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Submitted By: ActionForex.com

What is a spread?

In margin forex trading, there are two prices for each currency pair, a “bid” (or sell) price and an “ask” (or buy) price. The bid price is the rate at which traders can sell to the executing firm, while the ask price is the rate at which traders can buy from the executing firm.

For example, when you see the price quote of EUR/USD is 1.2881/1.2884 as in the above picture, the bid is 1.2881 whereas the ask is 1.2884. That means traders looking to sell must do so at 1.2881, those looking to buy must do so at 1.2884.

The difference between the bid and ask price is the spread, which constitutes the cost of the trade. In fact, all traded instruments - stocks, futures, currencies, bonds, etc. - have spread. If a trader buys at 1.2884 and then sells immediately, there is a 3-point loss incurred. The trader will need to wait for the market to move 3 points in favour of his/her position in order to break even. If the market moves 4 points in your favour, he/she starts to profit.

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Submitted By: Frank Hague

Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.

Day Trading

Day Trading had its heyday during the bull market of the 1990’s. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.

FOREX Trading

The Foreign Exchange Market (FOREX), the world’s largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.

Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.

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Submitted By: Jay Moncliff

For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. This is because a lot of money is involved in forex trading. If you don’t get some forex training, you are bound to lose a lot of money.

Some of you may not even know what forex trading is. If you don’t know this, you defiantly need some forex training. Forex stands for foreign exchange. Forex trading is basically the exchange of one countries currency for another countries currency. This is done simultaneously in hopes of gaining a profit.

You can get forex training from several different places. The first place you should get forex training from is online. There are many websites that offer free forex training. The forex training these websites offer is both reliable and accurate. The forex training on these websites often offers a free demo account to teach you how to trade without actually using any real money.

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Submitted By: Michael Sanford

Foreign exchange market is also known as Forex or FX market. To date, it is the world’s biggest “economic bazaar”. FX produces an average of over $1 trillion daily earnings. That is 30 times more than combining all the volumes of America’s equity markets. This currency market is where currencies are bought and sold.

Why Forex?
These currencies are traded in pairs, i.e., Euro and Yen, US Dollar and Euro. Many people have many reasons why they opt to trade currencies. The daily profit of 5% received from governments and businesses that trade services and/or products in a different country or should change turnovers made in foreign money into their local money. The bulk of the profit, about 95%, goes to exchanging for revenues or assumption. This market is not easily influenced by any external factor. It is also famous for its liquidity. Money freely flows from this market since millions of dollars can get in and out of it each day. It is also considered liquid due to the fact that traders can just open and close positions in a wink of an eye. This could be attributed to Forex being one of the most coveted market.

Continue reading The Basics Of Forex

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Submitted By: Michael Sanford

The business world is a complex web of supply and demand. Money and goods, physical or otherwise, pass through the global market every single day. To meet this exchange between one country and another, foreign exchange, or forex, was born. The term forex is used to refer to transactions involving the conversion of money of one country into that of another or to the international transfer of money and credit instruments.

Foreign exchange, or forex, is used because different nations have different monetary units, and the currency of one country cannot be used for making payments in another country. Because of trade, travel, and other transactions between individuals and business enterprises of different countries, it becomes necessary to convert money into the currency of other countries in order to pay for goods or services in those countries. The transfer of money values from one country to another and the determination of the price at which the currency of one country will be surrendered for that of another is one of the main functions of forex.

Continue reading Business And The Forex

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Submitted By: Gerald Mason

Simply put, the Forex is the foreign exchange market. It’s where travelers, banks, and companies that do business internationally change money, in effect buying one currency and selling another.

Profits are made from the difference in value between the two currencies (the exchange rate). Because currencies are no longer tied to the gold standard, exchange rates are constantly fluctuating. Speculators trade currencies with the expectation that one will gain in strength against the other. These trades are leveraged, with a small downpayment controlling a much larger sum, so even small changes in value can create large profits or losses.

The Forex is the mother of all markets, with trading of more than U.S. $1.5 trillion daily. That’s more than one hundred times the size of the New York Stock Exchange. Because the market is so large, it’s extremely liquid; there’s always an immediate buyer or seller for any of the major currency pairs. Most of this trading is done for profit; only five percent of the trades made each day are for the purpose of changing currencies for business or travel.

Continue reading What Is The Forex?

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Submitted By: Scott Krager

Simply put, foreign exchange, more popularly known as Forex or FX, is the simultaneous purchase of one currency and sale of another. The market for trading in currencies is known as the Forex Market. While getting started in Forex, you must understand that the Forex market determines the “exchange rate” for which the specified currencies can be bought and sold. This exchange rate is essentially a price and can be analyzed in the same way as we would analyze a price.

This can best be understood by providing an apt analogy in terms of the price of the commodity. Say that commodity is a pencil. If the purchase price of 4 pencils is $1 then, the dollar-to-pencil rate of exchange will be 4 pencils. You can look at this from another angle also. You can also have a fair idea of the pencil-to-dollar rate of exchange. This comes out to 25 cents. This essentially means that if you sell one pencil you can get 25 cents for it. You must understand that the rate of exchange that is available in the newspapers doe not refer to these simple commodities but gives readers information about the comparative prices for different currencies.

Continue reading Forex Is For Everyone!

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