There is nothing difficult in trading on forex market. It is very useful and actually extremely interesting to get into completely new business. Usually 95 % of beginners
Foreign exchange is always executed in currency pairs, such as Euro/U.S.Dollar (EUR/USD). Currency pair is an instrument to be bought or sold, as all the trades are the
Spreads: Understanding spreads and managing margins are two ground rules that a skilled forex trader always uses to one selves advantage. A spread means the difference between the
Currencies are traded in dollar amounts called “lots”. At 100:1 leverage, one lot is equal to $1000 which controls $100,000 of a given currency. This leverage is known
Foreign exchange market is also known as Forex or FX market. To date, it is the world’s biggest “economic bazaar”. FX produces an average of over $1 trillion
“Guns and butter” signaled the beginning of the end of the Bretton Woods Accord. Guns and butter is the derogatory nickname given to President Lyndon B. Johnson’s policy
Why is it important to know which investment vehicles are available for a given currency? We care because we are spending all this time and effort learning about
Central banks do not like uncertainty or unusual levels of volatility in the Forex market. It is much harder to maintain control of or influence over the market when
Banks are facilitators, hedgers, and speculators. We know that is quite a statement, but you have to figure that when a market is often ref erred to as
Retail traders are speculators. This one is pretty straightforward. You are a retail trader, and let’s face it, you are not getting into the Forex market to hedge
Multinational corporations are hedgers. Corporations that operate in multiple countries often run into scenarios in which they have accounts receivable or accounts payable that are denominated in a
Monitoring what is happening throughout the day in the Forex market is much more difficult than monitoring what is happening in the U.S. stock market, for instance, because the
The Forex market is full of all sorts of different people who are trying to accomplish all sorts of different things. Some Forex traders are trying to make
Currency pairs are typically divided into the following three major groups: Major currency pairs Emerging market currency pairs Currency crosses Major Currency Pairs The major currency pairs are
Foreign demand for domestic goods increases the demand for the domestic currency and the supply of the foreign currency. This increase in demand for the domestic currency increases the
The Smithsonian Agreement another agreement named after the venue where the meeting took place moved the world one step closer to a free-floating currency system. On December 18,
If you are used to trading stocks, bonds, or commodity futures, you are accustomed to prices being quoted in dollars and cents. That’s not how it works in
