| |
| |
| |
 |
What
is Forex? |
 |
|
|
 |
 |
 |
 |
Forex means Foreign Exchange Trading. It is a business
of currencies being held worldwide. Financial institutions
play the role of the trading centers among the traders,
e.g. EBS and Reuter’s dealing 3000. It was started in
1970s. Forex trading can be distinguished from other
trades on the following grounds:
It is the biggest market and dealt internationally.
It is active all the day and closes on the weekends
only. It mainly depends upon the fluctuating rates of
the currencies. The marginal rate is less than the other
financial markets and Leverage can affect the margin
rate. It is different from the Stock Exchange Market
since the marketer can directly handle the business
with the broker solely.
The parties of this business are divided into several
classes: Interbank (the largest financial institution
around the world), Spreads (Traders who are concerned
with the bid price and the ask price), commercial banks,
corporations and retail marketers, speculators, etc.
The investor has to predict accurately the ups and downs
in the values of the currencies in the coming future.
However, now, there are several new and advanced technologies
used in the Forex Market , e.g. The Lagging Indicator
that can guess the fluctuating rates of paired currencies
in anticipation. Another tool is a Robot Trading System.
It is software that guides you when to start and stop
trading keeping in view the market conditions.
Scalping is also in practice by the Forex businessmen
and they make their business decisions accordingly.
Price Action is a very useful method that estimates
the price without any indicator. It makes you satisfied
and contented with the deals. You must be careful regarding
the Forex trading scams. It is definitely a beneficial
and sound business, but bewares of the Automated Forex
Robots. Sometimes, they stop working and you cannot
notice. Afterall, they are machines and cannot perform
like a human.
This market is open all 24 hours. Here’s an example
of Forex Business. Say you belong to England and want
to purchase rice from Japan; you cannot deal in your
own currency rather you will have to exchange your currency
with the Japanese currency that is Yen. If you travel
to the United States, you will have to pay in USD because
it is their local currency accepted by them, not in
British Pounds. So the currencies will be exchanged.
Hence, this is how Forex works.
|
 |
 |
 |
 |
|
|
| |
| |
|
Forex Tips and Tricks |
|
|
|
|
|
|
|
Today's Tip :
Any attempt to trade without analysis and studying the
market is equal to a game. Games are fun except when
you lose real money... |
|
|
|
|
|
| |
|
 |
|
| |
|
|
