Monday, August 29, 2011
Monday, May 18, 2009
A Short Introduction To Forex Trading
Many people who have been burned in the recent stock market plunge are now looking at other ways to make their hard-earned money go further. One method that is enjoying a surge in popularity is the Foreign Currency Exchange Market (Forex). Here's a little bit more about it.
Forex is a global enterprise, open 24 hours a day: there is never a closing bell. The overall concept is simple enough: traders match up a pair of currencies against each other, for example the Euro and the US Dollar. You are making predictions on the value of one currency versus another over a certain period of time.
There are eight world currencies that are most often used in Forex trading. They are: the US dollar, the Canadian dollar, the Euro, the British Pound, the Swiss Franc, the Japanese Yen, the Australian Dollar, and the New Zealand Dollar. The reason these are the most popular is because they are used in the most economically and politically stable countries in the world, and are therefore the currencies that are in the most high demand.
Forex trades are usually placed through a broker over the internet. An order for a trade is placed through the broker. When you want to close your trade, the broker will take care of that for you and credit your account with either a loss or a gain depending on how well you predicted the movements of the pairing you selected.
When you beginning trading in Forex, you always want to start slowly and with extremely conservative investment in capital. It takes practice and an accumulation of knowledge over time to do well in foreign currency. Really, it's a matter of developing a "feel" and a sixth sense about the movements of the currencies. This is a skill which simply cannot be learned overnight, so be patient with yourself and be careful with your money.
Unlike stock trading, Forex traders can make money whether the market for their currency pairing goes up or down. This feature allows for a great deal of flexibility in trading styles and real excitement in the process.
Make sure you choose a broker who offers a free demo so that you can see if Forex trading is something you might really be interested in. Like all forms of trading and investing, it is not for everyone. A good broker will also teach you all of the tools of the trade that will help you get off to a positive start and help you develop your own unique trading system. Good luck!
Forex is a global enterprise, open 24 hours a day: there is never a closing bell. The overall concept is simple enough: traders match up a pair of currencies against each other, for example the Euro and the US Dollar. You are making predictions on the value of one currency versus another over a certain period of time.
There are eight world currencies that are most often used in Forex trading. They are: the US dollar, the Canadian dollar, the Euro, the British Pound, the Swiss Franc, the Japanese Yen, the Australian Dollar, and the New Zealand Dollar. The reason these are the most popular is because they are used in the most economically and politically stable countries in the world, and are therefore the currencies that are in the most high demand.
Forex trades are usually placed through a broker over the internet. An order for a trade is placed through the broker. When you want to close your trade, the broker will take care of that for you and credit your account with either a loss or a gain depending on how well you predicted the movements of the pairing you selected.
When you beginning trading in Forex, you always want to start slowly and with extremely conservative investment in capital. It takes practice and an accumulation of knowledge over time to do well in foreign currency. Really, it's a matter of developing a "feel" and a sixth sense about the movements of the currencies. This is a skill which simply cannot be learned overnight, so be patient with yourself and be careful with your money.
Unlike stock trading, Forex traders can make money whether the market for their currency pairing goes up or down. This feature allows for a great deal of flexibility in trading styles and real excitement in the process.
Make sure you choose a broker who offers a free demo so that you can see if Forex trading is something you might really be interested in. Like all forms of trading and investing, it is not for everyone. A good broker will also teach you all of the tools of the trade that will help you get off to a positive start and help you develop your own unique trading system. Good luck!
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