Archive for 'Forex Basics'
Forex Trading Tips
Posted on05. Jul, 2007 by admin.
Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?
This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.
Trade pairs, not currencies – [...]
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Forex Basics: What is Margin
Posted on27. Apr, 2007 by admin.
What is Margin?
Margin is the amount of equity that must be maintained in a trading account to keep a position open. It acts as a good faith deposit by the trader to ensure against trading losses. A margin account allows customers to open positions with higher value than the amount of funds they have deposited [...]
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Forex Basics: Types of Orders
Posted on27. Apr, 2007 by admin.
The forex market provides different kinds of orders for trading. The following are some major types of orders that can be found on forex trading stations.
Market orders – A buy or sell order in which the forex firm is to execute the order at the best available current price. It is also called at the [...]
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Forex Spreads
Posted on27. Apr, 2007 by admin.
What is a spread?
In margin forex trading, there are two prices for each currency pair, a “bid” (or sell) price and an “ask” (or buy) price. The bid price is the rate at which traders can sell to the executing firm, while the ask price is the rate at which traders can buy from the [...]
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Glossary Of Forex
Posted on05. Apr, 2007 by admin.
Appreciation – A currency is said to ‘appreciate ‘ when it strengthens in price in response to market demand.
Arbitrage – The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Around – Dealer jargon used [...]
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Translating Rising Oil Prices to Profitable Currency Moves
Posted on05. Apr, 2007 by admin.
Equity investors already know that higher oil prices negatively impact the stock prices of companies that are highly dependent on oil such as airlines, since more expensive oil means higher expenses and lower profits for those companies.
In much the same way, a country’s dependency on oil determines how its currency will be impacted by a [...]
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Capitalize on Rising Gold Prices with Currencies
Posted on05. Apr, 2007 by admin.
It’s not hard to understand why we’ve experienced a run-up in gold prices lately. In the US, we’re dealing with the threat of inflation and a lot of geo-political tension. Historically, gold is a country-neutral alternative to the U.S. dollar. So given the inverse relationship between gold and the U.S. Dollar, currency traders can take [...]
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How Interest Rate Increases Drive Currency Spikes
Posted on05. Apr, 2007 by admin.
A common way to think about U.S. interest rates is how much it’s going to cost to borrow money, whether for our mortgages or how much we’ll earn on our bond and money market investments. Currency traders think bigger. Interest rate policy is actually a key driver of currency prices and a great starter strategy [...]
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Introduction To Fundamental Analysis: Forex
Posted on02. Apr, 2007 by admin.
FOREX traders almost always rely on analysis to make plan their trading strategies. There are two basic types of FOREX analysis – technical analysis and fundamental analysis. This article will look at fundamental analysis and how it used in FOREX trading.
Fundamental analysis refers to political and economic conditions that may affect currency prices. FOREX traders [...]
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Option Arbitrage in the Forex Market
Posted on30. Mar, 2007 by admin.
by: John Nobile
What is arbitrage? Arbitrage is the simultaneous buying and selling of identical financial instruments taking advantage of price discrepancies between different brokers, exchanges, clearing firms, etc. and thus looking in a profit. On paper, arbitrage is a risk-less trading strategy. In the real world however, risks abound.
So why trade arbitrage? Well, if the [...]
