Monday, September 20, 2010

The Major Currencies Used on Forex Market

This article is dedicated to describing the most important currencies employed in the Forex market. On the Forex market, there are 5 major currencies that are used in the transactions.

The first currency is the American dollar (U.S Dollar). It is the world's main currency being used as an universal measure to assess the other currencies traded on Forex. This is why all currencies are quoted in terms of the American dollar. This privileged status has resulted from the fact that this currency was the most stable during the most troubled periods. It became the leading currency at the end of the Second World War. It was only in 1999 when the Euro was introduced, that the U/S dollar has lost some of its importance.
The Euro was introduced with the intention of becoming the premier currency in trading. Like the U.S dollar, the Euro boasts a strong relevance in the currency market. However, high unemployment, government resistance to structural changes plagued the growth of the Euro.

A third most traded currency in the world, the Japanese Yen. has a much smaller international presence than the two currencies earlier mentioned. It is very liquid around the world, the demand to trade it being concentrated mostly among the Japanese economic and financial conglomerates.

The British Pound was a reference currency until the end of the Second World War. Although heavily traded against the Euro and the U.S dollar, the British Pound has a spotty presence against other currencies.

The fifth important currency on the Forex market is represented by the Swiss Franc and it is the only major European currency that doesn't belong either to the European Monetary Union, or the G-7 countries. It is a major currency and closely resembles the strength and quality of the Swiss economy and finance even though the Swiss economy is relatively small. From a foreign exchange point of view, the Swiss franc has similar patterns with the Euro, but lacks its liquidity.

Automated Forex Market Software Review - Genuine Online Forex Trading

If you want to earn a huge amount of profit when trading forex then you need to hit the market at the right time when the trend is good. Now the question comes that who will inform you about the right time and the right trend? The answer to this question is the (EA) expert advisor for forex platform.

This EA is nothing but a very specialized software that will suggest you and tell you how to perform when trading forex. The platform on which this software works is the meta trader 4. This is the best platform in the entire market.

The basis on which this EA works is through advanced technology strategies. According to some of the fixed strategies, this software works and gives you proper information and advices.

The best EA uses 2 kinds of strategies, one is the long lasting strategies and the second is the scalping techniques. The forex market is a very fluctuating market; here no one can predict what is going to happen next. So you to have to use such a EA which will help you with both kinds of strategies. This will help you to understand the market in a better way. Also you will understand the right trend, and when you can actually trade in this market.

Generally the scalping strategy works in those market conditions when market tends to make very small moves. But in case if the market takes a very big move then it will require long term strategies.

The best part of this expert advisor for forex platform is that with the help of this EA, you can trade in many currency pairs at a time. Also with its help, you can get to choose the best broker for yourself. A good broker can surely get you the profits which you are looking for. So you can see how important these expert advisors are.

Let's Start Trading On the Forex Currency Market

The beauty of trading on the Forex Currency Market, is that you have the flexibility of trading from literally anywhere in the world!

All that is required is a laptop and an internet connection, and you are ready to make some serious money online.

In respect of training or specific requirements, there isn't really anything necessary.
All that you really require is a good training manual be it via video or eBook, and that should be enough to get you going and to start trading Forex.

But why trade in Forex?

What is so special about this type of market in comparison to say the stock market?

OK - well here are the main reasons why you should trade in Forex:

Forex trading offers monetary leverage. In basic terms this means that you can trade with a very low capital outlay and can control a very large currency position. You can trade a standard of $100,000 currency lot by investing a very small amount of capital to the value of $1000. And believe it or not, some forex brokerage firms even allow you to trade with even less capital - by giving you up to 200 times the leverage. So let's say that all you can afford is a mere $100 - well you can probably control a 200,000 unit currency position.

The other great thing is that online forex trading has very low transaction charges, even if you have a mini account or trade in small volumes - which is not quite the case when trading on the stock market.

Another important factor to bear in mind is that forex market transparency is an advantage since there are no hidden figures. Basically you get what you see and there are no hidden or unexpected surprises. The beauty of this is that it enables you to manage your risk and you can control your order within seconds if you want to stop further losses in a particular trade.

The forex market also allows you to trade in any direction, that is, whether going up or down.
Real time is one of the many advantages in forex trading. The forex market never closes as it is a constant electronic currency exchange taking place universally. Let us remember that this is a worldwide trade, involving a huge array of currencies, currencies of various nations.

It operates 24 hours a day, thus allowing you to enter or exit a trade whenever you like. So this enables you to trade whenever you have the free time and as long as there is an internet available anywhere.
As you grow in experience you can and will earn extra income by profiting from this sort of online trading in foreign currency. And if you trade in a smart fashion, by using the various analytical tools available to you - you can profit by predicting the outcome of a trade based on observing the changing trend of a currency which normally repeatedly shows up in predictable cycles.

 I will end this by saying that there is an unlimited earningpotential when you trade in Forex.

It currently has a daily trading volume in excess of 1.5 trillion. This makes it the largest financial market worldwide when compared with the equity and futures markets of 50 billion and 30 billion respectively.
If you wish to take this further and if this article has incited some sort of excitement within you, than please have a look at my resources box as a start to making it in the online world of Forex Trading.

Trading Forex or Stock Market - Which Do You Choose?

You have had a desire to begin trading in the markets. You probably have heard allot about the stock market and its benefits, but what about trading forex. What are the advantages or disadvantages to trading forex over the stock market.

Lets begin by going over the major differences between the trading the forex market and trading the stock market. Well we have all heard about the scandals in the past regarding insider trading and stock manipulation in the stock market, but why have we not heard about any insider trading going on in the currency markets.

You see the stock market has wall street as a centralized location. Where is the forex market located? Well it has no one specific location. Currencies are bought and sold between large financial institutions, businesses and different countries everyday. Prices in the currency market will fluctuate for a variety of reasons including news releases, trade reports,each countries economic conditions, etc. The forex market cannot be manipulated by any one person, so you can rest assured that your investment will not be affected by any fraudulent scam.

It takes an enormous amount of money to move the forex market in any one direction. Over two trillion dollars a day is traded in the forex market. Yes you heard me right, two trillion dollars. The stock market does not trade two trillion dollars in one month. I hope you can see now why it would be incredibly difficult for any one person or entity to move the market for any extended period of time. Another major difference between the trading forex and trading the stock market is leverage. When you open a forex trading account through a brokerage firm, you will generally be given 100:1 leverage. You can actually control $10,000 with a $100 account. While that sounds good. It can also hurt you if you do not know what you are doing. There are literally thousands of stocks to choose from. While there are only a handful of currencies that you would have to track makes it much easier to make a decision on what you will be trading.

One of the last things I want to go over is market hours.Since the forex market is a global market,time zones can vary greatly from country to country. Because of this fact, the forex markets are open for trading 24 hours a day. Since you are not limited to the normal business hours of the stock exchange, you have much more flexibility on the hours you choose to trade. This is not an exhaustive list of differences, but I hope you now have a better understanding of some of the major differences between Trading Forex and the Stock Market.

Forex Trading - The Ability to Trade 24 Hours a Day, 5 Days a Week

Foreign exchange market or forex as it is more commonly know is the trading of the different currencies of the world. Foreign currencies are continuously and simultaneously bought and sold across local and global markets and trader's investments increase or decrease in value based upon currency movements. Forex trading conditions can change at any time in response to real-time forex events.

The main attractions of forex dealing especially to small private investor are the 24 hours a day, 5 days a week trading with non-stop access to global Forex dealers. The market is enormously liquid making it easy to trade in most currencies. Even in these Volatile times markets still offer tremendous profit opportunities. The forex market has the ability to make a profit in rising or falling markets. This leads to the market being highly speculative, estimated at anywhere between 70% -90% in fact. In effect, the person or broker that bought/sold the currency does not intend to actually take delivery of the currency. What they are doing is solely speculating on the movement of that currency.

Starting out in currency trading is not something that you should take lightly, hoping for automatic success. You will find that there are many different factors that need to be understood before you go live on the market and start trading in currencies. What is required, are clear forex strategies. Just under two-trillion dollars are traded through the forex market on a daily basis, which can be somewhat intimidating, but doing your homework and having the right strategies will make it much easier to be successful.

If you take into consideration that the market are open for a 5 full days, it would be impossible to trade, even with the best strategies, for that amount of time. What is needed to take advantage of this highly lucrative market is automatic forex trading software. This can be running 24 hours a day, 5 days a week constantly making money. This is ideal for the small private investor who can literally make money while they sleep! The automatic forex trading does not need to cost the earth, for a relatively small investment a private trader can expect to see a huge return. Massive benefits can be reaped from real time forex trading.

Do you feel ready for automated Forex Trading? No, I thought not! Well, why not take advantage of my FREE 5 part video course in the basics of forex trading. Try it you have nothing to loss!

How To Play The Forex Market - A Sure Proved Way To Achieve Success In The Forex Market

Many of us who trade in the foreign exchange market go through a phase where we want to make millions as we play the forex market. That sounds like a lot of fun isn't it? Tapping a few keys on your computer keyboard, and a few minutes or same hours later closing the trade with a huge win on your hands; no too much work or sweat..Concentrate on doing this and you will definitely land you self in a lottery game. Besides, you should bear in mind that any type of gambling will always stack the odd against the player.
Inadequate knowledge and incorrect tools will always land you in trouble when you play forex.Understanding the concept and making use of the right strategy is important in any trading.

The following are the reasons why playing forex is advantageous.
  • It is a market where you decide the time to play because it is a 24 hour market.
  • It is accessible online through Global Network System.
  • You have the choice to decide the size of transaction, the amount and the time that you will devote to trading.
  • In forex, a trade takes place when you decide to buy and sell currencies.There is no fees like brokerage and commission.
As you get ready to play the forex, you will notice that gaining experience will help you to understand the market better. There are tons of analytical tools available that can assist you in predicting stock market behavior. You will also see books both free and paid that can help you understand the trading basics.

Once you decide to play the forex market, always keep the following point in mind.
  • .Before you start real trading, first gain some practical experience.Demo account will help you to do this.
  • Try to fully understand forex transaction concept and terminologies
  • The nest is the Golding rule. This rule states that you should not under any circumstances invest more than what you can afford to lose. Forex is a volatile market, and if you are not on your guard, you are likely to make some purely speculative decision that you may regret later. The ultimate limit to stake in the market should be the amount you are ready to let go if any thing goes wrong
  • Finally, to play the forex well, it is essential that you determine when you are going to stop. The forex market is a high risk preposition, so it is important you learn how to play the forex market if you want to win.

How to Win in the Forex Market No Matter Who You Are

 This article is going to look at the most effective way to trade in the forex market whether you've been trading your entire life towards your first day and you don't know a pip from a spread.

The forex market is a great place to realize your financial independence but it comes with a number of complications and challenges which the stock market doesn't have. Longer trading hours, for example, are just one of the major challenges because this market is an international market and takes place over a number of international locations. This means that this market remains open 24 hours a day, 7 days a week practically.

As that is a lot of time to have to keep on top of market behavior, a technology which was once used to cover small gaps and professional traders schedules has been expanded upon to cover the full 24-hour range of the market to effectively place and end trades on your behalf as the market dictates.

The process is simple to understand. The program looks for a high probability trading opportunity and once it finds a reliable trend to invest into it does with the capital which you give it to work with and then it follows that trade's performance along in the market to ensure you're always earning money.

Once the market fluctuates out of your favor, the program is in a position because it kee
ps a constant 24-hour access to real-time market behavior to react first before its human counterparts and pull you out of that now costly trade. Obviously the ultimate goal of this technology is to keep you on the winning end of your trades as often as possible, or near 100% of the time so that your gains far far exceed any losses you might sustain.