Forex Trading Information

The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.  (quoted from Easy-Forex)

A very interesting approach to this business is presented by Andreas Kirchberger at FOREX KILLER. This is software that tells you when to submit a buy of sell order, and it automatically watches the PIPS on every currency you are trading. Very interesting and compelling program from a very confident fellow. He makes tons of money in Forex Currency Trading.

Why would you pay hundreds of dollars as a monthly fee to companies for forex trading signals when you can finally create them by yourself with our forex advanced trading signal system?

Why would you spend the whole day waiting for signals, that never come in time?

Why would you pay for signals, which often do not bring any profits, only losses ??

Why should you follow complicated trading patterns, hussle yourself with charts and analytical software when you could generate comprehensive and profitable signals within minutes?

Our propietary FOREX KILLER software will relieve you of all these hussles and will earn you an extrordinary income.

There are some basic order types that all brokers provide and some others that sound weird. The basic ones are:

Market order A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like the current price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.

Limit order A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price at which you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).

Stop-loss order A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class. When using the Forex Killer Software Franklin , we will always place stop loss orders.. To close a potentially loosing position early, while we let the profits ride. Download it now.

• Q: I have never traded the forex market, is Forex Killer for me?
  
  
• A: Absolutely! The Forex Killer software was created for beginners as well as experienced traders. 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 newbies with no Forex experience at all!
  
  
• Q: I pay hundreds of dollars as a monthly fee to companies for forex trading signals. Does Forex Killer have monthly subscribtion fees?
  
  
• A: No! You purchase software to generate your own signals at home! No more monthly fees! You can finally create signals by yourself with your own market analyzing software.
  
• Q: How much money do I need to start trading?
  
  
• A: Depending on your broker rules, you can start trading with an amount as low as $500. Remember that starting out with low trading capital may put you at disadvantage because you will only be able to trade forex in small share lot sizes. We recommend to start with capital of $2,000-5,000 USD or train on a Demo account till you are satisfied with the performance.
  
• Q: Is it hard to learn and implement your trading system Forex Killer?
  
  
• A: No! Most people that purchase Forex Killer start trading the next day after they install it. Some even within minutes. We provide exact detailed instructions how to start.
  
• Q: Does the strategy cover currency pairs other than EUR/USD?
  
  
• A: The strategy has been designed to be useful for trading any major currency pair such as EUR/USD, GBP/USD, USD/JPY, USD/CHF etc... The examples are mostly EUR/USD, however our forex strategy can be easily applied to any other currency pair.
  
• Q: Can I use the signals for intraday trading?
  
  
• A: Yes. You can trade different timeframes: 5M, 15M, 30M and 1H for intraday trading and 4H, 1D, 1W for long term daily trading.
  
• Q: Where can I get the price data to feed the program?
  
  
• A: You can feed the Forex Killer with data from any broker's platform, like Metatrader for free. We also provide a list of recommended brokers.
  
• Q: What kind of Internet connection and computer hardware do I need?
  
  
• A: The kind of Internet connection that you should use depends greatly upon your trading style. Active day trading requires high bandwidth, high performance and reliable Internet connection. Although it is possible to successfully day trade using a regular phone line connection, we would recommend you to use either Cable or DSL Internet service if it is available in your area.
  
• Q: Do you provide customer support?
  
  
• A: Sure. We provide friendly customer support. Feel free to contact us any time you have questions or problems. We'll do our best to help you and answer your questions as soon as possible. Visit our Forex Killer Help Center
  
• Q: What if I am not happy with the software?
  
  A: It's a COMPLETELY RISK-FREE PURCHASE: We challenge you! Should you not be able to profit with our software, send us your trading screenshots and we will refund you, no questions asked!
  
  
• Q: Can the software become outdated?
  
  A: No, with your purchase of the Forex Killer software you are entitled for updates free for life. We constantly improve the efficiency of the software as we use it to trade ourselves.

 HAVE A LOOK AT FOREX KILLER SOFTWARE NOW

The FOREXYARD SuperMini account was designed for those who are new to the FX market. The SuperMini account trades in smaller contract sizes of 1,000 units, 1/10th the size of the standard account. The smaller trade size gives traders the opportunity to trade live with less overall risk or exposure to the market. In addition, the SuperMini account allows traders to become familiar with FOREXYARD, more specifically the quality and reliability of FOREXYARD dealing practices and the stability of the FX Trading Station.

Sign up Here for a Free Forex Trading Course 

Would you like to learn from the ground up? No experience in forex trading? Want to learn how it all works? This is a really excellent free course.

FOREXYARD is one of the premier players in the "Online Currency Trading platform" market. FOREXYARD has assembled a team of dedicated, talented, and knowledgeable professionals to manage its operation, committed to delivering the very best Online FX Trading experience to our customers. Read about this company now.

What does it cost to be a forex investor? Learn all about fees here. There are no hidden costs or ticky ways to take your money. It's all spelled out in plain language so you can clearly understand all costs.

Download a Free Trading Platform for your desktop computer or notebook. The platform is your own personalized and customized mini-trader's office to enhance your organizational skills. 

Open a free demo account with FOREXYARD, the online forex trading brokerage, and learn how to trade foreign exchange. 90% of beginners fail to succeed in the real forex money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening their skills on demo accounts for years before entering the real market. Open a demo account first, and practice until you have a real understanding. Don't play the market like a casino. If you do, the odds are that you will lose money!

It should be understood that Currency trading on margin involves high risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. There is always a relationship between high reward and high risk. Any type of market or trade speculation that can yield an unusually high return on investment is subject to unusually high risk. Only surplus funds should be placed at risk and anyone who does not have such funds should not participate in trading foreign currencies. Currency trading is not suitable for everyone.

Read the complete RISK DISCLOSURE

If you hear from anyone that making money in Forex is easy, do not believe it. It is a myth. The truth is - being profitable in Forex requires a lot of work, dedication, practice, more than a good discipline, sharp knowledge of money management and understanding of the psychology of the currency market. Not so little and therefore not so easy ( see Forex Strategies Revealed )

DAILY HEADLINES ON FOREX - CLICK HERE

This brokerage offers clients a number of guarantees you won't find with other brokers. The promises they make to all of their customers reflects the commitment to delivering the best possible online currency trading experience. When you trade FX online via FOREXYARD, you can rest assured that you would get the following:

Instant Deposit with Credit Card

Start Trading in Minutes

Fixed Spreads in All Markets, All the Time

Continuous Quoting, with No Price Freezes

Executable Quotes - Click on Any Bid or Offer

No Slippage on Market, Limit, and Stop Orders*

Negative Balance Protection - No Debits

Unparalleled 24/7 Customer Support

Establish A Margin Trading Account with as Little as $100

No Software Download Needed

CLICK HERE TO LEARN MORE NOW - OPEN A NEW ACCOUNT 

Here is a little information on the foreign currency exchange which you might find interesting:

Average daily global turnover in traditional foreign exchange market transactions totalled $2.7 trillion in April 2006 according to IFSL estimates based on semi-annual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day. This was more than ten times the size of the combined daily turnover on all the world's equity markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the foreign exchange market.[1]

Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006. Other large centres include the US (with a 18.2% global share), Japan (7.6%) and Singapore (5.7%) (Chart 2). Most of the remainder was accounted for by trading in Germany, Switzerland, Australia, Canada, France and Hong Kong.

The ten most active traders account for almost 73% of trading volume, according to The Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually only 0-3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $100,000.

These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100 / 1.2300 for transfers, or say 1.2000 / 1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 5 pips wide (i.e. 0.0005). Competition has greatly increased with pip spreads shrinking on the major pairs to as little as 1 to 1.5 pips.

Overall, after review I feel ForexYard is the best brokerage available to learn Forex Trading and begin with a new account. I recommend starting out slow and working up, but remember that risk is the name of this game. Never risk money you need to pay the mortgage or house bills. The money you use must be disposable income, over and above the money needed to maintain your lifestyle. I can only recommend ForexYard for the basic education and training, but when it comes to the Psychology of Trading, there is another brokerage to learn from. Trading Authority is the site that will teach you the psychology of trading.

This site has a different approach, so have a look to see if it is for you. The risk is high and the rewards are potentially high as well. The risk of loss is high too, so never act foolishly and risk money you cannot afford to risk. 

I recommend that you read the information at FreeforexTips and learn more about the dos and don'ts of forex trading. 

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Another lens offers questions and answers through Easy-Forex. This lens is called   FOREX TRADING QUESTIONS AND ANSWERS

Learn More about Forex Trading from the Forexyard Brokerage

Forex, FX, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another. FOREXYARD offers leading online trading platforms for individuals that wish to speculate on the exchange rate between two currencies. In doing so, speculators purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the speculator as a result of events that takes place across the globe. This market of exchange has more daily volume - both buyers and sellers - than any other market in the world. The FX market is available 24-hours a day, five days a week. Furthermore, the Forex Market is the largest financial market in the world with daily reported volume of over $1.4 trillion changing hands between buyers and sellers across the globe, making it one of the most exciting markets for trading. Although currency trading is inherently governmental (central banks) and institutional (commercial and investment banks), technological innovations, like the internet, have made it easy for individuals to take part in the currency trading markets and to trade via intermediaries online.

In the FX market you can buy or sell one currency for another. When you buy a currency, you are said to be "long" in that currency and when you sell a currency, you are said to be "short" in that currency. As the value of one currency rises or falls relative to another, traders decide to buy or sell currencies in order to make profits - since the objective is to earn a profit from their position. Placing a trade in the foreign exchange market is simple and the mechanics of a trade are virtually identical to those found in other markets. Because of the symmetry of currency transactions, you are always simultaneously long in one currency and short in another. An open position is one that is live and ongoing. As long as the position is open, its value will fluctuate in accordance with the exchange rate in the market. To close out your position, you conduct an equal and opposite trade in the same currency pair. For example, if you have gone long in one lot of EUR/USD you can close out that position by subsequently going short in one EUR/USD lot (at the prevailing bid price).

Currencies are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency is known as the base currency, while the second is called the counter or quote currency. The base currency is the "basis" for the buy or the sell. For example, if you BUY EUR/USD you have bought Euros (simultaneously sold dollars). You would do so in expectation that the Euro will appreciate (go up) relative to the US dollar.

EUR/USD

In this example Euro is the base currency and thus the "basis" for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought Euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the Euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will depreciate versus the US dollar.
USD/JPY

In this example the US dollar is the base currency and thus the "basis" for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD

In this example the US dollar is the base currency and thus the "basis" for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD

In this example the GBP is the base currency and thus the "basis" for the buy/sell. If you think the British economy will continue to be the leading economy among the G8 nations in terms of growth, thus buying the pound, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will appreciate versus the US dollar. If you believe the British are going to adopt the Euro and this will weaken pounds as they devalue their currency in anticipation of the merge, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.
USD/CHF

In this example the USD is the base currency and thus the "basis" for the buy/sell. If you think the US dollar is undervalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in the Middle East and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.

In this example Euro is the base currency and thus the "basis" for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought Euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the Euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will depreciate versus the US dollar.

In this example the US dollar is the base currency and thus the "basis" for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

In this example the US dollar is the base currency and thus the "basis" for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

In this example the GBP is the base currency and thus the "basis" for the buy/sell. If you think the British economy will continue to be the leading economy among the G8 nations in terms of growth, thus buying the pound, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will appreciate versus the US dollar. If you believe the British are going to adopt the Euro and this will weaken pounds as they devalue their currency in anticipation of the merge, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.

In this example the USD is the base currency and thus the "basis" for the buy/sell. If you think the US dollar is undervalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in the Middle East and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.

First, the traders should determine whether they want to buy or sell. If they want to enter a short order - whereby they will profit if the exchange rate falls - they simply need to click on the SELL rate. The opposite holds true for traders who enter buy orders: they can simply click on the BUY rate, and thus will profit if the exchange rate goes up.

As with all markets, there are two prices for every currency pair. The difference between these two prices is the spread, or the cost of the trade. In this example, the spread is three pips. On the 10k position, a pip on the EUR/USD currency pair is worth $1.

FX accounts are margined: a trader can hold a market position much larger than the value of the trader's account value. The online trading platform which FOREXYARD offers has margin management capabilities, which allow lenient margin requirement of up to 1/2%. However, we do not recommend using leverage of more than 10 times your account value. Using leverage exaggerates both gains and losses. Even when market conditions are relatively calm, using leverage can generate large gains or losses. In the case where a trader surpasses the maximum leverage allowed (which can happen when account equity shrinks as a result of trading losses), the trading system will close all open positions in the account. This prevents client's accounts from falling into a negative balance, even in a highly volatile, fast moving market.

This information is from the Forexyard Brokerage Website

Forex Trading and Information

This is an informational site on another domain with more specific difinations of terms, and articles with finite forex information.