Benefits of FOREX Trading

The FOREX market is a cash market where foreign currencies are traded via brokers. The increase or decrease in the traders’ investments depend on currency movements. Foreign currencies are bought and sold simultaneously and constantly across both local and global markets. FOREX trading conditions can be influenced by real-time events.


Most traders prefer short time FOREX trading for a number of reasons, such as the twenty-four-hour availability and access to global dealers, profit opportunities from volatile markets, risk exposure control by means of standard instruments, the possibility to trade most currencies due to the enormous liquid market, leveraged trading, zero commission trading, as well as the ability of being profitable in rising or falling markets.


The advantage with FOREX trading is that the investor can profit from foreign currency movements. This type of trading is always done in currency pairs, which results in a “FOREX rate”, or “rate” for short. A good investment can only be assessed by comparison to alternative investments. The return on investment and the return on a risk-free investment should be at least comparable to be able to speak about a profitable investment.


With global FOREX trading traders of almost any size, such as smaller companies or individual speculators are provided with the opportunity to trade the same as large players, in terms of rates and price movements. Average traders and individual speculators have been granted access to FOREX trading only recently. The main participants used to be banks, major currency dealers, and maybe high net-worth speculators. These used to be the only types of participants that could rise up to the large minimum transaction sizes and stringent financial requirements. FOREX trading advantages, such as fantastic liquidity, were only available to these traders initially, as opposed to now, when all- size traders are given the opportunity to trade.


Quality FOREX market analysis is equally important for both amateur and professional traders. Those who do not master global FOREX trading should take an online course that can get them off to a good start, because getting wiped out is just as possible as being successful with this investment tool. Nevertheless, no FOREX training course is a guarantee for profits.


FOREX trading differs from other types of trading from availability and liquidity to fees and various restrictions. First of all, global FOREX trading is possible around the clock, five days a week, as opposed to the limited trading hours that other markets impose. Secondly, there is no threat whatsoever that liquidities might dry up after market hours, since currency exchange transactions are required to continue in order to facilitate world commerce. Moreover, global FOREX trading is commission-free, unlike other markets where traders are required to pay all sorts of fees, such as clearing fees, government fees, exchange fees, and so on. Last but not least, there are no restrictions as far as account balances are concerned (they are very low), and accounts can be opened with minimum deposits.


All in all, the most outstanding FOREX trading benefits include its availability twenty-four hours a day, high degree of leverage, no restrictions on shorting, not to mention being the most liquid market in the world.

If you are looking for more information about Global FOREX Trading or FOREX Trading visit http://www.globalforextrading.org/forextrading.html

John V

JohnC.Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com
http://CreditSurvivor.blogspot.com

Forex Currency Trading - Frequently Asked Questions

What is FOREX?

FOREX stands for the FOReign EXchange market, which is an
international financial market where currencies are traded. The
foreign exchange market began in the 1970s and is now the
largest financial market in the world, with an average daily
turnover of US$1.9 trillion. That's thirty times the amount of
daily activity on all of the US stock exchanges.

Each Forex trade involves simultaneously buying one currency
and selling another. For example, if you think that the Euro
will rise relative to the dollar, you would place a Euro/Dollar
trade. The forex system would then buy the Euro and sell an
equivalent amount of the Dollar. Then, when you want to close
your position, you would place a Dollar/Euro trade. This would
buy the Dollar and sell the Euro. If the Euro had risen against
the Dollar, you would make a profit, but if it had fallen
relative to the Dollar you would make a loss.

What currencies are traded?

Most of the world's currencies are available to trade, but the
majority of market action involves a group of major currencies,
including the US Dollar, the Euro, the Yen, the Swiss Franc and
Sterling.

Where is the Forex market located?

Unlike most financial markets around the world, Forex is not
centralized on an exchange. Instead it operates on a basis
known as the interbank market or Over the Counter (OTC). As
each Forex trade involves two reciprocal trades (buy one
currency and sell another), these are conducted electronically
with any broker who is willing to accept the trade.

Who can trade in the Forex market?

Traditionally, access to currency trading was restricted to
banking organisations, including central banks, commercial
banks and investment banks. That's the reason it operates on a
system known as the interbank market.

However, the number of non bank participants in the Forex
market, which includes multinational companies, money managers,
money brokers and private speculators, is growing rapidly. And
thanks to the relatively small amount of capital required to
open a trading account (often $500) Forex is opening up to more
and more people all the time. If you're over 18, have internet
access the enough money to open a trading account, the world of
Forex is open to you.

When is the Forex market open for trading?

As Forex doesn't exist within a traditional exchange, it's the
only 24 hour financial market in the world. Forex trading
begins every day in Sydney and then moves around the globe as
the major international financial markets in Tokyo, London and
New York open.

In other words, there are always traders somewhere in the world
who are actively trading foreign currencies. This means you can
make trades and respond to major social, economic and political
events day or night. However, there is a short rest period from
close of trading on the American financial market on Friday
until trading begins in Australia on Monday morning. However,
due to the time differences around the globe, this period only
lasts for approximately 48 hours.

What is a trading margin?

Forex trades are made in lots of $100,000. If you had to
provide that amount of money to cover your position before you
could trade, the market would once again be restricted to banks
and other institutional investors. So brokers have established
the principle of margin trading. In effect they allow people to
trade $100,000 blocks of currency if they can provide an element
of security against potential losses.

For example, they may allow people to trade on a margin of 1%
(in comparison, traditional stock brokers often require a 50%
margin). This means that they can trade $100,000 blocks,
provided their account contains at least $100,000 x 1% = $1000.
One thousand dollars will protect the broker against any
potential losses that their client makes (currency values
rarely fluctuate by more than 1% in a single day). If a
client's account is reduced by losses (i.e. reducing the
broker's security below acceptable levels), the broker will
close all trades and require an additional deposit before
further trades can be made.

Trading margin allows people to control vast amounts of
currency wiith relatively small amounts of capital (often 50,
100 or even 200 times the amount of capital that they have
invested). This can lead to massive gains, but increases the
risk of losing most or all of your investment capital.

How much does it cost?

Thanks to the trading margin offered by most Forex brokers,
it's possible to open an account and get started trading with a
relatively small amount of capital.

Forex trades are made in lots of $100,000. However, most Forexs
brokes will provide you with a leverage ratio of up to 100:1,
which means that you have the ability to control a $100,000
trade with as little as $1000 in your account. Some brokers
will provide leverage of 200:1 or even 400:1, which allows you
to start with as little as $500 or $250 in your account.

However, please remember that although greater leverage allows
you to maximize your profit potential, it also increases the
risk factor. The higher the leverage ratio, the smaller trading
fluctuation that will be required to wipe out your trading
capital. So choose the amount of leverage that you use wisely.

For new traders, it may be safer to begin with leverage of 20:1
or 50:1. This will increase the amount that you need to open an
account, but it will reduce the risk of seeing all your trading
capital disappear due to a small shift in the value of a
currency.

About The Author: For more information on Forex Trading, visit
Michael Mancini's website at
http://www.forexcurrencytradingguide.com

John V
http://urlfreeze.com/JCV/Forex/

John C. Vincent/CEO/The Opt-In Magic System
http://www.linkbrander.com/go/37009
http://lawofattractionsite.blogspot.com/

Forex? What is it, anyway?

The market

The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-Forex™).

Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.

How does one profit in Forex?

Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.

Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.

You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.

How do I start?

Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading "margin" amount (credit cards are welcome, only by Easy-Forex™); start trading.

It can't be simpler or easier than that. Need help? We'll provide you with 1-on-1 training and service, as much as necessary (Easy-Forex™ offers real people service, live, in your own language).

How do I trade Forex?

You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).

Before you finally activate the deal, you can still "freeze" it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether regret the whole idea. The "freeze" feature is a unique service by Easy-Forex™.

When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any). Moreover, Easy-Forex™ lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.

Want to know more? Want to get on-line training? Register here (simple, quick, no obligation), we'll be glad to guide you, every step of the way.

Good luck!

Forex trading involves substantial risk of loss, and may not be suitable for everyone.

John V
http://urlfreeze.com/JCV/Forex/

John C. Vincent/CEO/The Opt-In Magic System
http://www.linkbrander.com/go/37009
http://lawofattractionsite.blogspot.com/