency with only a thousand dollar deposit. Remember that this leverage goes both ways and can lead to large losses if you’re not careful.

Fast trade execution/high liquidity - If you’re trading in currencies, that means you’re trading in cash - the single most liquid investment there is. Trades can be executed almost instantly, and there’s no need to sit around waiting for yours to go through.

Difficult to influence - The foreign exchange market is so large that it’s almost impossible for a single person, bank, fund, or even a government to influence it for any length of time. The stock market, on the other hand, can be influenced by things as small as a television analyst’s negative forecast.

Small sample size - Stock trading means that you have thousands of options, including international companies, large and small companies, and newly issued IPOs. It’s difficult to follow everything. In Forex trading, on the other hand, there are seven major currencies to follow. That means you can devote plenty of time to each. In fact, there are a number of successful Forex traders who don’t even trade in all seven currencies. You can just pick three or four and stick to them without a problem.

No bear markets - Because it’s possible to trade short or long, you can make money whether the prices are up or down. You just have to make the right guess.



SCHUMER

HomePage Help asked:


assuming the firm I am using isn’t just using its own clients against eachother…can you explain to me how this situation would work.

I have $100,000 USD sitting in my pocket right now. I think that the EUR/USD price is going to go from .8 to .95. In other words I believe that the value of the dollar will rise against that of the euro, which could also be said that the value of the euro will decrease to that of the dollar. Pretty much what i’m saying is the dollar is going to look better than the euro. But I’m already holding onto 100K USD, how am i going to make money from such a situation? If i convert to eur today, it will give me 80K. I am speculating that in a few days my 100K converted to EUR is going to give me 95K. So how can I benefit from this speculation? What exactly needs to be done, what trade with whom?

Thanks

SANDBURG

forextradinginsing asked:

http://www.MakeMoneyFromScratch.net

Are you sick and tired of the heavy traffic you get to face everyday? Now it’s time for you to switch to trading currency at home. It is the latest way to create and multiply money that a lot of people have been starting to try today. As a matter of fact forex trading in Singapore is continuously booming even up to this date. forex trading systems are truly an efficient money generator. You just have to get a good forex training; learn easy forex trading strategies and in just a short time, you will see yourself doing a job of a forex broker. And you do it at home, while spending time with your family. Visit http://www.MakeMoneyFromScratch.net and join the forex trade there. Start your career in forex. Start it at home.

SUDLER

amit s asked:


In a Free Market ,the relationship Rupee(some currency) to Dollar(Standard) to Euro (some currency) and Rupee to Euro should be equivalent but its usually not Where am I wrong? It will help if you could give a link to somewhere I could read about in detail and understand better .
In a Free Market ,the relationship Rupee(some currency) to Dollar(Standard) to Euro (some currency) and Rupee to Euro should be equivalent but its usually not Where am I wrong? It will help if you could give a link to somewhere I could read about in detail and understand better . The whole idea is if some method was more profitable , it will be preferred and hence all rates will come to be same because of the way in which free market works.

TSCHETTER

Andrew Daigle asked:


The Forex currency market is the world’s largest financial market where the currency of one country is exchanged with another through an exchange rate system. The purpose of trading is to aquire profits from the purchase and sale of foreign currencies. The free-floating of currencies in the market turn over at a given time are determined by the supply and demand. The currency rate is run through telecommunication over the massive network of banks. This telecommunication takes place 24 hours a day, Monday through Friday. The economy has a strong influence on the currency market and traders profit from the fluctuations based on a principle “buy low sell high” or vice versa.

The currency results will differ between the vast number of countries that exist in the world, but the currency information can be obtained both easily and quickly. Trading has become a very popular way to make money through a mutual exchange. Since everyday folks now have access to the internet, forex currency trading can now be traded by anyone, so it’s not just for the big banks and financial institutions as it once was.

If you are interested in forex, you can find out all relevant information as well as currency rates by searching the Internet. You can also take a forex trading course that allows you to understand just what it is and how it all works. There are many books, ebooks and videos available to learn about trading currencies and these can be excellent resources for not only learning this business but finding very profitable forex trading systems and strategies.

To better understand foreign currency, it is a good idea to have a good working knowledge of the currency in other countries. The more you know about the currency exchange rates between your country and one with whom you are considering trading, the easier it will be to determine when to trade, how to trade, and with who to trade.

You can even learn forex trading online with free tutorials, and can obtain a free practice account to help you get used to how it works. If you are thinking about taking part in forex trading, it might be advantageous to you to check out what others have to say about it. Consult bankers and other entrepreneurs who are well-versed in forex. A banker can better explain the currency types and rates, as well as the foreign exchange rate for any given time. Others who have participated in forex trading can be a great resource and can better explain the pros and cons and how you can profit from this business opportunity. The courses and tutorials will help you learn the system, and the practice account will give you a real-time idea of what to expect from the overall experience.



GRIFFEN

punjabi_94901 asked:


i am trying to open a roth IRA account with broker that offers both stock trading and currency trading? thankyou

FRECHETTE

Frank asked:


Is there anyway that if a pending order on stocks or currency got triggered, then it triggers our cell phone or email and let us know that our trade has been completed?

YANKEE

chinky asked:


i am trading in foreign currency market, therefor i want currency trading signals which are absolutly free of charge,so please suggest me any site where i can receive foreign currencytrading signals

SLYE