Forex Trading the Foreign Exchange FX Currency Markets

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Forex Trading Information

Calculating FOREX Profits and Losses

FOREX currencies are traded in much smaller divisions than cash. Whereas the smallest division in US cash is the penny ($0.01), US currency can be traded on the FOREX in divisions of $0.0001. This smallest division is called the PIP (acronym for Price Interest Point - sometimes just called 'points'). Since currencies are traded in large lots of (say) $100,000 - small movements in value can generate substantial profits and broad losses. In a lot of US $100,000 1-PIP is worth $10 so an increase in 40-pips (4/10 of one cent) can generate a profit or loss of $400.

Currency Option Marketplace

A foreign currency option is a contract giving the option holder the right, but not the obligation to buy or sell a specified currency during a specific time period. It can be used to hedge a FOREX transaction and are a favored method of reducing trade risk in firms which that trade goods overseas.

FOREX Brokers

Most Global Forex traders use a Commodity Broker to handle their account transactions. What exactly is a broker? Strictly speaking, a broker is an individual or a company that buys and sells orders according the investor's decisions. Forex brokers earn money by charging a brokerage commission or a fee for their services.

FOREX Glossary

Here are some of the most common terms used in FX FOREX trading. Ask Price - Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote - e.g. EUR/USD 1.1965 / 68 - means that one Euro can be bought for 1.1968 US Dollar.

FOREX Signals

One of the disadvantages of FOREX trading is the time investment needed to monitor the global-forex markets for advantageous trade entry and exit points. It's possible to sit in front of a computer monitor for hours watching the financial markets trade. Of course, you can use automated orders such as limit orders and stop-losses. These allow you to walk away from your computer with the knowledge that your losses will be kept to a minimum, but by doing so, you may miss out on potential profits because your limit order may kick in too soon.


There are many tools available to the FOREX trader for analyzing the market as well as for buying and selling currencies. Software tools are a necessary part of FOREX because of its volume and volatility. Software can be used to automate some of the trading procedures and safeguard against losses.

FOREX Trading Philosophy

Many beginning FOREX traders are captivated by the allure of easy money and profitable trading. FOREX websites offer 'risk-free' trading, 'high returns' 'low investment' - these claims have a grain of truth in them, but the reality of FOREX is a bit more complex.

FOREX Trading Strategies

To be a successful FOREX trader you need a forex trading strategy. There is no one set strategy that is good for all traders; rather, each trader needs to develop their individual approach to the FOREX. Some traders rely solely on technical analysis while others prefer fundamental analysis, but many successful FOREX traders use a combination of both to get a broad overview of the forex market and for plotting entry and exit points.

Siga las estrategias de trading que más le gusten para los principales pares de divisas EUR/USD GBP/USD USD/JPY. Copy trading en divisas o como operar en Forex sin ser un experto

FOREX Trading Systems

Almost every online FOREX broker has a software package for their trader clients to make transactions and get information about market prices. Due to the relative maturity of online trading there is a consensus among FOREX brokers about what clients need in terms of FX software and tools. There are two main classes of FOREX software - web based and client based.

FOREX Training

Knowledge is the key to successful FOREX FX trading and a profitable forex trading system. The informed FX trader has greater awareness of how the Forex Market moves and more chances of making profitable trades. Without trading knowledge it's like shooting in the dark. You may succeed over a few trades but the odds are you are going to lose money in your forex trading effort in the long run.

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