Trading Currency Blog

eodbet asked:

http://www.digital-intuition.com/join.php
beats mlm and beats adsense

Free Forex Trading seminars online. brought to you by forex flows. Find out how I used forex trading to survive an attack by an angry bear. This information with put you ahead of 95% of the people trading the forex market.

ADDERLY

James Theiss asked:


Typically, in the FOREX market, currencies are traded in pairs. For example, Euro/US Dollar or US Dollar/Japanese Yen. Whenever you trade currencies online, you are then, buying one currency and selling another. Currency pairs are abbreviated. The above pairs would be EUR/USD and USD/JPY. The currency on the left is called the base currency, and the one on the right is the cross currency.

The value of a currency pair is determined by the strength or weakness of the base currency in relation to the cross currency. The base currency value is always 1. That means when you see a quote of 1.4652 for the EUR/USD, its value means 1 Euro will buy 1.4652 dollars. The next day you may see a quote for the EUR/USD of 1.4725. If you listen to the financial news you will hear them say something along the lines of, “the Euro gained strength against the Dollar today”, or “the Dollar fell today against the Euro”. In pocketbook english, that simply means it takes more dollars today to buy 1 Euro than yesterday.

Let’s say you have an online FOREX account and bought the EUR/USD yesterday at the above price of 1.4652 and today you sold, or closed out your trade at 1.4725. That would leave a profit of 73 pips. What the heck is a pip you might ask. Well a pip has two definitions but they both mean the same thing, dollar wise at least: Price Interest Point and Percentage In Point. I have never been able to get a clear difference in the definitions no matter who I have asked, and don’t really worry about it anymore because, like I said, they mean the same thing dollar wise.

When you trade currencies online you will have to open an account with a forex dealer. You can open either a standard account or a mini account. In the standard account a pip is worth approximately $10 dollars, and in the mini account it is worth approximately $1 dollar. It used to be the pip was the smallest unit of value in the FOREX market. Today however, many forex dealers quote in tenths of a pip. They have carried out the quote one extra decimal number to give better and more accurate spreads. So the above quote might have read 1.47253, where the 3 is the tenth of a pip. So its value would be either $3 dollars or $.30 cents depending on the type of account you have.

You may have noticed that I said pip values are approximately $1 dollar. That’s because each currency pair has its own pip value. The true value is determined by mathematical formulas and the exchange rate of the currency pair. Some pip values are fixed and others fluctuate slightly as one currency rises or falls in value relative to the other currency in the pair.

Currency trades are made in fixed dollar amounts called lots. One lot in a standard account is equal to $1000, which controls $100,000. One lot in the mini account is equal to $100, and controls $10,000. Both standard and mini accounts typically have a 1% margin which allows the FOREX trader 100 to 1 leverage on their investment dollars.

If you trade currencies online, the ultimate goal is to capture as many pips as you can, and not get bogged down in the details of what the exact value of each currency pair is. Unless you are interested in becoming an economist or some such thing, the information presented here is more than enough to let you get on with putting as many pips in your account as possible.



ALEN

ForexStrategySecrets asked:

Free strategy vids: http://www.forexstrategysecrets.com/jumpstart.html

Hedging in the forex market seemed like a great idea to me at first. However, it has been terribly ineffective, and the only way I have trading out out of a hedge is by trading very small.

ORGAN

Avi Frister asked:


Forex, or Foreign Exchange, trading can be a very rewarding. In fact, it can be one of todays best wealth generating opportunities. Regular people like you and me are consistently making $500, $600 and more per day from the comfort of their home trading forex. Many do not know this, but the forex market is by far the largest market in the world. It is estimated that around $1.5 TRILLION is traded every single day. By far more then all the stock, bond and futures markets of all the world combined!

But what does a forex trader do? Simple, buy a currency at a low value and sell it at a higher value, and in the process profit from it! For example, buy Great British Pounds with US Dollars, wait for the Pound rate to go up and make money! This can be done several times a day if the forex trader is a day trader or several time a week or month if the trader is a forex swing trader. Lets look at the exclusive benefits forex trading offers:

1. The forex trader can start trading with as low as $300. Yes, today most on-line brokers will allow you to open an account with such a low sum making forex trading accessible for virtually everyone.

2. The forex trader does not have to own the money he or she is using to trade currencies. Through a concept called leverage, the traders broker will allow him or her to buy up to 400 times the value of the traders account. For example, if the trader has US $100 in his brokerage account he can buy/trade $4,000! If he has $1,000 he can buy/trade $40,000. That is how traders actually make $500, $600, or $700 per day trading forex, using the brokers money!

3. Many currency pairs are very volatile. Volatility means that they move a lot during the day, from side to side. This allows the forex trader to capture several price swings that this volatility causes. In fact, there are currency pairs that offer up to six daily swing opportunities, each one potentially allowing the trader to capture impressive profits.

4. With the right system the forex trader can trade with just following simple rules. If A happens and B happens then do C. This is called mechanical trading. It requires absolutely no discretion, interpretation or thinking from the trader.

5. The forex market is a 24 hour market. Never stops. This means that as a forex trader you can chose exactly when to trade. Some people have day jobs and do not have the necessary time to trade during the day so they can trade at night. People who make their living as forex traders can chose to trade any time of the day or night. The point being, a 24 hour market allows the trader a lot of flexibility.

6. An incredible benefit of the forex industry is that today all forex brokers allow traders to open free demo accounts. This means that the trader can test his strategies without risking a single dollar! In fact, I always test my trading strategies before going live. I make sure they work before risking real money. I know of no other business opportunity that allows you to see if it works before you spend money!

7. Making a living as a forex trader allows you to be truly free! No office, no workers, no inventory, no marketing worries, no advertising, no selling. For me this is one of the greatest advantages of being a forex trader. No headaches!

In conclusion, the forex market provides a lot of opportunities that many markets and industries do not provide. Many people hear the term forex and get a bit scared, they are afraid of the unknown. Do not be, forex trading is something that people have been using to generate wealth for many years. The reason many people have not heard of this opportunity until recently is that until not long ago trading currencies was reserved to the big dogs (banks, institutions, companies etc). Today with the help of the internet anyone can take advantage of on-line currency trading that was once reserved to an exclusive group.

Wish you well and I hope you found this article useful.



CASAVANT

Ricky Lim asked:


Many people often get confused by the financial terms such as currency, forex exchange, trading etc. It’s a big complex financial world and one of the new trading concepts is day trading.

Day trading in its simplest term means buying and selling securities, stock and other financial investment within a single trading day. It covers a wide variety of financial products such as stocks, currencies, forex, equity index, futures and commodities.

The financial products that are brought are only held with a trading day and must be sold at the end of a trading day

Due to the short time period in which to buy and sell stocks, day trading is considered risky. If you are interested in day trading, be prepared to have sufficient capital. You need to purchase at least 1000 shares of a stock. Be prepared for this capital to be expendable.

Although day trading is risky, it does have big rewards if you know how to play in this game. Many day traders never allow themselves to get emotional with any one stock. They should know when to cut their losses when the need arises as well as able to analyze the current market trend particularly in the short term.

One advantage of day trading is that the intraday margin is 50 to 1. That’s means you are allowed to trade up to 50 times your initial capital.

So what if you do not have the necessary capital to invest in day trading. Thankfully, you could try day trading currencies. Trading currencies requires less capital. You only need a couple of hundred dollars to be able to open a forex mini account.

One major disadvantage of day trading is the stock market is only open for about 8 hours each day. However for currency trading, the forex market is open 24/7. That means you can trade just about any time of the day.

Another advantage of day trading currencies is that most day traders get an intraday margin of 4. That means with the same capital, you can trade up to 4 times your capital. For example, if you have $10,000 as capital, you can trade up to $40,000. This gives you more leverage if you decide to buy higher price currencies.

Day trading currrencies are also easier to monitor and predict compared to stocks as there are less of them and the factors influencing global forex market are lesser

In day trading, you can lose big as well as win big all in a single day so I would not recommend anyone to take up day trading until you have sufficient experience and knowledge in the stock or forex markets. Wise and quick decision making is needed as well as the usual stock research analysis, market analysis etc.



BLAUSER

forexcoachservice asked:

How to trade forex using the concept of market flow for determining trend direction. I combine this with other simple tools in my CD course: www.forextradingandeducation.com

MILLON

adventurewave asked:

day trading currency
http://forex.adventureonthewave.com Make Cash Daily Trading on the Forex Market! Go to http://forex.adventureonthewave.com and check it out
day trading currency
NOW!

VANLOO

arvarma asked:


If I were to trade USD/GBR on forex market, what sort of hedge would I use to reduce my level of risk? Ie would I buy other currencies at the same time, or use forward contracts / future contracts or even options. Which is the most common and effective.

Thanks

GEDNEY