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What Is It And How Does It Work? Register FAQ Calendar Today's Posts Search. Trade Forex and make money. Trade Forex and make money For those unfamiliar with the term, FOREX Forex EXchange marketrefers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency. FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers. Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily brokerage in currency prices, create an environment which attracts investors with a broad range of strategies. How FOREX Works Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers some of which can be found online. This is called marginal trading. Marginal Trading Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, work quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. At some point in the future, your predictions come true and you decide to sell. You close the position at 1. Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro in Dollars is about 70 how pips. When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account. Technical Analysis and Fundamental Analysis The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before. A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality. Trade Forex and make money FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to does the forex for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments. Sorry your browser does not support IFRAME. The Following User Says Thank You to TATrader For This Useful Post: Looking for a share broker? Select State Andaman and Nicobar Islands Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Dadra and Nagar Haveli Daman and Diu Delhi Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Lakshadweep Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Puducherry Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttarakhand Uttar Pradesh West Bengal Are you a day trader? The Forex Market - What, When and Why? Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market. With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication. Unlike other financial markets, the Forex market has forex physical location or central exchange. Trillions of dollars of foreign exchange activity takes place every day. It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate. Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers called forex brokers. Foreign currencies are work and simultaneously bought and sold across local and global markets while traders increase or decrease value of an investment upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events so it is also considered to brokerage a highly volatile and fragile market too. Conditions of the Forex market never remain the same they changes every second. The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. According to its size and scope it is many times larger than all other markets. Stats shows that spot transactions and forward outright Forex trading take place in the inter-bank market. For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade the Dollar, Yen, How Pound, Swiss Franc, and the Euro are the most popular. Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours forex trading goes on 24 hours a day and you have the reason why so many stock traders have flocked to day trade currencies. Hi, TaTrader, Nice info, I had been hearing of REFCO, which climbs to provide currency-trading facility without any brokerage in India with SIfy. Can some of you tell me how lucrative is it, and are there any technicals involved, and other info on currency trading. Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even does act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself. Thread Tools Show Printable Version. BB code is On. The time how is Advertise With Us - Forum Rules - Contact Us - Home - Archive - Privacy Statement - Top. You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members PMrespond to polls, upload content does access many other special features. Registration is fast, simple and absolutely free so please, join our community today! If you have any problems with the registration process or your account login, please read the FAQ. Forex Discuss trading the foreign exchange markets. Find All Thanked Posts. Page 1 of 5. Trade Forex and make money Trade Forex and make money For those unfamiliar with the term, FOREX FOReign EXchange marketrefers to an international exchange market where currencies are bought and sold. Select State Andaman and Nicobar Islands Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Dadra and Nagar Haveli Daman and Diu Delhi Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Lakshadweep Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Puducherry Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttarakhand Uttar Pradesh West Bengal. Are you a day trader? Trade Forex and make money Super Article,Thanx!! Currency Trading Currency Trading Quote: The simplest definition of currency trading is the practice of exchanging one country's currency for another country's currency. Basically, currency trading involves four main variables: The interplay of these variables creates opportunities for small investors to obtain investment returns that are generally unheard of in the traditional investment world. It is also referred to as foreign exchange, FX or Forex, but the essence remains the same that currency trading is the exchange of one currency against another. One thing is for sure that work orders of magnitude it is much larger than the bond or stock markets. So you can easily imagine its importance in the trading world of today. Moreover, contrary to earlier thoughts, currency trading is not limited to just larger organizations and other large banks and financial institutions, but open to everyone who has enough expertise and determination to hard work. You can start playing the currency trading market with real market conditions immediately. Trading opportunities in the forex currency trading market are now available to individuals through technology interfaces such as those used by major currency trading brokerage firms usually large corporations with big tummies. If you decide to hire a professional who takes advantage of this technology, you will be able to view your accounts' closed trades 24 hours per day through a secured, online access portal. Historically, SMBs and individual investors have had limited access to the forex market. For decades, major banks, multinational corporations and other participants, trading in large transaction sizes and volumes, have dominated this market. However, just like many other business segments technology has lowered the barriers of entry and opened up this attractive marketplace to a new breed of investors and speculators. Technological advancement, along with liberal market sentiments, has allowed almost everyone to deal in currency trading, unlikely to the past when there were only few organizations that could trade the currency. Mainly major banks, international organizations and some other are doing well in currency trading. Currency Trading Hi, TaTrader, Nice info, I had been hearing of REFCO, which climbs to provide currency-trading facility without any brokerage in India with SIfy. Currency Trading Currency traders make decisions using both technical factors and economic fundamentals. Currency Trading 2 very nice writeups Trade Forex and make money dear tatrader i would like to know whether margin trading is permissible under indian laws? Trade Forex and make money Quote: Originally Posted by bimalm dear tatrader i would like to know whether margin trading is permissible under indian laws? You may not post new threads You may not post replies You may not post attachments You may not edit your posts BB code is On Smilies are On [IMG] code is On HTML code is Off Trackbacks are Off Pingbacks are Off Refbacks are Off Forum Rules. Is this how stock market work? How does IPO work? Should traders have stop losses? How do they work?
The TRUTH about MARKET MAKERS!!! Does my broker trade against me?
The TRUTH about MARKET MAKERS!!! Does my broker trade against me?
Same thing-everything works but the touch screen to enter passcode.
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