What is Forex?
Forex, or FX, stands for Foreign Exchange. The Forex market is a huge market place where foreign currencies are bought and sold, usually to the tune of trillions of dollars being turned over every trading day. Forex Trading 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.
What currencies are usually traded in Forex?
Forex allows the trading of many currencies, with the most popular ones being displayed below. These currencies are also the most liquid due to their popularity.
US Dollar (USD)
Euro (EUR)
British Pound (GBP)
Japanese Yen (JPY)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Popular currency pairs will be the following.
USD/CAD = United States dollar/Canadian dollar
USD/JPY = United States dollar/Japanese yen
GBP/USD = Great British pound/United States dollar
AUD/USD = Australian dollar/United States dollar
EUR/USD = Euro/United States dollar
USD/CHF = United States dollar/Swiss franc
When is the Forex market open for trading?
The Forex market is open 24 hours a day. There will always be someone anywhere in the world who is buying and selling currencies because when one market closes, another market opens.
Here are the open market times that you can use as reference:
• New York – 8am to 4pm EST
• London – 2am to 12nn EST
• Great Britain – 3am to 11am EST
• Tokyo – 8pm to 4am EST
• Australia – 7pm to 3am EST
Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market open at the same time. If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2am and 4am EST with Asian and European markets and 8am to 12pm EST with European and North American.
These are the trading hours in the Forex market you have to trade in, in order to get the highest possible trades. These are the hours that are also the most profitable.
How do I calculate profit and loss in Forex?
You can read an article on this subject matter here.
Can everyone trade Forex?
Forex is traded most aggressively by banks, hedge funds and investment companies. Forex can also be traded by retail investors like you and me through the help of brokers, many of which have online trading platforms to let us place trades through the comfort of our homes.
Can I make money easily on Forex?
You can make money quickly and easily on Forex, but you can lose money even more quickly and easily. Forex trading is not a path to quick and easy money. It is highly risky and involves a great level of dedication in acquiring and applying solid trading knowledge before you can profit consistently from the market.
You can read an article on this subject matter here.
What kind of knowledge do I need to trade Forex?
Forex can be traded through studying price action on the charts (technical analysis) or through studying upcoming news and economic events (fundamental analysis).
I have a very poor education. Can I still trade Forex?
The fact is – anyone can trade Forex – regardless of education or where you are in the world. However, if you want to profit consistently from Forex trading, nothing substitutes a solid knowledge of understanding the trading rules, trends, price actions and psychology of the Forex market.
I see many Forex products promising to make me a fortune. Are they reliable?
Beware! There are many ‘get easy money through Forex’ products out there in the market that were created by folks who have never even traded one day of Forex in their lives! It’s one thing to get conned of the money you spend purchasing their products, but it’s another to trade on bad information and lose all your trading money. So be very discerning when you are shopping for such products. The best advice I can give you is to type in the following in the search engines to get a better idea of what you are buying into – ‘product name’ scam. If the search returns with lots of negative feedback, you would do well to steer clear. You will be surprised at what you will find!
Can you recommend good Forex products?
Sure! To the right under the Tested and Recommended section I have listed a series of products I have personally bought, used and am recommending for their reliability and quality. They have been proven to either impart quality knowledge or reliable information. This means that I have made more money than lose money using them. Now, note that it is impossible to keep making money in Forex. All trading strategies are bound to lose money sometimes. The important thing is to win more than you lose. If a trading strategy helps you do that, then you’ve got a winning strategy.
Should I trade with Forex robots?
What are the advantages of trading Forex?
