Forex Trading - How to Find Step By Step In Forex Trading

If you are seriously interested in making money in the forex market, then my opinions is to use automated systems, advanced forex forex working hard, and do the work for you 24 hours a day.

Most of us do not have much time for reading books on forex and study volumes on how to operate in Forex, then this is where automated Forex systems come to the rescue to operate Forex.

Some experts on Forex trading done by hand instead of using this type of technology that often tends to give them shame. However, those who need to generate hundreds of dollars without having to study a lot or having to lose all your money in Forex, are welcomed into the world of simplified automatic forex.

Did you know that the automated Forex generate can hundreds of dollars month after month? Why then, ashamed of using an automatic Forex?

Nor do I say that all automatic forex existing operating at 100%, but in my experience have I seen a system that has worked for many people. In short, the easiest way is to use a forex operate these systems automatically in this way to generate many dollars a month

Also another advantage of the automatic forex is that you can generate purchase orders and sales, much clearer than if the hand did. Honestly if someone is against the use of technology systems forex, you must admit that if a forex system you generate revenue from 30 to 40% per month would not be anything wrong!

Furthermore, by using an automatic system can be generating money while learning to operate forex in this way is much easier to learn, and learn that while the concepts and skills, rather than feel they are under pressure.

In summary: if you do not have much time to study how to operate technology and forex automated Forex systems can help you generate income with very low risk, we recommend that you only give this technology a chance to improve your economic and start generating money as quickly as possible.

The final question is how to operate forex? Well, I already know the answer after reading this article.

Forex vs. Equities

Forex market offers several advantages over Equity trading, such as:

24 hours open market
The biggest advantage of the Forex market over the Equity trading is that of a 24 hours open market. Active 5 days a week, Forex market gives its traders what Equity trading does not. Equity trading is restricted to regular business hours, making Forex, the only incessantly moving trading platform.
Being a 24 hour trading market, there is always some investors, somewhere in the world who are dynamically trading foreign currencies. This also enables these investors to react to any breaking news of the market, immediately.

Higher trading volume
Also, the trading volume in the Equity trading or the major stock exchanges is often 100 times lesser than foreign exchange market. Furthermore, majority traders are willing to buy and sell currencies because of the need of various countries, which want to continue to trade goods with each other.

No commission and transaction fees
Forex serves as a more cost-efficient trade as compared to Equity trading, especially in terms of both commissions and transaction fees. Most of the sites dealing with Forex trading do not charge its investors or traders with any commissions or fees, while offering them, access to all the significant market information required for trading purposes. But in case of Equity trading, commissions range from $5 to $100 or more per trade in case of full service brokers.

Price stability through superior liquidity
The trading volume of the Forex market being 100 times more than the New York Stock Exchange, there are always dealers willing to buy or sell currencies here. The superior liquidity of the major currencies also helps ensure price stability in the Forex market. But this cannot be the case with the Equity trading which has a lower trade volume. This can therefore put the investors of the stock market to liquidity risk, resulting in larger price movements.

Higher leverage
Forex market offers higher leverage as compared to all the major stock exchange trade markets. While the commonly available leverage from the online Forex dealers is 100:1, the leverage offered by the Equity brokers is as low as 2:1 margin. Such high leverage enables the Forex traders to trade much larger sum of currency than they have deposited. Also that depends on the types of Forex brokers one considers for trading.

Profit Potential
Forex market enables its investors to trade on the upward as well as the downward trends of the market, giving them the facility to buy and sell currencies. This serves as another major advantage of Forex market over Equity trading. This is because in the equity market, it is more difficult to trade during downward trend of the market, due to some market policies. There are a certain risk aspects as well, Read more about Risks in Forex

Forex vs. Futures

Being the largest financial market in the world, Foreign Exchange market deals in the business of trading of the world's various currencies, with more than $1.5 trillion changing hands every day. Futures, on the other hand, deals in contracts to buy or sell a foreign currency on a specific date in the future, the price for which is set today.

In other words, futures are the same as forward exchange deals, which are tailor made to the customer requirements and needs for the amount of funds and due date of deal.

There are plenty benefits of Forex over currency futures trading, especially with the difference between the two regarding their target audience, transactions fees and liquidity, as given below:

24-Hour Market
Currency market is a 24-hour market, unlike most of the futures exchanges, allowing its traders to react to the immediate news happenings by trading immediately. This facility cannot be availed with the futures market which only operates during business hours and not for 24 hours a day.

Superior liquidity
Forex markets hold unmatched liquidity as compared to currency futures. Especially with $1.5 trillion changing hands daily, Forex is the largest and most liquid market in the world. It can absorb a large trading volume and the transaction sizes are huge too, in comparison to any other market. Futures market, on the other hand, is a $30 billion market per day which provides only limited liquidity with a lesser trading volume.

Forex uses simple and easy price quotes
While the currency futures trading and price quotes have added complications of time factor and interest rates between various currencies, the Forex markets require no such adjustments of future calculations and consideration for the interest rate of future deals.

Forex trading is commission free
Futures trading contracts get along with them, trading costs, exchange fees and clearance fees which eat up most of the trader's profits. But this is not the case with Forex trading because here, the trader deals directly with the market through online exchange, thus saving the brokerage fees. Although, there is always an initiating cost to any trading being done, which is revealed in the bid/ask spread, present in all types of trading, be it Forex, Futures or Equities.

High execution quality and speed
It is only with Forex trading that a trader can experience high execution quality and speed because of its high trading ratio as compared to any other market. The reason why futures market does not offer rapid execution or price is due to the lesser volume of trading and liquidity and definitely due to uncertainty during normal market conditions, as the trading prices on market orders is far from certain. Read as to what makes the Forex currency to move.

How to trade Forex

STEP 1:

The step 1 defines certain concepts and terms of Forex Trading-

Quotes are a vital part of the foreign exchange trading, as Forex trading is done in terms of quotes. Therefore, comprehending these quotes is the first important step.

Firstly, in a Forex quote, the currency listed first is known as the Base currency. For example, we have EUR/USD. Here, EUR is the Base currency.
Secondly, the base currency has always the value 1. In other words, the rate of other currency is calculated against 1 pt of the Base currency. For example, we have EUR/USD where EUR is the Base currency. Then 1 EUR = 1.2323 USD or the value of one currency against the other in the pair.
Thirdly, when dealing in terms of quotes, prices are expressed in terms of Pips. Pips can be defined as “percentage in points” and are mostly the fourth decimal point i.e. 1/100th of 1%.

Also used while trading through quotes, are two significant terms known as Bid and Ask. These two terms are responsible for making trading quote, a two-sided quote.
Bid can be defined as ''The price at which the base currency is sold concurrently buying the counter currency. Ask can be defined as “The price at which the base currency can be bought concurrently selling the counter currency''

STEP 2:

Step 2 illustrates the other key features of Forex trading which are namely, the leverage and the Margin. These two are immensely important in attracting the interest of the traders as they enhance the trading power of the investors.

The leverage is the ratio of the deposited amount to the amount that can be traded. Leverage enables the investors to deposit a small amount of money but still trade for a much larger amount. This way, investors can trade easily, utilizing less money to deal.

Margin, therefore, is the minimum amount required to be deposited before an investor starts trading. This can also be known as the initial amount with which the Forex trading account can be opened.

A detailed Example below illustrates exactly how Forex trading is done-
Supposing the current bid/ask price for EUR/USD is going by the rate of 1.5027/30, giving you the option to buy 1 euro with 1.5030 US dollars or sell 1 Euro for 1.5027 US dollars. Now, if you feel that the Euro is underrated against the US dollar, you would opt on buying Euros, selling your dollars at the same time. So you buy 100,000 euros by paying 150,300 dollars. You can then start analyzing the market, waiting for the exchange rates to rise.
As predicted, the rates begin to rise and then you decide a favorable rate at which you plan to sell your Euros to get a hefty profit. Supposing the Euro rises to 1.5090/93. Now, to realize your profits, you sell 100,000 euros at the current rate of 1.5090, and receive $150,900.
You bought 100k Euros at 1.5030, paying $150,300. You sold 100k Euros at 1.5090, receiving $150900. That's a difference of $600 or in other words, you successfully earned a profit of $600.
Return on Investment = $600

Always learn a lesson from the Forex Indicators, keep a watch, think long term and then take a step.

STEP 3:

MarketForex does e-trading using high end MarketForex softwares. Easily accessible and user friendly, they have a simple operating process. For instance, the currency pair to be bought or sold can simply be dealt with, by clicking on the sell or the buy key, placed in front of that currency.
After the deal to be done is selected, a quote is then displayed by the software, making it easier for the user to keep track of the records. Also, MarketForex software provides some attractive powerful features such as account details of the holder, like balance, leverage and margins, along with stop/limit orders.
The trader also has the option of selecting various other currency pairs for trading purposes. Before investing always analyse the forex market with various types of forex analysis.

Analysis Stages In Forex.

Foreign exchange rates in Hong Kong -- Jan. 1

HONG KONG, Jan 01, 2010 (Xinhua via COMTEX) --

The following are foreign exchange rates against the Hong Kong dollar released by the Bank of China (Hong Kong) Limited on Friday:

Buying Selling

Japanese yen 832.10 835.35

Swiss franc 747.95 750.75

British pound 1,251.55 1,256.70

Trading Conditions

Traders look increasingly across markets to take advantage of the latest economic trends and to continue diversifying their portfolios. The energy, commodities, equity indicies, precious metals, shares and forex markets are always moving and FxPro offers direct and easy access to all of these markets from a single Trading Platform.

Fair, transparent, and consistent execution quality are just a few of the key benefits on offer to you as an FxPro trader. We strive to provide our clients with consistent quality and competitive quoted prices.

Trade with FxPro



Competitive Prices

By having multiple price providers, we are always able to offer our clients the best quoted prices available in the market.


Liquidity

FxPro acts as the counterparty to our clients’ orders. Therefore, we offer the ability to execute clients’ orders, either buy or sell, for all financial instruments available for trading on our Trading Platform.


Speed of Execution

When executing clients’ orders we make every effort to offer high speed of execution. All orders received from our clients are automatically executed by our company, without the need to pass them over to any third party. We can therefore offer our clients the best possible prices, without any additional fees or commissions.

As an Over the Counter (OTC) broker, our prices are not subject to manipulation by third party brokers or any other intermediary bank. Orders are executed automatically.

FxPro’s Dealing Desk

As a European regulated Investment Firm, FxPro maintains a Dealing Desk (Execution Department) in order to achieve the best execution policy required by the relevant laws and regulations (e.g., MiFID). FxPro takes all reasonable steps to obtain the best possible result for our clients taking into account various factors (e.g. price, costs, speed of execution, etc). For further details please refer to our Order Execution Policy.

Our Dealing Desk performs the following functions:


Prices

We quote the major currency pairs with a fifth digit, allowing clients to profit from smaller price movements. We monitor the prices we provide, compare them with the rest of the market participants and ensure that they are always competitive.


Spreads

We make every effort to keep spreads as low as possible. With our low pips, we believe we offer a highly competitive service to traders. Under normal trading conditions, spreads start from 0.5 pips EUR/GBP, 0.8 pips EUR/USD, and 0.8 pips GBP/USD.


News and Analysis

We offer clients a wide range of customisable tools and resources to assist them for trading in the market. We provide traders with important, up-to-the-minute news updates – from world-leader Dow Jones – and technical analysis and trading signals through Trading Central. These are available respectively through our Trading Platforms, and MyFxPro - your personal management system for your Trading Account. Such news and analysis are vital in order for traders to keep informed of all market conditions that may affect their trading strategies.


Superior Client Service Focus

Our experienced staff is available to answer clients’ enquiries with continuous coverage during trading hours. Clients can place their orders by telephone in the event that clients don’t have access to the Trading Platforms and they immediately need to take a position.


Systems Operations

Our clients are assured by the highest-quality support we give them through our leading-edge operations and our best-in-class technologies, platforms and accounts. Our Systems Operations team is responsible for all updates and upgrades of the Trading Systems and for informing our clients of any new available versions.

Forex reserves climb to $13.9676 bln

Updated at: 1754 PST, Thursday, December 31, 2009
KARACHI: The foreign exchange reserves of the country have risen to 13.9676 billion dollars, showing an increase of 244.4 million dollars in the week ended December 26, said a statement of State Bank of Pakistan.

According to breakup, the reserves held by the SBP amount to 10.2946 billion dollars while those with the commercial banks stand at 3.6703 billion dollars.

The reason for the rise in the country’s foreign exchange reserves is the financial assistance of 200 million dollars received from Saudi Arabia.

eToro Forex Platform

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