Category Archive: forex market

A Performance Snapshot of the Euro in Forex Markets

– Your capital is at risk
Since the Euro entered the picture, the financial profile of Europe has seen huge changes.  The individual currency profile of all the different countries who would one day adopt the Euro were weaker than they are today with the Euro.  The first member countries to adopt the Euro have seen major changes in the value of their currency now that their currency is the Euro and not their former currency.  Prices have gone up on virtually everything, from real estate to restaurant food, but the spending power has also gone up, and the advent of the Euro certainly did not bring about any decreases in the spending of the citizens of member countries.

The spending patterns of the inhabitants of a country are a very good measure of the economic profile of the country’s currency.  The spending habits of Europeans are certainly changing; whether that is due part and parcel to the influence of globalization or the influence of Hollywood, well that could be debated.  In any case, the economic spending patterns are changing; many Europeans think for the worst as families begin to become more and more consumer-based.  Everything from cereal packaging to Christmas decorations are becoming bigger and bigger.

As everything becomes bigger and more European, spending habits are changing with them.  Instead of pushing consumerism away, most Europeans are joining the bandwagon as was done a few decades ago in America.  Right alongside their spending habits, the European currency is blossoming on a steady rate of incline.  At the Euro’s inception, a Euro was equivalent to a dollar.  After a short dip, the Euro has been on a pretty steady incline, blossoming into a true power currency alongside the British Pound.  Needless to say, the dollar has seen a considerable decline since 9/11 and the birth of the Euro.

Although the Euro is not static at one high rate of exchange or steadily increasing in value, the bottom line is that the Euro has proven to be a very hardy currency.  There’s absolutely no doubt about that.  Like the dollar has been known to always bounce back, so is the Euro coming to be known.  In fact, the Euro has not yet had to prove its ability to bounce back from a disaster; the Euro is too hardy to crash in the first place.  Though the EU was concerned to bring more Eastern European countries in on the Euro, the Euro has proven to be unflagging.

The Euro is one of the oft-targeted currencies in the Forex Trading market.  The Euro may be a very new currency, but it is based on the joining of a group of countries whose wealth has been around for centuries; the Euro is based in an economically solid region of the world.  The EU knew what they were doing when the currency was born; some people were skeptical, but they are now enjoying the financial benefits that the Euro has brought.

The Euro is a very good bet on the Forex market.  Many traders have faith in the Euro not only because of its good record (albeit short) but also because the Euro has a support network that not a lot of world currencies have.  If one country experiences some negative changes in their economy, the Euro is not necessarily affected because the value of the Euro is determined by such a vast network of countries.  A negative event in one place can be counteracted by a positive event in another country.  This means that the stability of the Euro is good.  For these reasons, the Euro should continue to prove to be a common choice on the Forex market.

A Broad View of the Structure of Foreign Exchange Markets

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The purpose of the foreign exchange market is to facilitate the trading of various currencies around the world.  Although many different types of currency are exchanged, the majority of trades involve only a small number of them, including the U.S. Dollar, Yen, Euro, Swiss Franc, Pound Sterling, Australian Dollar, and Canadian Dollar.  The U.S. Dollar is involved in over 90% of all exchanges on the forex markets.  Contrary to popular belief, there is no one centralized market in which all currency trading occurs; rather, the foreign exchange is a loose conglomerate of several different markets, each of which has its own rules and regulations.  Major markets are located in the U.S., London, and Tokyo, and each is open during different hours according to their time zones.  Naturally, trading is heaviest when the market hours overlap, and almost two thirds of the trading activity at the New York market takes place during the morning while the European markets are still open.

Because there is no centralized market, a single exchange rate for a given currency does not exist.  Because of the over-the-counter (OTC) nature of the markets, the bid and ask rates for a currency can vary among different geographic markets and market makers, although they are usually fairly close to each other.  Since the price of a currency must be given in relation to another currency, it is expressed in the form XXX/YYY, where each trio of letters represents the international currency code.  For example, the price of Euros in U.S. Dollars is written as EUR/USD.  Traditionally, the first currency in the pair, called the base currency, is always the one that was strongest when the pair was created, and the other currency is known as the counter currency.  The actual prices themselves are in decimal form, typically rounded to the nearest ten-thousandth of a unit.

The forex markets make up the largest marketplace in the world, with the equivalent of £1.9 trillion changing hands every 24 hours.  It is largely a short term, speculative market, with more than 40% of positions closed out before two days, and nearly 4 out of 5 lasting less than a week.  It is an extremely liquid market, much more so than equities, due to the many participants throughout the world and the very high daily turnover.  The top ten most active traders, however, account for nearly 73% of total trading volume.  Made up of international banks, these huge players provide the market with bid and ask prices that are far tighter than retail customers can expect, and trading activity that occurs between them is known as the “interbank market”.

Introduced in 1972 at the Chicago Mercantile Exchange, forex futures contracts are derivative instruments that are actively traded as well, as they account for around seven percent of total foreign exchange volume.  In addition, foreign exchange options have taken hold as a popular hedging strategy.  They represent contracts to buy currency at a certain price on a set day in the future, and investors often purchase these derivatives to offset any potential losses they may suffer due to the decline in price of a currency.  Another way traders are able to mitigate risk is through a swap, in which both parties agree to exchange one currency for another for a set period of time, and will then reverse the transaction after the period expires.

The foreign exchange market is a fast-paced, international currency exchange that is without rival among financial markets.  Its immense popularity among large banks, financial institutions, international companies, and even retail investors ensures that its growth will continue into the future.

Trading the FOREX, your most profitable investment opportunity?

– Your capital is at risk
Forex stands for the Foreign Exchange market, or Forex (FX). The foreign exchange market (FOREX) is the largest financial market in the world, with a volume of over $1.5 trillion daily in the US alone; more than three times the total amount of the US Equity and Treasury markets combined.

Traditionally, investors only way to gain access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment uses. Now because of federal rule changes, Forex trading is no longer a monopoly of the banks and investment houses, that means you too can enter and profit from the largest financial market in existence.

Forex trading is an alternative to the unpredictable fluctuations and ups and downs of the other markets. Trading is about making money and the opportunities in this market are boundless, they far exceed the slim pickings in the other markets.

Today, foreign exchange market brokers are able to offer small traders like you and me the opportunity to buy or sell any number of smaller money lots with the option to trade them at the same rates and price movements as the big players who once dominated the market.

You can start with as little as US $ 300 in your account, and you would be surprised to find out that trading currencies is far less risky than any other kind of trading. And that is why before long all the other traders won’t fail to discover the FX market and the immense wealth creation possibilities it has to offer. This is your time to get in one of the biggest, and most exciting, opportunities that has come along in decades, and you can learn forex trading strategies easily, there is even a free course “Forex Freedom” you can grab and start on your way to Forex profits.

Still need more reasons to give the Forex trading your full attention?
There are many different advantages to trading forex instead of futures or stocks:

1.Lower margin

The margin requirements that are needed for trading futures are usually around 5% of the full value of the holding, or 50% of the total value of the stocks, the margin requirements for forex are about 1%. For example, the margin required to trade foreign exchange is $1000 for every $100,000. That means trading forex, your money can play with 5 times as much value of product as a futures trader’s, or 50 times more than a stock trader’s.
When you are trading on margin, this can be a very profitable but it’s important that you understand the risks that are involved as well. Here is where a great Forex trading course comes in to help and support you all the way to real profits.

2. No commission and no exchange fees

When you trade in futures, you have to pay exchange and brokerage fees. Trading forex has the advantage of being commission free, which is much better for you. Currency trading is a worldwide inter-bank market that allows buyers to find sellers in an instant.

3. Limited risk and guaranteed stops

When you are trading futures, your risk can be unlimited. For example, if the price for an item falls dramatically, you can’t leave your position and this could wipe out the entire equity in your account as a result. If the price keeps falling, you have to find more money to make up for the deficit in your account.

4. 24 hours marketplace

With futures, you are generally limited to trading only during the few hours that each market is open in any one day. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another. Forex market operates 24/5. You can trade any time you like from Monday to Friday.

5. Free marketplace

Foreign exchange is perhaps the largest market in the world about $ 1,9 trillion and with the huge number of people trading forex around the globe, it is very hard for even governments to control the price of their own currency, the prices are fair.

6.You Can make money in rising and falling markets

There are no restrictions to sell currencies short, which means that with forex currency trading you can make money just as easily in rising and falling markets.

Forex trading is simply a great alternative to futures and commodities trading. Unless you are a broker, you will likely want to get some help in forex trading to help ensure that you are successful with it. As with all trading, there are always some risks involved, but if you follow the tips and teachings of people who made the Forex easy to trade, there is nothing which can stand between you and substantial profits.

Now I ma sure you have some questions like:

Where do you start?
Who would teach you the great profitable strategies?
Who would mentor you so your risks are minimalized?
Who would explain to you the special Forex terminology and its nuts and bolts?
Who would show you how to trade the Forex for profits working just a few hours the week?

The easiest way to get started is to get the free course “Forex Freedom” and study it carefully. You will see and feel the advantages of such an investment over all other kind of investments and you know you can start with as little as $300. Seize your chance now because it might be like having your own licence to print money on demand.

Trading the FOREX Market offers you Huge Leverage on Your Time and Money

– Your capital is at risk
More and more people are beginning to hear about FOREX trading. FOREX stands for FOreign Currency EXchange Market. It was once available only to the large banks, multinational corporations, governments,and other financial markets and institutions; however it was de-regulated in 1997, and now anyone may participate.

Many with experience in stocks and/or commodities trading who have then discovered FOREX, prefer it for its many advantages over stock and commodity trading. Many who have never invested before are also now
successfully trading the FOREX market.

The FOREX market is open 24 hours a day, except weekends, so you can participate whenever you have time. Trading is now done online and transactions are almost instantaneous.

The FOREX market offers 100:1 leverage, so you can control large amounts of money on the market while using much less of your own money. You can start with a mini-account for as little as $300, and with a strategy, steadily build your account and confidence, until you can open a regular account. You can grow that $300 seed to substantially more money in 6 months with the right application of sound strategy. And, you can set the level of  risk you’re willing to accept; and you can do this with very minimal risk.

FOREX is the world’s largest, most liquid trading market. It is the best trending market, moving in the same direction (up or down) over 78% of the time, and you can learn to profit on either trend. Technical analysis works very well in this market, and there are many tools that aid in this.

Because most FOREX trading is focused on 7 major currencies, you have much less to learn than when trading stocks or commodities.  Of course you’ll want to learn as much as you can about FOREX, but this can be done to your satisfaction much sooner than you might think. There are many training courses and also lots of free information available on this subject.

FOREX trading is fun and challenging, and FOREX is quickly becoming one of the investing world’s hottest, most rewarding opportunities.

Learn more about FOREX, and take your wealth development into your own hands if you want to accumulate real wealth!

The World Wide Forex market

– Your capital is at risk

Forex is a trading ‘method’ also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any country.

Different currency rates happen and change every day. What the value of the dollar may be one day could be higher or lower the next. The trading on the forex market is one that you have to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. The main trading areas for forex, happens in Tokyo, in London and in New York, but there are also many other locations around the world where forex trading does take place.

The most heavily traded currencies are those that include (in no particular order) the Australian dollar, the Swiss franc, the British pound sterling, the Japanese yen, the Eurozone eruo, and the United States dollar. You can trade any one currency against another and you can trade from that currency to another currency to build up additional money and interest daily.

The areas where forex trading is taking place will open and close, and the next will open and close. This is seen also in the stock exchanges from around the world, as different time zones are processing order and trading during different time frames. The results of any forex trading in one country could have results and differences in what happens in additional forex markets as the countries take turns opening and closing with the time zones. Exchange rates are going to vary from forex trade to forex trade, and if you are a broker, or if you are learning about the forex markets you want to know what the rates are on a given day before making any trades.

The stock market Is generally based on products, prices, and other factors within businesses that will change the price of stocks. If someone knows what is going to happened before the general public, it is often known as inside trading, using business secrets to buy stocks and make money – which by the way is illegal. There is very little, if any at all inside information in the forex trading markets. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but more on the value of the economy, the currency and such of a country at that time.

Every currency that is traded on the forex market does have a three letter code associated with that currency so there is no misunderstanding about which currency or which country one is investing with at the time. The eruo is the EUR and the US dollar is known as the USD. The British pound is the GBP and the Japanese yen is known as the JPY. If you are interested in contacting a broker and becoming involved in the forex markets you can find many online where you can review the company information and transactions before processing and becoming involved in the forex markets.