Understanding the nuances of the Forex market requires experience andtraining, but is critical to success. In fact, ongoing learning is as important tothe veteran trader as it is to the beginner. The foreign currency market ismassive, and the key to success is knowledge. Through training, observationand practice, you can learn how to identify and understand where the Forexmarket is going, and what controls that direction.
To invest in the right currencies at the right time in a large, nonstop andglobal trading arena, there is much to learn. Forex markets move quickly andcan take new directions from moment to moment. Forex training helps youassess when to enter a currency based on the direction it is taking, and howto forecast its direction for the near future.
Training with Easy-Forex
Offers one of the most effective forms of training through hands-on experience. For as little as USD 25 at risk per trade, you can start tradingwhile learning in real-time. Easy-Forex strongly recommends starting withvery small volumes, and depositing an amount to cover a series of trades.Learn the basics of the foreign exchange market, trading terminology,advanced technical analysis, and how to develop successful trading strategies.Discover how the Forex market offers more opportunities for quick financialgains than almost any other market. The many available resources and tools to train yourself. There are many free tools and resources available in the market, particularlyonline. Among these, you will find:
Charts
There are many kinds of charts. Start withsimple charts. Try to identify trends and major changes, and try to relatethem to technical patterns as well as to macro events (news, either financialor political). Make an effort to determine the general magnitude of eachchange on the chart (meaning: what is the $ value of the change, if you weretrading at that point)
Guided tours
Most platforms provide guided tours, demos or tutorials, either online or via download.
News / breaking news
Keep abreast of world news. Read all the headlines, particularly thosedirectly related to Forex. Check the impact of such news, if any, on thecharts.
Forex outlooks
Read daily/weekly outlooks posted on Forex or general financial sites. Manyinclude alerts to upcoming reports and events such as market indicators andinterest rate decisions.
Forecasts
Read forecasts, some of which are available free of charge. Bear in mind that forecasts and predictions are made by people, none of whom can guaranteethe occurrence of future events…
Indices
Follow the indices of the leading markets. Compare them to the changes in the Forex market, and to changes inparticular currency pairs.
Economic indicators
Pay attention to the release of economic indicators (for example – themonthly unemployment rate in the USA), and try to identify their impact onthe market in general, and on specific currency pairs in particular.
Glossary
Don’t hesitate to browse Forex glossaries, which are offered free on manyplatforms. A given word may have different meaning as it relates to Forex andto the terminology used by the Forex market participants.Seminars and coursesTry to attend professional Forex seminars. Some seminars are offered free,often as part of a client recruitment process by a given platform; many are,nevertheless, worth attending. Educational courses are offered online and bymany post-secondary institutions.
Forex books
Read, or even just browse. Many books are offered free, or as part of aservice package to the trader. For many, historical background and technicalanalysis are topics better covered in books than in an educational setting.
Internet forums / blogs
Visit and participate in Forex forums. This gives you an opportunity to learnfrom the experience of others. Of course, remember that some forumparticipants may be biased, promoting a given Forex platform or their ownagenda.
So much to consider
To succeed as a Forex trader, you must take into consideration a wide varietyof factors such as:
• spread (“pips")
• commissions and fees
• ease of access to the trading platform
• minimum amounts needed for trading
• additional amounts needed (if any)
• control over activity and positions
• the platform software requirements
• ease of deposits and withdrawals
• personal service and support provided by the platform
• the platform’s business partners
• the platform’s management, offices and outreach
• the products offered onboard the platform; and many others.Online training, no downloads.
The “demo" account ideaMany
Forex platforms offer new registrants a “demo" account. A typica lexample would provide 10,000 “demo" dollars that can be “traded" as ameans of learning how to succeed in Forex, does not offer “demo" accounts. Coming to understand thatreason must rule over emotion is the most important lesson a trader canlearn, and it cannot be done with play money. If there is no consequence toindulging in emotional responses to the market, there is no learning, so“demo" accounts tend to have little educational value. Rather, Easy-Forex allows you to start trading with just $25, including full access to one-on-onetraining. New registrants are thus able to garner both an educational andexperiential benefit unavailable through simulated situations.
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Trading Forex
Tuesday, January 6, 2009
Monday, January 5, 2009
Overview of trading Forex online
How a Forex system operates in real time
Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted. When a trader locks in a rate and executes a transaction, that transaction is immediately processed; the trade has been executed.
Up-to-date exchange rates
As rates change so rapidly, any Forex software must display the most up-to-date rates. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current exchange rates. The rates quoted, unlike traditional bank exchange rates, are actual tradable rates.
Trading online on Forex platforms
The internet revolution caused a major change in the way Forex trading is conducted throughout the world. Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. The same was true for most activities related to Forex, such as making the deposits necessary for trading, not to mention profit taking. The internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits. Forex on the internet: basic steps. In general, the individual Forex trader is required to fulfill two steps prior to trading:
• Register at the trading platform
• Deposit funds to facilitate trading
Requirements vary with each trading platform, but these steps bear further discussion:
Registering
Registration is done online by the individual trader. There are various forms used in the industry. Some are quite simple, where others are longer and more time-consuming. In part, this can be attributed to governmental or other authorities’ requirements, though some Forex platforms require more information than is actually needed. Some even require a face-to-face meeting, or to obtain hard copies of required documents such as a passport, or driver’s license.
The key requirements for registration are the trader’s full name, telephone, e-mail address, residence, and sometimes also the trader’s yearly income or capital (equity) and an ID number (passport / driver’s license / SSN / etc.).
Typically, the Forex platform is not required to run a thorough check, but rely on the registrant to be truthful. Nevertheless, each Forex platform conducts certain routines, in order to check and verify the authenticity of the details provided. Registrants are required to declare that funds used for trading are not in question, and are not the result of any criminal act or money laundering activity. This is mandatory as part of a global anti-money laundering effort.
Depositing funds
New registrants must deposit funds to facilitate trading. However, the majority of the Forex platforms today require that, in addition to funds used for actual trading, an additional amount be deposited. Often called “maintenance margin" or “activity collateral", its purpose is for the platform to have an additional guarantee. Some of the platforms that require an additional deposit do pay interest on the collateral, which is “frozen" under the trader’s name.
Trading online
The trading platform operates 24 hours a day just as the global Forex market runs around the clock. However, many online Forex market makers require the download and installation of software specific to their own trading platform. Consequently, accessibility is limited to those terminals that have the software. Since Forex trading is borderless, and may be performed at any given time, it is obviously advantageous to have access to trading from as many locations as possible. The Easy-Forex™ Trading Platform is a fully web-based system, which means trading can be conducted from any computer connected to the internet. Traders are only required to log-in, ensure they have available funds to trade, or make new deposits, and commence trading.
The Trading Platform: real-time software
The main feature of any Forex trading platform is real time access to exchange rates, to deal and order making, to deposits and withdrawals, and to monitoring the status of positions and one’s account. The Easy-Forex™ Trading Platform system uses web services to continuously fetch the most current exchange rates. The most recent data displays without the need for a page refresh. This includes account status screens such as “My Position", which updates continually to reflect changes in rates and other real time elements.
Transaction processing and storage
As soon as a transaction is executed, the relevant data is processed securely and sent to the data server where it is stored. A backup is created on a different server farm, to ensure data integrity and continuity. All of this happens in real time, with no human intervention.
Trading via brokers and dealing rooms
Performing Forex trading via Dealing Room dealers (over the phone) requires knowledge about the way dealing rooms work, and the terminologies used in the course of trading. At start, the client should specify whether he/she is interested in obtaining a QUOTE (in order to make a deal) or just an INDICATION. In the case of an indication, the price given does not bind the dealer, but rather provides information about market conditions.
When asking for QUOTE, the trader must specify the currency pair and the deal amount (volume). For example: “Need a quote for EUR/USD in EUR100,000". It is wise to withhold from the dealer the intended direction of the deal, specifying the pair only. Accordingly, the dealer then provides a quote comprising two prices, buy and sell (“both sides quote"). The quote binds the dealer for the very second it is given. If the trader does not immediately ask for execution, then the price is no longer in force. The dealer would then tell the customer “risk", or “change", meaning – the price quoted is no longer in force. In such case, the trader should ask for a new price.
On the other hand, in order to make a deal, the trader must proclaim “buy" or “sell", together with the currency (or the price). An example:
• The trader asks for a quote for EUR/USD.
• The dealer says “1.2010/15".
• If the trader wants to buy EUR, he/she says “buy" (or "buy EURO", or “15".
• If the trader wants to sell EUR, he/she says “sell" (or "sell EURO", or “10".
The moment the trader says “buy" (or “sell") he/she is bound to the deal, regardless of the market situation.
--------------------
Trading Forex
Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted. When a trader locks in a rate and executes a transaction, that transaction is immediately processed; the trade has been executed.
Up-to-date exchange rates
As rates change so rapidly, any Forex software must display the most up-to-date rates. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current exchange rates. The rates quoted, unlike traditional bank exchange rates, are actual tradable rates.
Trading online on Forex platforms
The internet revolution caused a major change in the way Forex trading is conducted throughout the world. Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. The same was true for most activities related to Forex, such as making the deposits necessary for trading, not to mention profit taking. The internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits. Forex on the internet: basic steps. In general, the individual Forex trader is required to fulfill two steps prior to trading:
• Register at the trading platform
• Deposit funds to facilitate trading
Requirements vary with each trading platform, but these steps bear further discussion:
Registering
Registration is done online by the individual trader. There are various forms used in the industry. Some are quite simple, where others are longer and more time-consuming. In part, this can be attributed to governmental or other authorities’ requirements, though some Forex platforms require more information than is actually needed. Some even require a face-to-face meeting, or to obtain hard copies of required documents such as a passport, or driver’s license.
The key requirements for registration are the trader’s full name, telephone, e-mail address, residence, and sometimes also the trader’s yearly income or capital (equity) and an ID number (passport / driver’s license / SSN / etc.).
Typically, the Forex platform is not required to run a thorough check, but rely on the registrant to be truthful. Nevertheless, each Forex platform conducts certain routines, in order to check and verify the authenticity of the details provided. Registrants are required to declare that funds used for trading are not in question, and are not the result of any criminal act or money laundering activity. This is mandatory as part of a global anti-money laundering effort.
Depositing funds
New registrants must deposit funds to facilitate trading. However, the majority of the Forex platforms today require that, in addition to funds used for actual trading, an additional amount be deposited. Often called “maintenance margin" or “activity collateral", its purpose is for the platform to have an additional guarantee. Some of the platforms that require an additional deposit do pay interest on the collateral, which is “frozen" under the trader’s name.
Trading online
The trading platform operates 24 hours a day just as the global Forex market runs around the clock. However, many online Forex market makers require the download and installation of software specific to their own trading platform. Consequently, accessibility is limited to those terminals that have the software. Since Forex trading is borderless, and may be performed at any given time, it is obviously advantageous to have access to trading from as many locations as possible. The Easy-Forex™ Trading Platform is a fully web-based system, which means trading can be conducted from any computer connected to the internet. Traders are only required to log-in, ensure they have available funds to trade, or make new deposits, and commence trading.
The Trading Platform: real-time software
The main feature of any Forex trading platform is real time access to exchange rates, to deal and order making, to deposits and withdrawals, and to monitoring the status of positions and one’s account. The Easy-Forex™ Trading Platform system uses web services to continuously fetch the most current exchange rates. The most recent data displays without the need for a page refresh. This includes account status screens such as “My Position", which updates continually to reflect changes in rates and other real time elements.
Transaction processing and storage
As soon as a transaction is executed, the relevant data is processed securely and sent to the data server where it is stored. A backup is created on a different server farm, to ensure data integrity and continuity. All of this happens in real time, with no human intervention.
Trading via brokers and dealing rooms
Performing Forex trading via Dealing Room dealers (over the phone) requires knowledge about the way dealing rooms work, and the terminologies used in the course of trading. At start, the client should specify whether he/she is interested in obtaining a QUOTE (in order to make a deal) or just an INDICATION. In the case of an indication, the price given does not bind the dealer, but rather provides information about market conditions.
When asking for QUOTE, the trader must specify the currency pair and the deal amount (volume). For example: “Need a quote for EUR/USD in EUR100,000". It is wise to withhold from the dealer the intended direction of the deal, specifying the pair only. Accordingly, the dealer then provides a quote comprising two prices, buy and sell (“both sides quote"). The quote binds the dealer for the very second it is given. If the trader does not immediately ask for execution, then the price is no longer in force. The dealer would then tell the customer “risk", or “change", meaning – the price quoted is no longer in force. In such case, the trader should ask for a new price.
On the other hand, in order to make a deal, the trader must proclaim “buy" or “sell", together with the currency (or the price). An example:
• The trader asks for a quote for EUR/USD.
• The dealer says “1.2010/15".
• If the trader wants to buy EUR, he/she says “buy" (or "buy EURO", or “15".
• If the trader wants to sell EUR, he/she says “sell" (or "sell EURO", or “10".
The moment the trader says “buy" (or “sell") he/she is bound to the deal, regardless of the market situation.
--------------------
Trading Forex
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