Category Archives: General Forex

General Forex

Forex Trial Account – Using a Forex Robot Demo Account

Leave a comment

Forex Trial Account

If you are new to Forex, you will definitely need some hands-on experience to get a feel of the market to be able to make wise investments. If you are worried that you will have to experiment with your own money to learn about the market and become a successful investor, put your mind at ease. Nowadays, there are hundreds of websites that not only give you a free demo account (with some virtual money in it) but also give you a Forex robot along with it to help you learn how to automate your investments.

How a demo account works:

Some websites give you a demo account with some amount of virtual currency of your choice in it. While you are shown live market trends, Forex charts, news and commentary, and you will be at liberty to invest as you like. If you choose to automate your investments, you will have to specify the market criteria that you think will be best for your investments, or let the Expert Advisor program decide by itself. You can then sit back and watch your virtual investment grow or shrink. This will help you learn about the different market conditions that can arise. Forex Trial Account

Choosing your Forex software:

After you’ve created your demo account, you will be given a trial period (say, 90 days) along with the trading software. The software will be a trial version, and some features will be limited. However, what it has to offer will be quite sufficient for you to learn the ropes and decided whether you like the software. It is recommended that you try out software from different companies before you make your decision. Once you have found the Forex robot that gives you the best results, you can go in for a postpaid account through which you can start trading for real. Forex Trial Account

General Forex

Forex Volume By Country – Forex Currency Trading Explained

Leave a comment

Forex Volume By Country

Forex currency trading is the trading of one currency against another. All Forex Trade results in buying of one currency and selling of another currency, simultaneously. When one country’s currency is being purchased with another country’s currency, it is the transaction in Forex trading and the negotiated price is the foreign exchange rate. It is the backbone of all the international capital transactions which take place throughout the world.

This is world’s largest trading market in terms of trading volume and is estimated to be $2.5 trillion.

Currency trading has exceeded the stock market too in terms of popularity and volume and has emerged as the most potential business in the world of trade. When the forex currency trading explained properly, you can observe how even minor price movements can result in huge profit as opposed to small profit margins in other financial instruments like commercial banking and the stock markets.

The trading throughout the world varies with regards to place and time and the market timings vary from place to place with respect to the working hours of the day. To get the Forex currency trading explained you must understand how it operates. Every Sunday at 7 pm in the evening New York time, forex trading begins when the markets open for the week in Tokyo in Japan situated in the easternmost part of the world.

Next in line to open their markets is the Hong Kong and Singapore followed by markets in European nations. Last in line to follow is London and by that time it is time for the Asian markets to close up for the day. Forex Volume By Country

Currencies are usually traded for hedging as well as speculative purposes. Market participants including individuals, corporate agencies, and institutions trade foreign currencies for various reasons. This is a good platform to evade the market exposure that the investors experience during their normal course of trading.

Currency market is perfectly suitable for speculative trading. It is estimated to be about 50 times the size of transaction markets of all the equity markets clubbed together and due to this the Forex trading is considered to be the most lucrative investment options in the world. Here even for the implementation of big buy/sell orders there is no slippage of the market price.

The traders can take the advantage of upward as well as the downward trend, thereby increasing the profit potential. The most commonly traded currency pair is the EURO/USD. Otherwise the most commonly traded currencies are USD (US Dollar), EUR (Euro), JPY (Japanese Yen), CHF (Swiss Franc), GBP (British Pound), CAD (Canadian dollar), and the AUD (Australian Dollar). Forex Volume By Country

General Forex

Forex Malaysia Bank Negara – Advantages of Forex

Leave a comment

Forex Malaysia Bank Negara

Instead of shares, futures and options, more and more people and investors are trading Forex. It is clear that Forex has given traders and investors unparalleled advantages over other investment vehicles. It is because of these benefits, I personally believe that a lot of not-so-well-to-do people can benefit from this market. In this article, we will look in detail the advantages of Forex trading has for wealth builders.

24 Hour Trading
The Forex market is open 24 hours daily. When Asia market is closed, the European market starts followed by the USA market and continued by Asia market again the next day. Thus, this allows Forex traders to take positions regardless of the time and locations. This is really helpful for those who can’t afford to quit their job and they can earn additional income through Forex part time.

No one can corner the Market
Foreign exchange market is so huge that no single entity has the capability to control the market price for a long period of time. That includes a central bank. There are simply too many participants, ranging from personal traders, commercial banks, central banks and hedge funds. Forex Malaysia Bank Negara

Extremely Liquidity
As the same reason as above, because Fx market is so vast, it is extremely liquid. Under normal circumstance, you can buy or sell the currencies pair at once. Shares on the other hand, you might not able to buy or sell the shares you want as there might not be a seller or buyer. There no such thing in Forex.

No Commission
There is no commission and no middlemen which incurred high cost and eat into your profits. Brokers earn their money through pip spread. At the reputable and larger brokers, the pip spread can go lower than 0.1 percent per trade. Forex Malaysia Bank Negara

Flexibility in Lot Size
In spot FX, you determine your own lot or contract size. This allows a lot of people to trade with as little as $300. Personally, I feel this can help a lot of people who wish to improve their life but does not have a lot of spare cash. Stock market and futures require a lot of capital to invest, thus making the wealthy or high salary society to earn more. Middle income group will have problems entering the stock market due to lack of cash. It isn’t wise for middle income earners to take a loan for this risk. Therefore, FX brokers that allow any lot size helps middle income earners to earn extra money. As long as these people has good and proper education on currency trading.

High Leverage
This is important to anyone who wish to trade as a small amount of capital with a high leverage allows you to control a larger contract size. This gives you the ability to make bigger profits and keeping risk at bay.

For example, with leverage of 100:1, if you open an account with $100. you are able to control $10,000 contract size. At the same time, by opening an account with $1000, you can control $100,000!

This, of course, can also cause you to lose the amount of money in your account easily if you do not exercise good money management. Forex Malaysia Bank Negara

General Forex

What Is Forex Dealing Desk – Forex Broker Terms You Might Need to Know

Leave a comment

What Is Forex Dealing Desk

When dealing with a Forex broker, you are introduced to a whole new trading jargon. Therefore, it seemed fitting to present to you a variety of Forex broker terms that you will need to know.

No Dealing Desk (NDD) Broker-This is a broker who does not have his own dealing desk. He instead outsources persons who would interact with the clients, providing them with price and liquidity information. These liquidity providers are the ones responsible for sending in all bids to the trading platform. The best bid is then presented to the client.

Forex ECN Broker-ECN stands for Electronics Communication Network. Therefore, an ECN broker is an Electronics Communication Network broker. All the trades are done in the name of this professional without the use of a dealing desk but rather via the use of a marketplace. This marketplace is flooded with market makers, banks, and traders who are making offers. This is a form of anonymous trading.

Market Maker-This is an individual that provides pricing and liquidity for currency pairs. This professional would then stand by waiting for the chance to buy or sell a currency at a specific price. A variety of strategies are used in order to provide traders with opportunities to make the most profit. What Is Forex Dealing Desk

Agency-A professional establishment that provides intermediary services to both buyers and sellers is known as this. This outfit employs agents who make commissions off any gains made. Sometimes a small commission is charged regardless of how the financial transaction turns out.

STP-This is the acronym for Straight Through Processing. It is simply a term to indicate that an entire trading transaction is fully automated. There may be a person overseeing the automated transaction system. However, there is no intermediary taking care of your trade you just made. It is all done using web-based or downloadable software.

Margin-This is the amount of equity contributed by a trader. It is a percentage of the current market value of securities which are held in a special account. What Is Forex Dealing Desk

PIP-This is the smallest unit of money that is used to accurately calculate Forex rates. This is a more precise determination of how much profit has been made or how much profit could be made.

Spread-Difference between the bid and ask price is referred to as this. This is another calculation of gain or loss as a transaction is made. It also is part of what is used to create statistical graphs and charts for a Forex broker to use as a guide.

Leverage-Market participants use this method of increasing potential gain of a Forex transaction made. It involves the use of various financial instruments (foreign currency in this case) or borrowed capital (usually money).

Lot-A pack of trading units that are sent to the market are often referred to as this. There are three different types-the micro (1,000 units), mini (10,000 units), and regular (100,000 units). This is done to help accommodate Forex broker accounts created by traders within varying budgets. What Is Forex Dealing Desk

General Forex

Forex For Beginners The First Steps – How to Trade Forex

Leave a comment

Forex For Beginners The First Steps

Forex trading is extremely profitable. However, it is also can be extremely risky. However, you can reduce your risk if you learn how to trade Forex successfully. Learning how to trade currency should be the first step for all Forex traders should learn. In this article will offer three tips on how to trade Forex.

Research
Research is important as it allows you to understand how currency exchange market works. Without researching, you will not able to understand most of the words and charts means. The purpose of research is to create a foundation of knowledge for this online money maker. Here are the 3 things I recommend you to research first.

Research what causes the Forex market to move. No currency rates move without a reason. Understanding the reasons why they move can create a good foundation for your next step of learning.
Research the Terms and Lingo – This allows you to understand the commonly used terms in research reports and strategy plans. This way, you will learn faster and easier in the future. Treat it as a Forex Language course.
Research the Systems within the market – Find out what tools you can uses to earn trading income. Demo accounts and free online courses can teach you and guide you in this journey of financial freedom. Forex For Beginners The First Steps

Learn
Next step you should do is learn. Learning how to make money with strategy and planning. With a template in your mind. The propose of this step is to greatly reduce the risk when trading. Remember, like what Robert Kiyosaki says, “There is no risky investments, only risky investors”. And risk are often comes along with greed and lack of knowledge. Here are the 3 things I recommend you should learn first.

Charting – Learn all kinds of basic charts helps. There are 2 charts, Bar Chart and Candlestick Chart. Candlestick charts are the highly recommended charts for trading by many experts. Learn how to analyze those charts also. This way, you can get information from them.
Indicators and Chart Patterns – Chart patterns always give advance warning or predictions to the future rates. Indicators will signal you that a change in prices. Multiple uses of indicators will help you gain confidence in predicting the change of prices.
Trading plan – A trading plan is a plan that you have developed to include the trading strategy, money management, Trading routine, and the time to be in the market. Research and find out other successful forex traders’ trading plan and craft one that based on your budget, self imposed rules and objective. Forex For Beginners The First Steps