Introduction to forex trading

2007-11-28T08:15:00.000-08:00

The purpose of these articles is to introduce the forex market to you. As with many markets there are many derivative of the central market such as futures, options and forwards. In this book we will only be discussing the main market sometime referred to as the Spot or Cash market. The word FOREX is derived from the words Foreign Exchange and is the largest financial market in the world. Unlike many markets the FX market is open 24 hours per day and has an estimated $1.2 Trillion in turnover every day. This tremendous turnover is more than the combined turnover of the main worlds' stock markets on any given day. This tends to lead to a very liquid market and thus a desirable market to trade.

1.Residence, Regulation, and Company Management Structure

FOREX.com is a subsidiary of GAIN Capital Group, thus it does not have any independent registration. As for GAIN Capital Group, it is registered in FCM as a broker company, regulated by CFTC and has a membership of NFA. Founders and managers of the company are mentioned on its site - www.gaincapital.com.

2.The Trading Platform

The company offers a JAVA trading platform of “FOREXTrader” which requires installation. There are web and mobile versions of it. Both versions enable you to watch the state of account and opened positions, but the mobile version does not support charts and makes the default a warrant. Stationary variant is the most functionally complete. It provides news, calendar of events and analytical materials.

3.Company's Market Position

FOREX.com was created in 2003 to meet the needs of individual investors at FOREX market and for opening standard and mini accounts. No partners (liquidity suppliers) are mentioned.

FOREX.com conducts only individual standard (from $2500) and mini (from $250) accounts. Traditional FOREX-brokers programs, such as «Introduced broker», «White Label» and services of confiding management are offered by the associated company GAIN Capital Group.

4.Traders Support

The site has a very interesting educational page. Demo-account is offered for 30 days only. Interactive support of users is done by free telephone lines available in different countries, and by e-mail. There is also an online form.

The site supports English, Russian and Chinese.

Analytical support includes both GAIN Capital Group's market and analyses of the largest participants of the market – Commerzbank, HSBC, Rabobank, Wachovia, BNP Paribas etc. The full version of analytics is offered only to real clients, but there are several examples on the site. A large set of paid analyses of other resources is offered also.

5.Types of Services Offered

FOREX.com offers 16 currency pairs to trade – 7 majors and some of their cross-courses.
The size of a standard lot is $100000 or equivalent sum and $10000 on a mini-account. A maximal credit leverage is given 100:1 for standard, 200:1 for mini-lots. Clients can reduce the size of credit leverage if they want and trade mini-lots from standard account.

Minimum marginal requirements are 100% from an initial margin. The transfer of positions the next day is made on principle of SWAP, the values of rates of payments are not indicated. The exact sizes of spreads on the trading currency pair are not indicated.

Exciting Market - FOREX

2007-11-28T08:04:00.000-08:00

The Forex market is quickly becoming one of the most popular markets for trading.
Not only are the experienced traders looking to this market to maximize their trading returns, but many new, individual investors are now able to trade the Forex market - just as they do stocks and futures.

More and more individuals are seeing Forex not only as a new way to diversify their portfolio, but are also finding that it is becoming the most profitable component of their investments. And that's because of the many advantages Forex offers over other markets like stocks or commodities. Here's what you will typically see advertized about Forex:

Forex Mini Accounts

The Forex Capital Management Mini Account is for those just getting started in on line currency trading, as well as those with limited investment capital. A smaller deposit is required to initiate a FCM Mini Account. Transaction sizes are 1/10th the size of a regular account.

Smaller trades can greatly reduce the risks associated with currency trading. Although the FCM Mini Account provides the same amount of leverage as a regular account, our clients have the opportunity to take smaller positions and incur less total risk. The FCM Mini Account is a great way to introduce you to the challenge of foreign currency trading with reduced risk.

More Market Staying Power

Traders with account equity under US$5000 are generally more successful trading Mini Accounts. Currency trading during periods of heavy market volatility can be risky if your position finds you overexposed.

A small balance in a regular account makes it very difficult to outlast even small market movements against a position, and there is very little room for error. The reduced margin requirements of the Mini Account help traders to avoid early margin calls. The approximate pip value on a regular FCM account is US$10 per pip. Assuming a US$2000 account as an example, if you were leveraging US$1000 to hold a US$100,000 (one lot) Yen position, the market only has to move 100 points, or 1 percent, to generate a margin call. This can happen in a very short time.

Mini Accounts carry a $50 margin requirement per lot. A trader with $200 that opens a 1-lot Yen position can withstand a 150 point shift before the margin is called – 50% greater than what the trader has available to them through the regular FCM accounts.

Forex Trade

Forex trade is a very good means to earn money. Forex market is a relatively new sphere of business, but may be the most profitable one. Forex is the abbreviation for Foreign Exchange.

Forex market is visited by billions of people from all parts of the world every day. These people, who are called Forex traders come to the market to buy and sell currencies. Billions of dollars go through Forex marker every day. Those who are involved in Forex trade do not use small sums.

But what is the location of the Forex market, you may ask? Is that a big skyscraper somewhere in the center of a megapolis? And how can so many people be there at the same time?

Well, there is no specific location where you can deal with Forex trade. The feature of Forex is that you can gamble on the market sitting at home, no matter where you live.

You buy and sell currencies online and that is called Forex trade.

Moreover the second incredible feature of the Forex market is that you dodn’t have to make the deal personally. You can set the condition and the program will due or sell currencies for you, while you are at your regular job, at a local bar or anywhere else.

And then you come home and find everything you wanted made for you. This is a great feature of Forex trade.

Money with Forex

Introduction to forex trading

Exciting Market - FOREX