Trading on the foreign exchange market is fundamentally different from securities and derivatives trading. He takes over the counter instead of solely on the platforms specialized forex broker. Its essential feature is the immense liquidity, virtually uninterrupted trading activity, the low costs and the large, integrated financial leverage in the trading platforms.
The Forex market every day to be implemented around 1.6 trillion U.S. dollars. The foreign exchange market is the mirror image of the world trade, which is growing rapidly due to globalization and the consequent closer integration of the world economy. The Forex Market Players are accordingly to the big world of finance: Internationally active banks, insurance companies, institutions like the IMF and World Bank, and - most important - the central banks of the world acting in direct communication with each other. Foreign currencies are traded around the world. By the time shift of investors Forex market is therefore open six days a week around the clock.
Measured in central European time trading begins on Sunday and ends on the night of Friday to Saturday. In between there are no breaks, so that problems with gaps (ie, price gaps between trading periods) occur, as they are known in the stock trading does not. Forex trading is very inexpensive.
The market makers charge their customers usually no fees or commissions. They make their money exclusively with the bid-ask spread, which is between the buying and selling rates on the platform. These amounts in the major currency pairs - say, EUR / USD - to an average of two so-called pips. Price changes are measured in pips in the forex market. The exchange rates on Forex market are represented with four decimal places. A pip is a change of one unit on the fourth decimal place. Another typical feature is the financial leverage that allows small investors to move large positions in the currency market, without taking out a loan and to take existential risks.
Friday, September 21, 2012
Thursday, September 20, 2012
Top 3 Reasons to Trade Forex
High returns with little effort
Private investors seeking an attractive market with high profit opportunities come, today, the Forex market is not over.
Due to the strong levers in Forex trading possible, sometimes with 100 euros using a gain of EUR 10,000 can be achieved.
Low start-up capital necessary
Faster success than with equities
Students who choose the forex trading decisions and prepare accordingly before the trade can earn foreign exchange for the same capital faster and more money than the stock market.
stable investment platform, almost independently of other markets
possible even when prices fall profits
While stock trading profit opportunities exist only if prices rise, in Forex trading can also declines, money to be made. With significantly lower capital outlay large gains are possible.
Second income or financial independence
With the support of the corresponding platform for Forex trading today, virtually anyone can learn trades such as forex.
regardless of time and place to work
with great success is even possible to remain financially independent
Special skills or qualifications does not need. If you invest some time and has dealt with the subject can, regardless of time and place, either part time or full time are currency traders. For beginners especially interesting is the social trading, where you simply copy the strategies of experts.
Private investors seeking an attractive market with high profit opportunities come, today, the Forex market is not over.
Due to the strong levers in Forex trading possible, sometimes with 100 euros using a gain of EUR 10,000 can be achieved.
Low start-up capital necessary
Faster success than with equities
Students who choose the forex trading decisions and prepare accordingly before the trade can earn foreign exchange for the same capital faster and more money than the stock market.
stable investment platform, almost independently of other markets
possible even when prices fall profits
While stock trading profit opportunities exist only if prices rise, in Forex trading can also declines, money to be made. With significantly lower capital outlay large gains are possible.
Second income or financial independence
With the support of the corresponding platform for Forex trading today, virtually anyone can learn trades such as forex.
regardless of time and place to work
with great success is even possible to remain financially independent
Special skills or qualifications does not need. If you invest some time and has dealt with the subject can, regardless of time and place, either part time or full time are currency traders. For beginners especially interesting is the social trading, where you simply copy the strategies of experts.
Wednesday, September 19, 2012
Overview Forex Strategies
In Forex trading is, as in other markets, that a strategic approach is much more promising than the action "from the gut". A strategic approach can in principle be of a technical or fundamental nature. Basis is either the technical or fundamental analysis.
Technical analysis attempts to anticipate based on price patterns and quantitative ratio sizes, the future market development. Basis of all technical considerations that make the price of the market, to be analyzed itself is divided into Technical analysis charting and market technology. The relevant section is discussed in greater detail these disciplines.
Fundamental analysis tries away from charts to assess the market development. Based on the fundamental approach are economic parameters, such as growth of gross domestic product, the interest rate policy of the central bank, money supply growth and inflation.
Regardless of whether the fundamental or technical analysis is based on a strategic approach that is always trying to develop a set of rules, based on the implications of trade decisions. In both cases, the basic idea that should be tried to improve the risk-reward ratio of eigegangenen positions by criteria are developed to increase the hit rate.
A set of rules on the basis of data - be they simple classes and their derivatives represented as indicators or fundamentals of Statistics and Central Bank authorities - created clear buy and sell signals, offers tremendous advantages: The "human", ie emotional component can be eliminated from the trading. The emotional aspects often lead to losses: Loss-trading positions are not closed in time and profitable trades ended too soon. A forex trading strategy can therefore significantly improve the trading results.
Technical analysis attempts to anticipate based on price patterns and quantitative ratio sizes, the future market development. Basis of all technical considerations that make the price of the market, to be analyzed itself is divided into Technical analysis charting and market technology. The relevant section is discussed in greater detail these disciplines.
Fundamental analysis tries away from charts to assess the market development. Based on the fundamental approach are economic parameters, such as growth of gross domestic product, the interest rate policy of the central bank, money supply growth and inflation.
Regardless of whether the fundamental or technical analysis is based on a strategic approach that is always trying to develop a set of rules, based on the implications of trade decisions. In both cases, the basic idea that should be tried to improve the risk-reward ratio of eigegangenen positions by criteria are developed to increase the hit rate.
A set of rules on the basis of data - be they simple classes and their derivatives represented as indicators or fundamentals of Statistics and Central Bank authorities - created clear buy and sell signals, offers tremendous advantages: The "human", ie emotional component can be eliminated from the trading. The emotional aspects often lead to losses: Loss-trading positions are not closed in time and profitable trades ended too soon. A forex trading strategy can therefore significantly improve the trading results.
Tuesday, September 18, 2012
In the test run: forex demo accounts and mini
Private investors have the forex trading in the true sense only on special platforms of Forex brokers access. Although you can also open foreign currency accounts in regular banks - this can neither actively traded nor a financial levers are used. In recent years, the foreign exchange established on the German market and the platforms have evolved into extremely powerful tools.
Forex brokers offer traders today Carefree packages. The trading platforms allow not only the mere sending of orders and managing the trading account. They also provide extensive tools available for the ambitious traders and those who want to be there, are indispensable. In particular, charting applications and connections are a thing of the news systems of large news agencies. The charting tools providing the necessary tools, such as trend lines, trend channels, Fibonacci tools, Bollinger Bands, etc. analyzes can be performed in the open live chart.
Given at almost every forex broker a range of technical indicators is available, such as trend-following indicators and oscillators. Investors need to buy a separate charting software is as it is i stock trading remains of all. Even at the price provision must Trader worry: Unlike exchange-traded prices are subject no externally imposed delay. Forex brokers receive real-time reference rates of the central bank and derive their bid and ask prices. IN Forex Trading will therefore always real-time quotes available, without paying fees. By connecting to a Reuters or Bloomberg news system traders have also always the possibility of bringing market-relevant news without delay in experience. Decisions by central banks, economic indicators and other developments in politics and business operate in real time over the ticker. The news feed costs just as the use of the trading platform itself a cent.
Forex brokers offer traders today Carefree packages. The trading platforms allow not only the mere sending of orders and managing the trading account. They also provide extensive tools available for the ambitious traders and those who want to be there, are indispensable. In particular, charting applications and connections are a thing of the news systems of large news agencies. The charting tools providing the necessary tools, such as trend lines, trend channels, Fibonacci tools, Bollinger Bands, etc. analyzes can be performed in the open live chart.
Given at almost every forex broker a range of technical indicators is available, such as trend-following indicators and oscillators. Investors need to buy a separate charting software is as it is i stock trading remains of all. Even at the price provision must Trader worry: Unlike exchange-traded prices are subject no externally imposed delay. Forex brokers receive real-time reference rates of the central bank and derive their bid and ask prices. IN Forex Trading will therefore always real-time quotes available, without paying fees. By connecting to a Reuters or Bloomberg news system traders have also always the possibility of bringing market-relevant news without delay in experience. Decisions by central banks, economic indicators and other developments in politics and business operate in real time over the ticker. The news feed costs just as the use of the trading platform itself a cent.
Monday, September 17, 2012
Full Forex Information
The term Forex in general, the currency market is understood to volumenträchtigste market by far in the world. Every trading day will be here on average nearly 4 trillion implemented daily. Until recent years, this huge market was reserved to institutional investors, which, however, has in the course of the spread of the forex trading fundamentally changed. Forex trading is not a conventional trade on the exchange, but called off-exchange currency market in the interbank market, even if the forex market has been part of most exchanges a few years ago.
A number of brokers who specialize in trading with forex trading products, offer private investors the opportunity to actively participate in the development of foreign exchange markets. For a special trading Forex trading software is required, which the respective brokers usually provided free of charge. And that this possibility precisely the concern of many private investors corresponds to the rapid growth rates of the past are impressive. However, at this point, an indication of the risk is appropriate, which is associated with the trading of currency positions. Unlike conventional investments such as stocks, the investor needs a FX Trade not bring the entire amount in a trade, but only a small percentage, is called the margin. Depending on the broker moves the level of margin for currency trades between 0.25% and 3%, resulting in a lift between 33 (3%) and 400 (0.25%) results. Investors want the long example with $ 100,000 to go (buy), it does not afford the $ 100,000, but only $ 1,000 if the margin is 1%, for example. Investors participate in the development of 1:1 contrast. Evaluates the U.S. dollar against the euro, for example, by 1%, the gain is $ 1,000, or 100%. Evaluates the U.S. dollar on the other hand decreased by 1%, the investor loses his effort. The example shows how risky the trade FX contracts can be. For precisely this reason, investors should start their career first extensive theoretical knowledge of the forex markets to acquire general and on technical analysis and / or open first a demo account before he or she starts with the real trading of FX contracts with a FX broker .
On Forex trading can thus participate basically anyone, even if these are usually large companies, foreign exchange brokers and dealers and banks. For private participation is possible through special forex brokers and day traders, where telephone orders can be placed above all, but also about forex software that is offered by various online forex brokers and can be downloaded. The online Forex trading offers a great advantage over phone traders: Forex Trading is actually possible only on weekdays - when online forex trading but this is consistently possible.
In the forex trading are certain basic conditions: So always be only with currency pairs traded in the market, for example EURUSD traded with the current course information (http://boersenradar.t-online.de) up to the fourth decimal place, and it is on margin. This means that you Strongly in forex trading on the name EURUSD 1.4456 means that one euro bought 1.4456 U.S. dollars to be paid - because the profit is not usually achieved only with large price differences, but even with small price fluctuations, foreign exchange will in Forex trading only bought in the form of a margin.
Although we had already an example, because of the complexity, but again to a brief statement. If you want to buy such as a currency for 10,000 euros, with most brokers have only 1% of this amount, or 100 euros, can be stored - the price goes up to the investor to increase this margin, the price of such decreases and this in a possible fall below the amount deposited, for example, if the price should fall by more than 1%, there is a so-called funding obligation. This means that either back is money "nachgeschossen" to keep his 10,000 Euro investment or it is automatically sold and invested capital is gone, even if the course should attract strong and shortly afterwards we were in the black.
Starting from this base, there are 4 basic transactions in the Forex market: The forex spot market, forward exchange contract and the ensuing swap and option contracts. Similar to the stock trading. The Forex trading is based on the above statement, as well as the trade settled in shares and other securities of speculative, as market movements and changes in forex in different directions can not be guaranteed - in contrast to a conventional system with a fixed interest rate may in Forex trading both threaten a total loss of the invested capital, as well as waving huge profits in a short time.
The profit as well as the loss can be limited in any case - for both the equities business is also in Forex trading, whether online forex broker or telephone broker, limits the possibility of stop loss and sell limits on price increases for certain, in which an automatic to be held for sale. But also protect those limits depending. Not necessarily in front of a total loss of the capital, but only protect against a nachschießen of capital from other accounts.
A number of brokers who specialize in trading with forex trading products, offer private investors the opportunity to actively participate in the development of foreign exchange markets. For a special trading Forex trading software is required, which the respective brokers usually provided free of charge. And that this possibility precisely the concern of many private investors corresponds to the rapid growth rates of the past are impressive. However, at this point, an indication of the risk is appropriate, which is associated with the trading of currency positions. Unlike conventional investments such as stocks, the investor needs a FX Trade not bring the entire amount in a trade, but only a small percentage, is called the margin. Depending on the broker moves the level of margin for currency trades between 0.25% and 3%, resulting in a lift between 33 (3%) and 400 (0.25%) results. Investors want the long example with $ 100,000 to go (buy), it does not afford the $ 100,000, but only $ 1,000 if the margin is 1%, for example. Investors participate in the development of 1:1 contrast. Evaluates the U.S. dollar against the euro, for example, by 1%, the gain is $ 1,000, or 100%. Evaluates the U.S. dollar on the other hand decreased by 1%, the investor loses his effort. The example shows how risky the trade FX contracts can be. For precisely this reason, investors should start their career first extensive theoretical knowledge of the forex markets to acquire general and on technical analysis and / or open first a demo account before he or she starts with the real trading of FX contracts with a FX broker .
On Forex trading can thus participate basically anyone, even if these are usually large companies, foreign exchange brokers and dealers and banks. For private participation is possible through special forex brokers and day traders, where telephone orders can be placed above all, but also about forex software that is offered by various online forex brokers and can be downloaded. The online Forex trading offers a great advantage over phone traders: Forex Trading is actually possible only on weekdays - when online forex trading but this is consistently possible.
In the forex trading are certain basic conditions: So always be only with currency pairs traded in the market, for example EURUSD traded with the current course information (http://boersenradar.t-online.de) up to the fourth decimal place, and it is on margin. This means that you Strongly in forex trading on the name EURUSD 1.4456 means that one euro bought 1.4456 U.S. dollars to be paid - because the profit is not usually achieved only with large price differences, but even with small price fluctuations, foreign exchange will in Forex trading only bought in the form of a margin.
Although we had already an example, because of the complexity, but again to a brief statement. If you want to buy such as a currency for 10,000 euros, with most brokers have only 1% of this amount, or 100 euros, can be stored - the price goes up to the investor to increase this margin, the price of such decreases and this in a possible fall below the amount deposited, for example, if the price should fall by more than 1%, there is a so-called funding obligation. This means that either back is money "nachgeschossen" to keep his 10,000 Euro investment or it is automatically sold and invested capital is gone, even if the course should attract strong and shortly afterwards we were in the black.
Starting from this base, there are 4 basic transactions in the Forex market: The forex spot market, forward exchange contract and the ensuing swap and option contracts. Similar to the stock trading. The Forex trading is based on the above statement, as well as the trade settled in shares and other securities of speculative, as market movements and changes in forex in different directions can not be guaranteed - in contrast to a conventional system with a fixed interest rate may in Forex trading both threaten a total loss of the invested capital, as well as waving huge profits in a short time.
The profit as well as the loss can be limited in any case - for both the equities business is also in Forex trading, whether online forex broker or telephone broker, limits the possibility of stop loss and sell limits on price increases for certain, in which an automatic to be held for sale. But also protect those limits depending. Not necessarily in front of a total loss of the capital, but only protect against a nachschießen of capital from other accounts.
Sunday, September 16, 2012
Forex trend following strategies
Trend following strategies are some of the most common strategic approaches in Forex trading. The basic principle of all trend-following trading strategies is the same: it is trying to detect a price pattern where there is a high probability for a trend intact. This trend will be followed.
The trend-following strategy is understood as rule-based signal system which generates when certain criteria an entry signal. Moreover, even an exit signal is generated when the criteria are no longer met and the likelihood that the present trend is broken, big.
Trend following strategies refer to upward as well as downward on. So investors are betting on both rising as well as falling prices. In addition, trends are traded over different time horizons. A trend-following strategy can identify trends that exist for only a few minutes or hours, and even those are, go on for several weeks or even months. In forex trading positions due to the high leverage, however, are rarely held so long.
Trend following strategies are well-suited for traders who do not have much experience with systematic trading strategies. They are relatively easy to handle and require less endurance than the investor breakout strategies because the hit rate is higher. The basis of trend following strategies are usually several trend-following indicators, etc. were specified with an oscillator filtered. The development of such an approach on its own can certainly be done by less experienced traders. Who himself to evolve trusts can also use ready-made systems.
As trend followers are very popular, there are numerous proven approaches that can be taken one to one. In addition, many free signal services are available, the share generated by the trading system entry and exit signals.
The trend-following strategy is understood as rule-based signal system which generates when certain criteria an entry signal. Moreover, even an exit signal is generated when the criteria are no longer met and the likelihood that the present trend is broken, big.
Trend following strategies refer to upward as well as downward on. So investors are betting on both rising as well as falling prices. In addition, trends are traded over different time horizons. A trend-following strategy can identify trends that exist for only a few minutes or hours, and even those are, go on for several weeks or even months. In forex trading positions due to the high leverage, however, are rarely held so long.
Trend following strategies are well-suited for traders who do not have much experience with systematic trading strategies. They are relatively easy to handle and require less endurance than the investor breakout strategies because the hit rate is higher. The basis of trend following strategies are usually several trend-following indicators, etc. were specified with an oscillator filtered. The development of such an approach on its own can certainly be done by less experienced traders. Who himself to evolve trusts can also use ready-made systems.
As trend followers are very popular, there are numerous proven approaches that can be taken one to one. In addition, many free signal services are available, the share generated by the trading system entry and exit signals.
Saturday, September 15, 2012
Forex trading - speculating in the premier class
Private investors discover some years a new asset class: The Forex market opens new dimensions for active traders. Trading in currencies, in Anglo-Saxon parlance as the "Forex Trading" is called, among professional traders as the pinnacle of speculation.
The foreign exchange market currencies like the euro, the U.S. dollar, the British pound and the Japanese yen are traded. Investors can benefit from the exchange rate fluctuations. The Forex market offers over traditional forms of many advantages. Trading takes place directly between the decentralized market participants. These include major banks, major financial institutions and central banks.
Is a central trading post it. Because of the time difference on earth is the trading place around the clock. On Sunday evening he starts in Australia and New Zealand and closes on Friday evening in the United States. Individuals may obtain access to online forex trading platforms on the market of specialized brokers. These provide their customers continuously buying and selling rates for a variety of currency pairs. The trading platforms have developed rapidly in recent years. They now offer a full equipment for traders who leaves no wish unfulfilled.
The forex market has been relatively unknown among retail investors, but it is still the largest market in the world. The Bank for International Settlements estimates that every day will be implemented around 1.6 trillion dollars in the currency market. With the exchange rate fluctuations can achieve large profits. Due to the continuous trading without interruption and the immense market liquidity (for comparison, the daily volume of the Forex market is reached on Wall Street in three months) can be used with very high leverage, which is integrated into the forex trading platforms. This makes it possible, with a few hundred euros actively engage in trade and to achieve above-average returns.
The foreign exchange market currencies like the euro, the U.S. dollar, the British pound and the Japanese yen are traded. Investors can benefit from the exchange rate fluctuations. The Forex market offers over traditional forms of many advantages. Trading takes place directly between the decentralized market participants. These include major banks, major financial institutions and central banks.
Is a central trading post it. Because of the time difference on earth is the trading place around the clock. On Sunday evening he starts in Australia and New Zealand and closes on Friday evening in the United States. Individuals may obtain access to online forex trading platforms on the market of specialized brokers. These provide their customers continuously buying and selling rates for a variety of currency pairs. The trading platforms have developed rapidly in recent years. They now offer a full equipment for traders who leaves no wish unfulfilled.
The forex market has been relatively unknown among retail investors, but it is still the largest market in the world. The Bank for International Settlements estimates that every day will be implemented around 1.6 trillion dollars in the currency market. With the exchange rate fluctuations can achieve large profits. Due to the continuous trading without interruption and the immense market liquidity (for comparison, the daily volume of the Forex market is reached on Wall Street in three months) can be used with very high leverage, which is integrated into the forex trading platforms. This makes it possible, with a few hundred euros actively engage in trade and to achieve above-average returns.
Friday, September 14, 2012
Forex trading online from home
The ability to trade through Forex online, just like with many other Investierungsformen has completely revolutionized the market and revived the act of doing for a lot of people back. Online Forex trading has opened the doors to new resources and information, and also has the speed by which a seasoned Forex trader gets access to desired information, increased. Forex Trading Thanks to the internet has become very popular, mainly because Taghandel would not be possible without the up to the minute rate information that is available online.
Assets in the Forex market is to trade online has become possible because traders now have access to more information on the currencies than ever before. Now it takes just a few clicks and a Forex trader access to the latest prices, trends, explanations and developments in the exchange rate has to better determine how the forex trading market can behave and work. Forex investors and traders can develop much solventere Forex trading strategies by simply learning how to use all this information to their greatest possible advantage.
Day traders who try to enter the Forex market find it easier than ever, since the current information they need for targeted trafficking, are closer. To have current information is a crucial component in Forex trading, just to know how is an essential part of the success of this special type of trading how to read Forex quotes. It is absolutely essential that all Forex traders have the latest updates when it comes to the planning of future trade. Even the slightest change in the market can change your strategy, so it is highly important to minute accurate information and forex trading quotes have.
There is a number of tools available online, the new Forex traders shows how to read forex quotes, and other fundamental aspects of how to learn about online trading. Some of these tools easier to process information in the forex market quotes, but many seasoned traders prefer to learn how to get the work itself makes for greater success in the market have. Has been revolutionized to act during Forex trading through the online option, prefer seasoned traders do it to the big part of the work itself, rather than use of the advantages offered by the Internet.
Many people who actively trade in Forex online learned how to use the tools of the Internet during the transaction, but people who understand the Forex trading market before they connect to the Internet log, are much solventere trading in the Forex trading market and to learn how to read Forex quotes. It could only be beneficial to learn how the Forex market is before one takes advantage of the convenience of use, offered by the Internet.
Assets in the Forex market is to trade online has become possible because traders now have access to more information on the currencies than ever before. Now it takes just a few clicks and a Forex trader access to the latest prices, trends, explanations and developments in the exchange rate has to better determine how the forex trading market can behave and work. Forex investors and traders can develop much solventere Forex trading strategies by simply learning how to use all this information to their greatest possible advantage.
Day traders who try to enter the Forex market find it easier than ever, since the current information they need for targeted trafficking, are closer. To have current information is a crucial component in Forex trading, just to know how is an essential part of the success of this special type of trading how to read Forex quotes. It is absolutely essential that all Forex traders have the latest updates when it comes to the planning of future trade. Even the slightest change in the market can change your strategy, so it is highly important to minute accurate information and forex trading quotes have.
There is a number of tools available online, the new Forex traders shows how to read forex quotes, and other fundamental aspects of how to learn about online trading. Some of these tools easier to process information in the forex market quotes, but many seasoned traders prefer to learn how to get the work itself makes for greater success in the market have. Has been revolutionized to act during Forex trading through the online option, prefer seasoned traders do it to the big part of the work itself, rather than use of the advantages offered by the Internet.
Many people who actively trade in Forex online learned how to use the tools of the Internet during the transaction, but people who understand the Forex trading market before they connect to the Internet log, are much solventere trading in the Forex trading market and to learn how to read Forex quotes. It could only be beneficial to learn how the Forex market is before one takes advantage of the convenience of use, offered by the Internet.
Thursday, September 13, 2012
Forex Trading Example
The forex trading is characterized by the use of a large financial lever. The opportunity to earn big profits with little effort, makes the foreign exchange market in a fair event, which is not only reserved for large financial intermediaries. In order to understand exactly what the lever is and how its effect, it is helpful to give an example in mind.
A trader believes that the euro will gain against the U.S. dollar. He opens up a long position in the EUR / USD currency pair. With a long position will be set to rising prices. At the opening of the course is at 1.4320. This means that for a Euro 1.4320 U.S. dollars shall be paid. Important: It is at this course at the ask price. The Bid is the price at which opens opposite position or long position is closed. He is expected to be in this example, two pips below the ask price, and thus at 1.4318. The difference between the bid and ask price is known as the spread or bid-ask spread. It sees itself as the profit of Forex Brokers. The forex broker calls on this trade one percent of the equivalent position at the opening as equity part. The trader uses 100 euros and can move to a position with a value of 10,000 euros. At the specified rate ie 14,320 units sold U.S. dollar against the euro. Now the value of the euro against the dollar increases by one percent, the ask amounts for forex broker to $ 1.4463 per euro. The bid price at which the position is now closed out is, again two pips less and thus 1.4461. The profit of the trader is now calculated as follows: First, the entry price divided by the closing price. The resulting quotient is then multiplied by the position size (10,000 euros). This yields a value of 10,098 euros. Of which the wager is deducted (10,000 euros), resulting in a profit of € 98 euros, 98 percent of the capital invested yields.
A trader believes that the euro will gain against the U.S. dollar. He opens up a long position in the EUR / USD currency pair. With a long position will be set to rising prices. At the opening of the course is at 1.4320. This means that for a Euro 1.4320 U.S. dollars shall be paid. Important: It is at this course at the ask price. The Bid is the price at which opens opposite position or long position is closed. He is expected to be in this example, two pips below the ask price, and thus at 1.4318. The difference between the bid and ask price is known as the spread or bid-ask spread. It sees itself as the profit of Forex Brokers. The forex broker calls on this trade one percent of the equivalent position at the opening as equity part. The trader uses 100 euros and can move to a position with a value of 10,000 euros. At the specified rate ie 14,320 units sold U.S. dollar against the euro. Now the value of the euro against the dollar increases by one percent, the ask amounts for forex broker to $ 1.4463 per euro. The bid price at which the position is now closed out is, again two pips less and thus 1.4461. The profit of the trader is now calculated as follows: First, the entry price divided by the closing price. The resulting quotient is then multiplied by the position size (10,000 euros). This yields a value of 10,098 euros. Of which the wager is deducted (10,000 euros), resulting in a profit of € 98 euros, 98 percent of the capital invested yields.
Wednesday, September 12, 2012
Forex Strategy
Was that trading foreign exchange reserve until a few years ago only to institutional investors, in recent times, more and more forex broker went to market in order to private investors the way to the market with the highest liquidity in the world (daily turnover more than 4 billion U.S. dollars) to pave. Order in this highly complex environment for long-term success, however, it requires an extensive search for a suitable strategy.
Demo Account
Anyone with a basic knowledge of forex market and technical analysis should, then the next step is first create a forex demo account to test different strategies for validity can go. So a Forex demo account can be generally free and also set binding with any good forex broker. In this case, investors are faced with the same conditions as the trader, where it comes to real money.
Besides the evaluation effect of different strategies, offers a forex demo account the added ability to deal with the software. For unlike ordinary trades through a bank, forex traders rely on trades that they can perform at any time in real time, while a number of analysis tools get made available in order to identify technical chart signals and correctly interpreted.
Charttechnik
The first step in this process should be the acquisition of an appropriate theoretical knowledge about the functioning and the characteristics of the Forex market, and technical chart patterns are. The technical analysis plays an important role in trading, as the proper interpretation of the results and chart signals makes a significant contribution to the success or failure of a trader.
Current information is the lifeblood
The prerequisite for a well-functioning forex strategy in any case, the presence of updated information on the current trends in the market.
Technical Analysis
As part of the Forex strategy uses technical analysis as the information on foreign exchange developments of the past by all price and volume movements of previous eras, and the resulting implications for the currency market will be screened. From the lessons learned from this one can finally close on the development of future events.
Fundamental Analysis
In fundamental analysis, however, not only the developments related to the own capital, took a closer look at, but here is a general overview of all the events sought. Through this forex strategy, the investor tries to spy for him on gewinnversprechendste investment.
Trend-following strategy
The first option is a trend-following strategy, which states that existing market momentum can be seen immediately in order to be able to join them.
Breakout strategy
At the outbreak strategy chart technical conditions are cleverly used to anticipate the performance.
Swing Trading Strategy
By swing trading strategy will also tries to use short-term movements of the market for their own goals, even if they run counter to the trend. The interaction of the trend-following strategy, the strategy and the outbreak of swing trading strategy has helped many traders to achieve very high prize money.
Forex Software
In applying the forex strategy in particular, beginners do with some Forex experience-sometimes very difficult. In this regard, a special software that calculates the chances of a lucrative trade can be very helpful.
Consistent strategy persecution
The most important thing in forex trading is the use of the appropriate forex strategy. The forex strategy involves the consistent assessment of the current market situation, in order to maximize their profit margin. After the strategy could be found, it must now pursue the strategy consistently and to make any permanent change in strategy. Traders who adhere to these steps are likely to act much more successful than the trader, the lay out is not a strategy and go for it blindly trade.
Demo Account
Anyone with a basic knowledge of forex market and technical analysis should, then the next step is first create a forex demo account to test different strategies for validity can go. So a Forex demo account can be generally free and also set binding with any good forex broker. In this case, investors are faced with the same conditions as the trader, where it comes to real money.
Besides the evaluation effect of different strategies, offers a forex demo account the added ability to deal with the software. For unlike ordinary trades through a bank, forex traders rely on trades that they can perform at any time in real time, while a number of analysis tools get made available in order to identify technical chart signals and correctly interpreted.
Charttechnik
The first step in this process should be the acquisition of an appropriate theoretical knowledge about the functioning and the characteristics of the Forex market, and technical chart patterns are. The technical analysis plays an important role in trading, as the proper interpretation of the results and chart signals makes a significant contribution to the success or failure of a trader.
Current information is the lifeblood
The prerequisite for a well-functioning forex strategy in any case, the presence of updated information on the current trends in the market.
Technical Analysis
As part of the Forex strategy uses technical analysis as the information on foreign exchange developments of the past by all price and volume movements of previous eras, and the resulting implications for the currency market will be screened. From the lessons learned from this one can finally close on the development of future events.
Fundamental Analysis
In fundamental analysis, however, not only the developments related to the own capital, took a closer look at, but here is a general overview of all the events sought. Through this forex strategy, the investor tries to spy for him on gewinnversprechendste investment.
Trend-following strategy
The first option is a trend-following strategy, which states that existing market momentum can be seen immediately in order to be able to join them.
Breakout strategy
At the outbreak strategy chart technical conditions are cleverly used to anticipate the performance.
Swing Trading Strategy
By swing trading strategy will also tries to use short-term movements of the market for their own goals, even if they run counter to the trend. The interaction of the trend-following strategy, the strategy and the outbreak of swing trading strategy has helped many traders to achieve very high prize money.
Forex Software
In applying the forex strategy in particular, beginners do with some Forex experience-sometimes very difficult. In this regard, a special software that calculates the chances of a lucrative trade can be very helpful.
Consistent strategy persecution
The most important thing in forex trading is the use of the appropriate forex strategy. The forex strategy involves the consistent assessment of the current market situation, in order to maximize their profit margin. After the strategy could be found, it must now pursue the strategy consistently and to make any permanent change in strategy. Traders who adhere to these steps are likely to act much more successful than the trader, the lay out is not a strategy and go for it blindly trade.
Tuesday, September 11, 2012
Bet small, big win: The Forex leverage
Investors use when trading in the Forex market is almost always a big financial leverage. This is integrated into the trading platform. The principle of the lever is applied in trade professional trading for some time: The trader must at opening a position in the Forex market is not inferior to the aggregate amount of the position by account balances, but only a fraction of it. Due to the virtually infinite liquidity of the Forex market can be very small fraction of this: According to brokers, investors must 0.25 to 2 percent by volume of the position of account balances abdecken.Der financial lever allows you to move with a reasonable use of large volumes.
For example: Does the investor in his forex broker to deposit 1 percent of the volume position as an asset he can with a bet of 100 euros, 10,000 euros move in the market. Thus already provides an account balance of € 1,000, the establishment of a professional day trading approach. The possibility of gain by the effect of the financial lever also immense. Opened the investor is a position in the market and sets it 100 euros one with a 100-fold leverage is already a price movement to the extent of only one per cent in the leveraged total position in a doubling of the use (1 percent of 10,000 is 100, which is being used in this example) to purchase.
It is at this point, however, emphasized that the leverage effect can work in both directions, and thus against the interests of the trader. A 100-fold leverage implies a total loss of equity when the market moves by one percent in the "wrong" direction. Over its use of the investor can lose but not usually because the system software of the trading platform of Forex Brokers a loss that exceeds the account balance, prevented. With the opening of sub-accounts, it is possible to also protect assets from losses in open positions.
For example: Does the investor in his forex broker to deposit 1 percent of the volume position as an asset he can with a bet of 100 euros, 10,000 euros move in the market. Thus already provides an account balance of € 1,000, the establishment of a professional day trading approach. The possibility of gain by the effect of the financial lever also immense. Opened the investor is a position in the market and sets it 100 euros one with a 100-fold leverage is already a price movement to the extent of only one per cent in the leveraged total position in a doubling of the use (1 percent of 10,000 is 100, which is being used in this example) to purchase.
It is at this point, however, emphasized that the leverage effect can work in both directions, and thus against the interests of the trader. A 100-fold leverage implies a total loss of equity when the market moves by one percent in the "wrong" direction. Over its use of the investor can lose but not usually because the system software of the trading platform of Forex Brokers a loss that exceeds the account balance, prevented. With the opening of sub-accounts, it is possible to also protect assets from losses in open positions.
Monday, September 10, 2012
Forex market: Around the clock, around the world
One of the greatest fascinations of the Forex market is the continuous trading, which is not interrupted by pauses. Since the platform of the forex broker can trade from Sunday evening until Friday night, there are several benefits for active traders that are in stock trading or trading of financial derivatives unthinkable. One of these advantages is the complete absence of so-called opening gaps or overnight gaps. These phenomena are price gaps between the closing price of the trading day and the opening price of the following day. Opening gaps create major risks for active traders who work with considerable leverage. Not infrequently, large losses to be absorbed up to the total loss caused solely by such price gaps.
Price gaps make it impossible to cut losses by the usual methods. On the Forex market, active position traders and day traders to act much better and more effectively manage their risk of loss. That's one of the reasons why the forex market is known as the pinnacle of speculation. Purely "technical" problems just outlined as price gaps have to cope with market players not here. Another advantage of forex trading is the variety of currency pairs that are available and always offer an almost infinite liquidity. While in stock trading about a dozen liquid indices for about half of the day are available, traders can choose the currency market from 40 to 50 currency pairs that can be traded around the clock with maximum liquidity.
The wide selection allows you to find almost always promising market constellations which have a promising risk-reward profile. This will also improve the chances of the trader.
Price gaps make it impossible to cut losses by the usual methods. On the Forex market, active position traders and day traders to act much better and more effectively manage their risk of loss. That's one of the reasons why the forex market is known as the pinnacle of speculation. Purely "technical" problems just outlined as price gaps have to cope with market players not here. Another advantage of forex trading is the variety of currency pairs that are available and always offer an almost infinite liquidity. While in stock trading about a dozen liquid indices for about half of the day are available, traders can choose the currency market from 40 to 50 currency pairs that can be traded around the clock with maximum liquidity.
The wide selection allows you to find almost always promising market constellations which have a promising risk-reward profile. This will also improve the chances of the trader.
Sunday, September 9, 2012
Forex brokers and their trading platform
Private investors have the forex trading in the true sense only on special platforms of Forex brokers access. Although you can also open foreign currency accounts in regular banks - this can neither actively traded nor a financial levers are used.
In recent years, the foreign exchange established on the German market and the platforms have evolved into extremely powerful tools. Forex brokers offer traders today Carefree packages. The trading platforms allow not only the mere sending of orders and managing the trading account. They also provide extensive tools available for the ambitious traders and those who want to be there, are indispensable. In particular, charting applications and connections are a thing of the news systems of large news agencies.
The charting tools providing the necessary tools, such as trend lines, trend channels, Fibonacci tools, Bollinger Bands, etc. analyzes can be performed in the open live chart. Given at almost every forex broker a range of technical indicators is available, such as trend-following indicators and oscillators. Investors need to buy a separate charting software is as it is i stock trading remains of all.
Even at the price provision must Trader worry: Unlike exchange-traded prices are subject no externally imposed delay. Forex brokers receive real-time reference rates of the central bank and derive their bid and ask prices. IN Forex Trading will therefore always real-time quotes available, without paying fees. By connecting to a Reuters or Bloomberg news system traders have also always the possibility of bringing market-relevant news without delay in experience. Decisions by central banks, economic indicators and other developments in politics and business operate in real time over the ticker. The news feed costs just as the use of the trading platform itself a cent.
In recent years, the foreign exchange established on the German market and the platforms have evolved into extremely powerful tools. Forex brokers offer traders today Carefree packages. The trading platforms allow not only the mere sending of orders and managing the trading account. They also provide extensive tools available for the ambitious traders and those who want to be there, are indispensable. In particular, charting applications and connections are a thing of the news systems of large news agencies.
The charting tools providing the necessary tools, such as trend lines, trend channels, Fibonacci tools, Bollinger Bands, etc. analyzes can be performed in the open live chart. Given at almost every forex broker a range of technical indicators is available, such as trend-following indicators and oscillators. Investors need to buy a separate charting software is as it is i stock trading remains of all.
Even at the price provision must Trader worry: Unlike exchange-traded prices are subject no externally imposed delay. Forex brokers receive real-time reference rates of the central bank and derive their bid and ask prices. IN Forex Trading will therefore always real-time quotes available, without paying fees. By connecting to a Reuters or Bloomberg news system traders have also always the possibility of bringing market-relevant news without delay in experience. Decisions by central banks, economic indicators and other developments in politics and business operate in real time over the ticker. The news feed costs just as the use of the trading platform itself a cent.
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