Home
Day trading forex market behaviour
Short Introduction to Elliot Waves as a Resource in Forex Trading
Three Important Forex Concepts For New Traders
Forex Trading Online 7 Reasons Why You Should
Option Arbitrage in the Forex Market
Forex Brokers
Forex Trading Software Information
Impress Your Date with Forex Trading Lingo
Forex Trading Margin Usage and Introduction to Hedging
Forex Trading Profits Fom Calendar Patterns
FOREX Signals Reviewed
Secrets To Potentially Making Money In The Forex Markets
Choosing A Forex Strategy
How Bollinger Bands Can Tell You What The FOREX Market Will Do Next
Trying Forex Trading with the Best Strategy and Approach
Making Money In Forex
Forex Versus Futures
Forex And Commodities Futures And Options What To Know Before You Trade
What is Forex
Example of a Profitable Transaction in FOREX
Forex Trading Systems Mechanical Vs Discretionary Systems
Forex Trading What Hours Should I Be Ready For Trading
Winning Strategies With Forex Charts
Forex basics make money with money part 1
Forex2u Forex strategy on successful Forex trading
|
 |
Forex trading means the simultaneous buying of one currency, and selling of another. The currency of one country is exchanged for that of another. The currencies are always traded in pairs such as US Dollar/Japanese Yen (USD/JPY), Euro/US Dollar (EUR/USD), Great Britain Pound/US Dollar (GBP/USD).
More than 80% of daily forex trading involves major currencies like Australian Dollar (AUD), British Pound, Canadian Dollar (CAD), Japanese Yen, Swiss Franc (CHF), and the US Dollar. Forex Trading is not centralized on an exchange. It is a 24-hour market, and trading moves from major banking centers like Wellington, Sydney, Japan, London and New York in that order.
In Forex Trading, there is a bid price and an ask price, and the difference of the two is called the spread. The bid is the price at which buyers are willing to buy, and the ask is the price that sellers are willing to sell at any given time. The prices are always 5 digit numbers, irrespective of where the decimal point is placed. For example, EUR/USD has a bid price of 1.2641 and an ask price of 1.2644, thereby yielding a 3 pip spread. In another example, the USD/JPY bid price is 107.09 and ask price is 107.12.
A transaction takes place when one currency is on the up, and another is going down. Choosing the right currency will ensure a profit.
Margin is collateral for a position. If the market moves downward, the forex trader will ask the investor for additional funds by way of a margin call. In case of insufficient funds, the trader will close the open positions immediately.
A long position is one in which the investor buys a currency at one price, with the expectation of selling it later at a higher price. A short position is one in which the investor sells a currency with the expectation of buying it back at a lower price, expecting the currency to fall. Every forex trading position taken means that the investor has gone long in one currency, and short in the other.
Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.
Written by: Eddie Tobey
|
|
All About Forex What You Need To Know
In order to succeed successfully in forex trading you need to know what the purpose of trading forex is. Forex trading as you know is the trading of...read more
Comments on Forex Trading Account Sizes, Lots and Margin Calls.
Forex trading is one of the best business opportunities you can
think of joining these days. No other market in the world allows
the "Leverage"...read more
FOREX Signals Reviewed
Copyright 2006 Timothy Rohrer
I started in the FOREX market in June of 2002. With hardly any
experience at all, I really did not know what I...read more
Forex Trading: Margin Usage and Introduction to Hedging
A good rule of thumb for either a mini-account or standard forex
account, is to limit your margin usage for each trade to 5% -
10% of your usable...read more
"How To" Start Trading The Forex Market ? (Part 4 )
How Currencies are quoted and what moves individual currencies?
ONE of the best advantages in FOREX Trading is
The amount of money you...read more
Learn By Hands On Forex Trading: Demo Accounts Vs Mini Accounts
If you are new to Forex, you are likely overwhelmed by the sheer
amount of information you are finding about currency trading.
Although the concept...read more
Making Money In Forex
The only way to keep up with the latest about Forex is to constantly stay on the lookout for new information. If you read everything you find about...read more
Managing The Forex Accounts For You
Managed forex accounts are a boon for those who don't have the time to devote to the foreign exchange dealing. It's also for those who don't have...read more
Real Forex Traders Learn to Like Losses
As a forex trader you have to learn how to take losses. Period. Don't be a crybaby. Learn how to take losses.
Learning how to take losses is...read more
What is FOREX Foreign Exchange Trading
This article will explain some of the basic principals of FOREX Foreign Exchange Trading. It will also explain why FORES has seen such a large...read more
|