ArticlesReader.com Menu
Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup
Search the articles

Articles Main Categories
Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing
Subscribe
Receive alert message from us when new articles submitted to our site for free.

Enter your name

Enter your email

Syndicate

















Related Products
Home::Currency Trading

“How To” Start Trading The Forex Market?

Author : Martin Maier
What Is FOREX or FOREX MARKET? PART I



The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.



That is larger than all US equity and Treasury markets combined!



Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the worldwide Forex market has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another 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, starting each day in Sydney, then Tokyo, London and New York. 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. With advances in technology over the years, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open an account and become an active player in the largest market on the planet.



The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.



Whether you are aware of it or not, you already play a role in the Forex market. The simple fact that you have money in your pocket makes you an investor in currency, particularly in the US Dollar. By holding US Dollars, you have elected not to hold the currencies of other nations. Your purchases of stocks, bonds or other investments, along with money deposited in your bank account, represent investments that rely heavily on the integrity of the value of their denominated currency ¨the US Dollar. Due to the changing value of the US Dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial status. With this in mind, it should be no surprise that many investors have taken advantage of the fluctuation in Exchange Rates, using the volatility of the Foreign Exchange market as a way to increase their capital.



Example: suppose you had $1000 and bought Euros when the exchange rate was 1.50 Euros to the dollar. You would then have 1500 Euros. If the value of Euros against the US dollar increased then you would sell (exchange) your Euros for dollars and have more dollars than you started with.



Example:



You might see the following:



EUR/USD last trade 1.5000 means

One Euro is worth $1.50 US dollars.



The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.



The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.



RISK WARNING:



Risks of currency trading



Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity).The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.


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





Veteran Trader Martin Maier is the Founder of www.fenixcapitalmanagement.com He is the developer of various futures and commodities trading programs and his systems have been ranked and rated by various large American Investment Profile Rating Companies such as STAR and MAR.





Spam emails More free articles

Related articles


  1. Is The U.S. Dollar About To Reverse Course?
  2. Why Demo Account Performance Is Often Better Than Real Account Performance
  3. Factors Influencing a Currency Pair Exchange Rate
  4. Financial Crises, Global Capital Flows and the International Financial Architecture
  5. FOREX 101: Make Money with Currency Trading
  6. Online Forex
  7. Investors - What Separates the Good Traders from the Bad Traders?
  8. Assessing the Opportunities Presented by the New Iraqi Currency
  9. Choosing A Forex Broker
  10. Forex Signal, Forex Signals Advice
  11. Why Forex Traders Plan To Fail Before They Even Place Their First Trade & How You Can Know It & ...
  12. The Secrets of the Super-Traders
  13. Internet and Computer Systems in the FOREX Business
  14. How To Handle A String Of Losses
  15. 5 Questions You Need To Have Answered Before You Back-Test Your Forex System
  16. How Not to Lose Your Shirt Trading Forex
  17. Impress Your Date with Forex Trading Lingo
  18. Forex: Why Psychiatrists Make Better Traders Than Expert Economists?
  19. Are you prepared to currency trade?
  20. Forex Trading Education: Things You Should Know About Forex Trading
  21. Currency Trading: Understanding the Basics of Currency Trading
  22. “How To” Start Trading The Forex Market? (part 3)
  23. Forex Trade: Main Drawbacks of a Forex Trader
  24. What's The Fuzz About E-Currency Trading
  25. Forex: Benefits of Trading the Forex Market.
More related feeds
Best Brokers for Forex Market Trading
The best brokers for the forex markets are not the ones that allow you to start trading with a $250 or even $500 account. Why is this? Because most forex brokers who accept such small amounts of opening deposits are not entering your ...

Make Money Trading Forex Without Breaking A Sweat
by Forex earner One of the best things about Forex trading is that it is a 24 hour market. Here you... Forex Trading Software - Basics. by Liz Davis It can be very confusing when you first start trading in the Forex market. To help ke. ...

Forex software review|Forex Killer|Advanced Automated Forex ...
With the Forex Killer manual, detailed “Forex Learning Book” and “Crush course” beginners will learn everything they need to know about the forex market to start trading within the next hours! Forex Killer is successfully used by ...

Forex Trading - Your Easy Way to Make Money
Today lot of people venture into Forex trading as it brings easy money. With the internet it becomes very easy to deal with the forex market as all transactions can be done through your computer. However one needs to know the basics of ...

Forex software review|Forex Autopilot System
How to get started trading forex… * How to apply automatic software in trading… * Secret trading weapons of the pros… and how you can apply them to make cash from the forex market… Plus you also stand for a chance to win a free 1 to 1 ...

Lesson 5 - The Inside Secrets Of Forex Trading
Most of those who are looking to start an on-line business know very little or nothing about the Forex market. I have already explained the basics for beginners in my previous articles on this blog. What I want to tell you now in this ...

Make Money Through Sure Returns In Forex Trading
Forex trading is becoming one of the most popular ways among those who like to make money online. With the advent of the internet many people have started trading in the forex market as one can earn money sitting in the comforts of ...

Is Pressing The Trade Just Pressing Your Luck?
Boris Schlossberg runs BKTraderFX, a forex advisory service and is the senior currency strategist at Forex Capital Markets in New York, one of the largest retail forex market makers in the world. He is a frequent commentator for ...

Stop Losing And Start Making Money In The Forex Market
One Forex trading habit that can make you lose your money is putting real money onto a new forex trading strategy that they have just learned. That should be a big NO-NO. Always use virtual money first and apply what you have learned. ...

Forex AutoMoney
That’s why it’s easy. Forex AutoMoney will tell you WHAT TO TRADE and WHEN TO TRADE. Traders wait for the Forex market signal and just click the BUY or SELL button. So what do you need to start trading:. you need access to the Internet ...

 

 

2007 articlesreader.com - All Rights Reserved