Forex Articles

What is FOREX? Major participants
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...
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Basics of Forex Market
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...
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How to Start
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...
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Trading Platforms
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...
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Types of Charts
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):
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Analysis on the Forex Market
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.
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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...
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Central Banks
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:
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Trading Psychology
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...
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Trading Process
The most important steps of trading are order opening and order closing to fix the results of the trade.
Order opening
It is possible to trade on the platform MetaTrader 4 using either market or pending orders. Market order is used to...
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Trading Principles
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...
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