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Forex Trade

November 12th, 2018 Comments off

Forex Trade is the trading of the world’s countries currencies that are paired against each other. This market is commonly termed as Forex, FX or Foreign Exchange. An example of this might be between the paired currency of the United States and of the European Union, or otherwise the dollar and the euro (USD/EURO). The currency pair will appear on the forex quote at the top-left side, and the left currency is the quote currency, while the currency on the right side is the base currency.

A Forex broker usually facilitates forex trading in behalf of a client/trader, with the corresponding currency pair of his choice. The forex broker passes the clients orders to the Interbank Market partner, whether to buy, sell or stay and credits any losses or gains to the account. This can be done in a matter of few seconds with just a click of the mouse, thanks to the Internet and computers.

The advantage forex trade has over other investment markets is that it is not being controlled by a central trading system or entity, and that it happens in one continuous movement all over the world. Operating in a 24 hour period, it opens on a Sunday evening in Australia and closes on Friday in New York.

Any trader will be provided with various price quotations for the currency pair he is currently trading in since forex trade operates in all the major countries of the world, as also give him many options to choose from in order to come up with the most profitable deals, as well as receive vital information and technical datas vital to trading the market. The description given to this inherent characteristic is known as an Over the Counter (OTC) market trading system.

If you compare Forex trade with other investment markets such as futures or stock trading, it is more liquid yet volatile. With this set up, forex trade offers its market players the chance to make transfers of larger amounts of money with little effect on its price. With such freedom, traders can choose to trade with whatever currency they choose to, if the opportunity to gain profits from it presents

With this in mind, forex traders are not limited with specific rules to follow – as long as no laws are broken, and can base any of their trade decisions on the market’s speculator’s, the current trade conditions of major and leading economic countries and the behavior of major commodities.

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A Basic View Of The Forex Market

July 9th, 2018 Comments off

The FOREX currency market has attracted numerous investors to its very promising and highly popular investment arena. If you want to invest your money and gain profits at a faster rate, then you might want to consider entering Forex trading. But before you jump in, you will have to educate yourself thoroughly with its basic strategies and methods for you not to get burned in the process of doing actual trading in the market.

FOREX currency trading is akin to stock trading. In stock trading traders buy stocks of selling companies and sell it to gain a profit when the value appreciates. In currency trading, traders purchase foreign currencies and sell these at higher rates from its original value or when the trader sees an opportunity to gain a substantial amount with the rise of its market value. Both markets have small and big investors that invest amounts ranging from a few hundred and thousands of dollars and up to millions. With no central controlling entity, any one can participate in Forex trading individually or by getting a Forex account with a recognized Forex broker. New investors are advised to start with a mini Forex account which can be opened using a minimum amount of $200 or as warranted by the handling firm.

With its capacity to generate profits at shorter periods, all trading deals of both investment markets are fraught with risks and trade problems that, if executed incorrectly and untimely, will incur losses. All trade investors must educate themselves on the markets basic principles and methods if they want to stay in the market successfully. One can get all the pertinent information from enrolling in Forex classes, online courses, books and ebooks, and related media. There are also free and paid-for software programs that help in currency analysis and for prediction of market behavior. Operating non-stop around the world, Forex can be monitored anytime and from any part of the globe in the luxury of one’s home or office.

With your hard earned money at stake, it’s advisable to do wise trading by being cautious yet courageous with your trade deals. This can be achieved effectively by gaining enough knowledge about the Forex trading principles and strategies. You can also practice with paper trading at the onset and then move on to actual Forex trading once you’ve learned the basics. You may want to get additional help by either trying out some free online software programs or buy one from a trusted Forex firm that is best suited with your style of trading and trading platform.

To have a successful career and to see steadier profits in the Forex market, one has to constantly reinvent himself with the aid of new softwares and educational courses on the market.

Is automated forex trading misleading? What is forex trading? Come visit our blog to find out the answers to these questions and more.

The Advantages of a Managed Forex Account

May 15th, 2018 Comments off

With its high liquidity, 24 hour trading operation, and minimal cost for investment capitalization, many investors have already been enticed into joining Forex currency trading. While not all traders can afford to devote extra time or additional resources to learning the basic lessons of currency trading, this can be remedied by purchasing a Forex account from a reputable Forex investment firm.

Managed forex accounts are managed by experts on Forex matters who’re connected with a large financial institution. A Forex account is an active or live forex account paid by the investor who gives full authority to the (certified) handling Forex brokerage firm, who does trading in their behalf, subject to the conditions and limitations of their contract. This set up benefits the investor which allows him to receive a (reasonable) profit margin without the required time and effort on his part, as dictated by the trading process.

The company managing the Forex account will have sole responsibility of gathering, analyzing and interpreting market data, and gives the necessary recommendations to the investor what to do in all trading transactions. Many of these companies and investment firms have been doing business in the Forex market for quite some time already, so therefore, have a high degree of experience in managing Forex accounts. The services they provide are essential to potentially all investors, most especially the ones new to the market, as they offer better chances of providing steady yearly profits.

One disadvantage of managed Forex accounts is that the fees remain collectible, whether or not the account generates substantial profits or not. Most starting investors have little or no experience of the market, so should do as a first step get an account with a reputable investment firm that is duly recognized by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Doing so will mean that you’ll be putting your investment on the able hands of an experts. Many such companies have access to vital market information shared only by most financial institutions, thus giving them privileged information on vital currency exchange rates and other important market changes, allowing them to have knowledge on how to create a profitable transaction.

If you want to be successful in Forex trading, but lack the essential tools, experience and know-how should highly consider getting a Managed Forex Account from a reputable investment firm to ensure having many, steady profitable deals now and in the days to come.

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Top 7 Reasons Why You Should Setup A Home-Based Forex Trading Business

June 25th, 2017 Comments off

Are you another one of those who are dissatisfied with their current career? Do you know a lot of people who are also? If you answer “yes” to these questions, then you now have a good reason to set up your very own home-based forex trading business!

You must know a lot of people who want more income, including yourself. Everyday expenses tend to affect all of us. Even for a little bit we want to experience something possible by simply having additional income. Even the thought of having more money somewhat comforts us. People simply love spending money and that is fact. That is one of the reasons why you can be sure that you might get earned commissions when you set up your own forex trading mlm network.

You simply can earn by helping others earn. Spending worldwide involves various currencys. People have to pay using some currency whenever they engage in financial transactions. It is not cheap converting currencies, but because people have a natural urge to buy foreign products, people will facilitate currency exchange. This is the reason why forex trading is an industry that involves trillions of dollars every year – that is trillions, not just billions. By the time we reach the year 2010, there is no telling how many trillions might be involved. It is estimated it willgrow even more in the future, right along with the U.S. economy itself. Isn’t that a great business opportunity?

If your friends are searching for more income, they will choose you. With your forex business, you have a chance to competing against the universal need for more money. If you offer others a good way to increase their net worth, who do you think your friends will choose to do business with: you, whom they know, and trust, or someone else? You know the answer to that one.

You can work at home and be your own boss. Working at home lets you have additional quality time with your family and more time to enjoy your hobbies. It also means no boss to intimidate you, like in a typical office.

You may utilize a powerful tool: the Internet. We all know that the internet has made our lives easier. This is certainly true with forex trading. Almost everyone has access to the web. Why not take it one step further and use it to your advantage with your foreign exchange business? If the big companies are in it, then shouldn’t you be too? One reason they got big in the fist place is because they got into this business.

Everywhere in this nation, many people with little effort and capital are earning big bucks while competing with the big companies. Now, isn’t that a profitable competition you ought to be in?

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Following Gold in Currency Trading

January 4th, 2017 Comments off

Gold is the ultimate global currency. At one time US Dollar used to be pegged to gold. But with the collapse of the Bretton Woods System, US Dollar was unpegged from gold.

Now US Dollar is only backed by the full faith and credit of the US Government. Most of the currencies in the world are free floating now. Many countries are also purchasing gold in the open markets as a hedge of their foreign reserves most of which are in US Dollar. In the present financial crisis with the global economy in recession, many investors are trying to take refuge in gold as the ultimate safe haven of their wealth from financial turmoil.

Among the different currencies, the Australian Dollar (AUD) is known for its strong correlation with gold prices. Most of this correlation is due to amount of gold that Australia produces and exports. On the other hand, US Dollar has an inverse relationship with gold prices. When gold prices rise, US Dollar falls in value. This causes the currency pair AUD/USD to appreciate in value.

The opposite is also true. As the US Dollar gains value, gold usually loses value. So when gold prices are rising, we can execute long trades on AUD/USD. Likewise, when gold falls in value, we can sell short AUD/USD. This relationship provides us with a method to take advantage of the fundamental factors in forex markets. It may be due to the fact that gold is considered to be the ultimate safe haven by investors in times of financial crisis.

Entering a trade to follow gold is a three step process. We will use RSI (Relative Strength Index) as the technical indicator to trigger our trade. If you have read the previous article on following oil, we had used the CCI (Commodity Channel Index).

When both gold and oil are commodities, why dont we use CCI for gold as well? Why is that we are using RSI now? CCI gives a quicker signal. This is good for relatively less volatile pairs like USD/CAD. Whereas RSI gives slower signals, this is ideal for more volatile pairs like AUD/USD. It all depends on how quickly the two indicators react to volatility.

You should use a moving average to confirm if gold is in an uptrend or a downtrend. You will use the seven periods RSI on AUD/USD chart. Watch the RSI chart when it enters one of its reversal zones, then move back out of the reversal zone in the same direction as the gold is trending.

You need to enter a long trade on AUD/USD if the gold prices are rising with the RSI crossing back above the 30 line. On the other hand, you need to enter a short trade on AUD/USD pair if the gold prices are declining with the RSI crossing below the 70 line.

Set a limit order of 200 pips and a stop loss order of 50 pips for the trade. This gives a risk to reward ratio of 50/200=1/4. This risk to reward ratio is good. The chances are you are going to make 200 pips that means $2000 profit if the trade goes as you had anticipated. And if the trade does not go in your favor, 50 pips stop loss means a $500 loss. It is not uncommon to have a trade go against you only to find yourself right back in trade that goes your way after sometime.

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