Latest Articles

Forex Investment - Making The Decision Is The Hardest Part
When investing in the Forex market, making a Forex investment can be the best decision and can definitely earn you the best profits. Because there is very little in the way of barring entrance to the Forex market making a Forex investment is an...

Minimize Your Forex Trading Risk Through Forex Training
There are many ways to fail in trading and investments. Unforeseen market fluctuations, lack of experience, unpredictable political changes (as well as a faulty internet connection) can all reek havoc with a first time trader. But once equipped...

Online Forex Trading Strategies
Forex trading strategies are the key to successful forex trading or online currency trading. A knowledge of these forex trading strategies can mean the difference between a profit and a loss and it is therefore imperative that you fully understand...

Forex Trading - Do You Have It in You

Forex is short for Foreign Exchange, where money from one country is exchanged for that of another or the simultaneous buying of one currency and selling of another.

When one deals in forex trading the profit or loss, he incurs is the increased or decreased value of an investment caused solely by currency movements. For example, if an investor thought that the US dollar was weak, he might purchase German Mark. The investor's, the real profit or loss could then be in how the Mark moves against the US$.

Being the largest financial market in the world, the Forex market has a volume of more than $1.5 trillion daily. Also the Forex market, unlike other financial markets, has no permanent location, no central exchange and just happens ‘Over the Counter.’ It operates through an electronic network of large banks, central banks, currency speculators, multinational corporations, governments and other financial markets and institutions. Retail traders are individuals who are a small part of this market. They participate indirectly through brokers or banks.

The foreign exchange market is unique because of its trading volume, the extreme liquidity, the large number and variety of traders in the market, its geographical dispersion, its long trading hours i.e. 24 hours a day and a host of factors that affect exchange rates etc.

Currencies are traded against one another. Each pair of currencies are traditionally noted as XXX/YYY, where YYY is the ISO 4217 international three-letter code

of the currency into which the price of one unit of XXX currency is expressed. For example, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.

73 % of the forex trading is done by 10 top international banks. These large banks continually provide the market with both “bid or buy” and “ask or sell” prices. The difference between the price at which a bank or broker will sell and the price at which a broker will buy from a wholesale customer is called the “spread”. This spread is very less for actively traded pairs of currencies, usually only 1-3 pips. One pip is the smallest unit of price move used in forex trading. For example, if the currency pair EUR/USD is currently trading at 1.4000 and then the exchange rate changes to 1.4010, the pair did a 10 pips move. The pip is the smallest unit regardless of the fractional representation of the currency exchange rate. Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10 For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $1,000,000.

Whew! What a market!

NamSing Then is a regular article contributor on many topics. Be sure to visit his other websites Forex, Forex Trading and Forex Firm


Written By: NamSing Then




Reuters


FXstreet.com The Forex Market

Forex - Dollar up vs. most rivals on poor German, UK data
Forex Pros
Forex Pros – The US dollar rose against most other major currencies on Wednesday, after official data showed that German exports and British manufacturing ...
Forex: US Dollar mostly lower today as EUR/USD hovers near 1.3600CountingPips
Forex: GBP/JPY falls and trades at 134.67NASDAQ
FOREX: Euro Losing Ground to the Dollar; EUR/USD, FXELearning Markets
Easy-Forex -Forex Pros -Forex Pros
all 100 news articles »

3News

WORLD FOREX: Dollar Trims Gains In Shift To Riskier Assets
Wall Street Journal
TORONTO (Dow Jones)--Investors first pushed the dollar higher Tuesday as concerns about euro-zone debt flared, ...
Buy foreign currency as Australian data supportsCorporate FX

all 137 news articles »

Forex District

Forex - Euro rises vs. dollar, hitting daily high at 1.3625
Forex Pros
Forex Pros – The euro rose against the US dollar during European midday trade on Wednesday, hitting a daily high at 1.3625 in the wake of mixed economic ...
Forex - Euro slips vs. dollar after mixed German dataForex Pros
Forex - EUR/USD bounces after US consumer confidence dataForex Pros

all 20 news articles »

Earthtimes (press release)

WORLD FOREX: Dollar At 2-Week High Vs Yen On Asia Stock Rises
MarketWatch
TOKYO (MarketWatch) -- The dollar rose to a two-week-high against the yen Monday in Asia, as higher regional shares bolstered ...
FOREX-Euro gives up gains, yen steadies after fallReuters
FOREX-Yen rises on Japan exporters; sterling faltersNinemsn
Forex Daily AnalysisForex Hound
Ecommerce Journal
all 378 news articles »

Reuters


WORLD FOREX: UK Pound Slumps On Weak UK Economic Data
Wall Street Journal
The pound dropped to its lowest level in a week, shedding nearly 0.5% against the dollar by morning New York trading. "The bottom line is the UK economy has ...
WORLD FOREX: Euro, Sterling Slip As Dollar RisesWall Street Journal

all 2 news articles »

Globe and Mail

FOREX-Dollar rises vs yen as US jobs data boosts optimism
Reuters
NEW YORK, March 5 (Reuters) - The dollar soared against the yen on Friday after a government report showed US employers cut fewer jobs ...
WORLD FOREX: Euro Falls Vs Dollar After RBA Says Europe A RiskMarketWatch
WORLD FOREX: Euro Gains On Pledge Of Further Greek CutsWall Street Journal
Dollar loses steam on Greece hopesCNNMoney.com
NASDAQ -BusinessWeek -The Associated Press
all 1,371 news articles »

Forex Flash


WORLD FOREX: Euro Ticks Up Vs Yen On Japan Importer Buying
MarketWatch
Against the dollar, the unit traded at $1.3602 from $1.3601. "Overall currency moves were very limited" with share markets almost unchanged and a lack of ...

and more »

Sign up for PayPal and start accepting credit card payments instantly.