Essentials of Online Forex Trading
February 23, 2010 by Ron · Leave a Comment
If the ads you are looking into say that online forex trading is a breeze, well…that might be true; especially if you consider the fact that breezes come and go leaving you with nothing at all. The forex is one of the most voluminous markets in the world, where exchange of finances average to more than a billion dollars on a regular day. In some really extraordinary Read more
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Forex Trading Basics
September 18, 2008 by Ron · Leave a Comment
Forex has become the largest and fastest-growing market that there is and has a daily turnover greater than $2 trillion.
One of the most attractive things about trading Forex has to do with its gigantic level of turnover every single day. Forex is a super-liquid market and that means getting into and out of trades can be done quickly and easily.
Forex has tremendous leverage. $1000 can be used to control a Forex contract valued at $100,000. That’s a leverage ratio of one to 100 and that is gigantic. This means a huge profits can be had starting with only a modest amount of working capital. On the flip side of the coin of course leverage would have the opposite effect.
Forex trading is a speculator’s paradise. Over 95% of all Forex trading is from speculation.
Trading is always done in currency pairs. One very popular currency pair is the EUR/USD. When the price of this currency pair rises it means that the Euro has increased in relation to the USD. This doesn’t mean that the first component , the Euro has to increase in order for the EUR/USD to go up, it simply means that the ratio must change. This means that the EUR/USD can go up in either of two ways. The price in currency pair could increase if the Euro stays the same and the USD decreases or the Euro goes up and the USD stays the same or decreases. The prices of various countries’ currencies is constantly changing and this provides many opportunities for speculators.
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