How to make money from forex trading?
When you do a forex trade, it means you buy a currency in exchange for another, hoping that the currency you bought will increase in value
When you do a forex trade, it means you buy a currency in exchange for another, hoping that the currency you bought will increase in value
Foreign exchange market
The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies. [1]
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
Why Trade Forex
Why Trade Forex
Take control of your own finances.Beat the returns from mutual funds, hedge funds or managed funds.
Start-up costs are low when compared with day trading stocks or futures.
Forex is the world’s largest market. No one can corner the market.
With a trading volume of around $3.2 trillion dollars a day( Bank for International Settlements April 2007), no single entity can control the market for an extended period of time.
You can make money when the market is going up or down.
Forex markets trade 24 hours a day. There is no waiting for the opening bell.
Technical analysis works very well and the market trends well.
Forex offers up to 100:1 leverage but it is wise avoid very high leverage if you can afford it. Stocks offer 1:1 or 2:1.Futures offers 15:1 leverage.
The forex market is the most liquid in the world. Traders can almost always open or close a position at a fair price.
Todays Forex Trading
Todays Forex Trading
UK economic data came out better than expected across the board, the UK inflationary figures 1.6% rather than the 1.4% predicted. This data particularly could see an ending to the quantitative easing program and thus see a return to the risk aversion trades once again. Whilst the RICS house prices from the UK gave the pound its boost, gains now given back with the pound following the euro as worse than expected ZEW figures from Germany’s hitting the risks in early European trading.
With added comments from BoE’s governor King stating that they are looking to reduce the interest paid on bank deposits, sterling remains under threat for a further drop towards 1.6480 ahead of the 3 month 61.8% ret level of 1.6390/00. The trade war between China and the US affecting the US equity futures which are looking for a lower open at time of writing assisting the strength of the greenback. The US retail figures out later this afternoon are due to come out better than expected giving further momentum to the strength of the dollar.
Cable trading at 1.65 at time of writing, having come off the highs of 1.6660 having seen a ‘double top’ during mid morning trading. Economic data has come out better than expected though as mentioned, the ‘King” comments now weighing on sterling along with the expectation that US retail figures come out better than expected. With stocks starting to head higher along with the oil and gold prices, expect a move back up to the 1.6530 level before direction re confirmed. Support at 1.6480 ahead of 1.6450. Should momentum continue, the next major support now seen at 1.64. Resistance at 1.6530 (50% ret level for the week) ahead of the 38.2% level at 1.6580. The US retails the key for early US trading direction.
The euro trading off its highs of 1.4648/50 at 1.4620 at time of writing, the German ZEW figures lowering the single currency. Should Eurodollar drop below and hold 1.4580, expect a move back to 1.4560/65 ahead of the 38.2% fib ret level for the week at 1.4520. Resistance at 1.4620/25 ahead of 1.4650/60 (having now had three attempts over the last 24 hours). Favoring further downside pressure in early US trading, however, the US retail figures out later this afternoon the key for today’s direction.
The Yen is still being sold off against the dollar and the euro, however higher against the pound. Chinas trade war with the US the major influencing factor to Yen weakness over the last 24 hours. A plateauing seen at time of writing, now looking for direction at the US open. Support at 91 ahead of 90.90. Resistance at 91.30 (38.2% fib level) ahead of the 50% at 91.65 for the weeks trading.
UK economic data came out better than expected across the board, the UK inflationary figures 1.6% rather than the 1.4% predicted. This data particularly could see an ending to the quantitative easing program and thus see a return to the risk aversion trades once again. Whilst the RICS house prices from the UK gave the pound its boost, gains now given back with the pound following the euro as worse than expected ZEW figures from Germany’s hitting the risks in early European trading.
With added comments from BoE’s governor King stating that they are looking to reduce the interest paid on bank deposits, sterling remains under threat for a further drop towards 1.6480 ahead of the 3 month 61.8% ret level of 1.6390/00. The trade war between China and the US affecting the US equity futures which are looking for a lower open at time of writing assisting the strength of the greenback. The US retail figures out later this afternoon are due to come out better than expected giving further momentum to the strength of the dollar.
Cable trading at 1.65 at time of writing, having come off the highs of 1.6660 having seen a ‘double top’ during mid morning trading. Economic data has come out better than expected though as mentioned, the ‘King” comments now weighing on sterling along with the expectation that US retail figures come out better than expected. With stocks starting to head higher along with the oil and gold prices, expect a move back up to the 1.6530 level before direction re confirmed. Support at 1.6480 ahead of 1.6450. Should momentum continue, the next major support now seen at 1.64. Resistance at 1.6530 (50% ret level for the week) ahead of the 38.2% level at 1.6580. The US retails the key for early US trading direction.
The euro trading off its highs of 1.4648/50 at 1.4620 at time of writing, the German ZEW figures lowering the single currency. Should Eurodollar drop below and hold 1.4580, expect a move back to 1.4560/65 ahead of the 38.2% fib ret level for the week at 1.4520. Resistance at 1.4620/25 ahead of 1.4650/60 (having now had three attempts over the last 24 hours). Favoring further downside pressure in early US trading, however, the US retail figures out later this afternoon the key for today’s direction.
The Yen is still being sold off against the dollar and the euro, however higher against the pound. Chinas trade war with the US the major influencing factor to Yen weakness over the last 24 hours. A plateauing seen at time of writing, now looking for direction at the US open. Support at 91 ahead of 90.90. Resistance at 91.30 (38.2% fib level) ahead of the 50% at 91.65 for the weeks trading.
how to choose the best forex broker?
This is a question that you should ask well before making the first forex trade. Most newbies end up paying exorbitantly high fees for clumsy services to a forex broker with the biggest and shiniest banners. Professional traders take forex trading seriously, just as any other business.
since a forex broker is their principal business partner, they make their choice very carefully. This free tutorial will explain you the criteria used by professional traders in evaluating different online forex brokers. It will then guide you in making your informed choice. Try to build an imaginary offer from the ideal, best forex broker.
Forex Trading Software
FXDD offers five trading systems – three retail, one institutional,
and one fully automated - to accommodate our client's needs.
and one fully automated - to accommodate our client's needs.
FXConverter - Currency Converter
FXConverter is a multilingual currency converter for over 164 currencies and 3 metals. It uses daily OANDA Rates®, the touchstone foreign exchange rates used by corporations, tax authorities, auditing firms, and financial institutions. These filtered rates are based on information supplied by leading market data contributors.
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