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Forex Trading Articles

What Do I Need to Know Before Entering Forex Trading- 4 Things You Should Know

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The Forex market is a great market to be in if you’re looking to make a lot of money.  Although it’s a very lucrative opportunity, there are a few things you should know before you start.  Which is why you’re wondering, “What do I need to know before entering Forex trading”.

Well, what I’m going to share with you are a few things you should know before you begin forex trading.  That way, you’ll know what to do in order to make a lot of money in this industry.

The things you should know about trading Forex are:

1.  The first thing you need to know is what Forex is.  It’s the trading of foreign currencies.  You want to buy low and sell high.  The currencies that are usually traded are Euros/US dollar, Euros/Japan yen, and Great Britain pounds/US dollar.

2.  Another thing you need to know before entering Forex trading is the terms that are used.  This will help you understand what’s going on and will help you make more money.  You don’t want to jump into this thing blindly.  You’ll hurt yourself.

3.  You will need to open up a demo account and practice.  Doing this will help you get a better understanding of what to do without you having to risk your money.  After you have practiced and understand what’s going on, you should then go live. 

You’ll then start trading money…and making money, which is what a lot of people want to know who are asking, “what do I need to know before entering Forex trading”.

4.  You need to have robot.  It will help you automate things when trading.  Your Forex robot will help you find opportunities that you might not have found on your own.  It’s a quick way to make money in the Forex market.

These are some things you should know before you start trading Forex.  Be sure you pick a great system, use a Forex robot, and practice.  Once you are comfortable with practicing, you should then move on to trading real currencies.

Now that you have the answer to, “What do I need to know before entering Forex trading”, use the tips above.  It’ll make you a successful trader.

Forex Trading Articles

Forex Trading Vs. Futures – What You Should Know

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There are many financial markets in which to participate in order to make substantially better returns than putting your money in a CD or savings account. Some markets such as a money market or a typical bond market won’t usually gain you double digit returns. However, there are some markets that can allow you to achieve double digit returns on your investments and this article will compare a couple of them.

The Forex Market, or FX Market as some term it, is one of those markets where you can make double digit gains. You can also make double digit gains in the Futures market as well. There are distinct differences between the two markets and you will want to know what they are before you enter into either one.

Liquidity:

Forex Trading has the advantage of being more liquid than any other market, including the Futures Market. With the average daily volume in the Forex Market reaching close to 2 Trillion and the daily volume in the Futures Market reaching 30 Billion, there is no comparison. The liquidity in Foreign Currency Trading (Forex) far surpasses that in the Futures Market. This means when it comes time to trade, Forex Trades will be filled much easier than in the Futures Market. This speed means greater potential profit. Couple this with instantaneous trade execution in Forex Trading, and you have the ability to make a lot of trades quickly.

24 Hour Trading:

Another advantage the Forex Currency Trading System (Forex) has compared to Futures is the fact that you can trade 24 hours a day, five days a week if you want. The Forex Market is open longer and for more hours than any other market. If a person is serious about making money in a market, it sure would be nice to have virtually unlimited time each week to make those trades. Whenever some event happens around the world, you can be one of the first to take advantage of the situation. You won’t have to wait for a market to open in the morning. You can trade from your computer instantaneously.

Rapid Trade Execution:

When you use a Forex Currency Trading System you receive immediate trade executions. There is no delay like there can be in the Futures or Equity Markets. And your order gets filled at the best possible price instead of guessing at which price your order might get filled.

No Commissions:

Forex or FX Trading is Commission Free because it is an inter-bank market which matches buyers with sellers in an instant. There are no middleman brokerage fees as in other markets. There is a spread between the bid and ask price and this is where Forex trading firms make a little. This means you can save money when you trade Forex compared to Futures trading where there are typically commissions.

Greater Leverage:

Online Forex Trading gives you much greater leverage than playing the Futures Market. However, in the Futures Market, you can also buy or sell options on futures, which increase your leverage. Leverage can be very important when you know what a currency is going to do. You can achieve 200:1 and greater in Forex Trades compared to much less in Futures. This means a lot more potential profit, again if you make the right moves.

Limited Risk is Guaranteed:

Since Forex Traders must have position limits, the risk is limited since the online capabilities of the Forex Trading system automatically initiate a margin call when the margin amount is greater than the value of the account in dollars. This keeps a Forex Trader from losing too much if their position goes the other way. It is a good safety feature that is not always available in other financial markets.

When considering the differences between Forex Trading and Futures Trading, just keep in mind your preferred trading style and the type of risk you don’t mind taking. There are definite advantages to FX Trading that may allow you to profit greatly if you develop a good system and stay within your trading limits. If you are ready to go, then begin investigating a good firm with whom to open a Forex Trading Account.