The market today is very different from the future of the future of the 19th century. The current market is the future of the world, including manufactured goods, currency and finance charges, and agricultural products.

Speculating about the future is not real property contracts rather speculate about the product is marketed as a value. Every futures contract includes a buyer and seller. The following is an example of a futures speculation: A farmer agrees to deliver 1,000 tons of corn to a baker at a price of $ 5.00 per bushel. If the daily price of corn futures fell to $ 4.00 per bushel, farmers account credited with $ 1,000 ($ 5.00 - $ 4.00 per 1,000 bushels) and the baker's account is charged the same amount. Deposit accounts completed each day.

Using this as an example here is how the completion of a contract to play for: If the price of corn futures is still at $ 4.00 the farmer will make $ 1000 in the futures contract and the baker had lost the same amount. However, the baker can now buy wheat on the open market at $ 4.00 per bushel - $ 1000 less than the original contract, so the amount lost in the futures contract is formed by the lower cost of corn. In addition, farmers had to sell grain on the market opened at a cost of $ 4.00 per bushel, less than he expected when entering the futures contract, but the profits generated by the futures contract is the difference.

Speculators profit by daily fluctuations in futures markets choose to buy the seller (buying short-term) or the buyer (buying long).

The foreign exchange market has advantages over the futures market. FOREX is the largest financial market in the world. It is a liquid market and stop orders can be implemented more easily and with less slippage in other markets. Forex market is open 5 days a week, 24 hours a day. Operators can take advantage of opportunities as they become available. Foreign exchange transactions are usually instantly executed. Foreign currency transactions are commission free. Agents make money on the spread.

Some investors believe that because of the construction ensures that Forex is safer than futures.

With the events of the day, more people are interested to invest their money to grow faster. The problem is that few people are willing to risk investment because of the risk, so some of them just leave the money in the bank routine. Not that there's something wrong with the bank, except that they have a low level and money is time to grow. If you want real money, you have to take risks. Get money for cash, the risk is always present, if you want money fast and high.

One of the largest sites where you can invest your savings is Forex. Forex trading has been around for decades, and is considered the largest financial forum in the world with approximately $ 3.1 billion in volume every day. Forex (Foreign Exchange) trading is open 24 hours and never sleep. Transactions conducted around the world via telephone and computer, money changes hands in their millions in a matter of seconds. Forex trading consists of thousands of individual banks and forex trading which oversees development around the world, developments that could affect the value of its currency. Forex trading refers to trading currencies from different countries. The idea is to determine the rise and fall of the value of certain currency and trade when he sees fit.

Forex trading for small operations, managed accounts are ideal, they care, because we engage in less risky. Here, you entrust your investment with other forex brokers have a reliable, honest and ethical. Forex broker uses extensive knowledge and long experience and the use of strategies to develop your money, for a price, of course.

With the advent of the Internet, Forex trading can be done at the click of a mouse. Money moving through space and children all the time. Computers have greatly helped in the growth of foreign exchange transactions can now be done anytime anywhere. Because someone at a certain time every day around the world, will never lose someone to trade.

There are two fundamental and important to analyze and evaluate the currency. There are technical analysis and fundamental analysis. There is a difference between the two. In fundamental analysis, analysis and Forex broker to consider the causes of market fluctuations. Causes may include the political status of countries, laws and regulations, financial policies, growth rates and other factors. Technical analysis of Forex trading involves graphs, charts and other methods for measuring past data to see the indication of the rise and fall of currencies. Get all the information they need and use it to calculate and predict the likelihood of a particular currency.

There is much to learn about Forex trading, even an experienced rider to learn something new every day. Forex trading involves substantial benefits at a glance if you catch the right time and transaction costs. But remember there is a risk, forex trading can be speculative, especially if you're a poor prognosis. Before investing your money in a company, try to learn about their history and their history in forex trading.
Market knowledge and ability to understand further analysis in forex trading but without the courage to actively compete risking your own money in the process can never be a successful trader.

Large amount of money bet on the market is very sensitive to change is likely to cause a range of opposing emotions, fear, excitement and anxiety to name a few. Battling your emotions to complete a successful transaction is one of the biggest hurdles to overcome if you become the operator can reach an agreement and to obtain large amounts of money. If you can overcome or even to use emotions to make trades in Forex then a successful career can be exciting, but to do so will almost certainly cost you large sums of money and end the persistent desire to advance in the animated world of commercial exchange.

Early and close the trade at the right are the backbone of becoming a successful trader. If someone can not execute the agreement in a timely manner, psychological and financial damage can be overwhelming. Lost a major trend or sitting for a long time for a good price, can be a daunting experience, but many are in a career in forex trading.

Enter the time to do one thing correctly, but if you can not leave on time or keep them quiet during operation, the consequences are serious. Such as accepting a small loss before leaving the market can lead to terrible proportions a large margin of profit / loss. Just sit on the price of the currency is in free fall for too long can be financially crippling. Understanding the Forex market and have faith in your ability to assess trends will pay dividends if you hold your nerve, back at the wrong time could be disastrous mistake.

The fear generated by investing your own money is the main thing that must be addressed. Guilty of failure are so many stories of people who can not cope with their anxiety investing unwisely, pulling at the wrong time, the lack of overall improvement, all the results in a failure and is caused by fear. Acceptance of this fear and use it to its full potential will make you a stronger trader, able to trade freely and enjoy the excitement of change. Fight will get you nowhere, understanding and improvement are the best solution to this emotion-based.

Trading strategies will help you through the tough times and enjoy the good. Sometimes, just take a step back and accept the losses will be given the strength and knowledge to attack a currency with a new spirit, and make some serious profits. Accept that sometimes you lose, you should be able to take the punches and roll with the punches, there are no guarantees in the commercial market, to be able to move and start again is a very important skill to produce success.

Analysis and graphics can only go so far. First, you need to master these things, and can correctly interpret these figures to identify trends and make your move. But all that means nothing if you do not have the courage his conviction. If you are afraid to buy and do not know when to sell and then a successful career in market transactions is likely to run away. "The trend is your friend", but it has no meaning if the first one you can not see and others do not have the courage to save. Knowledge, and strategies to overcome the fear of maybe 3 to be the best way to open the door to become a successful trader. Without the 3 more often than not take off, to prepare, train and evaluate everything before taking the decision into the complex world of Forex trading.

The foreign exchange market is the most vulnerable investment platform, which is strongly influenced by the news from around the world. Therefore, learn to take advantage of Forex news, investors can avoid the costly mistakes many businesses and increase profits. In fact, the ability to predict and analyze Forex news is what separates a novice forex investors with experience.

Tips for using Forex News

The first thing to consider commercial Forex news, is that while the press itself has little importance. The most important is the analysis of the same. Remember, the trader can draw different conclusions from the same news. Forex news analysis is not objective, the safest thing to do is have a new image and draw your own conclusions. To work as a professional through Forex news, just check the news and evaluate how to move in exchange rates. Monitoring the evolution of potential trends, which usually happens when the news is not optimistic to push prices up or down the news did not lower the price.

In addition to trade like a pro Forex news, watch high-impact press releases. Do not waste your time discussing trivial events related currencies. Press releases, high-impact are those that have a high probability:

  • Moving the market: All events can move the market. Note that sometimes the feeling is driven currency. As a result, the news could not have an impact significant enough to alter the dominant trend of the currency market.
  • Predictable response: Based on the reaction history, press releases, high-impact move a currency pair usually for a few pips (or points). Therefore, while the trade is very important to collect Forex news press release relating to the trade.

Events affecting the value of major currencies such as the U.S. Dollar, Euro and Pound are also considered high-impact news. This is due to the location and movement of this currency, directly and indirectly affect the value of most currencies in the forex market.

While the foreign exchange market by Forex news is the best strategy, which is important to note is that, for forex news is often too late to be fully captured. Often times, when high-impact news becomes available to merchants in general, have been analyzed by many professional traders and financial institutions, which increases vulnerability to personal and institutional bias.
Forex trading is now one of the most sought after jobs for many people of all ages around the world. This is because the major advantages over other capital markets and high yield potential among these advantages is that it is very easy to access the trading platform best forex brokerage firms, with the internet, and therefore, you will see that the currency has a high liquidity, combined with high leverage.

However, brokerage firms and have a good trading platform is only part of what you should do your Forex trading career a winning and profitable. You must have the knowledge and skills necessary to accurately predict what the market will do. One technique used to predict the behavior of the Forex market is that based on Bollinger Bands.

Bollinger Bands This is what is called a bargaining tool and techniques are widely used in capital markets (including Forex) and was created by John Bollinger in the early 1980s. This band technique was developed based on the need for adaptive trading bands and the discovery that market volatility was dynamic, not static, like a thought at this time.

Bollinger Bands consist of a panel of three curves corresponding plucked currency prices. Band in the middle is the size of a medium-term trend and is usually a simple moving average, which is the basis for the upper and lower bands. The interval between the lower and middle band is determined by market volatility, typically the standard deviation of the same data used for the moving average. The default setting is 20 periods and two standard deviations above and below the middle band, of course, this can be customized to fit your needs.

In short, the purpose of Bollinger Bands is to provide a relative definition of high and low prices. By definition, the price is considered high by touching the upper and lower bands when you touch the lower band. Relative definition can be used by Forex traders to compare prices and stock as a useful indicator of the operator when the purpose is to buy and sell decisions strictly.
What is Forex or foreign exchange market: It is the largest financial market in the world with a volume of over 1.5 trillion dollars every day, it's money. Unlike other financial markets, the forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

What prediction: predict market trends and the future by using existing data and facts. Analysts rely on technical and fundamental statistics to predict the direction of the economy, the stock market and individual values.

For those who trade on the Forex, or foreign currency exchange, knowing how to forecast the Forex can be the difference between commercial success and the loss of money. When you start to learn about Forex trading, it is imperative that you understand how to predict the Forex market.

There are several methods used in the currency forecasting. Each system is used to understand how the forex market works and how it may affect fluctuations and foreign exchange dealers. The two-most commonly used is called technical analysis and fundamental analysis. The two methods differ in their way, but everyone can help the Forex trader understand how they affect the rate of currency trading. Most of the time, experienced traders and brokers know the method and use a mix of both to trade Forex.

One of the methods used to predict the exchange rate is known as technical analysis. This method uses the predictions of trends in the forex charts and graphs of recent events on the market. The system is based on solid facts which actually existed in the Forex in the past. Many traders and agents are based on the experience of this system as it follows the trend of reality and can be quite reliable.

In reviewing the technical analysis in forex, there are three basic principles that are used to make projections. These principles are based on market action with respect to timeliness, currency movements and price trends of history. When he saw action in the market, while supply and demand, current policies and market conditions currently being studied. It is generally agreed that the real price of money is a direct reflection of the news.

The trend of price movement is another factor in the use of technical analysis. This means that there are trends in market behavior has been known to be a factor in Forex. This model is usually repeated over time and can often be a constant factor in predicting the currency market. Another factor to consider when forecasting the Forex is history. There is no specific model on the market and is usually confidence factors. There are some graphics that should be considered when forecasting the Forex market using technical analysis. Five categories are indicators, number theory, waves, gaps and trends.

Most of them can be very difficult for novices to the Forex. Most professional Forex brokers understand the tables and have the ability to offer its customers well-informed advice on forex trading.

Another way that experienced brokers and traders in the currency used to predict the trend of so-called fundamental analysis. This method is used to predict future price movements based on events that have not yet arrived. This can range from political changes, environmental factors and natural disasters, even. Important factors and statistics that are used to predict how it will affect the supply and demand and the level of the currency. In most cases, this method is not a reliable factor alone, but used in conjunction with technical analysis to form an opinion on the changes in the Forex market.

For those interested in participating in Forex trading, a basic understanding of how the system is very important. Understanding prediction systems and two way to predict market trends will help Forex traders with its commercial success. The most experienced operators and agents involved in the Forex use a system of technical and fundamental when deciding on the Forex market. When used together, can provide investors with useful information on trends of change, where they go.

Always leave the forecasting to the professionals unless you are playing the Forex as a hobby and have invested a lot of money ... Or you're like most people learn the hard way.
Many people have been 'burnt' from scam operations on the Internet. Their sites may look so perfectly legitimate that you doubt they would have gone through all that trouble building a trading platform just to steal your money. Be careful.The first thing I look for is the broker location. If I find they are based in a country where the financial sector is, in my opinion, relatively unregulated, and not, I quickly forget to sign up. This is bad news for honest brokers in those countries, but your job as a trader is to protect your capital. If you lose, you can not negotiate. The onus is on them to convince you they will do the right thing by you as an investor.I started with a broker in Australia. I am currently using an American. I have not tried to negotiate based on the UK, but the British financial industry is one of the best.Companies based in countries like Japan, Germany and France could also, if their website speaks your language.Note the license number they may have registered with a regulatory body that acts as a government watchdog overseeing the financial sector and investment. This is an organization that has strict rules to protect your investment. Some of these rules may include requirements that all funds brokers' client funds separate operating company.Your money is needed to put in a very reputable bank and the funds are withdrawn from these accounts on specific withdrawal requests.Note that there are some fake regulatory bodies being thrown around in cyberspace as well. Look how long they have been operating. Try to find comments or observations about them. See if you can find forums where traders discuss their broker.Here is a list of things to keep in mind to help you avoid becoming a victim of a scam:Stay away from opportunities that sound too good to be trueThere are people who have recently acquired a large amount of money just and recently are the same and go around safe investment vehicles. They may be retirees who have access to their pension funds. It is easy to see why retirees would be interested in high yield, low risk investments. This is also what makes them very vulnerable. If you identify with one of those people, be careful. Many crafty character of your money. Furthermore, only a small amount of money you allocate to trade until you can begin to grow. Not everyone can successfully negotiate, so it's a business, you need to take arbitrary. This is your savings at risk.Prevent individuals or organizations that claim to predict or guarantee Great AdvantagesAny form of trading is difficult. Currency trading is no different. Be wary of statements that make it look easy. Statements such as:"Whether the market moves up or down, in the currency market, you will make a profit";"Make $ 1,000 a week, every week";"We outperform 90% of the investment in the country";"You will make a profit of 70% per year";"This is a strategy without risk."If they can get such results, why did they bother to tell you about it.Businesses are wary of the risks discouraging investmentBrace yourself and purse zipper bag when companies say that written agreements risk disclosure are routine formalities imposed by the government. Be careful with statements like:"With a deposit of $ 10,000, the maximum you can lose is $ 200 to $ 250 a day";"We will recover the losses you have."Beware of companies claim to trade in the "interbank market"Do not believe when some people say they have access to the "interbank market" or they can give you access to trade in this market because it is cheap can be obtained.This is not true. The "interbank market" is not a place, it's not a physical building. This is just a loose network of currency transactions negotiated between big financial institutions and other large companies.Ethnic minorities are often targetedEthnic newspapers and infomercials' are sometimes used to draw the Russian TV, Chinese and Indian minorities. Sometimes these ads offer so-called employment opportunities "for account executives to trade foreign exchange," where "executives recruited into account" are expected to use his own money for currency trading and are often encouraged to recruit members as friends and family do the same thing.Search for Company HistoryCheck the information you receive to ensure that the company they claim to be. If possible, try to get the background of the company's operations. Do not rely on verbal statements and promises made by company employees.If you are in doubt, it is not worth risking your moneyIf after trying to seek information and at the end of it all, you are still uncertain about the beliefs of a given society, my advice is to start looking elsewhere.You can find more information by calling the "watchdog" of government because they keep abreast of trends and reports of fraud and other fraudulent activity. Please see the Resources section of this site for more information on the agency that regulates the securities industry, sorted by country. There is also a list of brokers that you may want to see.This is an excerpt, modified from the book: The currency trader part time.
The origin of the FOREX trading traces its history to long time ago. Different currencies and the need for change existed since the Babylonians. He is credited with the first use of paper notes and receipts. Speculation hardly ever happened, and of course an enormous speculative activity in the market today would have liked.

At that time, the value of output expressed in terms of other goods (also known as the barter system). Obvious limitations of the system is required to build an exchange more generally accepted. It was important that the common base value can be determined. In some countries, such things as teeth, feathers even stones served this purpose, but soon various metals, gold and silver, established themselves as some form of payment accepted and reliable store of value . Trade between the peoples of Africa, Asia, etc. through this system.

Originally printed in metal parts and elections in a stable political system, the introduction of the role of public debt during the Middle Ages also gained acceptance. Types I.O.U. intrusion more success than through persuasion and is now the basis of modern currencies.

Before World War I, most central banks supported their currencies with convertibility to gold. However, the gold exchange standard is a weakness of boom-bust pattern. As an economy strengthened, it will import a large quantity abroad until it ran its gold reserves required to support the money, therefore, decreases the money supply, interest rates have and increased economic activity slowed to the point of the recession. Ultimately, prices have hit bottom, appearing attractive to other nations, to be held in a buying frenzy that is injected into the economy with gold to increase its money supply, the rate of lower interest and wealth in restoring the economy .. However, for this type of gold exchange, not necessarily the central bank to the extent of government's exchange reserves. It does not happen very often, but when a group mentality promoted the idea of ​​a disaster convert gold in mass, panic resulted in so-called "bank run" The combination of increased supply of paper money without gold cover led to devastating inflation and resulting political instability. The Great Depression and the removal of the gold standard in 1931 created a meaningful peace in the Forex market activity. From 1931 to 1973, experienced a series of changes in the Forex market. These changes greatly affect the global economy at the time and speculation in the Forex market is still weak.

To protect local national interests, increased foreign exchange controls to prevent market forces from punishing monetary irresponsibility.

Towards the end of World War II, the Bretton Woods agreement was reached on the initiative of the United States in July 1944. Conference held in Bretton Woods, New Hampshire, rejected the suggestion of John Maynard Keynes to a global reserve currency in favor of a system built on the U.S. dollar. International institutions like the IMF, World Bank and GATT were created in the same period emerged victorious from World War II to find a way to avoid a crisis of stable exchange leads to war. Bretton Woods fixed exchange rate generates the return of the gold standard, in part, is set at $ 35.00 USD per ounce of gold and the establishment of major currencies against the dollar, initially intended to be Standing.

Bretton Woods system was under increasing pressure as national economies have taken different directions in 1960. Some rearrangement of the system are kept alive for a long time but eventually Bretton Woods collapsed in early 1970 after President Nixon suspended the gold convertibility in August 1971. The dollar is no longer adequate as the international currency at that time was under heavy pressure from increasing U.S. budget and trade deficits.

Recent decades have seen foreign exchange market became the largest in the world. Restrictions on capital flows have been eliminated in most countries, allowing market forces free to adjust the exchange rate according to their perceived values.

European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. Search continues in Europe for currency stability with the 1991 signing of the Maastricht Treaty. This is not only to fix the exchange rate, but also actually replace many of them in the euro area in 2002. London, and remains the main market abroad. In the 1980s, became an important center in the Eurodollar market when British banks began dollars of credit as an alternative to the pound to maintain its leading position in global finance.

In Asia, the lack of sustainability of fixed exchange rates has gained new relevance to events in Southeast Asia during the second half of 1997, when it devalued the currency after currency against the U.S. dollar . States., Leaving other fixed exchange rate changes, especially in South America also looking very vulnerable.

While commercial companies have to deal with the foreign environment is much more volatile in recent years, investors and financial institutions have found a new field. Forex currency market worked initially at the central bank and government institutions, but later accommodate the various institutions, now also includes the boom of the dot-com and the World Wide Web. Size of the Forex market is now far superior to other investment markets. The foreign exchange market is the largest financial market in the world. About 1.9 billion traded daily on the forex market. It is estimated that more than Rs 1,200 million traded daily. Can we say easily that FOREX market is a lucrative opportunity for modern intelligent investor.
Despite the powerful U.S. dominates many markets most of Spot Forex is still traded through London in the UK. So for our next description we will use the time in London. Offering the best in foreign exchange transactions done on time. SPOT offers almost always due to settlement two business days later. This is known as the value date or delivery date. At that time, counterparties theoretically take delivery of the currency have been sold or purchased.

In Spot FX the most part the end of a business day is 21:59 (London time). The positions are open at this time is automatically extended until the next business day, which in turn ended in 21:59.

It is necessary to avoid the actual delivery of currencies. As Spot FX is predominantly speculative most traders do not want time to take delivery of the currency. Be informed to always clear the position of broker.

Many brokers are already automatically and in policies and procedures. Act to shoot the currency pair is called, which means tomorrow and the next day.

Only to talk about it, your agent will automatically rollover your position unless you tell them that you really want the delivery of the currency. Another thing to note is that most leveraged accounts can not actually deliver the currency as there is no shortage of capital to complete the transaction.

Remember that if you are trading on margin, you must apply for a loan from your broker for the amount under negotiation. If you have a property that the agent has advanced $ 100,000 despite not actually $ 100,000. Brokers usually charge the interest rate differential between two currencies if you rollover your position. This problem usually occurs only if you rolled over the position and if the positions are opened and closed on the same day.

To calculate the interest of the agent normally close your position at the end of the workday and again reopen a new position almost simultaneously. It opens a lot ($ 100,000) EUR / USD position Monday, May 15 at 11:00 in the exchange rate of 0.9950.

Levels fluctuate during the day and at 22:00, this figure is 0.9975. Broker closes your position and reopens a new position with a different value date. The new position is open from 0.9976 to 1 pip difference. Respect of a pip reflect differences in interest rates between U.S. dollar and the euro.

In our example, which are long and short Euro U.S. Dollar. As the U.S. dollar in the sample had a higher rate of the euro to pay a premium of 1 pip.

Now the good news. If you have reversed the position and were from dollars to euros in the short and long will the interest rate differential of 1 pip. If the first named currency has interest rates below those of a day in the second currency, then pay the interest differential if you bought that currency. If the first named currency has an interest rate higher than the second currency then you will get the interest rate differential.

To simplify the above. If you are long (bought) a particular currency and the currency has a higher interest rate that you get overnight. If you are short (sold) the currency with higher interest rates last night, you lose the difference.

I want to emphasize here that although we some depth to explain how it works, the agent calculates for you. The purpose of this paper is just to give you an idea of ​​how the forex market.