Forex Education - Free Online Trading University

There are so many online brokers now that choosing between them is like selecting an insurance representative: there’s a lot to look at, but sometimes it just comes down to who you like. All online brokers within the United States are regulated by the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA). Other governments, of course, have their own regulating agencies. If you’re contemplating working with a broker from another country, consult their rules and make certain they’re on the up-and-up; there are people within the Forex market right now who are somewhat akin to the snake-oil salesmen traveling the frontier during the previous century, and it’s very much a case of “let the buyer beware.” Computer security has come a long way in recent years, and any reputable broker offers the highest possible, so that shouldn’t be a deciding factor. Most brokers offer both standard and mini Forex trading accounts. Some even offering “micro” accounts (one-tenth o...

If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies. In the past, foreign exchange trading was mostly limited to large banks and institutional traders however; recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade. The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily transactions involve trading of the major currencies. Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should know that no dividends are paid on currenc...

How Currencies are quoted and what moves individual currencies? ONE of the best advantages in FOREX Trading is The amount of money you need to place a trade (known as "margin") is all that can be lost ! You have to know, that despite the super-high leverage offered by some Forex brokers up to (400:1); meaning if you put up $ 1000 the broker will allow you to trade like you really have $400.000). Forex trading is still less riskier than Stock or Futures Trading, where you can loose more than you have deposited in your account. This type of LEVERAGE does NOT EXIST in the equities or futures market In the Equities or Futures markets, very often, sudden and dramatic moves occur, against which you can’t protect yourself, even by having placed your protective stops. Your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account. But because of the FX market’s deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit m...

It is only fair to emphasize that on the worst day the Stock Exchange ever saw, it was still just a market place, an arena where buyer and seller could transact their business. The brokerage community, composed as it was of professionals, might have been expected to cast a sterner, more skeptical eye on the weakening economic conditions so falsely reflected in the market's soaring prices, but there were few enough, in truth, who smelled danger in the spring air of 1929. Euphoria was endemic. The Exchange was no giddier than its customers. It is worth recalling briefly some of the events of those turbulent days, for in violent and exaggerated form the Crash spelled out the consequences of ignoring the basic principles of sensible investment. This is not to say that only foolish people lost money in 1929. Or even that wise ones could have read all the signs correctly at a time when the mirage of endless prosperity had pixilated much of the nation. Nor should that long-ago nightmare s...

You can never hide the fact that people need money. Money buys everything you need to live a comfortable life. You use it to purchase your everyday food, clothes to keep you warm, fuel for your car, and you use it to pay for bills. Money is necessary in order for you to provide a comfortable life for your family. This is why you work, and this is why people put up businesses. It is true that earning money can be difficult for the average person. However, it is way better than depending on the government to provide you with food. People have ambitions that requires hard work. Depending on welfare alone can never make your dreams come true. If you are a regular person, who earns a decent salary but still wants to earn extra cash in order for you to afford that dream vacation you saw in a TV ad or perhaps buy that huge TV you have always wanted, you should consider investing your savings. Investing your savings can only mean two things. Either you can make it grow, or lose it all. It may ...

Forex is the name given to the foreign exchange market, where international currencies are bought and sold. Due to the development of free exchange rates, the market began in the 1970s and has become the world's largest financial market with a daily turnover of US$1.9 trillion. To put that into perspective, that's over thirty times the daily turnover of the rest of the US equity markets combined. Unlike normal stock markets which are traded on exchanges that are located in a specific place, Forex currency exchange takes place via an Over The Counter (OTC) or interbank market. This means that transactions are conducted electronically between brokers. Thanks to this and global time zones, Forex is a genuine 24 hour financial market. The day begins in Australia and moves around the globe as each of the leading financial markets open in Tokyo, London and New York. So it's always possible to find someone who is willing to buy or sell international currencies. This gives investor...

No discussion of trading system evaluation would be complete without a discussion of drawdown. We must always look at the maximum drawdown of any trading system as it is very, very important. The maximum drawdown of trading system is defined as the greatest peak-to-valley drawdown in a trading system’s equity. Let’s say for example that we have a trading system that reaches a particular equity peak of $100,000. Let’s further say that two weeks later, the trading system equity is at $80,000. In this example, let’s say that the $80,000 equity happens to be an equity valley. In that case, the peak-to-valley drawdown would be $100,000-$80,000 equals $20,000. This means that the maximum drawdown is $20,000. So why is the maximum drawdown such an important measurement in our evaluation of a trading system? It’s because the maximum drawdown gives us a measure of the survivability of the trading system. A simple measure, but a measure nonetheless. Basically, when we look at the maximum drawdow...

Total the amount of money involved in a day’s trading on the US stock and Treasury Bills markets by three, and you’ll still have less than a third of the amount of money which exchanges hands on the currency Forex--foreign exchange--market. The currency Forex market is where the money of one country--US dollars, for instance—is exchanged for that of another, like Japanese yen. But unlike the world’s other economic markets, currency Forex trading is not centralized. There is no Wall Street or Throgmorton Street with an historic exchange building; Currency Forex trading exists only over telephone wires and Internet connections. But exist it does; and it involve a global network of financial institutions, individuals, and banks all working around the clock and unhampered by international borders. Time and physical distance have no meaning in the currency Forex market. At one time currency Forex trading was the domain of banks that held large amounts of money in various currencies so that ...

Investors in any market, be it securities or currencies, wants to know what causes price fluctuations so they can predict them and make a profit. While stock investors research publicly traded corporations in order to make trading decisions, those on the Forex must consider what influences the currency exchange rates between nations. Because it is so volatile with significant fluctuations in short term prices, it is especially important for the Forex trader to understand what moves the markets in order to be successful and make a profit. Partly because trades occur 24 hours a day between Sunday and Friday afternoon, the Forex is a very volatile market. Just as with equities, pricing on the Forex is influenced by economic and political factors facing the nations involved in the currency pair. Because the U. S. dollar is used to back 90% of all the transactions on the Forex and its economy plays such a significant role in the world economy, economic data released by the government will a...

Foreign currency exchange, the greatest game in the world with a daily trading volume of over a trillion and a half dollars (thirty times larger than the volume of all the U. S. equity markets combined), has it's share of winners and mostly losers. Do you want to learn how to be in the winners circle? Like any game it's important to know the rules in order to win. You don't have to be a professional to enter the sport, but you should have a basic understanding of the game and how it's played. Most of this can be learned for free from the online brokerage houses who also give you free trading software so you can actually practice playing the game and gain your confidence and skills before plunking down your real cash in the big leagues. As in any sport, the most important thing to do is practice before you actually play in the real game. I can't stress that enough. Practice, practice, practice makes perfect. The only thing it will cost you is your time. When you thin...

These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it. Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U. S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market. You have many advantages when trading the forex markets, for example; you don't have to worry ...

What Are Forex Trading Systems? A Forex trading system is a set of rules which are aimed to ensure that you are trading in a way that is free of bias and the influence of emotion. Most beginner traders will look to learn a forex trading system whereas more experienced traders will eventually move to build a trading system of their own. A good Forex trading system should look to encompass and cover for all possible eventualities which the markets may through up. In that respect, they should comprise of rules which govern, amongst other things the following: 1. Which currency pairs to trade. 2. When exactly to enter and exit a trade. 3. Where to place Stop Losses and Take Profit rates. Forex trading systems must always be tested against historical data (known as back-testing). Beginner traders, when looking to purchase a forex trading system, should always ensure that the system was properly backtested and that the results are genuine. There are certain software packages available now wh...

Twenty-four hours a day, every day, the Forex market is in business. Foreign exchange, Forex or FX are a few of the terms representing the trading of the world’s various currencies: the largest market on earth. Becoming a successful Forex trader is the goal for millions across the world, but many - even most - new traders fail within the first year or lose thousands of invested dollars because they haven't grasped a thorough understanding of the industry and the way the market works. With money to be made in the Forex market and every hour of the day to trade, appropriate and effective Forex training and grasping the right Forex trading strategies are of utmost importance. In essence, a currency trade is the buying of one currency while simultaneously selling another. And with trades totaling more than 1.5 billion U. S. dollars every day, the Forex market deals with 100 times more currency than the New York Stock Exchange. Unlike trading on a typical stock market, the Forex market ...

Forex trading is one of the most viable options for someone who’s looking at bigger possibilities, bigger profit and greater ease in trading and business. Because of it’s high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and marketing. While it’s traditionally for companies and corporations with big capital and experience in the field, it has also proven itself to be a good venture for a neophyte though what one calls a Mini Forex account or mini forex trading. Mini Forex Basics Mini Forex trading is good for people who have just started in the forex market and with not enough funds to open a regular account. It requires a smaller capital compared to regular forex accounts, a minimum of $300. With mini forex trading, you can control a $10,000 currency position. The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one co...