Foreign Currency Trading
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The Definitve How To of Forex Trading 7 Winning Strategies for Foreign Currency Trading
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This hand book is an excellent introduction to the exciting world of making money with currency tradingOnce the domain of banks, hedge funds corporations and financial institutions, foreign currency trading, or Forex, has now come within the grasp of the ordinary man on the street due to the rapid growth of online currency trading platforms.
Forex trading is the real time buying of one currency and the selling of another. It allows people to make a profit by trying to calculate which currency's value will increase by the end of a determined time. While Forex trading may sound difficult, it is actually not that complicated and it is possible to comprehend even if you have not studied finance or economics.The currency exchange rate is the international rate at which you can exchange one currency for another. Fluctuations in exchange rates are precipitated by such factors as inflation, industrial production and geopolitical events and these in turn will influence whether you buy or sell a currency pair, for example EUR/USD as the foreign exchange rate is always quoted in such pairs.
For Example:-
The EUR/USD rate represents the number of dollars one euro can purchase.If you feel that the euro will increase in value against the dollar then you would buy euros with dollars and if the rate does in fact rise then you will sell the euros back thus making a profit.
The aim is obviously to buy low and sell high! Imagine that the exchange rate of EUR/USD (euros to US dollars) at 1 pm is 1.1999. If you had bought 1,000 euros at that time , you would have paid 1,199.00 US dollars. If one hour later, the exchange rate was 1.2222, the value of the euro has increased in relation to the US dollar. You could now sell the 1,000 euros in order to receive 1222.00 US dollars. You would then have USD 23.00 more than when you started the trade an hour ago.
Some Forex Basics:-
* The first currency listed in a currency pair is called the "base currency".
* The “base currency” is usually the U.S. Dollar. Traders will generally trade the U.S. Dollar against another currency, which is called the “counter currency”.
* Currencies are quoted in pairs. For example: The pair U.S. Dollar and JPY will be quoted in the following way: USD/JPY equals to 2.5 (This means that 1 U.S. Dollar can buy 2.5 JPY).
* When a quote increases, it means that the “base currency” has risen in value and the “counter currency” has weakened in value. For example: If the USD/JPY quote used to be equal to 2.5 but is now equal to 2.6, then this means that the dollar has strengthened (because 1 U.S. Dollar can now buy 2.6 JPY as opposed to the mere 2.5 JPY it could buy beforehand.)
If you are interested in becoming a Forex Trader then you could do a lot worse than opening an account with the online trading company Finexco.
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• Well trained Customer Service Staff
• Personal Account Manager
• Traders Earn a 10% Welcome Bonus using Deposit Methods
• Our dealing room works 24/7 with some of the best market analysts, as well as others at the top of the field
• Get price alert via SMS or E-mail to your Phone
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