Money for forex trading

It depends on the Forex dealer. Brokers concentrated in the Forex market can set their own minimum accounts and are allowed to set their own fees and rate schedules. You’ll need to ask your dealer how much money it’s going to cost you initially.
Many dealers will require a security deposit (a “margin”) to cover future transaction fees. When you choose a broker, make sure that you look over the fees and schedules carefully before you deposit any money. It is important to understand your broker’s capabilities, as well, before handling any transactions through their firm.

These are just a few basic facts about the Forex market to get you started. Trading foreign currencies can be an exhilarating experience when you’ve begun making money, but it is important to get an education before you start out. This website has a wealth of information for the new Forex trader, including tips and strategies. It is highly encouraged that you read up to explore the possibilities of trading in a worldwide environment.

Benefits of Forex

Although the FOREX market is by far the largest and most liquid in the world, day traders have until recently focused on seeking profits mainly with stock and futures markets. This can be attributed to the restrictive nature of FOREX trading services offered by Banks. FOR.EX stands apart from others by offering both online and traditional phone FOREX trading services to all its investors. With minimum account opening values starting at US$ 100, several advantages exist in trading spot FOREX as opposed to trading stocks and futures.
1. Market is on its ownIt is widely believed by many that brokerage firms and analysts can change the flow of a currency. In reality, this view is a misconception as FOREX is an independent international foreign exchange market that can be influenced by many factors but NOT by any manipulations of traders and brokerage firms.
2. Trade when you want, make your own trading scheduleOwing to its diversity, trading can take place in the FOREX market 5 days a week, 24 hours a day. With the world's major exchanges based in the USA, Europe and Asia, the time differences between these Continents allows you to engage in the major trading sessions with your own time schedule. These logistics also allows you to respond quickly to breaking market news from every corner of the globe irrespective of your location.
3. Big potentialFOREX trading is an interesting speculation from every point of view with benefits stemming from both high leverage and potential profits from the rise and fall of the market.
4. More buying POWER with 1:500 leverageFor example; with US $10,000 cash in a standard account that allows 1:100 leverage (1%), you can control up to US$1,000,000 in notional value.
5. Take ALL your profits with youFOR.EX charges NO commissions or fees. All profits remain yours. Commission-free trading is one of the most attractive features of FX-P. With dealing spreads as low as 2 pips (for EUR/USD) versatility abounds, providing a more comfortable trading environment.
6. FOREX is the largest and most liquidated market in the worldThe overall volume of the FOREX market is US$2 trillion. Most of that volume involves trading of the major currency pairs and FOR.EX clients enjoy tight spreads on these pairs.
7. Trade in both bulish and bearish marketsCompared to other equity markets, where is more difficult to engage in certain trade transactions,
8. Easy access to your FOREX tradingOpening an account with FOR.EX is simple and takes less than 10 minutes on-line. Multiple means of funding/withdrawing enables you to start trading within one hour with access to your account from anywhere in the world. Our services are extended to clients in more than 150 countries and with a vast network of offices and representatives located world wide, making contact with us is easy.

FOREX Currency Trading Software

All trading markets are volatile. Major influences on market fluctuations are often dictated by economic and socio-political factors. These effects are also reflected in the FOREX market. Time is of the essence when assisting your clients and staying abreast of the ever transforming market changes and being able to inform your clients of any major fluctuations is paramount.
At FOR.EX we offer our clients the most up to date currency trading software that gives instant access to the FOREX system and allows our clients to fully digest the market changes as and when they occur across the globe. With the added advantage of supplying vital market information and quotes in real-time within an average time-frame of 5 minutes or less, our software enables the trader to obtain quotes at a rapid speed and consequently execute deals at an equally rapid pace.
Becoming a successful business broker in the FOREX system relies heavily on being able to buy and sell foreign currency at the right moment. Successful FOREX trading hinges on the correct decisions made on the appreciating or depreciating values of various currencies across the globe. This exciting market is only just beginning to reveal the true dynamics of its potential for individual and private traders. Operating over a 24-hours period on a global scale, places traders alongside professional, experienced competitors in an expansive, unlimited marketplace. Accordingly, currency trading software is vital to the speed and success of bids and quotes. Quotes on different currencies from a global network of brokers are constantly changing and in order to compete successfully in FOREX trading, fast connection in real-time are recommended.

FOREX Trading: Examples

Example 1 - FOREX trading. A Trader opens an account of USD 50'000. He buys EUR/USD 500,000 @ 1.3500 at the market and places a stop loss order at 1.3460. The above illustrates that the Traders' maximum risk is USD 2'000 and his margin utilization is 10%. Well above the minimum.

Example 2 - FOREX trading. During the day's trading the FOREX market fluctuates and initially moves down to 1.3480.At this point a Trader has an unrealized loss of USD 1'000 and his margin utilization has fallen to 98% reflecting the effect of the downward move on his margin capacity.

Example 3 - FOREX trading. Later the price moves back up to 1.3600 and the Trader decides to take profit. He sells at 1.3600 making a USD 5'000 profit which represents a 10% return on his account value.

The FOREX Market never sleeps

The FOREX Market never sleeps. A currency trader may take advantage of all market conditions at any time. There is no waiting for an opening bell. It is a 24-hour, continuous currency exchange that never closes, you can trade whenever you want: morning, noon or night. This is a very big advantage compared to stock trading with limited trading hours.No single entity one can control the marketThe Forex market has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short lived, at the stock market, trade prices can be manipulted by stockbrokers and market makers.Large Liquidity in the FXWith $2.1 trillion changing hands daily, the FX market is extremely liquid. This means you can instantaneously buy and sell currencies at any offered market price. 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). Using a trailing stop can be a powerfull tool to maximize your profits.Low transaction costsThere are no brokerage commission fees for each FX transaction, for all the major currency pairs, the spread is around 3-5 pips and is the only cost. High Leverage FOREX investors are permitted to trade foreign currencies on a highly leveraged basis which could be up to 100 times their investment. An investment of US $1,000 controls US $100,000 of any particular currency. A small margin deposit can control a much larger total contract value. Trading potential in both rising and falling markets Trading currency allows traders to trade during rising and falling markets. One can just as easily "short" 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. Interbank market 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

BIG PLAYERS SEE ONLY BIG NUMBERS

I am typing this from my pc. It a bit of a mess now, the new house still needs a little work and I am not feeling well lately. Maybe its the change in climate.

This week I am going to talk about numbers only. Forex is after all based on numbers. Example, I have a long position on GBPUSD @ 1.4700 with a profit of 320 pips at the moment and still holding.

What I am going to say is big players only see big number. The do not see the last 2 digit. The last 2 digit is for scalpers. Big players only see the 1st 3 or 4 digit only. So if a bank wants to buy or hedge a currency they will give an instruction to buy at 1.47. Thats it. Simple yet people fails to see it.

So what happens at 1.47? The price will bounce of or hover around it but things arent always what they appear to be. What happen is price will have a range between 1.46 - 1.48. That is almost 200 pips wide range. Imagine what happen to your 50 or 100 pip SL?? Now you know why people lose money even though they have the right direction.

These big players have big money they dont mind to stand few hundreds negative pips coz in the end they will profit big time. What they do is they will have a standing order to trade at certain level. Because the total amount of order, the market cannot fill the order in 1 transaction and so price will hover or bounce of a certain level. This is where double top or bottom appear. Behind it is the action of filling orders by these big players.

Example EJ currently have a top of 1.34 and a bottom of 1.30. Big players are playing the game here. At the moment EJ is climbing and there is a big possibility that it will reach 1.34 again. I have a standing order to buy EJ at 1.30. If it hits there is a very big chance for 400 pips gain. Only time will tell.

The Next Big Thing in the Forex Online Market

The British government was rocked last week, first from the scandal involving the insane spending done by their parliament members and then by the warning from Standard and Poor’s that their credit rating – or should we say debt rating – is in peril of being lowered due to huge budget deficits and a rising national debt not seen since World War 2. Did the Sterling fall though? No, it did not – at least not as much as one would think that a “AAA” rated country would fall after hearing that they will soon be subject to higher interest rates and unfavorable terms that comes with anything less than a “AAA” rating. What did happen was quite fascinating, and it was something that I have been saying here for months. The US Dollar collapsed on the news out of England.

Why? You might ask would the currency of a country across an ocean fall on bad news out of the British Isle’s. The answer is quite simple, Forex traders and investors know that the US is next on the chopping block. Although I firmly believe that they should be first based on their crazy debt to income ratio – they are running at a 12 Trillion Dollar deficit carrying a 1.5 Trillion dollar debt and GDP is expected to fall this year – the Dollar enjoys the privilege of being the Dollar, and thus it gets afforded a little more latitude when it comes to these matters.

But the real reason why the US was not first on this list was political and economic in nature. Lower the sovereign debt of the US and countries holding the bonds suffer. As the US will be faced with higher borrowing rates, and will not be afforded the right to offer so much debt and will be regulated as to the terms (10 year, 20 year 30 year), the value of the currency will fall and thus make the value of the debt already out there worth less. This will have a huge impact on the world economy and is probably one of the reasons why China is pondering accepting the Brazilian Real in trade over the US Dollar.

But one last thing on this, it is ironic though that while this might hurt the rest of the world, it will help the US get out of the mess quicker. By deflating the currency it means that the US has to pay less in order to repay a debt. For example, if China is holding $10 in bonds from 1999 those bonds are still worth $10 today – plus interest, however the value of the dollar is lower than it was in 1999 and so the payments that the US makes will be worth less than they were only a few months ago. Forex online blogsters are buzzing about this – and all those trading in the dollar should be aware that this is coming. Don’t say you were not warned.

Impact of General Motors News on Forex Market!

So GM did it, they went bankrupt and left the US taxpayers with a 60% stake in a car company. If you consider the money they put into it before – ergo 20 Billion Dollars, they actually own more than 70%, but no matter, the deed was done and the affect on the mood and currency of the US is set. The dollar fell hard yesterday to new long time lows against a bunch of currencies – and in my opinion the pressure will be on it for some time.

You see while the street revels in the stock market gains from the past three months, up over 30%, many attribute that success to the light at the end of the tunnel. There is no real recovery yet, just glimpses of hope that there will be one soon and as an established investor would know, that is all the market needs.

The markets tend to exaggerate their movements, when things might be bleak they panic and sell and when the situation appears to have an end – even though it is not close – they buy. But the Forex Online Market is different; Forex markets cannot hide behind estimates and soft numbers, the market deals with reality mixed in with a little bit of fear. The truth about the US is that they are spending money like crazy, money their president admitted they don’t have, money that the entire world does not own – and as a result the interest rates on their debt instruments are raising. Inflation will hit the US – and most probably England for the same reason. How bad it gets depends upon how both governments handle crises like the GM bankruptcy in the future.

I am a capitalist. Company’s come and company’s go. If the US let them go before they interfered and committed so much money into it, the vacuum that is created will be filled by someone else. The land of opportunity is now stifling that, and it is the change from that value which might come back to bite them in the long run.

UK, EU Central Banks Follow the Federal Reserve

Yesterday, both the European Central Bank (ECB) and the Bank of the UK cut their benchmark interest rates to record lows. This is especially incredible in the case of the UK, whose Central Bank over 300 years old! You can see from the following chart that both Central Banks have more than made up for their respectively slow starts in easing monetary policy by effecting several dramatic rate cuts, following the example of the Federal Reserve. The baseline UK rate now stands at .5%, only slightly higher than the Federal Funds rate, and slightly lower than the 1.5% ECB rate.