Calculating Profit and Loss in Forex

Introduction The Foreign Exchange (Forex) Market is the largest financial market in the world, it does over 20 times the dollar volume than all the US equity markets combined each day. The Forex market is an interbank or Over the Counter market. This means that all transactions take place between two parties directly through an electronic network or over the phone. There is no standardized exchange like stocks (NYSE, NASDAQ...

Understanding Currencies

Since Forex is the Foreign Exchange Market, you obviously cannot expect everyone within the market to trade in U.S. dollars (and why not, you might ask? – but remember that not everyone covets the U.S. dollar). With so many variables and volatile currencies being exchanged, how can you know a good buy or sell when you see one without complete awareness of the value of foreign currency? The first step is to find a source...

Mini Forex Accounts

Forex trading is one of the most viable options for someone who’s looking at bigger possibilities, bigger profit and greater ease in trading and business. Because of it’s high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and marketing. While it’s traditionally for companies and corporations with big capital and experience in the field, it has also...

How to Choose a Reliable Forex Broker

With so many different brokers online it’s easy to be swamped with choices. Below is a checklist of things to consider when choosing your broker. 1. Check with the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) to see if they are members. Look for firms that have clean regulatory records and check to see if there has been any disciplinary action against them. NFA’s website :...

How the Forex Market Works

All trades related to foreign exchange are based on purchasing one kind of currency against another. This gives rise to the concept of pairs like the Euro/U.S. Dollar. The first currency in the pair is referred to as the base currency (the one that provides a baseline for the purchase or sale) while the second one is termed as the counter or quote currency. While buying, an exchange rate specifies how much should be paid in...

Forex Trading Platforms

If you are looking to get started trading the Forex, you will find that there are numerous Forex trading platforms available (both web based and desktop based) for you to use in your trading. In fact, most brokers offer clients a trading platform for free or as part of their trading account. Usually the trading platform that comes with your trading account is a very basic “bare bones” model. Sometimes, more...

Reading Forex Charts

Learning the basic skills in forex, such as how to read forex charts, is really important. This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system. By the time you finish this article, you’ll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially...

What is Forex?

Forex, or FX, stands for Foreign Exchange. It involves the simultaneous purchasing of one currency while selling another as currencies are always traded in pairs. For example, you can trade the Euros against the USD, the Great British Pounds against the USD, the USD against the Japanese Yen and so on. When one currency goes up in price, the other currency declines. At some point or another, we are all involved in helping to...