Forex Market Training

US Dollar: Watch Out for Housing and Confidence Next Week

2006-09-24T00:01:00.000-04:00

There is key US economic data coming this week that will determine the weekly fate of the dollar. Housing market releases will be on the forefront this week. Housing starts are on Monday and are expected lower. This could mean the USD will be weaker. However with oil prices at six month lows inflation concerns have lowered. The lower gas prices could keep consumer confidence higher and balance out the Housing Starts information. The Consumer Confidence Report is on Tuesday. Short term it appears the USD selloff is played out. Increase consumer confidence may result in a bounce.

US Dollar: Watch Out for Housing and Confidence Next Week

Technorati tags: forex fx currency trading

Virtually Commission Free Trading

2006-06-28T17:26:00.000-04:00

In most financial markets, traders must pay a spread and a commission. All traded financial products have a 'bid' (buy) price, and an 'ask' (sell) price, with the difference defining the spread, or cost of placing the trade. Forex online trading platforms include both the buy and sell price. This allows traders to see the real cost of the trade. The spreads are tight because of the around the clock liquidity in the currency market. Other traders are more vulnerable to liquidity risk and typically receive wider dealing spreads, especially during after-hours trading.

FX day trading charges no commission or transactions fees to trade currencies online or over the phone. The over-the-counter structure of the currency market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen. All clients have access to dealable bid/ask quotes. For example, in the futures market, the prices represent the last trade, not necessarily the price for which the contract will be filled. This lack of transparency hides the true cost of the trade. Your broker of choice is compensated through the spread which varies depending on which currencies you trade and the broker you choose. The spread is the difference between the current bid and current ask price on a specific currency.

Forex vs Stocks

2006-03-02T14:36:00.000-05:00

On the Forex market, there are only six major currencies. This allows a trader to focus and concentrate on which currencies to trade. In the equities market, there are over 40,000 stocks to choose from. Which stocks do you choose?

On the stock markets, most people make money when shares are rising, but in economic recessions and falling 'bear' markets, there is little chance of making serious money. In the Forex market there is a big difference.

One of the most exciting advantages of FX trading is the ability to generate profits whether a currency pair is 'up' or 'down'. A trader can profit by taking a 'long' position (buying the currency pair at one price and selling it later at a higher price) or a 'short' position (selling the currency pair and buying it back at a lower price). In either case, there is always a good market trading opportunity for a currency trader. The ability to sell currencies without any limitations is a distinct advantage over stock trading.

For example: If you think the US dollar will increase in value versus the Japanese yen, then you will buy dollars and sell the yen (go long). If you think the yen will increase in value against the dollar then you will sell Dollars and buy yen (go short). As long as the trader picks the right direction, a potential for profit always exists.

Forex Is Perfect For Technical Traders

2006-02-22T13:13:00.000-05:00

The strong trends that foreign currencies develop are a significant advantage for technical traders. Unlike stocks, currencies rarely spend much time in tight trading ranges and have the tendency to develop strong trends. Over 80 percent of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. A technically trained trader can easily identify new trends and breakouts, which provide multiple opportunities to enter and exit positions.

Interbank Market

2006-02-14T21:53:00.000-05:00

The backbone of the Forex market consists of a global network of dealers. They are mainly major commercial banks that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets. The Forex market operates in a manner similar to the way the NASDAQ market in the United States operates, thus it is also referred to as an over-the-counter (OTC) market.

Uncorrelated To The Stock Market

2006-02-06T21:10:00.000-05:00

A trader in the Forex market is involved in selling or buying one currency against another. Thus, there is no correlation between the foreign currency market and the stock market. A bull market or a bear market for a currency is defined in terms of the outlook for its relative value against other currencies. If the outlook is positive, we have a bull market in which a trader profits by buying the currency against other currencies. Conversely, if the outlook is pessimistic, we have a bull market for other currencies and traders take profits by selling the currency against other currencies. In either case, there is always a good market trading opportunity for a trader.

Open and trade on Mini Accounts with as little as $300 USD

2006-02-05T14:34:00.000-05:00

Many brokerages do not allow you to invest in odd lots, but only in blocks of 100 shares at a time. With many stocks valued at between $30 and $200 that can mean an investment of $3,000 to $20,000, or more. But you can invest in foreign currencies for as little as a $300 USD deposit with mini-contracts. The smaller trade size enables you to take smaller risks. Mini-accounts are intended to introduce you to the excitement of currency trading while minimizing your risk. You can try out the demo account and paper trade or you can open up a mini-account right now and trade for real.

Low Transaction Cost & Virtually No Commissions

2006-02-02T12:43:00.000-05:00

In the currency market, you pay no commissions and no exchange fees because you deal directly with the market maker in a purely electronic online exchange, eliminating both ticket costs and middleman brokerage fees. There is still a cost to initiating the trade, but that cost is reflected in the bid/ask spread that is also present in all markets including futures or equities trading. Combined with the tight, consistent, and fully transparent spread, currency trading costs are lower than any other market.

Active stock traders often see substantial portions of the gross profits go to brokers in the form of commissions, and the exchanges in the form of exchange and data fees. While equity brokers may advertise enticing commissions, the spread between the bid and ask is not fixed and may vary with market conditions, particularly with smaller less liquid stocks. This spread can be 3 to 8 cents or more, depending on the time of day, and results in an added hidden transaction cost much greater than the stated discount commission rate. When dealing directly with a market maker, there are no commissions, the only cost to you is the spread, which is fixed and transparent.

*Please note that your broker of choice is compenstation through the spread which varies depending on which currencies you trade and the broker you choose. FX Trainer is not a broker. The spread is the difference between the current bid and curent ask price on a specific currency.

Opportunities In Both Rising & Falling Markets

2006-02-02T00:45:00.000-05:00

Trading currency allows traders to earn profits during rising and falling markets. One can just as easily 'short' (sell) a particular currency as go 'long' because currencies trade in 'pairs.' Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct one to be long or short.*

Leverage

2006-02-01T11:26:00.000-05:00

Forex investors are permitted to trade foreign currencies on a highly leveraged basis - up to 100 times their investment. For example, an investment of $1,000 would permit a trade up to $100,000 of any particular currency. A small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Please note that increasing leverage may also increase losses.

Liquidity

2006-01-31T15:39:00.000-05:00

With $1.9 trillion changing hands daily, the FX market is also extremely liquid. This means that with a click of a mouse you can instantaneously buy and sell. Whether it's 6 p.m. or 6 a.m., somewhere in the world there are always buyers and sellers actively trading foreign currencies. You are never 'stuck' in a trade. You can even set the online trading platform to automatically close your position at your desired profit level (limit order), and/or close a trade if a trade is going against you (stop order).

Trade FX 24 Hours per Day, 6 Days per Week

2005-10-10T23:05:00.000-04:00

The FX market never sleeps. A currency trader may take advantage of all profitable market conditions at any time. There is no waiting for an opening bell as in the case of trading stocks. Forex is a 24-hour, continuous currency exchange that never closes (normal hours of operation are Sunday 1 p.m. through Friday 2 p.m. Pacific Time). This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night. You can learn to trade currency successfully. Then you will have a skill that no one can ever take from you. You will never have to worry about a job layoff, unfavorable job conditions, or a slow economy. This opportunity can help you earn the type of income you have dreamed about.

Why Trade FX

2005-10-07T14:17:00.000-04:00

There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market as a profitable business opportunity:
* The Market is open 24 hours per day 6 days per week.
* Liquidity. The FX market is the most liquid of all financial markets.
* Leverage. Forex investors are allowed to trade foreign currencies on a highly leveraged basis, much more than stocks, while limiting risk.
* Profit potential in both rising and falling markets.
* Low transaction costs. There are no brokerage fees for each FX transaction. The retail transaction cost (bid/ask spread) is typically less than 0.1 percent (10 pips).
* Unrelated to the stock market.
* Interbank Market - The FX market operates through a global electronic network of dealers therefore eliminating the need for a physical exchange to facilitate transactions.
* No one can corner the market. The FX market is so vast that no single individual or entity can corner the market for an extended period of time.

FX Trading Made Easy

2005-09-28T14:31:00.000-04:00

The foreign exchange market (FOREX or FX for short) currently is the largest financial market in the world, with over $1.9 trillion dollars changing hands daily and soon expected to top $2 trillion. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates on a 24-hour basis, 6 days a week spanning from one zone to another across the major global financial centers.

The Forex market consists of over 4,600 international banks and thousands of small and large speculators. With the current growth rate the market is projected to grow to more than $2.0 trillion per day by the year 2006. This exciting and rapidly growing financial market provides the entrepreneur with an opportunity to generate profits in the largest market in the world.

Individual investors now have the opportunity to trade the largest, most liquid financial market in the world and have the financial advantages enjoyed by major institutions for years.
FX Market Trainer