8 Reasons for You to Start Forex Trading

Without any knowledge trading, Trading or Playing with Forex is the best way for anyone. Not only because it is easy in getting the software and doing transaction, but there are also many guide in forums and any website, that will guide you and give you advices. More of that, there are some forex tool that will help you to increase your winnings and profits over 90%. I will explain you about this tool in the other paragraphs. Now, you will find the basics of the Forex below. What is Forex Trading? I have searching in internet, found one explanation from Yahoo Finance`s Page, it Wrote



"The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders’ investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events."



. I think, that should enough explain it. So, now i will tell you the reasons to start Forex Trading. Most people consider Forex Trading for a same reasons like my opinions:



1. Small margins deposit can can make a bigger profit. It can control a much larger total contract value. It called LEVERAGE. for example, if 100 to 1 leverage offered by one Forex Trading firms, a $50 dollar deposit would be able to control (buy or sell) $5,000 worth of currencies.



2. Forex Trading Market is extremely BIG and LARGE. Just for a single order (Enter pressed or mouse clicked) you can buy or sell any transactions when ever you want in a blink of eyes, because it is very liquid and fast.



3. Even if the Forex Trading market fall, you can also get the same(if the rising and falling level are same) profits as the market rise. By reading the tutorials you can learn it in a second.



4. Just like some Fast food restaurant,Forex Trading is open 24/7. Yes, it never closed. That`s why, many people can use Forex Trading as a part time job, because you can trade at the morning, noon, night or easily anytime.



5. Most online Forex Trading firms offers demo account for free. You can also get News, Analysis, Forex Trading software, Chart for free. You can search in any search engine easily, if you want to search information about some Forex Trading firms.



6. If you start a Forex Trading software, Virtual money will be given to you. It is the best way to train yourself and sharpen your skill in Forex Trading. You won`t loose any real money, because it`s just virtual money.



7. Trading forex are not always need a large sum of money and off course will cost a lot of money. Now it is more accessible to anyone, because MINI trading accounts are offered by most of Forex Trading firm . You only have to deposit $200 until $500 with no commission trading.



8. When it comes to real money, many people can`t stop doubting the winning chance. To increase the winning chance, you can search and find a Forex Trading autopilot.



Forex Trading autopilot is a semi safe way to trade and will increase you winning chance over 90%, and you don`t even have to make a transaction by yourself. because it will automatically done by Forex autopilot. You just need to sit down and relax, and let your money flowing into your pocket, because all you have to do is turning the Forex Trading Autopilot on. What to Expect



By trading Forex means you can increase your income into a higher amount. And if you read my article (at least all reasons behind trading forex) you will know that trading forex should lots easier than you can imagine. And with help from Forex Trading autopilot, your winning chance would increase as long as you turn it on.

Market Analysis:

The Forex Capsule captures daily market changes and the fundamental factors that are behind them.

Inside, you will find economic releases from around the world, weekly charts, as well as analysis and expert commentaries

Each week's data is “encapsulated” into easy to access archives, perfect for analyzing past market behavior.

One-on-One Training

Learn about forex and how to make the most of our trading platforms.

Expert Currency Trading: Global Forex Trading

If you're considering a new investment opportunity, online currency trading could be a fruitful option for you, although there are inherent risks associated with forex trading. With options available for many levels of investments, currency trading with GFT is flexible enough for small and active traders.



Having developed into one of the largest markets in the world, traders take advantage of a market that trades an average of over $3.2 trillion US dollars daily! No matter your investment capabilities, or your level of activity, many opportunities exist in the online forex trading market.


GFT Currency Trading Experts


The forex brokers at GFT have many tools available to help make your online currency trading a success. In addition to our years of experience, we also offer a variety of forex trading software packages designed specifically for online trading.



For more information about currency trading with GFT, continue browsing our site, or contact us today.


Online Currency Trading


If you're interested in beginning online currency trading, it's important to be aware of the benefits associated with this endeavor. While working with GFT you will receive the advantage of working with our expert brokers and our easy to use online tools, but you will also enjoy the following aspects of currency trading only available in an online environment:


* Business around the clock - 24 hours a day/5.5 days per week
* The liquidity of the largest market in the world
* Decreased investment capital - 100-to-1 leverage. Without appropriate use of risk management, a high degree of leverage can lead to large losses
* Enjoy profit opportunities during rising and falling markets

Online Forex Trading

In order to make your Forex trading as productive as possible, you need to make the most of the information at your fingertips. Here you'll find the articles, tools and methods that are an indispensable inherent part of improving your Forex trading strategy.



These online Forex training guides were designed to help you improve your trading skills and expand your knowledge. Combined with our Forex trading software, which provides several real-time analysis tools such as charts and quotes, you will be able to establish yourself financially by utilizing short and long-term forex strategies.

Types of Foreign Exchange Trading Education

Getting a foreign exchange trading education is very important. You need to understand that the foreign currency trading game changes every time. It is very dynamic and things can change faster than you think they will. The best you can do is to keep yourself abreast of the latest in the trading field. Learning about the ins and outs of forex is also one efficient way of gaining experience in it. It's not enough that you trade and face so many other business professionals. It's also great to get a third party perspective on how things work.


Knowing more about the currency trading game is easier when you know the theories and the technicalities that surround it. You can choose to enroll into a specific course or you can also do some self-studying through the internet as well. Either way, choose the learning method which you think will suit you best.


Foreign Exchange Trading Education for Free


So you want to know how to learn about forex the free way? All you need is lots of time and patience to scan the internet. You can take advantage of article directories and search for relevant articles talking about forex. However, do not expect that you will get plenty of information from these articles. Most of those published in article directories are practical reads. If you want a quick fix of forex then that's the best place to be. But if you want to learn about everything technical and in-depth, you can try visiting forex sites set up by organizations in the trade. You can also check out websites of financial institutions.


Being a member of forum sites is also a great way to learn about forex. Most of the entrepreneurs who dabble in foreign currency trading are more than happy to inform people about their experiences and give insights on growing market trends. Forums are also a great venue for meeting like-minded people in terms of business. You can also start threads in such forums about the different things you would like to learn about forex that you are yet to fully understand.


Considering a Formal Forex Course


If you find that you want a more cohesive approach to learning about forex, then you can also opt to enroll in some short courses. There are lots of distance learning modules being offered online so you can conveniently learn about forex depending when you can sit down and focus on it. Some experts also hold workshops for forex trading. These last for a few days and may give out certificates upon accomplishing the said workshop.


Just make sure that you have the budget and the time for this type of foreign exchange trading education. Consider this method as a surefire investment in the game. Learning about forex through a systematized course allows you to start from the most basic up to the complex parts of forex trading. This method also helps you focus more since there is a point person who tracks your progress.

Rules For Forex Traders

Forex trading can deal with lots of money and so when you are trading you need to be sure that you have optimal conditions. Too many traders trade out of habit and this can be a dangerous thing because it may not mean you have the best conditions. As a matter of fact trading in poor conditions can cost you hundreds and sometimes thousands of dollars. Trading conditions will not always be optimal and you cannot wait to only trade when they are. It isnt about recognizing the perfect time to trade. Instead it is about knowing when not to trade. When the market is moving sideways or not really moving at all it is unwise to trade real money. You have no indications of what is going to happen and so you are making your decisions off of pure guess and that is a dangerous place to be in. Do not trade real money when you are ill or overly tired. The condition of your body can have a big effect on how your mind thinks. If you dive into trading and you are tired, worn out or just sick it will have an effect on how quick you think and what you think. Trading when your mind is not at a high will mean trouble. Give you body the time to rest and save your bank account the funds of you trading while sick or tired. There is almost nothing worse thantrading when you are emotionally distracted by other factors. It is horrible for two reasons. One your mind isn't on the trading take place, it is off trying to resolve or analyze the problem. The less focus you have the more mistakes you make. The second reason is that if you are emotionally distracted then you are already allowing your emotions to take precedence on your decisions. If you are emotionally distracted then the odds of you trading based on emotion are extremely high. And finally never trade with money you cant afford to lose or when you feel you have to make a certain amount. Those factors create unnecessary pressure on you and your trading. These pressures will translate into you making decisions you probably wouldn't otherwise make. You will feel pressured to push the rules you have laid out in hopes you get lucky and make money. Luck isn't a strategy that belongs in forex trading.

World Forex

Money transfer/remittance companies perform high-volume low-value transfers generally by economic migrants back to their home country. In 2007, the Aite Group estimated that there were $369 billion of remittances (an increase of 8% on the previous year). The four largest markets (India, China, Mexico and the Philippines) receive $95 billion. The largest and best known provider is Western Union with 345,000 agents globally. Posted by Asif Arbani

Foreign Exchange Reserves

This model holds that a foreign exchange rate must be at its equilibrium level - the rate which produces a stable current account balance. A nation with a trade deficit will experience reduction in its foreign exchange reserves which ultimately lowers (depreciates) the value of its currency. The cheaper currency renders the nation's goods (exports) more affordable in the global market place while making imports more expensive. After an intermediate period, imports are forced down and exports rise, thus stabilizing the trade balance and the currency towards equilibrium.

Spot Transaction

A spot transaction is a two-day delivery transaction (except in the case of the Canadian dollar and the Mexican Nuevo Peso, which settle the next day), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot transactions has the second largest turnover by volume after Swap transactions among all FX transactions in the Global FX market.

Forex Retails

There are two types of retail brokers offering the opportunity for speculative trading: retail foreign exchange brokers and market makers. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. Retail brokers, while largely controlled and regulated by the CFTC and NFA might be subject to foreign exchange scams.^[7][8] At present, the NFA and CFTC are imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone. It is not widely understood that retail brokers and market makers typically trade against their clients and frequently take the other side of their trades. This can often create a potential conflict of interest and give rise to some of the unpleasant experiences some traders have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but caution is still advised in ensuring that all is as it is presented.

World Forex56

Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.

Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades.

World Forex

See also: Interest rate parity#Uncovered interest rate parityUncovered interest rate parity (UIRP) states that an appreciation or depreciation of one currency against another currency might be neutralized by a change in the interest rate differential. If US interest rates increase while Japanese interest rates remain unchanged then the US dollar should appreciate against the Japanese yen by an amount that prevents arbitrage. The future exchange rate is reflected into the forward exchange rate stated today. In our example, the forward exchange rate of the dollar is said to be at a discount because it buys fewer Japanese yen in the forward rate than it does in the spot rate. The yen is said to be at a premium. UIRP showed no proof of working after 1990s. Contrary to the theory, currencies with high interest rates characteristically appreciated rather than depreciated on the reward of the containment of inflation and a higher-yielding currency

World Forex

Some of the last few edits seem to just be vandalism, for example changing headings to nonsense. This is obviously a controversial article, but one that was threatening to take over the Foreign Exchange Market page, where I don't think it belongs. I expect that everybody recognizes that there are such things as forex scams, so editors ought to spend their efforts properly explaining what they are. If you think the description is too broad, I suggest that you start a new heading on how to distinguish between non-scamming retail forex brokers and forex scams. Smallbones 12:37, 6 March 2006 (UTC)

World Forex

A market based exchange rate will change whenever the values of either of the two component currencies change. A currency will tend to become more valuable whenever demand for it is greater than the available supply. It will become less valuable whenever demand is less than available supply (this does not mean people no longer want money, it just means they prefer holding their wealth in some other form, possibly another currency).

Increased demand for a currency is due to either an increased transaction demand for money, or an increased speculative demand for money. The transaction demand for money is highly correlated to the country's level of business activity, gross domestic product (GDP), and employment levels. The more people there are unemployed, the less the public as a whole will spend on goods and services. Central banks typically have little difficulty adjusting the available money supply to accommodate changes in the demand for money due to business transactions.

The speculative demand for money is much harder for a central bank to accommodate but they try to do this by adjusting interest rates. An investor may choose to buy a currency if the return (that is the interest rate) is high enough. The higher a country's interest rates, the greater the demand for that currency. It has been argued that currency speculation can undermine real economic growth, in particular since large currency speculators may deliberately create downward pressure on a currency in order to force that central bank to sell their currency to keep it stable (once this happens, the speculator can buy the currency back from the bank at a lower price, close out their position, and thereby take a profit).

World Forex

ontroversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do.^[15] Other economists such as Joseph Stiglitz consider this argument to be based more on politics and a free market philosophy than on economics.^[16]

Large hedge funds and other well capitalized "position traders" are the main professional speculators.

World Forex

An alternative definition of a world or global currency refers to a hypothetical single global currency or supercurrency, as the proposed Terra or the Dey (acronym for Dollar Euro Yen) ^[3], produced and supported by a central bank which is used for all transactions around the world, regardless of the nationality of the entities (individuals, corporations, governments, or other organisations) involved in the transaction. No such official currency currently exists.

There are many different variations of the idea, including a possibility that it would be administered by a global central bank or that it would be on the gold standard.^[4] Supporters often point to the euro as an example of a supranational currency successfully implemented by a union of nations with disparate languages, cultures, and economies. Alternatively, digital gold currency can be viewed as an example of how global currency can be implemented without achieving national government consensus.

A limited alternative would be a world reserve currency issued by the International Monetary Fund, as an evolution of the existing Special Drawing Rights and used as reserve assets by all national and regional central banks. Indeed, on March 26, 2009, a UN panel called for a new global currency reserve scheme which with "greatly expanded SDR (Special Drawing Rights), with regular or cyclically adjusted emissions calibrated to the size of reserve accumulations, could contribute to global stability, economic strength and global equity." ^[5]

World Forex

Prior to and during most of the 1800s, international trade was denominated in terms of currencies that represented weights of gold. Most national currencies at the time were in essence merely different ways of measuring gold weights (much as the yard and the meter both measure length and are related by a constant conversion factor). Hence some assert that gold was the world's first global currency. The emerging collapse of the international gold standard around the time of World War I had significant implications for global trade.

In the period following the Bretton Woods Conference of 1944, exchange rates around the world were pegged against the United States dollar, which could be exchanged for a fixed amount of gold. This reinforced the dominance of the US dollar as a global currency.

Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the Smithsonian Agreement in 1971, most currencies around the world have no longer been pegged against the United States dollar. However, as the United States remained the world's preeminent economic superpower, most international transactions continued to be conducted with the United States dollar, and it has remained the de facto world currency.

Only two serious challengers to the status of the United States dollar as a world currency have arisen. During the 1980s, the Japanese yen became increasingly used as an international currency^{[citation needed]}, but that usage diminished with the Japanese recession in the 1990s. More recently, the euro has increasingly competed with the United States dollar in usage in international finance.

Posted by balu

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Currency market

Contracts on Forex market within the IFC Markets are performed due to SPOT conditions. A spot transaction is a straightforward (or outright) exchange of one currency for another. The spot rate is the current market price or 'cash' rate. Spot transactions do not require immediate settlement, or payment 'on the spot'. By convention, the settlement date, or value date, is the second business day after the deal date on which the transaction is made by the two parties.
Posted by Obaid Ur Rehman.

Forex Trading

or whatever reason, US interest rates at the front of the curve have rallied sharply over the last couple of days from a low close to 60 bps last week. The US yield curve is flattening as yields at the long end of the curve were crushed over the last few weeks as Bernanke's promise to move into new hyper-expansive territory saw a massive rally in long bonds. Meanwhile, the German 2-year rates continue to fall, such that the German/US 2-year spread now stands at around 90 bps. This matches the lowest level of that spread since late October when the deleveraging panic has EURUSD probing below 1.2500. And yet here we stand at 1.4000. Another interesting development in recent weeks is that the German yield curve is steepening sharply over the last two weeks while the US yield curve has flattened - a highly unusual divergence that reflects the fact that the Fed has essentially reached the zero bound at the shortest end of the curve while the ECB still has a bit more room for stimulus via the rate mechanism (another 100 bps drop on the German 2-year seems reasonable in the coming months, which would drop the German/US spread to zero. The last time it was at zero was back in October of 2007, when EURUSD was trading around current levels. This shows that while the direction of the spread can be an interesting signal in the short term (theoretically pressuring EURUSD lower from here), its absolute level doesn't seem to have much significance in the bigger picture.

USDCAD continues to push up against its 55-day moving average, which it has been doing for the last 5 days in a row without being able to close above it after dropping below early last week. The freefall in energy prices continues, with the February contract already having fallen 10 dollars from the highs early last week. This could continue to keep CAD on the ropes, though again, the pair needs to work its way back above 1.2300 and even 1.2500 to get out from under the shadow of the latest steep sell-off.

GBP got whacked again yesterday by dovish comments from a BOE official, this time Gieve, the departing BOE deputy governor. He admitted that the bank failed to understand the seriousness of the crisis (admirable honesty, as few did...) He also stated that rates are a "blunt instrument" for managing the situation and argued for "new instruments which sit somewhere between interest rates...and individual supervision and regulation of individual banks." The market's interpretation of this is that the Bank is leaning toward the US Fed's model for dealing with the problem (hyper-expansive monetary policy, etc...), which could lead to a further pound devaluation. We think the pound is beginning to get a bit cheap vs. the Euro in the big picture, even as many are begin to call for parity. We suspect that EUR will be one of the big losers in the early part of the coming year if not for the full calendar year, as the market has failed to price in the EuroZone's potential for further weakness. Technically, we're not there yet for a EURGBP short, but options are always an option....

Equities did crumble through short term support after trading heavy recently, but the sell-off so far doesn't look like a capitulation and we have to wonder about the potential for much volatility over the next couple of days in equities with holiday trading more or less the rule until the New Year since Christmas and New Years fall in the middle of the week. If equities try to find a little holiday cheer, we might expect USDJPY to continue to drift toward 91.00 and even higher as that pair still has plenty of room to continue to consolidate the recent sell-off. USDJPY managed to rise despite yesterday's equity sell-off.

As always, beware that poor market liquidity can result in exaggerated moves if enough participants have a bone to pick, so we must remain on guard, especially in currencies with end of the month/year fixing and the low liquidity. EURUSD may remain capped around 1.4000/1.4100 for now, with support coming in at the recent 1.3830 low area and then possibly 1.3720, the 100-day moving average.

Forex Trading - Currency Trading

The "Forex"is the abbreviated form of Foreign Exchange; it is also referred as the "Spot FX" market. In Forex trading, the currency of one nation is traded for that of another. Therefore, Forex trading is always traded in currency pairs. The most commonly traded currency pairs are traded against the US Dollar (USD). The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY) and the Swiss Franc (USD/CHF).

Forex Trading Systems

Please find collection of forex trading systems that achieved interesting results in the past and that are used by growing number of forex traders. Test the strategies on demo account first. Remember past results does not guarantee future performance.