Forex > Forex Education
April 11, 2011 3:58 pm
How to Earn Money with Forex Trading
Making money with forex is theoretically quite easy. Basically you just have to buy low and sell high… like for any financial market. Problem is to identify the right moment to buy or sell. There are several techniques to analyse the market tendencies and grab trading opportunities. Looking at the news and closely following market events is the most straightforward. Using information and educational website such as Forex Trib will allow you to keep informed about the forthcoming events and [...]
April 11, 2011 3:31 pm
How to Choose an Online Forex Broker
Choosing the right Forex broker is crucial. There are numerous brokers out there, some are good, some are …pretty bad. It can be so frustrating to loose a trading opportunity because your broker is not the one that actually fits your skills or expectations. The Internet is full of forums gathering angry Forex traders from around the globe.. Remember that most, if not all, brokers offer demo accounts to let you practice with their trading solution and assess the efficiency [...]
April 11, 2011 3:10 pm
How to Trade Forex Online
Online forex trading is more and more popular everyday. With more than 3 trillion dollars exchanged everyday, the foreign exchange market is, by far, the most liquid market on earth. Some may tell you that these figures do not reflect the actual market available to retail traders. Nonetheless the liquidity is here and you will probably never get squeezed trying to close a forex position, whatever the market conditions. Forex was originally an interbank market but since inception of online [...]
January 25, 2011 3:13 pm
How to Calculate a P&L
Let’s have a look at how forex operations P&L is structured. If you buy 100’000 USDCHF at 1.2439 and close your position by selling your 100’000 USDCHF at 1.2512, your profit is calculated as follows: 1.2439 – 1.2512 = 0.0073 * 100’000 = 730 Congrats! You made 730 … CHF, not USD and if you don’t have a current account in CHF you are at risk.
January 25, 2011 11:06 am
Order Types
Market Order A market order is an order to buy or sell at the current market price. Limit Orders A limit order is an order to buy or sell at a certain price. A limit order is made out of two variables, price and duration. The trader specifies the price he wants to buy/sell a certain currency pair and as well as the time period during which the order should remain active. Usual durations are GTC (Good till cancelled) and [...]
January 25, 2011 11:04 am
Margin Trading
The margin is the guarantee or trust deposit, protecting from losses which may occur each time you open a position. Trading on margin allows traders to open much bigger positions than their account limits and thus increase their buying power. A 1% margin for example (equals to 1:100 leverage) allows you to control 100 times your actual cash deposit. If your available funds go below the margin during a trading session, your positions are automatically closed. This should prevent your [...]
January 25, 2011 10:59 am
The Bid and the Ask
A currency quote has two sides, a sale side and a buy side, called the bid and the ask. USDCHF for instance can be quoted as follows: 1.2436 – 1.2439 or 36 – 39, as the “big figure” (1.24..) is supposedly known. The bid, 1.2436 is the price the broker/bank is willing to buy the currency pair from you, the ask, 1.2439 is the price the broker/bank is willing to sell you the currency. When trading with an online platform, [...]
January 25, 2011 10:49 am
Price Quotations or Quotes
Currency pairs are quoted as the price of one unit of the base currency in the counter currency. For example if USD/CHF is quoted 1.2436, it means that 1 USD (the base currency) is worth 1.2436 CHF (the counter currency). Now you know why it’s so important to keep in mind that USD/CHF is not equal to CHF/USD. A currency quote is constituted of two elements, the “big figure” and the “pips”. While the big figure remains quite stable, the [...]
January 25, 2011 10:46 am
Currency Pairs or Currency Crosses
When trading forex, a trader buys a currency against another one. As a matter of fact he buys one and sells the other. The denomination used for the currencies is the ISO denomination. Here below is a sample of the most traded currencies in alphabetical order: Currencies are always quoted as pairs. For instance the US dollar against the Swiss Franc, called Dollar-Swiss is quoted as follows: USD/CHF, the first currency being the base currency and the second being the [...]
January 25, 2011 10:29 am
Forex – The Foreign Exchange Market
The Foreign Exchange Market, very often named as Forex Market or FX, is the biggest and most liquid market in the world with more than 3.2 trillion dollars exchanged daily* making it one of the most lucrative and attractive global financial market. One of the most notable specificity of the Forex market is that a trader can actually make profit both ways when buying or selling. Furthermore, the FX market is open 24 hours a day 5 days a week, [...]
