Participants in Forex

by FXOpen

forex currency exchange

Participants

* Commercial Banks
* Central Banks
* Currency Exchanges
* Investment Funds
* Brokerage Houses

Participants of this market are, first of all, large commercial banks through which the basic operations under the instruction of exporters and importers, investment institutes are carried out, insurance and pension funds, hedge and individual investors. Also these banks operations and in the interests due to own means, thus at large banks volumes of daily operations reach billions dollars, and at some banks even the basic part of the profit is formed only due to speculative operations with currency.

Except for banks, as the active participant of the market the broker houses which are carrying out a role of the intermediary between a plenty of banks, funds, commission houses, dealing centers, etc. Commercial banks and brokerage houses not only make operations on sale and purchase of currency under the prices which are exposed by other active participants, but also offer the own prices. Thus, they actively influence process of pricing and a life of all market, therefore their name is Market - Makers.

As against active participants, passive participants of the market cannot expose own quotations and make purchase - sale of currency under the prices which are offered by active participants of the market. Passive participants of the market pursue usually following purposes: payment of export-import contracts, foreign industrial investments, opening of branches abroad or creation of joint ventures, tourism, hedging of currency risks, etc.



The central banks of the countries leave on FOREX, as a rule, not with the purpose of extraction of the profit, and with the purpose of check of stability or correction of an existing rate of national currency as last renders significant influence on a condition of a national economy. The central banks also leave on the currency market through commercial banks. Though the profit is not the basic purpose of these banks, unprofitable operations of them too do not involve, therefore interventions of the central banks mask usually and carried out through some commercial banks at once. The central banks of the different countries can carry out and the joint coordinated interventions.

If active participants make operations with the big sums of some millions dollars passive participants can use margin trade with the help of small insurance deposit they receive an opportunity temporarily to operate with the capital, in one hundred times exceeding this deposit. Such way of trade allows to take part in work of the currency market to fine investors with the small capital and thus to receive significant profit (According to leverage system). The structure of the basic participants of the market testifies that this market is actively used by " serious business " and for the serious purposes. That is far from being all participants of the market use FOREX in the speculative purposes.

As we already mentioned, change of exchange rates can lead to huge Profit/losses at export-import transactions. Attempts to be protected from currency risks force exporters and importers to apply for hedging those or other tools of the currency market: forward transactions, options, futures, etc. Moreover, even business which is not connected to export-import transactions, can have in loss at change of exchange rates. Therefore studying FOREX - an obligatory component of any successful business.

forex currency exchange

What Moves Forex

by FXOpen

forex currency exchange

Foreign Exchange is affected by various economic and political factors. The largest fluctuations in currency prices usually occur during Central Bank intervention, when governments trade in huge amounts forex in an attempt to either raise or lower the value of their own currency. This, aswell as many other factors such as interest rate changes, economic figures, political instability and large lot transactions by hedge funds can move the market.

How can you predict the future fx moves?
There are two major ways to analyze financial markets: fundamental analysis and technical analysis. Fundamental analysis is based upon underlying economic conditions, while technical analysis uses historical prices to predict future movements. There is an ongoing debate as to which methodology is more successful. Short-term traders prefer to use technical analysis, focusing their strategies primarily on price action, while fundamental traders focus their efforts on determining a currency's proper valuation, as well as future valuation. It is important to take into consideration both strategies, as fundamental analysis can explain technical analysis movements such as breakouts or trend reversals. Technical analysis can explain fundamental analysis, especially in quiet markets, causing resistance in trends or unexplainable movements.

Fundamental analysis
Fundamental analysis comprises the examination of macroeconomic indicators, asset markets and political considerations when evaluating a nation’s currency in terms of another. Macroeconomic indicators include figures such as growth rates; as measured by Gross Domestic Product, interest rates, inflation, unemployment, money supply, foreign exchange reserves and productivity. Asset markets comprise stocks, bonds and real estate. Political considerations impact the level of confidence in a nation’s government, the climate of stability and level of certainty.

Aside from technical analysis, another primary approach to analyzing currency market fluctuations is called fundamental analysis. Fundamental analysis is the examination of economic indicators, asset markets and political considerations when evaluating a nation's currency in terms of another. The key to fundamental analysis is to gather and interpret this information and act before the information is incorporated into the currency price. The lag time between an event and its resulting market response presents a trading opportunity for the fundamentalist.

Here some major fundamental factors that can affect currency prices:

* Decisions on interest rates made by central banks such as the US Federal Reserve or the European Central bank (ECB) monthly.

* Quarterly GDP figures. Only preliminary national GDP figures generally have the effect of changing market sentiment.

* Market sentiment data. Market expectations are formed from one week to two days before the event. Participants establish positions based on expectations, and realize the results after the figures are released.

* Political Events. National elections, the September 11th attacks, and the war in Iraq are examples of events that have affected currency values.

* Major indices. Inflation indices, Institute of Supply Management (ISM) in the US and the Purchasing Management Index (PMI) in Europe are also carefully followed by traders.

* National industrial production figures.

* US nonfarm payrolls (indicating new jobs created), Michigan sentiment figures in the US, the western German business climate or IFO index, and the Tankan quarterly survey in Japan.

Currency interventions have a notable and oftentimes temporary impact on forex markets. A central bank could undertake unilateral purchases/sales of its currency against another currency; or engage in concerted intervention in which it collaborates with other central banks for a much more pronounced effect. Alternatively, some countries can manage to move their currencies, merely by hinting, or threatening to intervene.

Technical Analysis
Technical analysis examines past price and volume data to forecast future price movements. This type of analysis focuses on the formation of charts and formulae to capture major and minor trends, identify buying/selling opportunities assessing the extent of market turnarounds. Depending upon your time horizon, you could use technical analysis on an intraday basis (5- minute, 15 minute, hourly), weekly or monthly basis

Money managers, traders and investors who seek ways to outperform the market must also remain flexible and innovative. A method that works today does not mean it will work tomorrow.

The Beginning of Technical Analysis
At the turn of the century, the Dow Theory laid the foundations for what was later to become modern technical analysis. Dow Theory was not presented as one complete amalgamation, but rather pieced together from the writings of Charles Dow over several years.

Technical analysts believe that the current price fully reflects all information. Because all information is already reflected in the price, it represents the fair value and should form the basis for analysis. After all, the market price reflects the sum knowledge of all participants, including traders, investors, portfolio managers, market strategist, technical analysts, fundamental analysts and many others. It would be folly to disagree with the price set by such an impressive array of people with impeccable credentials. Technical analysis utilizes the information captured by the price to interpret what the market is saying with the purpose of forming a view on the future.

A technician believes that it is possible to identify a trend, and market turning points, invest or trade based on the trend and make money as the trend, or turning points unfolds. Because technical analysis can be applied to many different timeframes, it may be possible to spot both short-term and long- term trends.

What is more important than Why?
It's been said, "A technical analyst knows the price of everything, but the value of nothing". Technicians, as technical analysts as they are called, are only concerned with two things:

* What is the current price?
* What is the history of the price movement?

The price is the end result of the battle between the forces of supply and demand for any particular item. The objective of analysis is to forecast the direction of the future price. By focusing on price and only price, technical analysis represents a direct approach. Fundamentalists are concerned with 'why' the price is what it is. For technicians, the 'why' portion of the equation is too broad and many times the fundamental reasons given are highly suspect. Technicians believe it is best to concentrate on 'what' and never mind why. Why did the price go up? It is simple, more buyers (demand) than sellers (supply). After all, the value of any item is only what someone is willing to pay for it. Who needs to know why? You may never know why.

Many technicians employ a broad-based, longer term, macro, long-term analysis first. The larger parts are then broken down to base the final step on a more focused/micro short-term, perspective. Such an analysis might involve three steps:

* Broad market analysis through the major indices such as the S & P 500, Dow Industrials, NASDAQ and NYSE Composite, or Commodity Futures Index, or other broad indexes of various types.

* Group analysis to identify the strongest and weakest groups within the broader market groupings, i.e. Indexes, Meats, Grains, Currencies, Metals, Energies, etc.

* Individual analysis to identify the strongest and weakest within each group.

The beauty of technical analysis lies in its versatility. Because the principles of technical analysis are universally applicable, each of the analysis steps above can be performed using the same theoretical background. You don't need an economics degree to analyze a market index chart or commodity group. Charts are charts. It does not matter if the timeframe is 2 days or 2 years. It does not matter if it is a, market index, currency or commodity. The technical principles of support, resistance, trend, trading range and other aspects can be applied to any chart. While this may sound easy, technical analysis is by no means easy. Success requires serious study, dedication and an open mind. Technical analysis can be as complex or as simple as you want it.

Overall Trend:
The first step is to identify the overall trend. "The trend is your friend". This can be accomplished with trend lines, or moving averages, or both. A Moving Average (MA) is an average of data for a certain number of time periods. It "moves" because for each calculation, we use the latest "x" number of time periods' data. As long as the price remains above its uptrend line, or selected moving average or previous lows, the trend should be considered bullish. The trend theory holds that an uptrend remains intact as long as each successive intermediate high is higher than those preceding it and each reaction low stops and holds at a higher point than did earlier reaction lows. Conversely, a downtrend prevails when each intermediate decline allows prices to fall below previous lows and rallies fall short of earlier rally highs.

Support and Resistance Areas:
Support and resistance levels are unquestionably among the most important of all technical considerations. They are areas, which prices are expected to have difficulty moving above and beyond (resistance and support), and they therefore deserve especially careful considerations in buying and selling decisions. Support areas are areas of price congestion or previous lows, below the current price, which mark support levels. A break below support would be considered bearish. Resistance areas are areas of congestion or previous highs above the current price which mark resistance levels. A break above resistance would be considered bullish. The basic idea behind resistance and support theory is simply that price levels that were significant in the past will have significant impact on price action in the future.

Random Walk Theory:
The basic "random walk premise" is that price movements are totally random. Prices move at random and adjust to new information as it comes available. The adjustment to this new information is so fast that it is virtually impossible to profit from it. Furthermore, news and events are also random and trying to predict these (fundamental analysis) is also a lesson in futility. While there are some good points to be gleaned from the random walk theory, it appears to be a bit dated and does not accurately reflect the current investment climate. Random walk theory was introduced over 25 years ago when institutions dominated the market. These institutions had superior access to resources and the individual was at the mercy of the large brokerage houses for quality research. With the advent of online trading, power and influence are shifting from the institutions to the individual. Resources are now widely available to all at minimal cost, if not free. Not only can individuals access information, but the internet ensures that everyone will receive it almost instantaneously. They also have access to real time data and can trade like the pros. With the availability of real time data and almost instant executions, individuals can act on information like never before.

General Chart Analysis:

What Are Charts?
A price chart is a sequence of prices plotted over a specific timeframe. In statistical terms, charts are referred to as time series plots, usually containing the open, high, low, and closing prices.

Chart Patterns:
Much of our understanding of chart patterns can be attributed to the work of Richard Schabacker. His 1932 classic, Technical Analysis and Stock Market Profits, laid the foundations for modern pattern analysis. In Technical Analysis of Stock Trends (1948), Edwards and Magee credit Schabacker for most of the concepts put forth in the first part of their book. We would also like to acknowledge Messrs. Schabacker, Edwards and Magee, and John Murphy as the driving forces behind our understanding of chart patterns.

Pattern analysis may seem straightforward, but it is by no means an easy task. Schabacker states: §The science of chart reading, however, is not as easy as the mere memorizing of certain patterns and pictures and recalling what they generally forecast. Any general chart is a combination of countless different patterns, some being continuation patterns and some reversal patterns, and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental, and, above all, the ability to weigh opposing indications against each other, to appraise the entire picture in the light of its most minute and composite details as well as in the recognition of any certain and memorized formula.

To name just a few there are; Double tops and bottoms, Head and Shoulder tops and bottoms, Wedges, Flags, Triangles, Channels, Gaps (four types), Key Reversals, Island reversals, and more. There are also Candlestick charts which provide a different way of looking at, and analyzing, the same basic price data, open, high, low, and close.

A few other tools used on charts are Trend Lines, Support and Resistance areas, percentage retracements, Fibonacci retracements, Time cycles, Elliot Wave Theory Analysis, Gann Analysis, and more. Technical Indicator Analysis:

There are many ways to crunch the numbers and endless combinations.

Here is a list of some of the more popular Technical Indicators:

* Accumulation Distribution
* Advance-Decline lines and ratios
* Arms Index (TRIN)
* Bollinger Bands
* Commodity Channel Index
* Moving Averages (of various types)
* Moving Average Convergence Divergence
* McClellan Osc
* Momentum
* On Balance Volume
* Parabolic SAR
* Relative Strength Index (RSI)
* Stochastic (fast and slow)
* Volatility

forex currency exchange

Typical attractive features of the FOREX market

by FXOpen

forex currency exchange

Liquidity:
the market operates the enormous money supply and gives absolute freedom in opening or closing a position in the current market quotation. High liquidity is a powerful magnet for any investor, because it gives him or her the freedom to open or to close a position of any size whatever.


Promptness:
with a 24-hour work schedule, participants in the FOREX market need not wait to respond to any given event, as is the case in many markets.

Availability:
a possibility to trade round-the-clock; a market participant need not wait to respond to any given event.

Flexible regulation of the trade arrangement system:
a position may be opened for a pre-determined period of time in the FOREX market, at the investor’s discretion, which enables to plan the timing of one’s future activity in advance.

Value:
the Forex market has traditionally incurred no service charges, except for the natural bid/ask market spread between the supply and the demand price.

One-valued quotations:
with high market liquidity, most sales may be carried out at the uniform market price, thus enabling to avoid the instability problem existing with futures and other forex investments where limited quantities of currency only can be sold concurrently and at a specified price.

Market trend:
currency moves in a quite specific direction that can be tracked for rather a long period of time. Each particular currency demonstrates its own typical temporary changes, which presents investment managers with the opportunities to manipulate in the FOREX market.

Margin:
the credit “leverage” (margin) in the FOREX market is only determined by an agreement between a customer and the bank or the brokerage house that pushes it to the market and is normally equal to 1:100. That means that, upon making a $ 1,000 pledge, a customer can enter into transactions for an amount equivalent to $ 100,000. It is such extensive credit “leverages”, in conjunction with highly variable currency quotations, which makes this market highly profitable. but also highly risky.

forex currency exchange

FOREX (FOReign EXchange market)

by FXOpen

forex currency exchange

Forex is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree.

The scope of transactions in the global currency market is constantly growing, which is due to development of international trade and abolition of currency restrictions in many nations. Global daily conversion transactions came to $1,982 billion in mid-1998 (the London market accounted for some 32% of daily turnover; the New York market exchanged approx. 18%, and the German market, 10%). Not only the scope of transactions but also the rates that mark the market development are impressive: in 1977, the daily turnover stood at five billion U.S. dollars; it grew to 600 billion U.S. dollars over ten years – to one trillion in 1992. Speculative transactions intended to derive profit from jobbing on the exchange rate differences make up nearly 80% of total transactions. Jobbing attracts numerous participants – both financial institutions and individual investors.

With the highest rates of information technology development in the last two decades, the market itself changed beyond recognition. Once surrounded with a halo of caste mystique, the foreign exchange dealer’s profession became almost grasroots. Forex transactions that used to be the privilege of the biggest monopolist banks not so long ago are now publicly accessible thanks to e-commerce systems. And the foremost banks themselves also often prefer trade in electronic systems over individual bilateral transactions. E-brokers now account for 11% of the forex market turnover. The daily scope of transactions of the biggest banks (Deutsche Bank, Barclays Bank, Union Bank of Switzerland, Citibank, Chase Manhattan Bank, Standard Chartered Bank) reaches billions of dollars.

The FOREX market as a place where to apply one’s personal financial, intellectual and psychic power is not designed for attempts at catching a bluebird there. Sometimes someone manages to do so but for a short time only. The key advantage of a forex market is that one can succeed there just by the strength of one’s intelligence.

Another essential feature of the FOREX market, no matter how strange it might seem, is its stability. Everybody knows that sudden falls are very typical of the financial market. However, unlike the stock market, the FOREX market never falls. If shares devalue it means a collapse. But if the dollar slumps, that only means that another currency gets stronger. For instance, the yen strengthened by a quarter against the dollar late in 1998. On some days dollar fell by dozens percentage points. However, the market did not collapse anywhere; trading continued in the usual manner. It is here that the market and the related business stability lie - currency is an absolutely liquid commodity and will be always traded in.

The FOREX market is a 24-hour market that does not depend on certain business hours of foreign exchanges; trade takes place among banks located in different corners of the globe. Exchange rates a`re so flexible that significant changes happen quite frequently, which enables to make several transactions every day. If we have an elaborate and reliable trade technology we can make a business, which no other business can match by efficiency. It is not without reason that the pivotal banks buy expensive electronic equipment and maintain the staffs of hundreds of traders operating in different sectors of the FOREX market.

The starting costs of joining this business are very low now. Actually, it costs several thousands of dollars to take a course of initial training, to buy a computer, to purchase an information service and to create a deposit; no real business can be established with this money. With excessive offers of services, finding a reliable broker is also quite a real thing. The rest depends on the trader himself or herself. Everything depends on you personally, as in no other area of business now.

The main thing the market will require for successful operations is not the quantity of money you will enter it with – the main thing is the ability to constantly focus on studying the market, understanding its mechanisms and participants’ interests; this is constant improvement of one’s trade approaches and their disciplined implementation. Nobody has achieved success in that market by forcing one’s way with one’s capital atilt. The market is stronger than anything else; it is even stronger than central banks with their huge foreign exchange reserves. George Soros, a national hero of the FOREX market, did not win the Bank of England at all, as many of us believe – he made the right guess that, with existing contradictions inherent in the European financial system, there were plenty of problems and interests that would not allow to hold the pound. That’s exactly what happened. The Bank of England, having spent nearly $20 billion to maintain the pound rate, jacked it up, by giving it in to the market. The market settled this problem, and Soros got his billion.

The global monetary system has gone a long way during thousands of years of the human history, but it is surely experiencing the most exciting and earlier unthinkable changes. The two main changes determine a new image of the global monetary system:

* the money is fully separated from any tangible media;
* powerful information and telecommunications technologies made it possible to consolidate monetary systems of different nations into the single global financial system that has no boundaries.

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forex currency exchange

Forex Online Trading Systems - How to Use and Test a System

By Cory Sanders

forex currency exchange

Forex is perhaps the most profitable type of investing in the world. This shows because trillions of dollars are traded daily by millions of traders. Forex is not easy, but if you have some basic education and one of the forex online trading systems I am going to tell you about; anyone can succeed.

The forex online trading systems that I want to tell you about are called expert advisors. Expert advisors are also called forex trading software by some people.

Here is how an expert advisor works...

An expert advisor is a piece of software that can be installed on your trading platform in about 5 minutes. Once it is installed and you activate it, the advisor takes over completely.

The advisor does analysis, consults charts, makes trades that look the most profitable, and then closes the trades when the profit is most secure.

An amazing fact about expert advisors is that they have been outperforming human traders for years! This is not a new concept, of course. Computers have been replacing humans more and more recently.

On my website, which is linked to below, I offer a free email course on forex trading with expert advisors and how to do it properly. Also, I review what I believe to be the top product on the forex market. I have used it personally so I know what I am talking about.

An expert advisor is one of the best forex online trading systems. It works on a free Metatrader 4 trading platform, and can be tried out on a demo account for totally free. Plus, an expert advisor will have a 60 day guarantee, so if you don't like it you can just get your money back.

Learn how anyone can make money with Forex Trading Software and get my free report on forex trading profits.

My website, http://forex-tradingsoftware.blogspot.com/2008/08/forex-tracer-review-our-1-choice-for.html explores the basics of foreign exchange trading and how lucrative it can really be.

forex currency exchange

Forex Currency Trading

By Kevin Anderson

forex currency exchange

It is possible to buy and sell money from different countries on the foreign exchange market called Forex. Forex currency traders can profit by taking advantage of the dips and swells in the foreign currency market. Capturing these differentials is easier in Forex currency trading than in other trading because the Forex market is open twenty-four hours a day, except for weekends, and it is global, so there are always buyers and sellers available. The traders can be diverse. They can be traders looking for short-term gains, such as day traders or slightly longer investment periods, or they can be foreign investors who are looking to hedge their investments with long term Forex trades.

Forex currency trading is done in amounts of currency called lots, that are usually $100,000 each, and can be purchased on margin. Forex currency trading strategies can be based on technical analysis of the history of the currency price or it can be based on analysis of a particular country’s political climate, tax policy, jobless rate, inflation rate, and other factors of the country. There are many different systems of Forex currency trading.

Forex currency trading is a huge market. Daily trading is estimated at between $1 trillion and $1.9 trillion dollars. Because the amount of money is so huge, it’s hard to imagine that the market can be manipulated the way a smaller market can be. Forex currency trading is also not overseen by one central agency like the Security Exchange Commission, and each country oversees the Forex currency trading activity within it’s own country.

Kevin Anderson is the owner and opperator of http://www.forextradingcenter.info a site developed to give users the most updated information, articles, and news related to the Forex Market.

forex currency exchange

Forex market offers opportunity and information

By Jay Moncliff

forex currency exchange
Registration

The forex market is what is called an international exchange currency market, where currencies are exchanged on a daily basis. There are five forex market centers around the world – New York, London, Tokyo, Frankfurt and Zurich. One does not need to be on the trading floor, so to speak to be involved in the forex market. Today, forex trading can be done from home on a computer.

The forex market itself is basically a worldwide connection of traders, who make investment moves based on the price of currencies, or their values relative to other currencies. These traders constantly negotiate prices with other traders resulting in the fluctuation or movement of a currency’s value. The value of a currency on the forex market also corresponds with supply. If there is greater demand for the Euro, let’s say, then there will be less supply of it on the forex market, which means, in time, it will make a Euro more valuable compared to let’s say the dollar. In short, in this forex market situation, one Euro would yield more dollars, subsequently weakening the dollar as well. Analyzing the forex market’s fluctuations allows investors to make predictions on how a currency will move in relation to another currency. They then can make predictions and buy and sell currency accordingly.

While some people view the forex market as a place to see what their exchange rate will be when they travel abroad, others view it as an opportunity to make great gains in their financial planning and future.

Jay Moncliff is the founder of http://www.forexadvise.info. Updated daily blog focusing on the latest Forex news, resources. Get the latest alerts and articles in his site:forex signal.

forex currency exchange
Registration

Forex Trading Systems

By Kevin Anderson

forex currency exchange

The foreign exchange currency market is the largest market in the world because it trades up to $1.9 trillion daily. There is an enormous scope of trade in Forex because it is global, and is open twenty-four hours a day, making the presence of buyers and sellers constant, and the fluidity of the market, grand. The market is ever present because it does not have a central venue like Wall Street or Tokyo. It is a series of internet and telephone communications between buyers and sellers and it is not overseen by any one main authority like the Securities and Exchange Commission. The Forex is made available to traders through platforms.

Traders of Forex commonly favor Forex trading systems. Forex trading systems are methods of trading currency based on ideas that have rules associated with them. Forex trading systems are a merging of theory and practice that have been tried and tested over and over, and the results of the tests have been documented.

Some Forex trading systems are based on the idea of going against trends. Other Forex trading systems are based on the idea of going with trends. Some Forex trading systems are based on the idea of tracking breakouts of a particular currency and these Forex trading systems rely heavily on the averages of a currency’s highs and lows, and utilize “Bollinger bands” that track the average highs, the average lows and the moving average of the two.

Traders utilize Forex trading systems in order to work against human characteristics that can hamper trading, like greed, addiction, impulsivity, compulsivity and fear.

Kevin Anderson is the owner and operator of http://www.forextradingcenter.info a site developed to give users the most updated information, articles, and news related to the Forex Market.

forex currency exchange

Forex Trading

By Alvin Han

forex currency exchange

Foreign exchange market, or better known as FOREX, is the world's largest and most prolific financial exchange market originated on 1973. Bearing the status of largest and most prolific currency exchange market, FOREX is the center stage where a vast majority of the currency trading or FOREX trading takes place, with a total daily turnover of currency worth more than $1.2 trillion.

For having such an enormous sum of total turnover everyday, FOREX can be considered as a liquid market ideal for Forex trading. Unlike many other securities, FOREX does not trade on a fix exchange rate, instead, currencies are traded primarily between central banks, commercial banks, non-banking international corporation, hedge funds, private investors and not to forget, speculators. Previously, smaller investors are precluded from trading in FOREX due to the large amount of deposit required. However, until the recent years, with the continuous growing of Internet and the rise of competitions, smaller investors can now trade in FOREX as the requirement to trade in FOREX has been amended.

Truthfully, there are a few factors why FOREX trading is starting to attract more and more medium and smaller sized investors. One of the main reasons is due to the fact that FOREX trading operates at 24 hours per day, 5 days per week. In addition to that, unlike the old days where trading is done only through telephone, it can now be done...

The full article available at http://www.forex.labuan.net/Forex-trading.html

Alvin Han is the editor of http://www.forex.labuan.net

forex currency exchange

Foreign Currency Exchange - Is It A Good Investment?

By Omar Guaba

forex currency exchange

Foreign currency exchange is really hot investment today. Every currency of the world is exchanged in the Forex market. Forex involves selling and buying currencies. The foreign currency exchange market does not use a central exchange site like the stock market. Forex is the largest market in the world, beating the NYSE (New York Stock Exchange) in daily trading volume. This can be a really good investment if you know hot to do it.

Individuals and private entities conduct the market. Buyers and sellers conduct the trading directly, there is no central exchange. They use the Internet, phone and other networks of communications to trade and make money with this investment. Foreign currency exchange is risky. The market conditions and expectations are the heart of Forex trading. The return of this investment is worth the risk.

As we said above foreign currency exchange is the selling and buying of two currencies. For example, the combination might be US pound/ US dollar. The majors or highest traded currencies in the Forex market are: the Euro, the US dollar, the US dollar, the UK pound and the Japanese yen. The spot market is where the trade occurs, because of its volume. Currency trades are made directly on the spot. In Forex you have 24-hours to trade five days a week. When the market goes up or down you can retract your moves and react to make money with this investment.

A currency is cheaper to trade when it has a high liquidity level. Most foreign currency exchange patrons like to use majors to trade, because the high liquidity they have to make money. The absence of commissions is an attractive for money movers. Misleading incentive is not a reason to trade currencies. The reason is real merit of this investment. We need to learn more about a Forex investment and currencies trading than we said above.

It is good to talk to a foreign currency exchange expert if you want to know more about trading. Also, you can ask somebody about his Forex experience. Just ask whatever you want. Forex is the largest market of the world. The foreign currency exchange risky and you need to get expert advice if you want to be making money with Forex trading. This market is very liquid and is open five days a week, 24/7.

If you need more information about how to get the best Forex software, feel free to go to my blog. http://exit1.info/wordpress

forex currency exchange

What is Forex Trading?

By Tyler D Falls

forex currency exchange

Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another.

The way it works is an investor who wishes to purchase or sell one currency for another with the hope of making a profit when the value of the currencies change in favor of the investor. This can happen either from market news, or events that happen across the globe. For example, If you bought currency and the price appreciates in value, then you will earn a profit by closing your position. When you do this and sell the currency back in order to lock in the profit, you are in actuality buying the counter currency in the pair. By trading currency pairs, one currency valued against another, a rate of worth has been established. The reason is because a country's currency has value only relative to the currency of another country.

There are many different tools that can help a Forex trader out. Advanced charting programs are a major tool, as well as the FOREX traders guide. Along with these tools, global interactive training rooms with live video feeds, and the daily world bank FOREX report help investors get the most out of FOREX trading.

For more information on FOREX trading check out Forex Resources

Tyler D Falls - Inforesearcher.com

forex currency exchange