Skip to main content

Introduction To Forex Market

Introduction To Forex Market
By: ActionForex.com


The Foreign Exchange (often abbreviated as Forex or FX) market is the largest market in the world with daily trading volume of over 1.9 $trillion in September 2004*. With its high liquidity, low transaction cost and low entry barrier, the 24-hour market has attracted investors around the world.

The following articles aim to introduce the key concepts in forex trading, the terminologies and the characteristics of the FX market.

The articles first introduced the concept 'spread', which is the most important transaction cost in forex trading, how the spread is presented in the price quotes, what is the significance of it and what is the trick behind it. As most of the retail customers choose to trade forex with margin account, the articles then introduced what is margin trading, what is the significance of margin, how to trade a margin account and how to choose the correct leverage ratio.

In trading online forex, there are many types of orders that you can make to facilitate your trades. The articles then explained the rationale behind each type of orders, when and how to use each of them.

Being one of the most actively trading markets, the forex market is yet, may not be the most well known market. The articles then gave a little historical background and explained the nature of the forex market, and made an overall comparison of various trading markets. It also discussed the pros and cons of trading forex market and what are the recent trends.

Like any other trading instruments, traders should understand the terminologies and the basis of the market before he/she starts real trading. The above articles serve as an essential beginners' guide to the world of forex trading.

*According to the Triennial Central Bank Survey of the foreign exchange market conducted by the Bank for International Settlements and published in Sept 2004

Article Source: http://www.articlecube.com


Action Forex provies forex analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebooks downloads.

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Forex Trading Tips And Strategies For The Week of July 15-31, 2023

Here are some forex trading tips and strategies for the week of July 15-31, 2023: Pay attention to economic data. There are a number of important economic releases scheduled for this week, including the US non-farm payrolls report on July 15, the European Central Bank (ECB) monetary policy meeting on July 21, and the US unemployment rate report on July 28. These releases can have a significant impact on currency markets, so it's important to be aware of them and factor them into your trading decisions. Trade with the trend. This is a basic but important trading principle. When the trend is up, look to buy. When the trend is down, look to sell. Trying to trade against the trend is usually a recipe for failure. Use stop losses. Stop losses are a way to limit your losses on a trade. When you place a stop loss, you're essentially telling your broker to sell your position if the price reaches a certain level. This can help you to protect your capital and avoid large losses. Be patie...
Post a Comment
Read more

Swiss Franc Expected to Weaken Further

Retail forex traders remain aggressively net-short the US Dollar (ticker: USDOLLAR) against the Swiss Franc as it presses to fresh highs, and such one-sided sentiment gives contrarian signal that the pair may continue to strengthen. Traders first turned net-short the USDCHF as it crossed above SFr 0.9300 through early May. The same crowds briefly turned net-long USD as the pair fell through mid-June, but they’ve since returned to their bearish position.
Post a Comment
Read more

EUR/USD ends Lower this week

EUR/USD settles around 1.4230/50 as a highly volatile week comes to an end. The pair swung erratically throughout the week as news and fundamental data hit the markets among which are worth noting, rumors about a downgrade to France, a collapse on the stock markets and a temporary short-selling ban on financial shares imposed by some European countries, zero rates in the US until mid-2013 and ECB intervention on the bond markets. On this backdrop, EUR/USD moved between a high of 1.4425 at the opening and a low of 1.4103 on Thursday, where the aftermath has left the Euro around 1.4240 on track for a third consecutive weekly loss versus the Greenback, this time for 1.28%. Regarding next week forecast, Ilian Yotov , FX strategist at AllThingsForex, said, "The EUR keeps fluctuating within its range, but could attempt to break above it on QE3 expectations, or below it if the EU debt crisis continues to rattle the single currency."
Post a Comment
Read more