Percentage in Point

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• The First Step to Forex Trading – Currency Trading
• Understanding Forex Trading
• How To Get A Forex Broker Dealer to Help You

The First Step to Forex Trading – Currency Trading Posted: 23 Sep 2010 03:00 AM PDT With the development of internet age, the Forex market or rather the foreign exchange market has taken a huge step towards becoming the worlds biggest financial market leaving behind all the other financial market behinds. The reason for this could be since its very exciting to work with and also because its fast paced. Before the foreign exchange market, other large institutions were famous which include corporations, central banks, hedge funds etc. However, with the help of internet and development in technology has allowed us to buy and sell currencies with the help of just one click online. through online brokerage account. Forex Market Popularity Why the Forex market has become so popular is because its not volatile in nature compared to stock market for instance. The reason for this is that the dairy currency fluctuations are very small, currency pairs change less than 1% per day hence representing a less than 1% change in the value of the currency. This is a benefit for the speculators who could speculate and predict the currency movements since its not volatile as mentioned before. Leverage factor in such a market could be as much as 250:1. If the leverage is high then it could be very risky but since the Forex market is open all round the clock and goes deep into liquidity, therefore foreign exchange brokers have been able to make high leverage an industry standard in order to make the market meaningful for the traders. High Liquidity Why other markets have been left behind by the Forex market is due to its high liquidity and the availability of high leverage which also has helped it grow and make an ideal place for investors. The market is so stable that even the largest players such as the central bank cannot bring any change in the prices since all of its based on self mechanism and works with the principle of demand and supply. However, if you wish to be successful then you need to understand the currency movements.

Understanding Forex Trading Posted: 22 Sep 2010 02:52 AM PDT The foreign exchange market is a single place where by buyers and sellers come and trade currencies. This is done in a manner where you give one currency and buy the other currency and vice versa. Without trading currencies, most of the transactions in the world would not take place because the buyer or seller might have a different currency compared to what they need in order or buy or sell. For instance if a dairy firm in the U.S. wishes to import cheese from France then they would have exchange U.S. Dollars in return for Euros. When this transaction of exchanging currency is done then the business transaction could also be paid in which cheese would be imported from France by paying in Euros. Due to this reason of exchanging currency in order to make business transactions, the Forex market is the largest and the most liquid financial market in the world. Other markets such as the stock market seem very small in front of this as its average traded value is of around U.S. $2000 billion per day. Advantages The biggest advantage of this market is that the market is international which means there is no central place where all the exchange takes place but all the work is done electronically over the counter. This means that the market is open 24hours a day, 5 and a half days a week and most currency transaction takes place in the business hubs of the famous countries which could include New York, London, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, Sydney etc. The pattern of how this work is that when the trading day in the U.S. end, the next day trading begins in Tokyo and Hong Kong. Therefore due to this reason, the prices actively change during the day and there is no fixed priced for any currency. How Does It Work Now if you are wondering how the forex is traded then there are three ways to it, these include spot market, the forwards market and the futures market. Between these three markets, spot markets have always been the largest because it is the underlying real assets which the forward and future markets are based on. Previously the futures market were considered more important as they were available to investors for a longer period of time, however, today due to the electronic trading the spot market has seen a huge boost in its activity and is preferred by traders and speculators. When the reference of Forex markets come up, it is generally believed that its being spoken about spot market where as future and forward markets are only popular with those companies who try to hedge their foreign exchange risks out to a specific date in the future.

How To Get A Forex Broker Dealer to Help You Posted: 21 Sep 2010 02:48 AM PDT If you are wishing to look for a Forex broker dealer then you could find them in two place, either online or in your local market place. The main reason why people look for Forex broker dealers is because these dealers have up to date knowledge of the market and know exactly where your money should be invested today or tomorrow and which are the hottest investment options available to you. When you have a particular company in mind it would be recommended that you find a broker and then discuss the possible options with the broker whether you should invest or not. Putting your hard earned money and then end up losing it might create stress for you. When you find a forex dealer, do not rush into making the investment. This is advised because there are many scams operating in the market where brokers try to fool you but taking undue advantage of you. This is done by showing you a bright picture on your returns and everything is done in a rush. All the investments are shown in a manner which would yield amazing results due to which a person is forced to make the investment. If a broker is rushing you into thing then he/she is definitely trying to push you into the scam because by rushing you, you would not where your money is going and what is the possible rate or return. However, those brokers who take time, are more professional in their approach are the most trusted ones as they take your money as their own and then try and place it to yield maximum return. When you are ready to invest in a company, the person between you and the company would be your broker who would look after all the transactions, buying stock, selling or buying currencies etc. The term Forex itself relates to foreign exchange and trade and this is what your broker does for you. Further more, in recent times due to increase in popularity of online Forex trading, banks have set up Forex trading facilities for small Forex traders. The required or the start up amount would vary between $3000 to $10000, spreads will be tight and you can trade fast moving markets without frequent requotes taking away the advantage of speedy executions.

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