FOREX CURRENCIES TRADING

Foreign Currencies

There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market:

No commissions.                  No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for its services through the bid-ask spread.

No middlemen. Spot currency trading away with the middlemen and allows clients to interact directly with the market responsible for the pricing on a particular currency pair.

No fixed lot size. In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine the lot size. This allows traders to participate with accounts as small as $300.

Low transaction cost. The retail transaction cost (the bid/ask spread) is typically less than 0.1 percent under normal market conditions. At larger dealers, the spread could be as low as .07 percent. 

FOREX CURRENCY TERMS

Currency Trading

There are dozens of unique currency pairs that you can trade. In order to fully appreciate this concept, it is important to understand the nature of cash Forex pair symbols.

Base Currency

The base currency in a Forex symbol is the first symbol notated. In the case of EURUSD, the base currency is EUR (euro). This is the currency you are buying or selling. For example, if your trade size is 100,000, you are buying or selling 100,000 Euros against U.S. dollars.

Quote Currency

The quote currency, sometimes called the secondary or terms currency, is the second symbol notated in a Forex symbol. In the case of EURUSD, the quote currency is USD (U.S. dollars). This is the currency price being quoted. For example, if EURUSD is currently quoted at 1.2510 Bid/1.2512 Ask, then you would pay $1.2512 U.S. dollars to buy 1 euro and receive $1.2510 U.S. dollars to sell 1 euro. The realized profit or loss of a trade is always based on the quote currency, and is automatically converted into your native account currency at the end of the session, based on the current conversion rate.

WHAT IS FOREX?

 FOREX DEFINITIONAL

The Foreign Exchange, also referred to as the “Forex" or “FX” market is the largest financial market in the world, with a volume about $1.95 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you see how giant the Foreign Exchange really is. It's actually more than three times the total amount of the stocks and futures markets combined!

There are many strategies out there, and nearly as many expensive software packages that promise to automatically place a trade for you when the time is right. But the strategy I have fine tuned can make you seriously good money without the need for you to pay out on expensive software, books and big impersonal hyped up seminars