Posts Tagged ‘Forex trading’

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How Money Is Made In Forex Trading

In order to make money on the Forex market, you have to buy low and sell high. Quite simple. Let's look at the example. How much money can you theoretically make by trading currencies. Let's assume that you have $1,000 in your trading account. The current exchange rate of euro versus the US dollar is 1.25. In other words, for 1 euro, you get 1 dollar and 25 cents. You forecast […]

The Foreign Exchange Market and Forex Trading Explained in One Minute

Just like you can buy and sell stocks or bonds, it is also possible to trade currencies. The foreign exchange market also called the Forex market is actually the largest market by far in terms of trading volume. With an average of about $5.1 trillion being traded each and everyday according to the bank for international settlements. All you have to do to get started is set up an account with a reputable broker […]

What Is a Long Position?

A long position is the purchase of a security, commodity or financial instrument, like shares or bonds in the belief that its price will rise, with the aim of making a gain from the increase. Conversely, a short position is when an investor borrows a share or other financial instrument for a fee and then sells it. The investor does this in the expectation that the price will fall and the share or position can be bought back at a lower price later, […]

Why Trade Forex and Reasons — Part — 2 — Forex Trading

Forex expertise makes you a better trader and investor. Forex markets often reflect changes in sentiment before other markets and offer profitable clues of where other markets are going. Another reason why we trade forex is the flexible hours. Forex markets trade in a seamless 24 hours session, 5 and half days a week. We trade forex markets because they offer the best liquidity. A liquid market […]

Why Trade Forex and Reasons — Part — 1 — Forex Trading

Many investors wonder why forex is the way to go. Here are a few reasons which answer this question. One of the reasons why people trade forex is diversification, just as every competent investor needs to diversify by asset classes and sectors, so do they need exposure to assets in multiple currencies and an understanding of forex trends and what drives them. Certain currencies tend to move with certain commodity prices. […]

Investing Basics — Forex

The forex market is the world's largest financial market, which plays a vital role in the global economy. Every day trillions of dollars are exchanged from one currency to another. Currency exchange is essential for international businesses and the participants include governments, businesses, and of course investors. Governments use the forex markets to implement policies. Businesses can participate in the forex market to facilitate international trade and to convert payments for goods and services bought overseas. […]

What Is Forex Trading? — An Explanation

Forex is the exchange of one currency for another. Foreign exchange is one of the most common type of transactions with trillions of dollars changing hands everyday. Here is Richard, who is an Amerian University student. This summer, he decides to backpack through Europe and he has saved up $1000 to do so. The only problem is that the american dollars in his bank account won't be accepted in most […]

Foreign Exchange Trading

In 1971, most international currencies were stopped being linked to the price of Gold. Since then with the heavy involvement of central banks and cross border businesses, the market has positively boomed. Following round the clock and five days a week, foreign exchange trades average 3.3 trillion dollars a day during 2007. 4 trillion in 2010 and now averages a 5.3 trillion every day. It is a growing, liquid and very quickly […]

Candlestick Patterns Explained for Beginners

Candlesticks are one of the most important tools we have in the forex and stock market technical analysis. The information that the candlesticks give us are the best and most accurate. If you like to become a good and professional forex trader, it is strongly recommended to use candlestick signals. This is how we trade. Candlesticks are the oldest form of technical analysis in the world. Japanese candlesticks were invented by a Japanese rice […]

What Is Forex? — Understanding Forex

If you have ever travelled to a foreign country, you may have needed to exchange your money. If so, you have already participated in Forex trading. Forex is the short form of Forex exchange. Well, Forex is a bit more than that. For example, companies buy goods from other countries. In order to buy them, they need to obtain the local currency first, just like us going […]