The world's financial market

Foreign Exchange Trading, also known as Forex, is the world's financial market. Within Forex, currencies are purchased and sold on a regular basis, generally for the purpose of carrying out international transactions.

A perfect example of international transactions with Forex, would be an instance of Canada purchasing items from the United States. Canada would have to purchase USD (United States Dollars) to complete the transactions. They would therefore, essentially buy USD using their own currency called CAD (Canadian Dollar).

Of course, Forex is operating in the same way as the stock market, only brokers can trade on the market. Typically, in each country there is a large bank, these banks are generally known as Forex brokers. Therefore, if you are interested in Forex trading, you will need to choose a broker to handle the transactions for you.

When choosing a broker, you need to determine which brokers are dealing with the Forex trading market. You should also consider the goals you have within the market. For example, in some instances it may be suitable to use a local banker for the transactions.

However, if you are interested in the market, on a more serious levelsuch as converting global Forex receipts, intentions of profiting from the market, or hedging the risks, you may want to consider opting for a specialized Forex broker.

When choosing a broker, you should also consider the commissions they earn. You should also base your decision on the amount of time it takes the broker to complete your transactions. You should also ensure that the chosen broker has a host of financial tools at their disposal for use in Forex trading. Some examples of such tools include instruments for Forex currency options, futures, and forward contracts.

When it comes to tools and your Forex broker, you will want to ensure that the broker has the extensive knowledge on how to use these tools. For example, with it comes to forward contracts, this is typically offered only through banking institutions.

Your broker should also understand when they should implement these tools. As in the forward contracts, they should know that forward Forex trading should only be implemented when the date of the transaction and the specific number of transactions should be implemented.

Overall, it is important to deal only with a Forex broker that has the experience, knowledge, and expertise that is required when dealing with Forex trading. When entering into the world of Forex trading, you should also have the knowledge needed, you do not want to rely on the hopes that your broker can offer you the advice needed on all transactions.

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3 unchanging rules in currency trading

Forex trading is always based on ever changing scenarios of world currencies. Hence, each day is always a new day for forex trading. However, there are 3 unchanging rules in currency trading which we should always remember for success.

The first rule is to do forex trading based on trends. Many experts compare trading trends to the intermittent waves of the sea - it is always impractical to go against them, there's too much added risks, and we'll never know when a big one would topple our boat. The same goes for the currency market. Whether we decide to invest long or short term it's always best to do so based on the current trend.

Hence, many forex trading experts recommend on studying how to read currency trends. A trend is when a specific pattern of gains or losses becomes apparent in the forex market as currency developments unfold during the day. Each day has a definite and different trend in forex trading; sometimes, trends even differ at different times of the day. Trends can suddenly change from the pattern emerging in the morning from the one in the afternoon.

The second unchanging rule is to always limit losses. This may be easier said than done, especially when forex trading is known to be volatile. Remember that about a trillion traders around the globe invest in the currency market daily and no single force or power on earth can influence or monopolize such market. But we may lessen the probability of losses if we carefully lay out a plan and stick to it.

Most experts will tell us the importance of entry and exit plans in forex trading. Other professional traders insist that we should zero in on exit rather than entry strategies. Entry allows good positioning; exit determines profitability both from the previous and coming forex investment. The point is to have a plan. We may adjust accordingly as the trading progresses, but everything should be proceeding systematically. Mobilize investments where gains are and withdraw from where the losses are.

Third and last rule, we must be aware of where the resistance and support are in the forex trading processes. Trading prices fluctuate due to supports and resistances and buying and selling trends. The key here is to maximize earnings during resistance and minimize losses during support.

These three rules are always decisive in forex trading. We should take note of them as we go through the rigors and complexities of currency trading.

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Forex softwear security

Overview of the security needs of Forex software
Foreign exchange software should be designed for the utmost security, privacy, integrity and if necessary, recovery of data. Clearly, any security holes can mean millions of dollars in losses.
Secured data exchange
The common method for securing the exchange of data is to encrypt it. Encryption means that the data transferred over the communication line is encoded in a special way at the sending end, and decoded using the same algorithm in reverse at the receiving end. The data that goes through the communication channel is meaningless to an eavesdropper, even if he does succeed in intercepting the data. Unless the eavesdropper can decode the data, he cannot read it. The encryption strength is dependent upon the length of the encryption key. The key that is used to encrypt/decrypt the data is a very long number. The longer the number, the harder it is, exponentially, to decode the data. Lengths of keys vary between 32, 64, 128, 256 bit and so on. The minimum length for good security is 64-bit. The problem with selecting a very long key is the computing power that is required to encode/decode the message. So selecting a very long key can mean slow processing time. Privacy and data integrity have their own software protocols but are generally handled in the same way as described above.
Data recovery
Important data should be backed up in more than one location. Physical disasters such as the 9/11 attacks or software/hardware failures should be able to be managed by backing up the data in more than one physical location.

Easy-Forex security
Easy-Forex treats the issues of data security, privacy, integrity and backup with the utmost attention and care. This is achieved through:

•Ensuring authorized access only, Easy-Forex uses two layers of top class firewall protection: one at the server level and one at the application level.
•For user authentication and data transfer, Easy-Forex uses an advanced SSL by Verisign.
•Separating the application servers (the servers that handle our clients' online activity) from the transaction information, which is stored on a different data server.
•For data recovery, integrity and replication, Easy-Forex uses two different server farms, physically located away from each other. Data must be synchronized in both locations, and
Important data should be backed up in more than one location. Physical disasters such as the 9/11 attacks or software/hardware failures should be able to be managed by backing up the data in more than one physical location.

Easy-Forex security
Easy-Forex treats the issues of data security, privacy, integrity and backup with the utmost attention and care. This is achieved through:

•Ensuring authorized access only, Easy-Forex uses two layers of top class firewall protection: one at the server level and one at the application level.
•For user authentication and data transfer, Easy-Forex uses an advanced SSL by Verisign.
•Separating the application servers (the servers that handle our clients' online activity) from the transaction information, which is stored on a different data server.
•For data recovery, integrity and replication, Easy-Forex uses two different server farms, physically located away from each other. Data must be synchronized in both locations, and thus cannot be tampered with. All of the information on the servers is encrypted.
•Each server farm has very high physical security. Armed guards are on-site 24 hours a day, and access to the premises is strictly forbidden except for authorized personnel.

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Difference Between Forex and Stock

1. The Forex market has a lot of advantages compare to stock market: A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.

2. Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.

Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.

3. Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.

4. If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.

5. In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.

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Brief history of forex trading

In the latter stages of World War II, the Bretton Woods agreement was reached on the

initiative of the USA in July 1944. The Bretton Woods Conference rejected John Maynard Keynes

suggestion for a new world reserve currency in favour of a system built on the US dollar. Other

international institutions such as the IMF, the World Bank and GATT (General Agreement on Tariffs

and Trade) were created in the same period as the emerging victors of WW2 searched for a way to

avoid the destabilising monetary crises which led to the war. The Bretton Woods agreement

resulted in a system of fixed exchange rates that partly reinstated the gold standard, fixing the

US dollar at USD35/oz and fixing the other main currencies to the dollar - and was intended to be

permanent.

The Bretton Woods system came under increasing pressure as national economies moved in different

directions during the sixties. A number of realignments kept the system alive for a long time,

but eventually Bretton Woods collapsed in the early seventies following president Nixon's

suspension of the gold convertibility in August 1971. The dollar was no longer suitable as the

sole international currency at a time when it was under severe pressure from increasing US budget

and trade deficits.

The following decades have seen foreign exchange trading develop into the largest global market

by far. Restrictions on capital flows have been removed in most countries, leaving the market

forces free to adjust foreign exchange rates according to their perceived values.

But the idea of fixed exchange rates has by no means died. The EEC (European Economic Community)

introduced a new system of fixed exchange rates in 1979, the European Monetary System. This

attempt
to fix exchange rates met with near extinction in 1992-93, when pent-up economic pressures forced

devaluations of a number of weak European currencies. Nevertheless, the quest for currency

stability has continued in Europe with the renewed attempt to not only fix currencies but

actually replace many of them with the Euro in 2001.

The lack of sustainability in fixed foreign exchange rates gained new relevance with the events

in South East Asia in the latter part of 1997, where currency after currency was devalued against

the US dollar, leaving other fixed exchange rates, in particular in South America, looking very

vulnerable.

But while commercial companies have had to face a much more volatile currency environment in

recent years, investors and financial institutions have found a new playground. The size of

foreign exchange markets now dwarfs any other investment market by a large factor. It is

estimated that more than USD 3,000 billion is traded every day, far more than the world's stock

and bond markets combined.

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forex very easy trade

You may have heard of FOREX. It's the largest financial market in the world, handling $1.6

trillion every day. The combined American stock exchanges only handle about $100 billion. Every

day, people are making money in the FOREX market, buying and selling foreign currencies. But what

advantages does FOREX have over the stock market?
Liquidity - As stated above, the FOREX market handles $1.6 trillion worth of transactions every

day. That's a huge volume. What this means, is that there are always buyers and sellers for any

type of currency. So when you want to buy, there's always a seller, and when you want to sell,

there's always a buyer.
No Insider Trading - The constant fluctuations in the value of the various currencies is caused

by changes in a nation's economy. In the stock market, some people may get news regarding a

corporation before others, causing them to buy or sell, to take advantage of the news before

others get it. In FOREX, any news about a nation's economy is available to everyone at the same

time, so no one has an inside.

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forex auto mated trade

"The Commodity currencies" as they are called refer to the Canadian, Australian, and New Zealand

dollars. Since commodities consist of the majority of Canada's exports, the currency will

strength or weaken depending on these prices. Usually the Usd and Cad will normally trend in the

same direction because most of Canada's exports are shipped to the U.S.
Australia- Australian Dollar. The Australian dollar is most connected to gold prices. The

interest rate differential is monitored because it can guide the long-term trend.
New Zealand- New Zealand Dollar. The New Zealand dollar is linked to commodity prices. It is also

closely related to the Australian dollar, meaning they can act as alternatives for each other.

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How to Trade the Forex Market - Take Off the Training

I know that when you are first start to learn about how to trade the forex market, people tend to

really go "indicator crazy". This means they will put any kind of indicator on their charts. It

doesn't matter if they don't have a clue about how to use it or even understand what's the

purpose of it.

I suppose using these indicators provides some kind of reassurance to the trader. I can safely

say that when I first started to trade I was suffering from the indicator fever. I used to be the

kind of trader that would spend all day on forex forums trying to get my hands on new proprietary

indicators.

But something eventually dawned on me. While all these indicators looked really pretty on my

chart, I didn't have the first clue about how to actually trade the forex market. After all, I

was just blindly following these indicators as the sole reason to enter and exit a trade.

This is what I like to call the training phase of a trader. It's somewhat akin to when you first

learn how to ride a bike. Nobody knows how to ride a bike the first time they get on one, so they

put training wheels. In this metaphor, the training wheels are the indicators.

But just like when you are riding a bike that is on training wheels, it may seem like you are

really riding the bike. But in the back of your mind, you KNOW that you aren't really riding a

bike unless you are unassisted.

It's the same exact thing in trading.

You can't call yourself a trader unless you can say with great certainty, you understand what is

going in the market, and I hate to say it, but you can't really do that with indicators. The

reason is, because you are using the indicators to tell you what is going on in the market,

instead of you understanding it for yourself.

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Money management in forex market

This may be my quick version of forex money management, but there is nothing more important. As I

have been told over and over again, any one can get into a currency trade, but those who are

profitable forex traders know when to exit a trade.

This is for profits as well as loses!

I find that the best forex trades I put on are those trades where my emotions are not a factor in

the currency trade to begin with. To do this there are some basic principals I follow regardless

of the strategy or time period I am trading.

•I set a pip goal for the trade based on my trade plan and technicals. If you do not have a trade

plan where you have outlined your currency trading goals and objectives then stop reading this

blog and create one now!


•I never risk more than 5% of my account on any given trading opportunity. To calculate the

amount I will risk I divide my trading account principal by 0.05 and then divide that by my stop

loss (dictated by the strategy I employ) to give me the number of lots I will place on the forex

trade. This is the number I am personally comfortable losing. Yes, I said losing! I always

approach risk management in forex trading from a “what if I am wrong” point of view.

•I always trade with a stop loss and limit order! This takes the emotions right out of the

equation. I have learned with experience to employ trailing stops and fine tuning of my

technicals to lock in profit and provide ever increasing better entry and exit points. Over time

I have been able to let more winners run and cut loses shorter than when I first began trading.


•Here is my forex money management “golden nugget!” If take pause after a draw down of 25% AND

after a run up of 25%. During this 2-5 day period I trade in my demo account, practicing new

strategies or reviewing the basics. This keeps me grounded when I am too down or too up.


These are my rules. By keeping a good forex trade journal you will be able to recognize

your strengths and weaknesses, and employ them in your money management plan.

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Retail forex trading

Retail forex trading is a segment of the vast foreign exchange market. It has been speculated that it represents 2 percent of the whole forex market which amounts to $50-60 billion [1][2] in daily trading turnover. Due to the increasing tendency in the past years of the gradual shift from traditional intrabank 'paper' trading to the more advanced and accurate electronic trading, there has been spur in software development in this field. This change provided different types of trading platforms and tools intended for the use by banks, portfolio managers, retail brokers and retail traders. One of the most important tools required to perform a forex transaction is the trading platform providing retail traders and brokers with accurate currency quotes.
Since 1996, when retail forex trading was introduced, several brokers
who lacked the sufficient tools developed their own trading platforms tailored specifically to their needs. These platforms were good enough at the time but required constant investments in R&D and its development cost too much. This was the first wave.
The second wave was in the early 2000s: several software companies entered the retail forex trading market by launching their own versions of trading platforms. Typically these versions were cumbersome for both front-end users (retail traders) and back-end users (retail brokers) due to the misunderstanding of the developers about the forex market and also because of the insufficient programming tools/languages at the time. Simultaneously most of the retail brokers kept using and developing their own systems as they waited for better platforms
which were yet to be developed.
There are currently few to no brokers which were part of the first wave trading systems. By now most of the first wave brokers have either vanished, merged or progressed to the second wave trading platforms – the most common example of which is Metaquotes.
It is only in the last couple of years that the advanced trading platforms started to emerge. These platforms put much stronger emphasis on the user interface (GUI) making it more accessible to the retail traders while making trading on it very simple and intuitive. Moreover a very strong emphasis was put on the back-end which allowed the retail brokers better control over their operations, better reporting and accurate system and ways to manage marketing campaigns. Gradually this wave is replacing the previous second wave with a major shift now to the friendlier and more intuitive systems of the third wave which according to Aite Group are necessary in order to maintain growth.

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Forex market advantage

What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency isequal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control

Forex traders can be profitable in bullish or bearish market
conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into
trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.

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forex fraud- how to spot

As the popularity of Forex increases so do the number of scam artists attempting to cash in on the Forex gravy train. Since Forex involves trading money internationally, often over the Internet, a whole new breed of scams have come about. Ironically many of these scam artists are finding their marks through newspaper, television or other print media advertisements.

While these scams are generally easily spotted by experienced
traders, new speculators may have problems knowing the difference between what is real and what isn't. It is absolutely essential to thoroughly research Forex trading, and any potential companies you may trade with before making an initial investment. The last thing you need is to find out that the company you have invested with is under investigation by the SEC for fraud. In this type of circumstance it can often be impossible to retrieve your money as the claims from all fraud of participants will be higher than the total payouts the government can guarantee.

One way to spot a scam on Forex is when someone promoting a Forex system guarantees no risk. It is a fact that there is risk with Forx trading, and generally anyone who claims otherwise is a liar, or more
likely a criminal. Trading in Forex successfully requires knowledge, discipline, and a trading strategy. But there is no magic software or no risk way to assure that you will make money.

Another red flag indicating a sure sign of a Forex scam is a web site that guarantees profits. Nobody can guarantee profits and Forex trading. It is up to you as an investor to perform. If it were possible to guarantee profits in Forex trading then nobody would need to start a business showing others how to make guaranteed profits. The profit potential for anyone who could guarantee profits would be so enormous in Forex trading, that they would quickly become a
billionaire by trades. So why would they waste time teaching others?

Another common tactic of Forex scam artists is to promise employment opportunities for people using their system. This is usually a trick to get you to spend your money with them. They are fishing for people with capital who can fund their enterprise. They typically promise to offer firm money to people using their system. But why would they do this? Instead what happens is they lure people into their training systems and convince people that they have done
so well in the training session that they should start using their real money in order to make a fortune.

All reputable Forex trading web sites will be a member of the CFTC or the NFA. Make sure to check the company's claims out and assure that they are members of one of these organizations before dealing with them.

Keep in mind that Forex is a relatively unregulated system of exchanging money. In many cases Forex scams can become highly technical, involving brokers manipulating prices in ways that cannot be tracked by the average trader. Because of this is essential that you not become a mark for such brokers


In the United States the CFTC is the federal agency responsible for regulating the trade of Forex currency. If you suspect that you have been a victim of some type of fraud contact the CFTC. They have jurisdiction for investigating and enforcing the laws.

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Find new forex product befor they are released

wondered how affiliates make $400 or $1,000 in one day? Did you think they were all scams and that you could never make that kind of money with affiliate marketing?
Well, I am about to show you exactly how they do this. You see, when a new info product is launching, usually in the IM or Forex niche, there are a lot of gurus with huge lists that will send out an email to their list promoting this new product. This is where the small time affiliate that doesn’t have a list can make some real good money.
Here is a short example. There was a new forex product released in early April, so just a couple of weeks ago now and I didn’t have a list to email this product to, but I knew this was going to be a big launch and there would be plenty of other "forex gurus" emailing their list about this new forex product causing a buzz about it.
So, I went out and bought a domain name relative to the product, did a review of the product and put it up on that domain with some links pointing into the site. I was able to grab first page rankings in google for the product name and made eight sales. Now 8 sales is not alot, but when your commissions are $147 for each product sold, that is over $1,000.
Doing all of this took about 3-4 hours to put up the site, but that comes out to $250 per hour. And this is how the average affiliate makes those big pay days from just one day. However, the dilemma with trying to do this is that there is nowhere to find when new forex products will be launching.
For internet marketing products, there is JV Notify Pro where you can sign up to their newsletter and you will be informed of upcoming product releases for IM products, however there is nothing like this for new Forex Products…….until today.
I have created my own forex service which has really taken off. It is called Forex Launch Calendar which is a Newsletter that informs you of when a new forex product is about to launch. This way, you can start promoting new forex products before they launch and obtain those priceless first page rankings and get 100% all natural and free searching engine traffic with big paychecks coming to you once launch day arrives.

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The secret of success in forex,learn it and win.

When I look around online, I see numerous vendors and guru's, who have predictive systems and robots which they claim, is the secret of success but the real secret is enclosed.

Before we look at our Forex secret for success, let's quote a simple fact and then look at its significance and the fact is:

50 years ago 95% of traders lost money and the same ratio lose today and will lose probably in 50 years time and this is despite all the advances we have seen in computer technology, processing power and improvements in news forecasting and speed of delivery - the ratio of winning traders to losing ones, still remains the same awhopping 95%.

So technology doesn't help and it makes me laugh, when you read the vendors of cheap robots and Forex Expert Advisor systems, telling you, they can trade with 95% accuracy and no drawdown! An income for life for $100 or so but its fantasy not reality.

So what's the secret of Forex market success?

The same as it's always been, trading a simple system with discipline. Most traders get disappointed when they hear there's no short cut but there is good news:

Trading is a learned skill and you can put together a robust, simple, trading system in around 2 weeks and make big long term profits in 30 minutes a day, if you can trade your system with discipline and keep your emotions out of your trading. This is based on confidence which allows you to take losses and keep them small, until you hit profits again.

In any business you have to learn skills and gain confidence and Forex trading is no different. So the real secret of success is to accept there is no short cut and you have to make an effort but if you do this, no other business can make you as much money, as global Forex trading.

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Want to Trade Forex Like a Pro? Here Are a Few Strategies

Forex tries to match currencies with one another with the speculation that a profit will accrue on account of their price variations. In Forex trade business you will buy a currency in anticipation that its price will rise higher than the price of the other currency you sell. Today all types of business enterprises, big and small as well as individuals are engaging in Forex trade business to reap huge profits.

The Forex industry has metamorphed into a $4 trillion every day industry and hence happens to be one of the most money-spinning business undertakings that one can venture in. However Forex trade business requires a lot of initial capital investment. This was the reason for the business to get restricted to large banks and big companies in the past. Individual persons couldn't afford the initial investment. Today this trend is changing. A lot of individuals are undertaking Forex business on account of specialized Forex tutorials, coaching and use of clever Forex strategies that have made Forex trading as easy as 1-2-3 for one and all.

Earlier the prodigious amount of money traded in daily made Forex trade business possible for only huge multinational banks. Moreover the major banks and companies engaged used complex polices for sensing Forex indicators so as to forecast present events and their impact on Forex prices. The big banks used to decide the Forex trading prices with the help of their clever trading abilities.

Today more and more individual citizens are garnering huge profits by engaging in Forex trade. This is possible as free Forex trading strategy knowledge is available both on the internet as well as offline. Particular software that makes learning Forex trade strategies easy is available in the market today. This software has made individuals experts in Forex trade. Today the initial capital investment for starting Forex trading is $50. Risks of this business have greatly thus reduced, encouraging more individual traders to participate in this business.

The specialized Forex trade software has made it feasible for even ordinary novice Forex traders to deal in advanced level trades. The software provides you step by step guidance. This Forex trade software can also perform autopilot. This implies that you, the trader need not be present near your PC when the trades are performed through just a click of a button. Many persons are unaware of this advantage of Forex trade software and end up wasting time sitting by their computer for trading purposes. You need to beware of losses that can be caused due to lack of awareness of forecasting minutiae. For being successful in this trade you need the skills to understand Forex signals and translate them to predict Forex .

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The internet revolution in forex market

The internet revolution of the 90’s changed many aspects of everyday and corporate life. One such change was to open the Forex market to individuals. What was once the domain of banks, hedge funds, and giant multinational corporations is now accessible to retail consumers. What fueled this change was the onset of trading software that connected anybody to the currency markets through the internet.
CMS Forex was one of the first companies to offer a trading platform built specifically for the online currency trading markets. VT Trader™ encompasses cutting edge technology to help you take full advantage of your online trading experience. This includes real-time quotes, dynamic charts, and detailed and up to the minute account reports, as well as dozens of other resources to enhance your online Forex trading. Equipped with over 100 customizable technical indicators, integrated Chart Pattern Recognition technology, and actionable Dow Jones newsfeed, VT Trader™ provides a platform for every level of technical and fundamental Forex trader.

Two of VT Trader's main windows: Dealing Rates and a USD/JPY, 1 day, chart.
VT Trader has live quotes, charts, and detailed and up to the minute account reports.

VT Trader charts serve as a virtual canvas for trader to:
• effortlessly draw and customize trend lines and moving averages. • map out support and resistance levels by applying Fibonacci ratios, price channels, and other drawing tools. • use and combine over 100 different technical indicators in order to strengthen one's analysis.
The platform's interface is graceful in allowing the user to move and customize VT Trader's windows according to individual preferences.

VT Trader is packed with features. From simple ones like entry and bundled market orders, stops and limits, and hedging to more complex ones such as trading system and indicator builders, VT Trader has something for every level of Forex trader.
We welcome you to take VT Trader for a test drive to see for yourself the power of one of the most revolutionary trading platforms on the market. It is completely free to download; all one has to do to get started is sign up for a free practice account.
For more information on how to start using VT Trader, please view our VT Trader User Guide.

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Buying and selling currencies

Traders can generate profits (or losses) whether a currency is rising or falling by buying one currency, which is anticipated to gain value against another currency or selling one currency, which is anticipated to lose value against another currency. Taking a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. Alternatively, a short position is one in which the trader sells a currency that he anticipates to depreciate and aims to buy the currency back later at a lower price.Diagram illustrating how a position is opened and closed generating a profit. Position is closed based on speculated downward market movement. Forex trading involves a substantial risk of loss.
Buying or selling currencies in response to economic or political events which occur are reactive, whereas buying or selling currencies on anticipated events is speculative. The bulk of currency activity is generated by market participants anticipating the direction of currency prices. In general, the value of a currency versus other currencies is a reflection of the condition of that country’s economy with respect to the other major economies.
It is the trader’s option to take either a conservative or a more risk-taking approach. Employing a conservative approach, the trader establishes and liquidates positions quickly and efficiently to capitalize on even the slightest of price fluctuations, using limit and stop orders to manage risk. A limit order is placed to ensure a position is established once a price level in the market has been reached.* A stop order is placed to automatically liquidate a position at a chosen price level in order to limit potential loss on a particular trade. By placing orders in relation to technical support and resistance levels, the trader may profit incrementally from the minor price fluctuations that occur each day.
The Time in the Major Financial Centers Impacts Market Players
Financial Centers - London, Tokyo and New York City.
Foreign exchange is a continuous global market, providing participants with 24-hour market access. The only breaks in trading occur during a brief period over the weekend. Although foreign exchange is the most liquid of all markets, the fact that it is an international market and trading 24-hours a day, the time of day can have a direct impact on the liquidity available for trading a particular currency.
The major dealer centers and time zones are that of Sydney, Tokyo, London, and New York. Therefore, traders must consider which players are in the market, since in the modern interconnected financial world, events that occur at any hour, in any part of the globe, can affect some or all parts of the investment community.
The market's 24-hour nature is a substantial attraction to traders that prefer to trade at all times of the day, or night.
*Under volatile market conditions, a broker may not be able to execute a limit or stop order at the exact price specified by the trader. CMS’s own policy, however, is to attempt to honor all stop and limit orders up to 10 lots in size. Forex is an over-the-counter (OTC) or off-exchange market.

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Online forex trading course

Whether or not you are aware of it, you already play a role in currency trading. The simple fact that you have money in your pocket makes you an investor in a nation's currency. By holding US Dollars, for example, you have elected not to hold the currencies of other nations. When a currency is traded, the transaction is carried out on the Foreign Exchange market (also referred to as the Forex or FX market). The Forex market is the largest financial market in the world, with over $1.9 trillion changing hands every day!
Unlike other financial markets that operate at a centralized location (i.e., the stock exchange), the worldwide Forex market does not have a central location. It is a global electronic network of banks, financial institutions and individual Forex traders, all involved in the buying and selling of national currencies. A major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. However, with advances in technology over the years along with the industry's high leverage options, the Forex market is now available to money managers and individual Forex traders.†
With some initial capital (as low as $200 with CMS Forex), and a computer with an internet connection you can become a participant in this global and liquid financial market.
Or, you can test the market with a practice account that does not involve real money. Just fill out a simple form here to receive a username, after which you will be prompted to download VT Trader, our trading software.

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Forex technical traders

The technical trader is concerned with studying patterns of price movement on the chart in order to predict the direction of current and future trends in the Forex market. The decision to buy, sell, or hedge a current position – or to stay out of the market entirely – is made upon this analysis. Identify recurring patterns and make educated assessments to guide your decisions; should you initiate a trade at the current price, or set your system to open a position at a future price? The goal of the technical analyst is simple: to make profitable Forex trades by identifying past patterns that have historically led to a predictable outcome. However, the potential risk should always be considered. A recurring pattern is not precise and does not guarantee a desirable or expected price movement.

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CMS forex

CMS Forex was founded by professional Forex traders, Forex brokers, and software developers, and as a result has been able to identify traders’ needs from the very beginning. Since 1999, CMS Forex’s mission has been to provide the most powerful currency trading technology combined with quality execution, competitive services, and dependable customer service. Over the past seven years, CMS Forex has quickly become one of the world’s leading online retail currency trading institutions, providing secure, user-friendly Forex trading software.
CMS Forex is positioned as an industry leader in the Forex marketplace and continues its growth while striving to provide its clients the best trading environment. Based out of New York, CMS Forex and its affiliates now have offices in Boston, Tokyo, Bermuda, Saint Petersburg, and Shanghai. Bermuda’s Capital Market Services International and CMS Japan were created to strengthen global reach and better cater to our international clients.
CMS Forex strives to serve both the retail and institutional segment of the Forex community. Its commitment to providing innovative currency trading technology, fair dealing practices, and excellent customer service establishes CMS Forex as a major force that traders look to for advanced Forex charting, up-to-date Forex news, and informative Forex education.
CMS Forex’s affiliates in New York, Saint Petersburg, and Shanghai are dedicated to going above and beyond to meet clients’ needs, by creating and constantly improving upon the already sophisticated and user-friendly trading software, VT Trader™. These attributes, plus many others, prove that CMS Forex has built from the ground up a service that truly stands on its own

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Pips and ticks of foreign Currency trading

pip is the smallest change of price for any Foreign Currency. The currency quotes appear as numbers with either two or four decimal places. This means that if the Foreign Currency moves up or down, the smallest move is called a "pip". When you trade in Forex, you monitor how the pips rise and drop and this is what determines your investment. An example of this is if you buy EUR/USD. This pair is quoted four decimal numbers after the point. A pip here is ten thousandth of a Dollar, or 0.0001 of a dollar, meaning 1/100 of a cent. The pip is an abbreviation of "Price Interest Point", and this is why another name used for pips is points.
Even though a pip is only a small amount of money, because your
foreign currency trading is usually a leveraged investment, a few pips can mean serious cash fluctuations. Each serious trader needs to know how to calculate the change from pips the actual sums invested, and some online Foreign currency trading agents offer such calculators in their account. You should consider these and other advanced functions when selecting the broker you want to use. Pip value can vary, and is usually $1 in mini accounts or $10 in regular accounts.
An important concept that concerns pips is called The Spread. This is the pip difference between the bid price and the ask price done for the currency trading sum. When you buy Foreign Currency it costs you more than to sell it and this is the spread.
Ticks are the smallest amounts of time that exist between two currency trades. This time frame can be a short time period of a fraction of a second for major currencies, or can also be a time frame of a few hours for less popular currencies. Ticks do not happen in constant intervals, even though the charts used for technical analysis do use specific time rates such as 4 hours of 15 minutes.

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Trading in foreign exchenge

This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world. As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.
Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs. Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market. A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.
For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade. Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or “gearing”). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.

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Forex tools

Forex market
The off-exchange retail foreign currency market ("forex") describes the purchase of a particular currency from an individual or institution and the simultaneous sale of another currency at the equivalent value or current exchange rate. Essentially, the process of exchanging one currency for another is a trade based on the current rates of the two currencies involved.
Technical Analysis
“Technical analysis” is an industry term that more often than not sounds much more complicated than the actual process is. Really, it ought to be referred to as “price analysis”, as this would be a more accurate description. Through the use of charted data traders around the world analyze their market of choice. The objective: attempt to determine future price movement. The means: understanding price movement patterns of the past.
Trading Strategies
Learning your own style, or in other words trading method(s) that work for you, is an essential part of Forex trading. There is no correct approach that everyone should learn. However, every trader needs to assess how much risk they can comfortably handle. It is the single most important investment issue for a Forex trader to consider.

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