Forex Education - Free Online Trading University

It is called a pip and its value is the equivalent of 0.0001 of a dollar, in most currency pairs, and it is the smallest increment on the Forex market. A pip in the Japanese Yen is 0.01. Now you might find yourself wondering what the Forex market actually is and why anyone would possibly think chasing pips was ever going to be a profitable endeavor. However, with almost $2 trillion dollars being exchanged on the Forex each and every day it is open (from Sunday through Friday, the market trades 24 hours a day), those pips can quickly add up to big profits—or big losses—really quick. This makes it one of the most exciting, volatile, and engaging markets in the investment world. So what exactly is the Forex anyway? Well, the Forex is just a big market where corporations, nations, and investors can exchange money. For instance, if an American corporation wanted to fund their payroll account for an office in Paris, they would need to convert U. S. dollars into Euros. However, one U. S. doll...

Forex Trading, also known as FX Trading or Foreign Exchange Trading, is what happens when you trade one nation's currency for another. For example, if I go to the bank and exchange ten United States dollars for 15 Australian dollars, I have completed a simple Forex trade. The forex trading market is the largest trading market in the world. According to a study done in 2004, approximately two trillion dollars are traded each day in markets across the globe. The forex trading market is very unique in several aspects, one of which is its international presence. Unlike the stock exchange, which is largely located in New York and has set hours, the foreign exchange market is open twenty four hours a day. In between the united states, European, Asian, and other markets, there is always at least one market open. Other factors that make the forex market unique are the high liquidity of the market, the wide variety of traders and institutions involved, and the wide variety of factors which ...

Shares are now owned by millions of ordinary people worldwide. By 1956, 37 million families owned automobiles a rise of 61 per cent in eight years. By 1956, 37 million married couples were living in their own households—an increase of 28 per cent over the total of ten years before. The $5,000-a-year income, that mystical dividing line between scraping and comfort, had been achieved by 23 million families or individuals a jump of 153 per cent in ten years. Inflation, subtle and invisible, had also set in and had begun to erode the value of a dollar. Yet it was not the catastrophic, runaway inflation of Germany in the Twenties, but a benign, "creeping" inflation the kind of mild stomach distress that accompanies rich living. Prices have risen inexorably. The generation of war babies is growing up in a world of $5,000 cars, $30,000 houses, $8 theater tickets, $5 books, 28-cent milk, and $85 suits. A nickel buys almost nothing. Even the candy bar has jumped 20 per cent to six cen...

Forex involves the trading of currencies. It is the largest financial market in the world and has an estimated daily turnover of 1.9 trillion dollars. This turnover is larger than all the worlds’ stock market on any given day. The forex market does not have a fixed exchange. The forex market is considered an over-the-counter (OTC) market. The forex market is completely electronic and trades are executed over the phone or on the Internet. Until 10 years ago the forex market was the preserve of large financial institutions. Now an ever-increasing amount of individual traders thanks to the advent of the Internet and an increasing amount of online forex brokers are trading forex. Currencies are always traded in pairs. A typical pair would be EUR/USD (Euro over US dollars). The first currency is the base. The second currency is the counter currency. The pair can be viewed, as the amount of the secondary currency that is needed to buy 1 unit of the first currency. If you were to buy the abov...

Forex trading has the great potential of becoming a profitable and fulfilling career that will let you have a lifestyle that few other lucrative activities in the world can offer to people from many roads in life and without asking any of those men and women for a diploma or some special certification. But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money. There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into “technical” and “fundamentalists”. Each group devoting themselves to the main tools each kind of analysis gives them. Technical forex traders base their trading on the a...

Buying securities or currencies is somewhat like buying an automobile. The decision to buy something is relatively easy. What, specifically, to buy is an altogether different problem. Before you drive your new car home, you have to choose a certain make, a certain model, certain upholstery, a certain color scheme. You decide between six cylinders and eight, between regular shift and automatic transmission, and say yes or no to white walls, radio, heater, and a dozen other optional extras. So with securities. Although there are only two major categories—bonds and stocks—to select from, the variations and refinements and optional extras are as numerous as they are confusing. For many investors, one factor may be sufficient reason to determine a choice. The man of modest means will very likely find corporate bonds at $1,000 apiece too steep and their 3 per cent interest payment too small for what he is trying to achieve. A wealthier investor might be fascinated by the potential in common ...

Discover Some Magic To Beat The Forex: The Elliott Wave Theory For Forex Markets 709 One of the best known and least understood theories of technical analysis in forex trading is the Elliot Wave Theory. Developed in the 1920s by Ralph Nelson Elliot as a method of predicting trends in the stock market, the Elliot Wave theory applies fractal mathematics to movements in the market to make predictions based on crowd behavior. In its essence, the Elliot Wave theory states that the market – in this case, the forex market – moves in a series of 5 swings upward and 3... Keywords: forex, currency exchange One of the best known and least understood theories of technical analysis in forex trading is the Elliot Wave Theory. Developed in the 1920s by Ralph Nelson Elliot as a method of predicting trends in the stock market, the Elliot Wave theory applies fractal mathematics to movements in the market to make predictions based on crowd behavior. In its essence, the Elliot Wave theory states that the ...

When it comes to forex trading the forex software you choose is essential. There are so many forex trading companies all competing for your business that choosing the right forex software can be quite a difficult task. Most of the forex software products available offers live online forex trading platforms but what other components are vital when it comes to your forex software. Key Elements For Your Forex Software Before purchasing any forex software there are a few essential items that should be included. The most important is security and your online forex trading software should include a 128 bit SSL encryption which will prevent hackers from accessing any of your personal details and information such as your account balance, transaction history, etc. Providing the best security for your forex trading will include a company that provides 24 hour technical server support for your forex software, 24 hour maintenance should anything go wrong, daily backups of all information, and a se...

This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain the following articles . . . 1. What is Forex 2. Technical analysis 3. Fundamental analysis 4. Money management 5. Compound interest Technical Analysis. Unless you are new to trading you probably know already that technical analysis is a method of forecasting future price movement of commodities, securities, etc (in this case currencies) based on chart analysis, pattern formations, technical indicators, etc. Forex can be traded technically and in my opinion it is quiet predictable. No trading strategy will work 100% of the time. That’s why you need proper money management techniques. Anyway, technical analysis is important to determine where the price of the currencies is going, also when to enter and exit positions. There are different technical analysis techniques that you can implement to your trading strategies....

Some like to play lotto or casino, and others love the excitement of trading with stocks and currency. They all want to find a system with a high profit and no risk, but believe me it does not exist and never will. Forex have work out several of trading systems adjusted to the risk you are willing to take with your investments. There are systems for the careful investors, where the risk of loosing money is minimal, which also affects the profit, and there are systems, for the investors who are willing to take a higher risk, which also will increase the profit, and then there are systems, for the investors who wish to take the chance, and trade with a high risk to increase the profit. So no matter what kind of investor you are, Forex have trading systems there will fit in for your investment, even if you are a new started investor, the skilled investor or an expert investor. You can see, that the systems made by Forex is efficient, as more and more people are using them. As a new starte...

When you begin to investigate this business of day trading a plethora of information comes at you. Type in day trading, do a search and you get close to a million choices. That’s a lot of info to sieve through. So where do we start? There are some basic necessities that you must have before you can begin. A fairly good computer is a must. The prices are going down and the power is increasing all the time. So these days you can pick up a new machine for about $800 that will do the job. A high end trading machine with all the bells whistles will set you back about $1500. One thing you must consider is how many monitors are needed. I recommend 2 because you can’t go wrong with screen real estate in this business. Believe me it won’t go to waste. This will push up the price a little, but it is well worth it. Make sure you get a flat panel LCD which comes standard when you buy a new machine. Remember your eyes. Don’t try and save a couple of bucks by purchasing an old fashion flickering mon...

This article is one of a series which looks at the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets. We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time. The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let’s take some to look at this more closely. Let’s say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking tr...

In order to succeed successfully in forex trading you need to know what the purpose of trading forex is. Forex trading as you know is the trading of online currency and the key to success is to buy low and sell high just as with any other market. You task as a forex trader is to try to determine the trend of the particular currency you are looking to either buy or sell and to utilise the forex trading strategies to ensure that a profit is made. Now that you know the purpose of forex trading the next step in knowing all about forex is to understand the codes, definitions and numbers used when trading. All currencies used in forex trading are assigned a three letter code. An example of this is the US dollar which is USD or the Euro EUR. Online currency trading is done in combinations that are known as a cross and these are represented by 6 letter words with the more expensive currency coming first. An example of this is GBPUSD which will show you how many US Dollar you will need to pay f...

The forex market, or foreign exchange market, is a trading market where people will trade currencies around the world. The forex market is like the stock market in that money is traded and that people on the market can gain or lose money in trading, but it is much larger than any other market out there. That is because all kinds of monies are being traded at any time of the day. Like with stock market prices currency exchange rates will change every day and can be different at any time of day. Therefore, it will be important to watch how your forex market investments are doing so that you do not lose any money in your transactions. Also, you should understand that the forex market is open all day long. There are major forex market trading areas around the world, including locations in London, New York, Zurich and Tokyo. There is always at least one forex market trading area open during the day. The exchange rates will be different throughout the day, especially when the forex market in...

You sell your money to the bank (or other) and it allocates some interest payments to your savings account from its profits. Have you seen a Bank's profits? What do Banks do with your money? Well, they accumulate many small savers' money to lend to a borrower. The borrower buys his loan and repays it with added interest. The difference between interest rates is used by the institutions to pay salaries, pensions buy buildings and the usual business expenses. THE WORLD PRESS occasionally reveals. "INSIDER DEALINGS" where an individual is accused of amassing huge profits from a fast book financial transaction that proves to be illegal. Sandwiched between "INSIDER TRADING" and interest are a range of products on sale by banks. Mortgages, shares bonds and so on . Very rich individuals and organizations do not leave all their wealth in savings accounts. They trade in art. gold, diamonds, huge properties huge film productions, rare cars and such. Some buy and sell ...

As currency trading has become one of the most recent ways of earning money, a large chunk of people take this option just as a hobby. This type of trading is performed by exchanging currency of one country with that of another. Currency trading, Forex trading signal, Forex trading strategy, and Forex alerts have made this industry the largest one if one is to consider its trading volume. To understand it better, let us take an example of an inter-bank trading. Bank X will take the quote from Bank Y of its currency, and Bank Y will provide the present rate of its currency. A deal will be finalized if Bank X will like the rate of Bank Y. and if the currency of Bank X rises against the currency of Bank Y, the former will enjoy the difference as its gain. Likewise individuals deal in the exchange of currencies in the Forex market and act according to the market position. The Foreign Exchange market is popularly known as “Forex”, which has become the largest and frequently rising market in...

Just as you would expect with anyone trading in equities, investors in the Forex market employ strategies to help them invest more successfully. All of these strategies ultimately boil down to one thing: trying to predict which way the currency exchange rates will fluctuate. Predict correctly, up or down, and make a profit while we all know what happens when we are incorrect. When deciding whether or not to enter or exit a position in the Forex market, there are two basic types of analysis from which to choose: fundamental or technical. Investors who base decisions on fundamental analysis will look at interest rates and the overall economic performance of the nations in the currency pair when deciding when to sell and buy positions. Technical Forex investors will look to trade based on price performance and chart patterns—so which is best? Use of fundamental analysis such as the latest GDP figures may seem like a very logical approach when deciding when to buy or sell a position in the...

Forex is short for Foreign Exchange, where money from one country is exchanged for that of another or the simultaneous buying of one currency and selling of another. When one deals in forex trading the profit or loss, he incurs is the increased or decreased value of an investment caused solely by currency movements. For example, if an investor thought that the US dollar was weak, he might purchase German Mark. The investor's, the real profit or loss could then be in how the Mark moves against the US$. Being the largest financial market in the world, the Forex market has a volume of more than $1.5 trillion daily. Also the Forex market, unlike other financial markets, has no permanent location, no central exchange and just happens ‘Over the Counter.’ It operates through an electronic network of large banks, central banks, currency speculators, multinational corporations, governments and other financial markets and institutions. Retail traders are individuals who are a small part of t...