Money FOREX

FOREX CURRENCY TRADING
FX, Forex or Foreign Exchange, is all about exchange of currencies from one hand to another at an ongoing price in the market. Forex is all about investing money in foreign currencies, just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price. Earlier, not many traders were clear about the Forex trading and that Forex is just short for "foreign exchange", as it did not get much publicity through media.

Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.

About a decade ago, currency trading was only limited to large banks and financial firms because they were the only ones to have access to the tools and methods required to trade Forex market. However recently, due to up and coming efficient online platforms, technology has advanced to the point of being accessible to any and every individual trader who wishes to trade or invest in Forex. Marketforex.net being one of finest online trading platforms is easily accessible by all who are interested in investing in Forex.

Although trading in the Forex market is done for almost all the foreign currencies, there are still, some foreign currency pairs which are considered as “Major” currency pairs as compared to the others. This is because these currency pairs are some of the most traded and most in demand currencies in the Forex trading market. These pairs dominate the percentage of trades and are as follows:

Euro/ U.S. Dollar
US Dollar/ Japanese Yen
US Dollar/ Swiss Franc
US Dollar/ British Pound

The FOREX trading market offers its investors with exclusive and lucrative investing opportunities. Other factors like 24 hours open market, high leverage, commission-free trading and easy accessibility through various means of communications has helped Forex to become one of the most popularly invested financial markets.

With a daily volume of about $1.2 trillion money changing hands everyday, the magnitude of Forex market is definitely one of the highest as compared to the Equities and the Futures market. So, you should educate yourself comprehensively and take advantage of this giant investment vehicle.

Marketforex.net provides all the new as well as experienced traders with the opportunity to trade Forex more easily and more advantageously. We offer our clients with quicker results, better deals, higher leverage and superior customer support, thus offering them efficient and genuine Forex trading services through an advanced online trading platform

Trading and Hedging with Currency Options

rrency options can be used to trade foreign exchange and to hedge foreign exchange risks.

Trading & Speculation

Currency options offer some unique features to the speculator. Purchasing an option you know that your downside is limited to the premium you invest. Sounds great and it is. However you should also know that the probability of make a profit is depending on where the option strike is. If USD/JPY spot is 120.00 and you buy a 1 month 140.00 strike USD Call, the premium will be small but the probability of losing it all is very high. On the other hand if you sell options you receive premium but you also are exposed to unlimited loss if the market moves against your position.

Hedging With Options

Options offer some very interesting features for hedging. There are a wide variety of different types of options to match the full spectrum of risks that companies and fund managers inherit as part of their international trade and investment.

If it important that risk managers understand the products they are buying and exactly how they perform under different scenarios. The goal being to negate the existing risks of the business.

Trade On the Forex UK – Make money from Exchange rates

With the global credit crunch making investments hard to come by there is one market that cannot possibly fail. You can make money from trading currencies. If you are someone that takes an interest in current affairs with some spare money to invest, then forex trading could be for you. Make money when the news is good and bad. You just got to predict which way the market is going to go.

The pound is weak now, will it get any weaker? In 6 months time the value of the world’s currency will have changed relative to one another. If you want to hedge against rate changes, you can trade on the forex.

Are you worried that your pound savings might be worth less in year? Hedge it on the forex markets. Profit if the pound falls further. Are you confident that the UK government can turn things around? Make money if the pound rises in value. If you are interested in the foreign exchange markets then read on.

About Forex

The Forex market has quickly become the world’s largest financial market, with an estimate daily turnover of $3.2 trillion. It is a market that has great appeal to a financial trader because of its volume which guarantees liquidity. High liquidity means that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any currency he wants. Another outstanding feature of the forex market is that it is active 24 hours a day and is closed only on the weekends. This means that unlike the stock market for example, traders in the forex market don’t need to wait for a bell to ring, but can make trading decisions around the clock.

Enter the internet into the equation. Now the forex market is literally at your fingertips. Most brokers offer online trading facilities which enable you to trade simply by clicking a button, instead of the traditional phone call. The internet has really revolutionized the industry, making the retail section of the market more dominant than ever.

About eToro

eToro is a forex trading platform developed to cater to the emerging retail segment of the forex market. With its simple style and exciting trade visualizations, eToro is the perfect platform for a novice trader to get his first forex trading experience. With its great array of professional forex trading and analysis tools, eToro is also the perfect platform for experts in the field who want to trade comfortably and reliably. eToro has developed a truly intuitive interface that lets traders concentrate on trading instead of messing around with bulky and overcomplicated software.

It’s important to mention that eToro also offers an educational experience, so novices can gain knowledge of the forex market and eventually become pros if they’re so inclined. eToro offers forex trading guides, forums and video tutorials to facilitate their traders’ progress. eToro also offers an unlimited practice mode where both beginner and seasoned traders can sharpen their skills and test their strategies with real market rates.

Overall eToro have successfully designed a software that caters to a very wide segment of the forex trading public. eToro is bound to remain a leader in the forex industry for a long time to come.

eToro’s features:

Visual representation of trades: Monitor your trades with ease by watching creative visualizations of your trading activity.

Practice mode: Test your skills and strategies by trading with live rates, without risking a cent.

Trading Challenges: Compete against fellow traders for cash prizes – with no entry fees.

Trade: Enjoy immediate and accurate execution with all your trades.

Low Spreads: Save a fortune on eToros super low spreads – as low as 2 pips.

And soon to come:

Trade: Enjoy real time execution with all your trades.

eToro’s Pro Insight: Get a look at what currency pairs eToro’s top 100 traders are trading at the moment, and use the inside info to your advantage!

Forex Trading Software

Because of automatic forex trading systems, there has been an increase in interest and has gained in popularity. This was a market which only saw banks and other large financial investors as players but these days it has become attractive to medium and small time speculators. This market handles trading of currency of one country with that of another. Transactions worth trillions of dollars take place here every day without a break; no wonder then that this is one of the largest and most alive financial markets.

Anyone with a forex brokerage account and some experience in trading can now operate forex trading thanks to the internet, advanced networking and communication technologies. Close and constant monitoring is required if you want to keep your position as the global market never sleeps. The automated software system lets you choose a currency as well as its asking and selling price before you trade. Your buy and sell orders can get instantly executed so all you need is your seed money and a broker to help you.

The automatic systems can help you enjoy the profits from this forex trading without having to be a specialist. When managed accounts use the automated trading systems, the program can easily manage everything for you. Therefore automated systems help you save time as you do not handle the trading yourself. Unlike manual trading the auto trading platforms can help you manage more than one account at the simultaneously. When you want to trade in multiple markets with multiple systems, these programs allow you to do this.

The auto forex trading system allows you the flexibility of trading at any time without your presence. It is impossible to miss any profitable trade, even when you are nowhere close to your computer. It is then easy to operate on different systems and deploy several forex strategies. Since every system is activated according to specific trade movements, you can plan your investments and direct your risk accordingly.

To eradicate human emotions which often come in the way of making logical trading decisions, these automated forex trading systems are indispensable. You can now have the capacity to manage several currencies and monitor and trade them too.

Using an auto forex trading system does not spare you from learning the basics of trading, fundamental and technical analysis, study of market indicators, etc. The market is dictated by several factors; therefore there is no guaranteed success by simply using automated trading systems. The automated forex trading system is not purely mechanical; you can program it to suit your individual needs.

FAP Turbo Scam - The Most Expensive Lesson You Never Learn

The million dollar question that so many unsure potential forex traders ask themselves is whether to take aid from forex robots and if they do, which one of them are scams designed to waste money and time and which ones actually work. We shall therefore look at the workings and feed backs of the Fap Turbo in order to determine whether this product is a scam or not.

Before going into the technical part, the first positive signs available are the faith that the developers seem to be showing in their product. They are offering a 60 day money back period for any one who is not satisfied with the product, this is a must with almost all forex robots these days so as to ensure the customers that they aren't scamming them. They are also claiming that the capital invested will be increased by up to 100 percent each and every single month. On purchase of the product, you are also given a forum membership access so as to encourage feed back about The Fap Turbo, this is something that not all developers offer and is a sign that the makers do not mind consumer experience of their product to be out in the open and are rather seemingly encouraging people to do so, again showing a positive attitude by the makers. However, all of these may just be bluffs and cannot be relied upon until its actual workings aren't taken a look at.

Visit their website and you will see live trading going on in three different kinds of demo accounts, with real money, in order to show the profitability of the software. The offline service offers of $35 and $70 monthly offers also come with money back claims if you are not satisfied with the service. The developers encourage their users to first make a demo account with a small investment in order to check its workings first hand and then using it on a real live account with a bigger investment. All of this shows that despite being the most expensive forex robot available in the market, the only thing you have to lose if unsatisfied with the results generated by it is a very small amount of time and money.

Now let's take a look at whether the software actually works. What mainly matters when looking at a forex robot and checking whether it works or not is its ratio of wins compared to losses or the winning percentage? This ratio has to be long term as short term ratios tend to be misleading due to one off hits and misses. The Fap Turbo boasts, on an average, 19 wins compared to every 1 loss, which is a really good ratio. Drawdown refers to the maximum amount that the software has been known to lose on the capital, with average forex robot drawdown figures hovering between the 10 percent and the 20 percent mark, compared to the less than 0.5% of The Fap Turbo, these average drawdown rates are nothing short of massive.

One of the main reasons that I can say that this product is a handy buy is because it focuses on the long term approach rather than on a short term one, thus ensuring profit over a certain amount of time.

Professional Forex Training & Trading Signal Services

Trade With Professional Traders Live!

If you are truly serious about learning how to trade forex and have the desire to succeed, we know of some excellent services you should know about. All of these forex services include live trading rooms where you see exactly what the professional traders are doing so you can trade along with them to make profitable trades. In our opinion, novice to expert traders would benefit greatly from services like these because it’s always better to trade along with others because they may see something you don’t and could help you get into more profitable trades and more importantly, stay out of bad trades all together.

I listed these in the order of quality, profitability and price. Obviously the more expensive forex services offer more and the profit potential is worth every penny. I’m also a member of all of these services, so if you have any questions about any of them, please use the Contact Us form and I’d be happy to answer your questions.

The best service on our list is called . This service offers multiple live forex trading sessions that run in 2 hour sessions for 12 hours each day. From approx. 1am to 1pm EST. These instructors have their own trading styles and they all do this for a fulltime living. This is the most professional service I’ve ever been with and the price is unbeatable. If you get the 6 months + 6 months free option, you end up paying $12.50 per month! You won’t find a deal like this anywhere for the live forex training you’ll receive with FX Instructor. If you choose the monthly payment option to kick the tires first, it will cost you $29.95 per month which is still very inexpensive. I’ve seen services like this cost hundreds per month. These guys are the real deal and I enjoy their hourly sessions very much. They also share their proprietary trading systems with you as well so once you learn these forex trading strategies, you will be able to trade profitably on your own. To read more about all the forex services offers, please visit our FX Instructor Services page.

Another service on our list is calland its run by Steve DeWitt, a professional trader with years of experience and hugely profitable trading systems. He uses two profitable trading strategies. One is called the 240FX System and the other is called the WaveFX System. This is the more expensive service but you not only learn how to trade, but take profitable trades on a daily basis. As I write this, membership costs $197 every month and you can get a 7-day trial for just $9.99! I've been with Steve for many months and enjoy the service very much. You can also see his past performance on his site and I can personally say these are REAL numbers. Steve gives live trading workshops online with a chat room and graphics so you can see the charts of all the currency pairs he’s reviewing. He tells you what pairs he’s trading, the price levels to get into these trades, your stop losses and take profit targets. We receive emails and SMS messages so we know exactly when to take trades during the day. We also do Momentum Trading in the morning workshops and these have been very profitable as well. He uses the Metatrader (MT4) charts (which are free) and he gives us his proprietary indicators he uses to make trade decisions. Once you join the service, these indicators and forex trading strategies are yours to keep! That means when you start becoming profitable on your own, and you feel you no longer need Steve’s service, you could cancel and still own the trading systems and indicators to continue trading on your own! Steve is a very down to earth, fun guy who knows how to trade forex. He’s been at it for years and I absolutely love his service. I’ll be with Steve for a very long time. Steve also offers his members a Trade Assist feature at no additional cost which allows Steve to trigger trades in your live trading account so you don't have to manually take them. This means for all of us with day jobs (for now:), who can't make trades throughout the day, can have their trades executed automatically. That means you just come home at night, log in to your trading account and see the profits Steve made for you during the day. What other service offers that?!

3 Advantages Of Forex Trading Over Stock Investing

We should really stop looking to other ways to get money and get on this liquid market. The funny thing is, the advantages of Forex trading have always been there, the buoyancy of other markets and investment opportunities for the past few years have actually pushed it into a sort of obscurity. Now that the credit crunch is here and market trust has wavered to the point where investors have turned tail and run away, the Forex market has actually started to shine with a light that in fact has always been there. This article will not try to convince you of anything, but it will tell you four reasons why you should shift your energy to Forex online trading to make some real money.

Being available 24 hours a day, it makes it very advantageous thus it can accessed at almost any time. Add to that the ease and accessibility of the internet and you get complete control and command over your investments and you can check even the smallest variance in the market at any one time. This is the dream of any investor and to someone dealing with a lot of money, a 12 hour wait could mean horror - things could go bad overnight and you would want to be able to nip any impending storms in the bud.

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Start making money on both ends of the market. The Forex market is unique in a certain sense because you can make money on currencies that are going down and currencies that are going up. Market positioning is very flexible in the buying and selling of money worldwide and the good thing about Forex is the ability to have a duplicity market, where a downturn in the market could mean profits for you.

The Forex market, ulike other markets, is a highly predictable one and price movements, to experienced brokers, work in a cycle and a pattern that actually work out in a general map cycle that can be plotted and predicted easily. Yes, Forex markets are especially volatile; disasters occurring on the other side of the globe could potentially mean more than a 1 point drop in a currency you are backing, which means you stand to lose a lot of money. Those sorts of disasters can be quite easily averted with a bit of experience and a bit of market watching. There are also strategies aplenty and you can pick up different ways to forecast the market with tried and true methods.

Online trading also cuts away a lot of the unnecessary, physical complications you might have if you had gone down the traditional time. In the world of Forex trading, everything from order execution to general and specific enquiries is done electronically and an Internet based platform is the best way for you to interface with the market. You lose the hassle of delays and noisy open floor outcry pits, and best of all, you can make money from the comfort of your home.

Forex Market - Biggest Financial Market

The statistics say that US $3 Trillion and above are being traded in daily trades. This number is an average of trades over the last year. The mind-boggling number of $3 Trillion indicates to you that no other market (Futures, Stocks) can come close to the Forex Market when we talk of the money involved in these markets. As it happens in most markets, money traded would mean currency bought and currency sold. If we assume that 60% of the trade was bought by traders across the globe and 40% sold, we are talking some really big numbers.

Why do people invest money in the Forex Markets?

There are very much factors that influence people's decision to invest in Forex Markets. According to me, three factors are of prime importance.

-The Trading Volumes - Unlike Scrip or Futures, there is no upper limit on the amount of trade or the number of units you can purchase. In the Forex Market, you have currency pairs on which you can make a buy or a sell call. Whether you invest $500 or $500,000 is completely your call.

-24 hours trading - With different countries in the globe on time zones, it gets very difficult for a trader in Australia to cope up with EST Morning timings. If a person in Australia gets up to 10.00 AM to trade in the EUR-USD pair, he would still be able to do it. The only exception to this would be weekends.

-Cross-section of factors impacting the exchange rates - Most traders believe in trading on units that are influenced by a lot of factors. When a unit is influenced by a lot of objective factors, chances of speculative trading is extremely marginal.

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How have people been investing in Forex Markets? Is this expected to continue?

The methods of investing in Forex Markets are very diverse. One could look at traditional way of investing that includes channels like Spot Market, Outright Forward, Forex Swaps whereas one could also look at investing money in derivatives.

-Spot Transactions - Close to $1 Billion have been invested on a daily basis. This trading is best told by this example - You could buy USD with a JPY (Japanese Yen) for delivery on immediate basis. This is best for traders who wish to capitalize on the strength or weakness of a particular currency on a particular day.

-Outright Forwards - This is the most favorite segment amongst traders in the conventional trading category with close to $362 Billion invested daily. This is best for traders who are unsure of the volatility of a market at current times. Such traders would always want to postpone the delivery or exit their trades at a later date. Financially, this is known as hedging.

With close to $1.7 Million in Forex Swaps and close to $2.1 Trillion being traded in derivatives, the Forex Market is indeed selling hot cakes for traders. Every accomplished trader will tell a newcomer this - Understand the fundamentals before entering the Forex Market. Please note that as soon as you have an active account for yourself to invest in Forex Market, you would be tempted to make a buy or a sell in the market. As it goes, you would not be able to make an informed decision if you do not understand the fundamentals.

What are the Limitations of Technical Analysis in Forex Trading?

To analyze the forex market two basic approaches can be made. One is the fundamental analysis that looks at growth factors of the country whose currencies are being traded. The second is of course technical analysis that analyzes chart patterns and indicators. While both are important in their own unique ways, the fact remains that for a beginner technical analysis is fundamental in context. In this article I will try to explain the limitations of technical analysis in forex trading.

What is technical analysis?

When you use technical analysis in forex trading you are actually using a set of technical indicators. These technical indicators could be for example Bollinger Bands, Pivot points, Moving Average or any of the other indicators you may have come across. And what do these technical indicators do? They help you determine when to enter or exit a trade of a particular forex currency. It is alright using these technical indicators as long as you are careful in the sense that you understand their importance correctly. You simply cannot download a technical indicator and then apply it blindly to your forex trading methodology. That would be a terrible mistake. You need to understand their significance. In other words, what I am trying to tell you are, technical indicators whatever they are, should constitute just a single part of your overall trading strategy. You could very well look at technical indicators as something that pin-points the exact entry and exit points of the currency you are dealing with. But the point is you should never reckon with these technical indicators in isolation. Doing so would be espousing the cause of the very limitations that these technical indicators possess.

Limitations of technical indicators

In order to study the forex limitations, consider for a moment an example of Moving Averages. You could well be using the 35 day, 50 day, 100 day or 200 day moving average. But the significant point you have to remember is that they could be valid only on a daily graph basis. For example some analysts would advise you to trade in the direction of the cross as for example when a 50 day moving average is crossed by the 13 day moving average, as it is usually interpreted as a good signal for doing so. But the problem is, apart from the fact that such crosses do not occur regularly, even if it were to happen it would work soundly only on a daily graph. The point is you should never lead yourself to a situation where you could well be imagining that you saw a cross arise, and reverse or uncross. This is something that could very well happen. Neither should you be looking at the moving average and anticipate that a cross would eventually arise. In other words, never use these indicators to work out a prognosis or else you would not be in tune with the market you wish to trade. Always consider these indicators as just a part of your trading strategy. Use them in conjunction with fundamental analysis. Therein lays your success in forex trading.
Now let's consider the example of the Bollinger bands. It works just fine in a range bound market where prices predictably oscillate between the two bands. Bollinger Bands too have their limitations. For example, the tag of the upper Bollinger Band is by itself not a whole-hearted signal to sell. It is just an indicative tag. Its just that, and nothing more, and nothing else. Similarly the tag of the lower Bollinger Band is not a whole-hearted signal to buy. Again it is only a tag, just indicative and nothing more. If for example, you try to "sell at the tops" and "buy at the bottoms" you could be in trouble if prices move further away from your initial entry point. This is perhaps a major limitation of the Bollinger Band as a technical indicator.

Conclusion:

Successful forex traders should understand the limitations of technical analysis. More importantly it should constitute just one part of your overall trading strategy. Recently I read an article about a survey conducted amongst major players that influence foreign currency markets. According to this survey, only 21% of forex traders use technical analysis as compared to 41% of forex traders who use fundamental analysis. Needless to say, the best course of action would be to use a combination of both.

Global Forex Trading And Very Important Factors

The Forex Market has 46 currency pairs on a conservative estimate. Telling you that you would need to keep an eye on developments on all the countries of the globe would be asking too much of you. For starters, you could keep an eye on developments of the countries whose currencies who have invested in the Forex Market. Look for economic and political developments that could create a stir in the forex market.

Why monitoring the political and economic scenarios of countries are important to global Forex trading?

As it has been observed statistically, the value of currency of a country changes a lot due to the economic and political climate of the country. For example, the Federal Rate cuts on Interest rates aimed at controlling the sub-prime crisis in USA increased the value of the US Dollar. Don't get carried away of you get a cue from one such indicator. Please make a list of all such factors that would impact a currency in the Forex Trading Market.

A long pending factor to a currency movement is the price of crude oil per barrel. As the price of crude oil inches towards $100 per barrel, the US Dollar is inching towards new lows by the day. In such a scenario, you would think that the US Dollar could be undermined severely.

The sentiments of traders across the globe should also be considered

It is important that you stay updated with other traders of the forex market too. At the end of the day, traders and the developments in a country impact the pricing of a currency at 50:50 ratio. A classic example of this is the rebound of US Dollar. It has been observed that the Dollar has hit new lows almost every other day of the trading. Last week, a lot of people realized that the Dollar has much more potential than what it shows. This triggered widespread buying of the Dollar.

How would all this impact you as a trader?

Let's take the example of EUR/USD. Let us assume that you had bought some USD two months ago when it was getting battered. Now with the correction taking place, you are more or less in a position to decide if you wish to stay in the market or exit booking your profits. The correction trend is expected to continue to till the new year after which the forecast for the Dollar looks a bit bleak.

Ideally, a smart trader would book his profits partly on the resounding correction of the US Dollar. He would keep a part of the money invested in the market to see how the Dollar behaves. The point being made here is that your eye on the economic developments of the country could be the best indicator for you to analyze your buy and sell points in the trade.

Which factors to be considered in forex trading?

Growth, Inflation, Crude Oil Prices - are three important factors in no order of priority would need to be taken into count when you make a sell or a buy call in a currency. Please note that there is no direct correlation between these three but all these impact the movement of a currency.

Successful Forex trading is about how you look at the developments of a country. Taking macro and micro economic factors into consideration will make you a smart trader instead of a speculative trader. As it goes, the speculative trader may make a lot of money but will also lose a lot of money.