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FOREX Trading News 2007-04-12 14:33:00 Forex Trading
as commonly called stands for Foreign Exchange Trading. It is biggest financial trading market in the world having a daily turnover in excess of US$1 Trillion. The figure signifies a volume amounting to about 28 times the combined volume of all US equity trading markets. Forex Trading means buying of one foreign currency by paying in another. Each transaction involves a purchase and a sale of currency at the same time, since currency trading is always done in pairs for example USD/EUR or USD/GBP etc. Foreign Currency trading or Forex Trading is undertaken for two purposes. About 5-7% of the transactions are undertaken by institutions that do business in foreign lands or companies that have to convert their foreign currency earnings into domestic currency. The rest of the Forex Trading is done purely on speculative basis with profit objectives. For trading by speculation purposes, the best profit making opportunity lies in most traded currencies (obviously the currencies o
The Dangers Of Highly Leveraged Trading In Forex 2007-04-12 14:33:00 If you are a forex trader considering one of these '400-1 leverage' offers, you should first know: 1. The rules of the game you are about to play. 2. About leverage in Forex
and how it works, not for you, but for the broker. Here is how it works: Leverage can be beneficial but it can be your worst enemy. 400-1 means that US$1000 can control a $400,000 position say against the Yen. This is great but it also means that even a small move against your position can wipe your account clean. This is obviously very bad news for you but great news for the broker! Why Is It Great News For Them? Well, the first thing that traders must realise is that Forex firms make their own markets - they make the bid-offer price to clients. They use the assumption that as most highly leveraged speculators lose then it's good business to take the opposite position to them. This is done automatically, so when a client buys Dollars against the Yen, the broker sells short the Dollar. When the client covers the Read more:Leveraged
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Forex The Future Investment 2007-04-12 14:31:00 There are many many advantages over the various other ways of investing. First of all it is a 24 hr market, except for weekends of course. You have the US market then the european and then the Asian. One of the great times to trade is during the over lapping periods. The USA and european overlap between 5am & 9am eastern and the Euro & Asian between 11pm & 1am eastern. Usually the busiest time and best to trade. The is also the risk factor for the accounts. With futures and options you can get margin calls that can wipe you out. If you get caught in a bad trade not only do you lose the money in the account but you may have to come up with alot more from your pocket. It can be very risking. But not in Forex
. Worst case senerio you could lose whats in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and leave it alone. If market takes a bad move and you weren't there. OOOPS. But That wouldn't happen with a smarth trader. Then t Read more:Future
How To Choose A FOREX Broker 2007-04-12 14:31:00 Most investors who trade FOREX stocks use a broker. A broker is an individual or a company, who buys and sells stocks according to the investor's wishes. Broker
s earn money by collecting commissions or fees for their services. You should check that a broker is registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud or abusive trade practices. A FOREX broker also needs to be associated with a financial institution, such as a bank in order to provide funds for margin trading. Picking the right FOREX broker for you will take some work on your part. There are brokers who charge a flat fee and some that charge commission. It may be a good idea to talk with friends and business associates about their brokers. You may get some good leads, and you're certain to hear who to stay away from. There is nothing like word of mouth advertising. If you are thinking of investing online, you could choose several online brokers a
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