Forex Trading the Foreign Exchange FX Currency Markets

Forex Trading Online - 7 Reasons Why You Should!

Forex trading online is a fast way to use your investment
capital to it's fullest. The Forex markets offer distinct
advantages to the small and large traders alike, making
Forex currency trading in many ways preferable to other
markets such as stocks, options or traditional futures. Here
are seven reasons why you'll want to look into Forex Trading
online.

1 - Forex is the largest market.
Forex trading volume of more than 1.9 billion, more than 3
times larger than the equities market and more than 5 times
bigger than futures, give Forex traders nearly unlimited
liquidity and flexibility.

2 - Forex never sleeps!
You can execute forex trading online 24/7, from 7AM New
Zealand time on Monday morning, to 5PM New York time on
Friday evening. No waiting for markets to open: they're open
all night! This makes Forex trading online a very attractive
component that fits easily into your day (or night!)

3 - No Bulls or Bears!
Because Forex trading online involves the buying of one
currency while simultaneously selling another, you have an
equal opportunity for profit no matter which direction the
currency is headed. Another advantage is that there are only
around 14 pairs of currencies to trade, as opposed to many
thousands of stocks, options and futures.

4 - Forex Trading online offers great leverage!
You can make the most of your investment resources with
Forex trading online. Some brokers offer 200:1 margin ratios
in your trading accounts. Mini-FX accounts, which can
typically be opened with only $200-300, offer 0.5% margin,
meaning that $50 in trading capital can control a 10,000
unit currency position. This is why people are flocking to
Forex trading online as a way to highly leverage their
investments.

5 - Forex prices are predictable.
Currency prices, though volatile, tend to create and follow
trends, allowing the technically trained Forex trader to
spot and take advantage of many entry and exit points.

6 - Forex trading online is commission free!
That's right! No commissions, no exchange fees or any other
hidden fees. This is a very transparent market, and you'll
find it very easy to research the currencies and the
countries involved. Forex brokers make a small percentage of
the bid/ask spread, and that's it. No longer any need to
compute commissions and fees when executing a trade.

7 - Forex trading online is instant!
The FX market is astoundingly fast! Your orders are
executed, filled and confirmed usually within 1-2 seconds.
Since this is all done electronically with no humans
involved, there is little to slow it down!

Forex trading online can get you where you want to go
quicker and more profitably than any other form of trading.
Check it out and see what Forex trading online can do for
you!

About the Author

Keith Thompson is the webmaster of href="http://www.forex-trading-today.com"> Forex Trading
Today a blog focusing on the latest Forex news and
resources.

Forex Trading News

FOREX-Dollar on defensive after U.S. payrolls - Sun, 05 Sep 2010 18:20:38 -0700
FOREX-Dollar on defensive after U.S. payrolls

Forex Strategy Corner: Bollinger Bands Techniques for Trading - Thu, 02 Sep 2010 12:11:48 -0700
Bollinger Bands have long been one of the most popular technical indicators across financial markets, and many forex traders use them regularly in their day-to-day trading. The key question to ask of any forex analysis technique is nonetheless clear: how effective is the Bollinger Bands indicator as a forex strategy?

FOREX: Ringgit Opens At 13-year High On Strong Demand For Local Currency - Sun, 05 Sep 2010 19:40:04 -0700
KUALA LUMPUR, Sept 6 (Bernama) -- The ringgit opened 13-year fresh high against the US dollar in early trading on Monday on strong demand for the local currency, dealers said.

Forex: GBP/JPY pick up to 130.40 from 129.80 low - Sun, 05 Sep 2010 17:58:28 -0700
FXstreet.com (Barcelona) - The British Pound was able to recover the lost ground in pre-market trading, as investors snapped the price back up towards 130.50 again, matching its closing price from Friday, to even trek slightly higher, hitting an intra-day high at 130.58. Afterward, a weak hold led to a minor retreat at 130.35, current price.

Forex: GBP/USD without definable trend at 1.5460 - Sun, 05 Sep 2010 19:43:28 -0700
FXstreet.com (Barcelona) - Despite the British Pound has been developing lower lows in the daily chart ever since coming off from a 6-month high at 1.5990 on Aug 6, the pair remains in a choppy trading range since early last week.

RELATED ARTICLES

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 (short 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 losses. In a lot of US$100,000 one pip is worth $10 so an increase in 40 pips (4/10 of one cent) can generate a profit or loss of $400.

FOREX Brokers
Most FOREX traders use a broker to handle their 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. Brokers earn money by charging a commission or a fee for their services.

FOREX Signals
One of the disadvantages of FOREX trading is the time investment needed to monitor the markets for advantageous entry and exit points. It's possible to sit in front of a computer monitor for hours watching the markets.

FOREX Trading Strategies
To be a successful FOREX trader you need a trading strategy. There is no one set strategy that is good for all traders; rather, each trader needs to develop his or her 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 market and for plotting entry and exit points.

FOREX Training
Knowledge is the key to successful FOREX trading. The knowledgeable trader has greater awareness of how the market moves and more chances of making profitable transactions. Without knowledge you are shooting in the dark. You may succeed on a few deals but the odds are that you are going to lose in the long run.

FOREX versus Stocks
Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company.

How to Read FOREX Quotes
Currency prices are determined by a number of factors, the most important of which are economic and political conditions in the issuing country. Political stability, inflation, and interest rates are all factored into the price of any currency. In addition, governments can try to control the price of their currency by either flooding the market (to lower the price) or buying extensively (to raise the price).

Introduction to Fundamental Analysis
FOREX traders almost always rely on analysis to make plan their trading strategies. There are two basic types of FOREX analysis - technical and fundamental. This article will look at fundamental analysis and how it used in FOREX trading.

Risks of FOREX Trading
Despite the claims you may see on some FOREX web sites, FOREX is not risk-free. You are trading with substantial sums of money and there is always a possibility that trades will go against you. There are several trading tools, however, that can minimize your risk, and with caution, and above all education, the FOREX trader can learn how to trade profitably and while minimizing losses.

Trading Currencies on Margin
The key to FOREX popularity is margin. Without margin, the FOREX would be beyond the reach of the average investor. So, what exactly is margin and how does it work?

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