tag:blogger.com,1999:blog-40928176487546809212011-11-27T16:39:53.830-08:00sepakunoreply@blogger.comBlogger11100tag:blogger.com,1999:blog-4092817648754680921.post-42576914305585312082008-12-31T01:28:00.000-08:002008-12-31T01:29:19.499-08:00The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is<br />the largest financial market in the world, with over $1.2 trillion changing hands<br />every single day. If you compare that to the $25 billion a day volume that the<br />New York Stock Exchange trades, you see how giant the Foreign Exchange<br />really is. In fact it is three times larger than all of the US Equity and Treasury<br />markets combined!<br />What is traded on the Foreign Exchange? The answer is money. Forex trading<br />is where the currency of one nation is traded for that of another. Therefore,<br />Forex trading is always traded in pairs. The most commonly traded currency<br />pairs are traded against the US Dollar (USD). They are called ‘the Majors'. The<br />major currency pairs are the Euro Dollar (EUR/USD); the British Pound<br />(GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF).<br />The notable ‘commodity’ currency pairs that trade are the Canadian Dollar<br />(USD/CAD) and the Australian Dollar AUD/USD. Because there is not a central<br />exchange for the Forex market, these pairs and their crosses are traded over the<br />telephone and online through a global network of banks, multinational<br />corporations, importers and exporters, brokers and currency traders.<br />Traditionally, currency trading has been a 'professionals only' market available<br />exclusively to banks and large institutions, however, because of the rise of the<br />new E-economy, online Forex trading firms are now able to offer trading<br />accounts to 'retail' traders like you and I. Now almost anyone with a computer<br />and an Internet connection can trade currencies just like the world's largest<br />banks do. There are now over 6 million trading accounts worldwide up from 1.7<br />million in 1997.<br /><br /><strong>BENEFITS OF FOREX TRADING</strong><br />There are many benefits and advantages to trading Forex. Here are just a few<br />reasons why so many people are choosing this market as a business<br />opportunity:<br />1.LEVERAGE: In Forex trading, a small margin deposit can control a much<br />larger total contract value. Leverage gives the trader the ability to make<br />extraordinary profits and at the same time keep risk capital to a minimum. Some<br />Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin<br />deposit would enable a trader to buy or sell $10,000 worth of currencies.<br />Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.<br />2.LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid.<br />This means that with a click of a mouse you can instantaneously buy and sell at<br />will. You are never 'stuck' in a trade. You can even set the online trading<br />platform to automatically close your position at your desired profit level (limit<br />order), and/or close a trade if a trade is going against you (stop order).<br />3.PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stock<br />markets, you can only make money if shares are rising, but in economic<br />recession and falling 'bear' markets, there is little chance of making big money.<br />Forex is different. One of the most exciting advantages of FX trading is the ability<br />to generate profits whether a currency pair is 'up' or 'down'. A trader can profit<br />by taking a 'long' position, (buying the currency pair at one price and selling it<br />later at a higher price), or a 'short' position, (selling the currency pair and buying<br />it back at a lower price). For example, if you think the US dollar will increase in<br />value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If<br />you think the Yen will increase in value against the Dollar then you will sell<br />Dollars and buy yen (go short). As long as the trader picks the right direction, a<br />potential for profit always exists.<br />4. 24HRS: From Sunday evening to Friday Afternoon EST the Forex market<br />never sleeps. This is very desirable for those who want to trade on a part-time<br />basis, because you can choose when you want to trade--morning, noon or night.<br />5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online<br />Forex firms offer free 'Demo' accounts to practice trading, along with breaking<br />Forex news and charting services. These are very valuable resources for traders<br />who would like to hone their trading skills with 'virtual' money before opening a<br />live trading account.<br />6.'MINI' TRADING: One might think that getting started as a currency trader<br />would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer<br />'mini' trading accounts with a minimum account deposit of only $200-$500 with<br />no commission trading. This makes Forex much more accessible to the average<br />individual, without large, start-up capital.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/4092817648754680921-4257691430558531208?l=beginner-forex-education.blogspot.com' alt='' /></div>sepakunoreply@blogger.com0