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Why You Should Be Trading The Forex

Why You Should Be Trading The Forex

Have you heard of the forex market before? The forex market is a term that is often used to describe the foreign exchange market. If you are unfamiliar with the forex or the foreign exchange market, you are urged to take the time to familiarize yourself with it. After a close examination, you will see that there are an unlimited number of reasons why you should be trading the forex, if you aren't already doing so.
The foreign exchange market was first established in 1971. It revolves around the exchange or the trading of foreign currencies. Forex traders, or foreign exchange market participants, exchange one nation's currency for another nation's currency. The foreign exchange market grew in popularity as it was learned that the exchange rates for foreign currencies regularly floated or changed. This is where the potential of making a profit came in. Fast forward to today and a number of developments have helped to increase the popularity of the forex; developments that have made the forex the largest financial market in the world.
Now that you know the basics concerning the forex market, you may be wondering if it is right for you. What you may not know is that the forex has evolved overtime. As it was mentioned above, a number of developments had a profound impact on the foreign exchange market. One of those developments was forex brokerages, whom started opening to the general public in the 1990's. With the assistance of brokers, many "everyday" individuals saw an opportunity to trade the forex. For many, this was something that once was viewed as being out of their reach. Whether you are an experienced trader, such as someone who has dealt with the stock market on a daily basis, or even if you didn't fully understand what the foreign exchange market was until today, you can still trade the forex. In fact, if properly executed, you may even be able to make a substantial profit doing so.
Unlike the stock market, the foreign exchange market is open for trading twenty-four hours a day, five days a week. The reason for this is because of market place locations; trading occurs in locations such as the United States, Switzerland, Hong Kong, Japan, and the United Kingdom. Due to different time zones, the forex market is open twenty-four hours a day. In fact, that twenty-four day ability to trade on the forex is just another one of the many reasons why you should be trading the forex, if you aren't already doing so. Essentially, there is no exchange center or clearing house. Instead, forex traders and their brokers deal directly with other brokers, banks and interbanks.
In addition to the ability to trade whenever you have the time to do so or the ability to seek assistance from a forex market brokerage firm or broker, you should also be trading the forex because once you learn how the foreign exchange market works, trading may become a regular source added income for you. Before you go searching for a forex brokerage to work with, it is advised that you examine forex training courses. Forex training courses are typically offered by brokerage firms, but there are now a number of training courses that are being offered by those without hidden agendas. Many brokerage firms offer you free or discounted forex training courses, most of which are sub-standard, only with the hopes of acquiring you as a client. While the price is nice, you shouldn't let a free or discounted training course choose your forex market broker or brokerage firm for you.
When searching for a forex training course or program, you are urged to examine Fxcenter.com. The goal of FxCenter.com is to prepare you for forex trading. As they are a training center, not a brokerage firm, you are given the utmost level of training and education available, without any hidden agendas. In fact, the one and only goal of FxCenter.com is to adequately prepare you for trading on the foreign exchange market. When doing this, FxCenter.com staff go by the belief that quality learning is better than rushed learning. For that reason, you will see that many training courses require at least a minimum of twenty hours worth of initial lessons. Completing each training course in phases that also includes live marketplace trading should help you feel comfortable trading on the foreign exchange market. This comfort will be critical when placing your own trades, and also helping you avoid some unnecessary risks.

Currency Trading

Currency Trading

Have you heard about FOREX? How currencies are traded? 
When you think about Forex, what do you think of first? Which aspects of Forex are important, which are essential, and which ones can you take or leave? You be the judge.
Let's talk about FOREX and advantages of FOREX trading.
The good thing about FOREX is that the amount of money you need to place a trade (known as "margin") is all that can be lost!
Of course, with the proper self-taught education you will win more than you will lose, but you should know  that despite the high leverage of FOREX trading (200:1 is possible, which means that when you put up $1 the trading vendor will allow you to trade it as if you have $200), it's still  less risky than futures (commodities) trading. And when you trade stocks you can't get this type of leverage.
Because of the FOREX market's liquidity and twenty four hours continuous trading, dangerous trading gaps and limit moves are eliminated. Orders are executed very quickly, without slippage. If you do your research and find good brokers, they will automatically close some or all of your open positions if your account's equity falls below the level required to hold the positions. You'll never lose more than you have in your FOREX account.
Currencies are traded in dollar amounts called *lots* -- One lot is equal to $1,000, which controls $100,000 in currency.
This is the "margin" I talked about above. You can control $100,000 worth of currency for only 1,000 dollars. 
Currencies are always traded in pairs. The most popular currencies and their symbols are: 
USD - The US Dollar 
EUR - The currency of the European Union "EURO"
GBP - The British Pound 
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar 
A currency can never be traded by itself, so you can't trade a USD by itself. You always need to compare one currency with another currency to make a trade possible. 
The most commonly traded currency pairs are:
EUR/USD   Euro / US Dollar
"Euro"
USD/JPY   US Dollar / Japanese Yen
"Dollar Yen" 
GBP/USD   British Pound / US Dollar
"Cable"        
USD/CAD   US Dollar / Canadian Dollar
"Dollar Canada"   
AUD/USD   Australian Dollar/US Dollar
"Aussie Dollar"       
USD/CHF   US Dollar / Swiss Franc
"Swissy"      
EUR/JPY   Euro / Japanese Yen
"Euro Yen" 
The currency on the left is called the base currency. The currency on the right is the counter currency. For example, when you place an order to buy EUR/USD pair, you are actually buying the EUR and you are selling the USD. When you place an order to sell EUR/USD you are selling the EUR and you are buying the USD. Buying or selling a currency PAIR means buying or selling the base currency, and doing the opposite with the counter currency.
It might seem a little confusing, but actually it is easier to treat the currency PAIR as one item. It means when you place trades you simply sell or buy the pair. The base/counter concept is only important for fundamental analysis.
To decide when to sell or buy you will need to learn technical analysis and/or fundamental analysis.
In currency trading you can make money both, when the currencies go up or down.
The FOREX currency trading is a great way to work from home in your free time. You can trade any time you want, from Monday to Friday. But you must know that you can lose money in FOREX. So, getting the proper education and trading before doing any real trades is a must. Fortunately you can first practice on a demo account, until you get to the point that you win 70% of your trades. Nobody wins 100%. But you can be in profit even with 50% wins.
There are plenty of books and courses to learn currency trading, but be careful with all those $1000+ courses. Usually you can find courses with the same content for much less.
If you want to learn more about FOREX go to: http://www.currencytradingmethod.com. You will get a free e-book "Forex Freedom".


shoof
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جديد قسم : forextrading