Wednesday, April 8, 2015

What Is Online Forex Trading?

Forex is an international off-exchange market with a daily turnover of more than 3 trillion dollars. The name “Forex” comes from the phrase “FOReignEXchange”, meaning an international currency exchange. The major participants of this market are the world’s largest banks, which buy and sell different currencies, raw materials, gold, oil. All banks are united in a global informational network with no reference to any particular country, which allows the online exchange market to operate 24/7.

 The other participants in this global network are Forex Brokers; companies providing services at the exchange market to anyone who is hoping to profit from changes in currency rates. Trading operations are carried out by means of specific trading terminals connected to the server of a Forex broker via the Internet. These terminals can be used not only for online trading, but for getting the latest market news, performing online Forex analysis and making forecasts, as well as monitoring currency rates.

The main advantages of Forex trading are that you require a relatively small initial deposit to start trading and you can make money while staying at home. The high risks of trading can always be minimized, if you approach them in the right way. Success in online currency trading is not determined by your age, sex, social status or nationality, as everyone has equal opportunities and you are the only person you depend on. However, you should never consider Forex to be an easy way of making money and forget about the specific features of Forex market. You must carefully study all aspects of the foreign exchange market, such as the behavior of a particular currency pair. Remember, your knowledge is the key to success.

 Studying the Forex market will help you understand how the global economy works, learn more about the processes in international financial markets and find out about the advantages and disadvantages of existing trading strategies. By improving your Forex knowledge you will be able to use technical indicators, wave and graphical analysis, and other methods of market research. The knowledge you acquire during this process will help you develop your own system of risk-management, which is the key to any successful online trading system.

Wednesday, April 1, 2015

What is FX trading?

FX trading is the simultaneous buying of one currency and selling of another.

Currencies are quoted in pairs, for example Euro / US dollar (EUR/USD) and clients can speculate on changes in the relative prices between the two currencies. When one currency in the pair increases in value, it strengthens against the other. FX is a popular way to trade on the financial markets as it is a 24 hour market. Please refer to the trading platform for local FX trading times.

With currency pairs, the first currency is often referred to as the base currency and the second currency is referred to as the quote, or variable currency. In any price quote, the figure tells you how much you would receive of the quote currency for one unit of the base currency.

For example, a quotation of EUR/USD 1.28311 means that one Euro is exchanged for 1.28311 US dollars.


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