Introduction To Forex Trading
An Introduction to Forex Trading
I'm sure you've already heard of Forex trading. It is certainly one of the hottest topics around these days. But what exactly is it, and how can the average person make good money in Forex?
Forex, also called "FX", is short for foreign exchange. The foreign exchange doesn't get the big press like stocks, options, and commodities. But the foreign exchange is the biggest market in the world and it offers investors an incredible opportunity for profit.
When you trade on the foreign exchange, you don't trade in stocks or bonds, but in currency.
Simply put, Forex trading is just the buying of one currency and the selling of another. As exchange rates go up and down, you either make or lose money.
With Forex, you're not investing in a single company or even a group of companies. You're investing in the economy of nation. You are betting that the overall economic health of one nation will improve in relation to that of a second nation.
For example, let's say you are analyzing the US Dollar and the Japanese Yen. Your research seems to indicate that the US dollar is undervalued and is due for a rise in price, and at the same time you expect the Japanese Yen to lose value.
In this case you would execute a trade to buy US dollars and sell Japanese yen.
If you are correct and the exchange rate rises, you make a profit!
So its a cinch, right?
Well no, not really.
Currency prices can be incredibly difficult to forecast because there are so many factors that can contribute to a change in exchange rates. And you must remember that in currency trading you always trade in pairs. You buy one currency and sell another. So you can't just look at one nation's economy; you must look at two.
Of course, you do not have to limit yourself to only one pair of currencies. There are dozens of different currencies to choose from. But if you are just starting out, I suggest sticking to the seven major currencies:
USD - US Dollar
EUR - the Euro
GBP - British Pound
JPY - Japanese Yen
CHF - Swiss Franc
AUD - Australian Dollar
CAD - Canadian Dollar
Most small investors concentrate their trading on just these seven currencies.
Forex News Updates:
How can I Benefit from Trading Forex with the MT4 Android App? MarketWatch (press release) To download the free MT4 Android App and start trading forex at a time that suits you - you'll need a forex trading account with FX Solutions. It's quick and easy to do - simply apply for a forex trading account online at FX Solutions. FXCM launches App Store for traders |
ZuluTrade: Leading Automated Social Forex Trading Platform Now Available to ... MarketWatch (press release) ZuluTrade.com, the largest social Forex autotrading platform that has revolutionized Forex trading by introducing the rating and following of Forex experts' performance, announced its new partnership with Nord FX, a rising star of the Forex industry. |
GO Markets Achieves Record Gains with Launch of CFDs & Pro Trading Accounts Sacramento Bee The market leader has also launched its "Pro" trading account, an account designed specifically to accommodate professional level Forex trading. Through GO Markets' Pro account, traders can directly access institutional grade spreads and deeper, ... |
Forex-Metal Offers Free MAM Software for Fund Managers PR.com (press release) ... many years of experience trading for various financial institutions and banks, Forex-Metal is recognized as one of the leading Forex and CFD brokers. The company is famous for its competitive forex trading conditions and outstanding customer service. |
Forex - Chart EUR/USD Update: Early drift higher stalls; now a small drift ... Forexrazor Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. This website is neither a solicitation nor an offer to Buy or Sell currencies, futures, ... |
You too can be a forex trader but be warned, it's a gamble Sydney Morning Herald The only reason forex trading is so heavily marketed to the public is because CFDs got a bad name and this is the next best reincarnation, another leveraged derivative substitute. And the reason they are such a good product is because the currency ... |
How to Trade Forex on the Move with a Forex Trading App Sacramento Bee By City Index The City Index forex trading app enables unrestricted access to 37 spot forex markets from the palm of your hand, wherever you are - whenever you want. Available for iPhoneâ„¢, Androidâ„¢ Mobile and Android Tablet; the City Trading FXâ„¢ app ... SWFX Trader (Demo) |
Trading Forex With the MT4 on iPhone® Sacramento Bee Forex trading involves a substantial risk of loss and is not suitable for all investors. iPhone is a trademark of Apple Inc. Mobile trading is subject to FX Solution's mobile terms found at http://www.fxsolutions.com/support/regulation.aspx FX ... |
How to Trade Forex as Euro Reaches Four-Month Low MarketWatch (press release) Through forex trading provider City Index, we look at the recent news out of Greece and how you can trade on this global currency market. With no resolution in sight between left and right wing party leaders, investors are asking if or when Greece will ... Free FX Trading Guide Following JPMorgan Loss and Greek Woes |
Free FX Trading Guide Following JPMorgan Loss and Greek Woes MarketWatch (press release) Find out with our free and comprehensive guide to forex trading. The biggest US bank by assets, JPMorgan Chase & Co, lost a reported $2 billion in a trading blunder on Friday 11 May 2012. In the wake of the loss, Chief Investment Officer (CIO) Ina Drew ... |
Forex Articles:
Forex Trading Vs The Stock Market
Fundamental Analysis Vs Technical Analysis
Understanding Margin And Leverage
Avoiding Failure In The Forex Market
