You select the pair of currencies with which you wish to make a Forex deal. You
determine the volume (the amount of the deal). You deposit the "margin" (collateral
needed to facilitate the deal. Usually - only a very small portion of the whole deal, say:
1% or 1:100).
Before you finally activate the deal, you can still "freeze" it for a few seconds (only
available at selected brokers). That enables you to either change the terms, or accept it as
is, or altogether regret the whole idea.
When your Forex deal is running, you can monitor its status and check scenarios online,
whenever you wish. You may change some terms in the deal, or close it. Ultimately, you
remain in control, only you can decide when the time is right to cash in your profit!
Some Forex brokers will even let you determine a "take-profit" rate, with which the deal
will close automatically for you, when and if such rate occurs in the market. Meaning:you do not have to stay near your computer waiting for the right moment, you can go to
work, go shopping, or even got to the beach while the money is rolling in!
Showing posts with label Introduction About Forex. Show all posts
Showing posts with label Introduction About Forex. Show all posts
Monday, February 23, 2009
What is Forex?
The market:-
The currency trading (FOREX) market is the biggest and the fastest growing market on
earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than
the NASDAQ daily turnover.
FOREX is one of the latest crazes to sweep the world. Unlike the stock market which is
often ruled by those with inside knowledge, FOREX gives everyone an equal footing,
you can make good money even with very little experience.
FOREX is a thrill ride that just has to be experienced!
So, I'm not trading in companies?
No, The Forex goods (or merchandise) are the currencies of various countries. You buy
Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.
No expert knowledge of an industry is needed, that is the beauty of FOREX, thousands
can be made whether you are 18 or 80!
How does one profit in Forex?
Very simple and obvious: buy cheap and sell for more! The profit is generated from the
fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say - around
1%, are multiplied by 100! That gives you absolutely massive earning potential!
If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the
last 4 hours, your profit will be 60% on your investment! Such can happen in one
business day, or in a few hours, even minutes!
Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts,
but you never lose more than what you initially risked and invested.
The currency trading (FOREX) market is the biggest and the fastest growing market on
earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than
the NASDAQ daily turnover.
FOREX is one of the latest crazes to sweep the world. Unlike the stock market which is
often ruled by those with inside knowledge, FOREX gives everyone an equal footing,
you can make good money even with very little experience.
FOREX is a thrill ride that just has to be experienced!
So, I'm not trading in companies?
No, The Forex goods (or merchandise) are the currencies of various countries. You buy
Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.
No expert knowledge of an industry is needed, that is the beauty of FOREX, thousands
can be made whether you are 18 or 80!
How does one profit in Forex?
Very simple and obvious: buy cheap and sell for more! The profit is generated from the
fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say - around
1%, are multiplied by 100! That gives you absolutely massive earning potential!
If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the
last 4 hours, your profit will be 60% on your investment! Such can happen in one
business day, or in a few hours, even minutes!
Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts,
but you never lose more than what you initially risked and invested.
Introduction About Forex
Forex is one of the hottest trading markets in the world today. Derived from the words
‘Foreign’ and ‘Exchange’, Forex is the practice of currency trading. If you have been
abroad on holiday or business you have already done it. You exchanged your domestic
currency for that of the currency of the country you were travelling to, of course no doubt
you did not make any money in doing this, you probably lost some because of the
commissions usually charged by banks for currency exchange.
The Forex market is different though, by actively engaging in online trading using broker
platforms you can buy and sell currencies for huge profits. This is because you trade with
a leverage so that even a small amount of money can quickly become a huge amount if
you make the right trade.
Before throwing yourself feet first in to real money trading you should take the time to
familiarize yourself with the principles of trading and ensure you have a good level of
understanding of how it all works. We recommend you also start off small, sure it is
tempting to make your first trade with a large sum of money because the ultimate profit
potential is higher, however, good things come to those who wait and those who start off
with small trades are usually the most successful.
This Site if you like is designed to educate you on what Forex is all about and
the key principles of trading. By reading this guide in full and following our advice you
will have given yourself the best chance of success. You will understand every core area
of trading and will be well equipped to start trading profitably from the outset.
Finally for this introduction I will cover a bit about myself as you may be wondering who
I am and why I have written this guide. Well, my name is Paul and I started trading
online 3 years ago after dabbling a little offline in both Forex and stocks and shares.
When I started trading Forex was still fairly new to the Internet and as such very little
information was available to the new trader. I tried lots of different platforms, training
courses and strategies and whilst I got stung sometimes I also uncovered some products
that were absolute gems.
After about 8 months of trying different products I finally started making some big
profits. I managed to break even consistently after a couple of months but after 8 months
I began to make around 50-100 pips profit per month (pips will be covered in more detail
later). 2 years on and I have been able to consistently make around 500-1000 pips profit
per month.
‘Foreign’ and ‘Exchange’, Forex is the practice of currency trading. If you have been
abroad on holiday or business you have already done it. You exchanged your domestic
currency for that of the currency of the country you were travelling to, of course no doubt
you did not make any money in doing this, you probably lost some because of the
commissions usually charged by banks for currency exchange.
The Forex market is different though, by actively engaging in online trading using broker
platforms you can buy and sell currencies for huge profits. This is because you trade with
a leverage so that even a small amount of money can quickly become a huge amount if
you make the right trade.
Before throwing yourself feet first in to real money trading you should take the time to
familiarize yourself with the principles of trading and ensure you have a good level of
understanding of how it all works. We recommend you also start off small, sure it is
tempting to make your first trade with a large sum of money because the ultimate profit
potential is higher, however, good things come to those who wait and those who start off
with small trades are usually the most successful.
This Site if you like is designed to educate you on what Forex is all about and
the key principles of trading. By reading this guide in full and following our advice you
will have given yourself the best chance of success. You will understand every core area
of trading and will be well equipped to start trading profitably from the outset.
Finally for this introduction I will cover a bit about myself as you may be wondering who
I am and why I have written this guide. Well, my name is Paul and I started trading
online 3 years ago after dabbling a little offline in both Forex and stocks and shares.
When I started trading Forex was still fairly new to the Internet and as such very little
information was available to the new trader. I tried lots of different platforms, training
courses and strategies and whilst I got stung sometimes I also uncovered some products
that were absolute gems.
After about 8 months of trying different products I finally started making some big
profits. I managed to break even consistently after a couple of months but after 8 months
I began to make around 50-100 pips profit per month (pips will be covered in more detail
later). 2 years on and I have been able to consistently make around 500-1000 pips profit
per month.
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