Forex (foreign exchange market or currency market) – is a young and developing market
of currency exchange, whose daily turnover exceeds all the financial markets of the world (according to the
Bank for International Settlements, daily turnover reached the level of 4 trillion USD in 2010, comparing to
daily turnover of American stock exchanges, which is "only" 300 billion USD). The market of currency
exchange started its history in...
The concept of trading on the FOREX market is based on the process of buying one
currency for another and inverse operation of selling it, to make profit. You can make such transactions
with almost every currency of the world. Let's analyze some examples. Example 1: You have 1,600 USD and
exchange rate GBP/USD is 1.6000, which means that you can buy 1,000 GBP for 1,600 USD. You buy...
It is easy to start trading on FOREX, the complication appears when you want to trade
with profit. A lot of people mistakenly consider FOREX as a kind of gambling, where everything depends on
the luck. But this is not true. In order to receive stable profit, theoretical knowledge is required. This
knowledge must be followed by practice. In order to test your trading skills, when you are not experienced
in trading, you have a chance to...
To start trading process, the necessary condition is the presence of the trading
platform. Trading platform (trading terminal) is a set of software and hardware, adapted for online trading,
which provides interaction of broker and trader. In other words, trading platform – is a software, that is
installed on trader's computer and used for online trading. Some platforms work through...
In order to display information on the quotes of the foreign exchange market, several
ways of building charts exist. Charts are used by the trader to conduct technical analysis and make market
decisions. They are built in two coordinates: price and/or tick volume (shown on vertical axis) and time
period (horizontal). Some kind of data is used for building charts (except tick ones):
In order to interpret the situation on the market correctly and figure out what some
actions and events will cause, you need to learn to "read", group and analyze information, received from
external sources. To predict future currency fluctuations, you must learn two types of analyses: technical
and fundamental. Lets find out what are the features of each one of them.
Transactions on the FOREX market are made on Spot terms. It means that all the deals
are made with the actual delivery of the currency next workday after their execution. But there is no need
in the real delivery of the currency in case of speculative trading (speculative trading is actually
something you are about to start). If you execute order...
Central bank is a bank that provides financial services to government and commercial
banks of its country.
The main functions of the central bank are:
Psychological preparation is very important when you want to reach good stable results.
The beginner, who has just started trading process, quite often considers Forex as it is something easy to
learn, but this is not true. Having earned a small sum in the beginning, he looses his head and as a result
can loose absolutely everything. During first days of trading you can start writing down all the actions
made by you. In a little while you notice...
The most important steps of trading are order opening and order closing to fix the
results of the trade.
It is possible to trade on the platform MetaTrader 4 using either market or pending orders. Market order is
All traders, who joined FOREX, seek to reach best results. But to trade with profit,
traders need to know and follow some FOREX principles.
1. Have your own trading strategy. Develop your system, which is based on some significant factors for
trading on FOREX.
2. Control your emotions. Unstable emotional condition may disturb in making decisions. Learn how to control
your emotions and...