Forex Trading 2015

The Forex market is an inter-bank or inter-dealer network first established in 1971 when many of the world’s major currencies moved towards floating exchange rates. Forex Trading is considered an over-the-counter (OTC) market, meaning that transactions are not conducted on an exchange like some equity stock markets such as the New York Stock Exchange (NYSE) or the Chicago Options Board Exchange (CBOE) where options and futures are traded. OTC trades exist as agreements made between two parties that agree to trade via telephone or electronic network.

As Forex trading has evolved, several locations have emerged as market leaders. Currently, London, England contributes the greatest share of transactions with over 32% of the total trades. Other Forex trading centers—listed in order of volume— are New York, Tokyo, Zurich, Frankfurt, Hong Kong, Paris, and Sydney.

Because these trading centers cover most of the major time zones, FX trading is a true 24-hour market that operates five days a week. For example, as a trader in New York, you have access to the Forex market starting Sunday evening when the market opens in Sydney for the start of the trading week. Trading centers around the globe then come online until New York closes at 4:30 PM EST. Of course, by this time, Sydney will have reopened for the next trading day so you can continue to trade around the clock until the New York close on Friday.

Forex trading is again beneficial for it helps you to perform complex analysis without mistakes. With access to your computer, you can solve complex charting, sort out details of each trading agreement minutely. Add to this, you have several forex trading tools available online. These tools offer quick assistance for forex trading in volumes. This is indeed a blessing for newcomer, who often finds it tedious to track down the facts and figures of forex market and forex trading agreement.

The Forex market has become the world’s largest financial market, and it is not uncommon to see over $3 trillion US traded each day. All things you need to know and learn it up in Forex trading ; knowing risk level - how much you are willing to lose, understanding the different forex trading systems as technical and fundamental and research the trading systems which you can be familiar with how they work.

Forex trading courses are available as online courses and also through printed books. Free tutorials and financial guidance is also provided by many web sites. Choosing a professional Forex Trading Course will provide you with details on

- The best time to trade specific currencies like Euro - How to anticipate movements and trends in the global market - Which pairs of currency to trade - Best time to enter the forex market - Market conditions and tips about efficient trading from experts - Technical indicators

Overall a forex trading course should be a complete currency trading solution for all the queries regarding forex and its effective trading options.

Forex Trading - Make Money From Home

What is Forex trading and how did the name originate?

The Forex trading name derived from Foreign Exchange. The first three letters of Foreign and the first two letters of Exchange are added together.

Forex trading is about dealing in international currencies to make money. When trading in the stock market we sell the currency of one country to buy that of another, hoping to make a good profit.

Before the onset of the internet, Forex trading was open only to multinational corporations and banks. Now, many people work from home with their Forex trading money business.

The Forex trader deals in Foreign Exchange at the most appropriate time to profit from the transaction. Dealing in the stock market requires a good ability to forecast the outcome of all currency transactions.

Trading in the forex market is popular because although there are frequent fluctuations in currencies, in percentage terms they may be small.

You may then wonder how trading in currencies can be such a lucrative earning opportunity since fluctuations in exchange can be so little. However, when trading in large volumes, a small change can mean a lot.

You can make a lot of money Forex trading online in the stock market. But there are certain conditions to follow before trading in foreign currencies.

A thorough knowledge about the trends in the stock market is required. You should also know the basics of this type of trading and risk taking. Alternatively, you can use a robot for attaining these conditions. Especially a robot that does all the forex trading work for you!

You gain if the fluctuation favors you and the reverse holds true as well. No one can accurately predict the trend of the currencies. Liquidity is another reason why Foreign Exchange is so popular.

You can make lots of money trading in currencies, even if your initial investment is quite low. So remember that even with a nominal investment, your earning ability is certainly very large.

Most of the great businesses are connected to the internet today, and Forex is no exception. It is now easy for you to work from home and start trading in foreign currencies. In fact, it is fully conducted online. You are at liberty to choose when to start trading, without having to meet any deadlines.

You can quickly start your own work from home Forex trading business. The process of trading online in the currency market is fairly simple for anyone to understand. Especially with a currency robot that does all the trading work for you.

Forex Trading 6 Advantages Over Other Investments

There are many different advantages to trading forex instead of futures or stocks, such as:

1. Lower Margin

Just like futures and stock speculation, a forex trader has the ability to control a large amount of the currency basically by putting up a small amount of margin. However, the margin requirements that are needed for trading futures are usually around 5% of the full value of the holding, or 50% of the total value of the stocks, the margin requirements for forex is about 1%. For example, margin required to trade foreign exchange is $1000 for every $100,000. What this means is that trading forex, a currency traders money can play with 5-times as much value of product as a futures traders, or 50 times more than a stock traders. When you are trading on margin, this can be a very profitable way to create an investment strategy, but its important that you take the time to understand the risks that are involved as well. You should make sure that you fully understand how your margin account is going to work. You will want to be sure that you read the margin agreement between you and your clearing firm. You will also want to talk to your account representative if you have any questions.

The positions that you have in your account could be partially or completely liquidated on the chance that the available margin in your account falls below a predetermined amount. You may not actually get a margin call before your positions are liquidated. Because of this, you should monitor your margin balance on a regular basis and utilize stop-loss orders on every open position to limit downside risk.

2. No Commission and No Exchange Fees

When you trade in futures, you have to pay exchange and brokerage fees. Trading forex has the advantage of being commission free. This is far better for you. Currency trading is a worldwide inter-bank market that lets buyers to be matched with sellers in an instant.

Even though you do not have to pay a commission charge to a broker to match the buyer up with the seller, the spread is usually larger than it is when you are trading futures. For example, if you were trading a Japanese Yen/US Dollar pair, forex trade would have about a 3 point spread (worth $30). Trading a JY futures trade would most likely have a spread of 1 point (worth $10) but you would also be charged the brokers commission on top of that. This price could be as low as $10 in-and-out for self-directed online trading, or as high as $50 for full-service trading. It is however, all inclusive pricing though. You are going to have to compare both online forex and your specific futures commission charge to see which commission is the greater one.

3. Limited Risk and Guaranteed Stops

When you are trading futures, your risk can be unlimited. For example, if you thought that the prices for Live Cattle were going to continue their upward trend in December 2003, just before the discovery of Mad Cow Disease found in US cattle. The price for it after that fell dramatically, which moved the limit down several days in a row. You would not have been able to leave your position and this could have wiped out the entire equity in your account as a result. As the price just kept on falling, you would have been obligated to find even more money to make up the deficit in your account.

4. Rollover of Positions

When futures contracts expire, you have to plan ahead if you are going to rollover your trades. Forex positions expire every two days and you need to rollover each trade just so that you can stay in your position.

5. 24-Hour Marketplace

With futures, you are generally limited to trading only during the few hours that each market is open in any one day. If a major news story breaks out when the markets are closed, you will not have a way of getting out of it until the market reopens, which could be many hours away. Forex, on the other hand, is a 24/5 market. The day begins in New York, and follows the sun around the globe through Europe, Asia, Australia and back to the US again. You can trade any time you like Monday-Friday.

6. Free market place

Foreign exchange is perhaps the largest market in the world with an average daily volume of US$1.4 trillion. That is 46 times as large as all the futures markets put together! With the huge number of people trading forex around the globe, it is very hard for even governments to control the price of their own currency.