This exchange rates table compares the leading currencies in today's market, and can be fully customized to match the appearance of your site.
Sunday, August 30, 2009
How to Read a Currency Quote
Forex trading is a form of commodity trading. In the commodity market traders buy and sell assets like oil or gold in exchange for currencies. In the forex (currency trading) market the assets bought and sold are currencies themselves. As a result, unlike in the commodity, each currency’s value is determined relative to another. For example, when the currency trader buys an ounce of gold, he must pay for it with the US dollar, which creates a quote in which the price of the metal is defined in terms of a currency which is another asset class. But when the forex trader buys or sells the Euro, he must pay for it with another currency (Australian dollar, Swiss Franc, etc) in which case the quote created has the same asset class on both sides. The result of this is that it is impossible to speak of absolute value in the forex market
Currency Pairs and Their Characteristics
Of course, we can’t trade currencies without knowing about them. There are a large number of currencies that traders can choose from for establishing their trades and portfolios, but most currency traders will concentrate on a few of the more widely traded, and liquid pairs such as the EUR/USD, GBP/JPY, or USD/CHF, which are all currencies of major powers. It is possible to divide currencies into many different groups based on the criteria chosen, but in general currency account position and interest rate policies of central banks are the most important values for classifying them.-Reserve Currencies
-Commodity Currencies
-Exporter Currencies
-High-risk currencies
Forex Order Types
After examining the basic concepts, let’s briefly discuss how a trade is opened, and look at a few basic ways of controlling risk and managing our funds.
A market order instructs the broker to buy or sell a currency at the current market price. As such, neither the trader, nor the broker has any control over where the trade is executed.
By contrast, a limit order instructs the broker to execute a trade only when a particular price value is reached. No action will be taken until the price quote is reached, regardless of the length of time.
The stop-loss order is a kind of safety mechanism that puts a ceiling over the losses that a misplaced trade can cause.
The trailing-stop order is a relatively uncommon order type. In this case, the stop-loss order is renewed automatically by the trading software at intervals specified by the trader.
What are Forex Pips, Lots, Margin and Leverage
Knowing and understanding the proper terminology within the forex market is essential in becoming a successful trader. In this article we define what pips, lots, margin and leverage are.
Pips and Lots
Currency traders quote the value of a currency pair, and trade sizes, in pips and lots. A pip is usually the smallest amount by which the value of a currency pair can change, although these days some brokers offer fractional pip quotes too.An important guideline for the beginning trader is to measure success or loss in an account by pips instead of the actual dollar value. A one pip gain in a $10 account, is equal, in terms of the trader’s skill, to a 1 pip gain in a $1,000 account, although the actual dollar amount is very different.
Margin and Leverage
Another important concept in currency trading is the twin phenomenon of margin and leverage. Since forex prices move very slowly (in terms of the actual change in value), the vast majority of traders leverage their accounts to create meaningful returns in short term trading. In the absence of leverage, it is difficult to generate even a ten percent return in the forex market, which is not the kind of profit that most forex traders have in mind when beginning their careers.When you open a forex account, the broker will request that you deposit a small sum, known as margin, as insurance against the losses that your account may suffer.
Referring Brokers
RB PROGRAM
Grow your forex business with FXCM—one of the world’s leading forex service providers, and one of the most trusted names in the industry.
FXCM's referring broker (RB) program allows firms to receive compensation for directing new clients to FXCM. Whether you are a money manager or run a business supporting self-directed traders, FXCM offers customized solutions through our wide range of products and services to fit your needs.
FXCM Holdings, LLC Facts
HOLDING AND FACTS
FXCM Holdings LLC has over $100 million in capital
More than 150,000 live accounts are traded on FXCM trading platforms
An average of $365 billion in notional volume is traded each month on FXCM trading platforms
More than $600 million in customer funds trading on platforms offered by FXCM
About FXCM
FXCM Recognized With Best Retail Platform by FX-Week
FXCM triumphed over other industry leading firms, including Saxo Bank and Gain Capital.
"This award confirms FXCM's leadership in the forex market. The No Dealing Desk* (agency execution) business model embraced by FXCM in 2006 is clearly the direction forward for the retail industry. Clients want transparent and fair execution and FXCM offers it," says Marc Prosser, the firm's chief marketing officer.
FXCM developed its proprietary trading platforms: FX Trading station II (PC-based) and FXCM Active Trader (web-based) to meet the rigorous conditions of today's volatile markets. The current platforms were developed by an in-house team of over 50 programmers. FXCM's platforms are extremely stable, scalable and robust. There are over 150,000 live accounts trading on FXCM platforms, with an average of over 8 million trades per month.
Why Trade at FXCM
An average of over $365 billion in notional volume is traded each month on trading platforms offered by FXCM. As a result, we have obtained close banking relationships with eight of the world's largest and most aggressive price providers. Having multiple price providers is especially important in volatile markets, when one or two banks may post wide spreads, or simply avoid quoting any price at all. With so many major banks quoting prices to FXCM, there are competitive spreads, even during market-moving news events.FXCM does not take a market position—eliminating a major conflict of interest. A dealing desk broker, which acts as a market maker, may be trading against your position. With our No Dealing Desk execution, however, we fill your orders from the best prices available to us from the banks.
Investment Myths
The foreign exchange market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends. Presumably, these characteristics would enable traders to have tremendous success. However, success has been limited mainly for the reasons described below. Many traders come with false expectations of the profit potential and lack the discipline required for trading. Short-term trading is not an amateur's game and is usually not the path for quick riches.
If an account value is $10,000 and the trader places a trade for 1 lot, he is in effect, leveraging himself 10 to 1, which is a very significant level of leverage. Most professional money managers are not allowed to leverage even this high.
Investment plans with 10% and more MONTHLY profits
Everyone can benefit from the great interests made in the Forex market, investment plans with interests starting from 10% MONTHLY are todays reality!Everyone around the globe can invest, the new financial market offers great opportunities, and nowadays it is accessible to everyone who wants to be part of it.
The end of the monopoly of the banking entities in the Forex Market allowed that it is possible to invest directly in this impressive market. The Foreign Exchange or Forex Market is now more accessible to the public.
Due to the large sums of capital required to participate in the Forex market, it was difficult for individual investors to enter. As a result, primarily large financial institutions, banks and other large investors have been able to invest in this lucrative market.
Forex Investment - Delightful, But Have A Care!
In an increasing variety of markets, ranging from spread-betting on stocks and shares to more exotic futures and derivative markets, internet technology has made it possible for a growing number of day traders situated around the globe to bet on the markets via online platforms from the comfort of their own home or office. Even the previously off-limits currency markets, which will be explored in this article, can now be traded online by the individual investor, and there is a growing list of banks, brokers and specialist firms offering these services.Until relatively recently the foreign exchange market was strictly the preserve of institutional investors and hedge funds. Large minimum transaction sizes and stringent financial requirements dictated that only the largest and most capitalised investors could make bets on the direction of the world's currencies.
Friday, August 28, 2009
Fundamental vs Technical Analysis
Basically, supply and demand determine the value of currencies. To forecast the currency trend, totally there are two methodologies, which are fundamental and technical analysis. Different traders may interested in different method.Fundamental Analysis
Based on key economic indicators that can influence various currencies
Studies cause of market movement
Analysts will gain knowledge of charts analysis and indicators
Find explanation of the current price
Technical Analysis
Basic on past performance of a currency, equity, position or future and exercise with mathematical calculations to predict future results.
Studies the economical effect.
Predict future with history.
Analyst will gain knowledge of awareness of the fundamentals.
Find accurate forecast of future
Forex Trading Ideas
AIME is effective because of its clear-cut methodology - it teaches the traders how to use all of the above tools together in a simple system to confidently and effectively trade the Forex.
ASSESS - IDENTIFY - MOVE-IN - MOVE-OUT - EVALUATE
AIME is...
The Forexmentor-AIME workshop will be grounded in the Forexmentor course, and focus is on the correct and practical application of Peter's system, using: Pivot Points, Candles, Patterns, MACD, Trendlines & "Insider" tips, tricks and everyday wisdom
AIME is a step-by-step method for trading currencies that teaches students to uncover opportunities, enter, monitor, and exit trades, and evaluate and really learn from any trade they make.
AIME is an acronym and stands for:
A = Access the market
I = Identify opportunities
M = Move into a trade ( enter ), M=Monitor the trade, M= Move out of the trade ( exit )
E = Evaluate the trade
AIME is an intense 2-day, hands on, " in the trenches" trading "WORK" shop
Economic Fundamental Aspect
Share market is very corporate dependant, we need to understand the corporate strategy, what is current corporate trend, who is managing the company? Is the company reliable? Is the annual report reflect true situation? On the other hand, Forex market is economic dependant among countries. Unlike the financial, political and crisis factors, economic factors occur in a steady stream. Therefore, its very import to keep an eye on the economic announcement in order to make the enter and exit decision on your position.
Some economic aspects:
1. Information source
2. Economic data
3. Formulation of economic activity of relationship
4. Inflation rate
5. Employment
6. Production
Forex Chart Pattern and Trend Line:
Tips: Most people will not consider side way pattern because the possibility to going up or ramping down is the highest. If you would like to trade in side way pattern situation. Here is your 5 sen.
Make sure you are using charts that are generated from the same data source that feeds the dealing engine, as is the case with both platforms mentioned above. That way, what you see is what you get when you buy or sell. Some charting packages do not ccurately reflect where price is at any given moment in time.
-Play a bounce off resistance
-Play a break off resistance
-Play a bounce off support
-Play a break off support
What is forex?
FOREX or Foreign Exchange market is the world largest financial market, where currency of one country is exchanged with another country through currency exchange rate system. Trader’s purpose is to get the profit as the result of foreign currencies purchase and sale. From latest assessment, Forex trading daily constitution is approximately average from 1.5 trillion to 2.5 trillion. . The free-floating of currencies being in the market turnover are determined by the supply and demand.
There are many countries in world; so results different currency pairs. Among all of them, these are the popular in currency trading:
EUR/USD, USD/JPY, GBP/USD, USD/CHF, EUR/CHF, AUD/USD, USD/CAD, NZD/USD, EUR/GBP, EUR/JPY, GBP/JPY, CHF/JPY, GBP/CHF, EUR/AUD, EUR/CAD, AUD/CAD, AUD/JPY, CAD/JPY, NZD/JPY, GBP/AUD, AUD/NZD
Five Major Currencies are:
U.S dollar - The United States dollar is the world's main currency – an universal measure to evaluate any other currency traded on Forex.
Euro- Euro was designed to become the premier currency in trading by simply being quoted in American terms.
Japanese Yen- The Japanese yen is the third most traded currency in the world; it has a much smaller international presence than the U.S. dollar or the euro.
British Pound - Until the end of World War II, the pound was the currency of reference. The currency is heavily traded against the euro and the U.S. dollar, but has a spotty presence against other currencies.
Swiss Franc - Swiss franc is the only currency of a major European country that belongs neither to the European Monetary Union nor to the G-7 countries.
To have a well focusing, you have to concentrate on less than 5 currency pairs( preferred the U.S. cross-currency pairs.)
Some traders see forex as a business, and some see it as a fortune. And even some traders think forex is an art.
What are the Secrets in Forex Trading?
Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.
-Use Future data to justify market trend.
-Pivot Program shows entry & exit signals.
-Familiar Chart Patterns and Trend lines.
-how big dogs are doing?
-euro vs USD Tricks.
-Be Smart to Filter Various Currency pairs.
-Confident to Control Up and Down Trendy.
-Avoid Pitfalls of Dumb money.
-Intelligent stop loss strategies implementation.
-AIME methodology
-History is your tips.
-Hedge currency Trades .
Advantages of Forex Trading
Are you new to trade currency? Are you giving up due to your past trade? Get yourself to know the primitive advantages of Forex trading. And you are also essentially advised to refer to the risk-bearing.
- Two Way Market where traders can trade in Bull and Bear market
Margin Trading 100 : 1 leverage
Low Account Balance for entry
Can work in odd work due to 24 hours a day from Sunday night to Friday noon
Flexible transaction sizes
Very dynamic and trendy
No worry about bad fills due to price gaps
Can practice at online simulation until you become expert
Learn Forex Trading
Our currency trading forex courses are awesome and the hard work to come out these forex training course are proven logical, powerful, robust and well presented methodology. We have the great trader and mentor. The strategies that are being taught honestly in the course have paved & lighted the forex trading path & turned the dumb money into smart money. The pivot point trading method is analagous to precision guidance system. The signal analysis method gives high level of accuracy and most of the traders truly learn from the concise and useful technical information.
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