Learning Forex - The Secrets They Never Tell You

Is it a good idea learning Forex on broker's courses? I believe that it's not... Why? Read the article and you'll know why...
Hi, my name is Andrew Minin. I've been working as a professional currency dealer and financial engineer for the largest American and European investment banks for over ten years and you know what...
I am astounded by incompetence of the people who run lectures, write books, blogs, create websites, or forums, regarding trading on Forex or other financial markets...
First of all, there's too much information even in the best textbooks about trading...
For example, In Colby's "The Encyclopedia of Technical Market Indicators". There's 834 pages, 127 indicators (and those are just classical!). And what to use still remains a mystery...
Secondly, for those who studying FOREX trading, the market behavior remains unclear...
For instance, do you really know what to do or what is going to happen if US GDP reduces by 5%?

• USD shall go down because of US economy weakness?


• Dollar value shall rise because investors will go out from securities to cash?


• Nothing will happen, because investors have discounted the information in advance?

Do you know the exact answer?
Why does one respectable analyst tell you one thing and another one says differently? And the most important question is: "What do you have to do?"
Third, you have probably traded on FOREX for some time but haven't become rich yet...
You're told to find your own strategy... That you have to go on searching, learning, practicing...
But it merely meets the interests of companies which fund this business. To maintain your interest you need, to develop discussions on various forums speculating around the same questions from different points of view. In order to benefit from those books sales... And simply because they do not know how to start earning on the financial markets.
And there are only 5 powerful secrets of trading on financial markets including FOREX that permit you to become a successful trader. So that you won't have to dig through dozens of books, websites and forums seeking the answer... To hesitate on what positions to open, how to interpret information and whom of the analysts to trust, to constantly look for the "Holy Grail".

Bitcoin has been the buzz word in the financial space. As of a matter of fact, Bitcoin has exploded the scene in the last few years and many people

E-Currency Exchange - A Profitable Online E-Currency Exchange BusinessFor The Internet Marketer

Many people are ignorant of what is e-currency exchange or e-currency trading. To the majority, they are confused, thinking that e-currency exchange is the same as forex trading or trading in foreign exchange.
In actual fact, and to the surprise of many, e-currency exchange and forex trading are two different creatures, though they belong to the same financial genre.
In e-currency exchange, you buy and sell e-currencies, effectively exchanging the ownership of e-currencies on the web.
What are some of the e-currencies exchange or trading you can do?
Here are some of the e-currencies you can buy or sell:
- Buy e-Gold, 1mdc, Pecunix, e-Bullion, Liberty Reserve or WebMoney with a bank wire or western union.
- Sell e-Gold, 1mdc, Pecunix, e-Bullion, Liberty Reserve or WebMoney for a bank wire or western union.
- Exchange e-Gold, 1mdc, Pecunix, e-Bullion, Liberty Reserve or WebMoney among each other.
What are the real currencies you can use to buy these e-currencies or to exchange them for?
Some of the major currencies you can use to buy and sell e-currencies for are:
USD (US Dollars)
EUR (Euro)
CAD (Canada Dollars)
GBP (UK Pounds)
JPY (Japan Yen)
CHF (Switzerland Francs)
AUD (Australia Dollars)
AED (U.A.E. Dirhams)
IRR (Iran Rials)
SAR (Saudi Arabia Riyals)
INR (India Rupees)
SGD (Singapore Dollar)
HKD (Hongkong Dollar)
SEK (Swedish Krona)
This effectively allows almost the entire world to get involved in e-currency exchange. Where your country's currency is not listed, it is easy to take a 2-step approach to fund your e-currency account. You need to exchange your country's currency into the acceptable currency as listed above and then use that currency to fund your account.
The usual way to earn from e-currency exchange is to earn some 0.5% to 5% of your money as returns within the day, and to let the magic of compounding to compound these profits every 24 hours!

The compounding effect would really multiply your income, so it is possible to earn a 5 figure income on e-currency exchange itself!
In August 2006 the e-currency exchange system was updated so now it takes 24-48 hours to withdraw profits. This allow you as a private e-currency exchange trader to withdraw part of your gains as an income to live on and leaving the balance to continue to earn as your cash cow generating you a constant stream of profits.

Bitcoin has been the buzz word in the financial space. As of a matter of fact, Bitcoin has exploded the scene in the last few years and many people

The Vulture is a Patient Bird

Lots of people are getting fed up looking at their cash earning next to nothing on deposit. Yes, it seems to make sense to hang on and just sit on the money, and yes, it is nice to have survived all the possible troubles so far, but hey, the boredom of it all!

A friend of mine phoned me recently saying that he is slowly going nuts waiting for some action. I smiled and told him "You mean you are itching to invest into some currency but are scared to take the plunge, right?"
"I guess," he said, waiting for me to come up with a suggestion without having to make it look like he was fishing for advice.
If the urge to get some currency action is strong enough and the feeling of sitting on nonworking money is unbearable, that is a situation that needs careful handling. One must not get into a state like an alcoholic who craves for a drink or a gambler who needs to have a bet for the sake of having a bet.

It is not very easy to fall in love with any currency these days. However, it is not hard to feel jittery about holding one type in particular, namely Sterling. Lately, when I think of GBP,I see an acrobat wobbling on a tight rope with no safety net below and a strong gale approaching. Now, getting rid of it, means one has to get into another currency. Personally, I have the feeling that of late, the USD is beckoning and saying "Hey, come and get me before it is too late". It does not mean that many people do not have a different opinion.

This is just as well since any market needs a buyer and a seller.
It does not need a lot of imagination to come to the conclusion that the USA will be the real first to come out of the recession. Equally, it does not need a lot of imagination to realize that it cannot be possible for GBP to be prodded up forever or ride on the back of this or that sentiment or risk appetite. Somewhere along the line, all this has to be paid for in full. This will mean that the belt will have to be tightened, and whoever will tighten it, will not be too popular with the masses, as is invariably the case. But that of course, is another matter.

The weapons of opportunity have to be carefully maintained in tip-top condition, as must be the knowledge of when and how best to use them to obtain maximum results. Everybody gets a chance to strike it right at least once, and I am sure many of you will admit you have had that chance, only to see it go out of the window due to being totally unprepared to grab it. This does not mean that one should consider dicey prospects. It is prudent to know when not to proceed, let go, and walk away.
With all this in mind, I phoned my friend saying that if the need was so great as to have to get into some action, then I would get rid of my pounds pronto, and get into dollars. I would not expect miracles immediately, but I would expect to go forward in style in due course. The game is not for tame little birds, it is more for vultures. They have a knack for spotting prey, but we know a vulture is a patient bird.

Bitcoin has been the buzz word in the financial space. As of a matter of fact, Bitcoin has exploded the scene in the last few years and many people

Guarantee Your Forex Profits With This Tip

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There is one secret that many profitable traders use to make profits. This is a closely guarded secret! Would you like to get your hands on it?

Ha! I got you! There is no closely guarded secret; in fact most of the "gurus" out there in the market are really just a bunch of failed traders who have got no real idea what a pip is!

Humans all want something for nothing. In fact the easier it is the more people would buy into it. There are loads of folks who happily deposit their hard earned cash into strange investments that they know nothing about and yet expect to make a profit from them! This is the human greed, and throughout known human history this phenomenon has occurred so many times it is not even funny anymore! But take faith there is a way to earn money without working overly hard. I am not saying that you take it easy, I said there is a way to profit without over working yourself. You have to put in effort if you wish for riches.

There is a way to guarantee your forex profits. Here is the tip and if you learn it well then I can safely say you will never need to fear poverty ever again. The tip is this: never expect more from the market than what it can safely give.

If you have been trading for some time, you will understand this term. Lets take for example the EUR/USD and for instance , the market has been going short. So you went short as well. You made a profit, but the very next bar also shows the market as going short. Now at this point in time what would you do? Most traders go short again.

Regardless of profits or losses, you have just violated the most important principle of trading. That is "never expect more from the market than what it can safely give". The traders who took the short have just exposed themselves to a lot of risks. Your set up has passed, that means at that point in time when you entered into the trade you essentially moved from trading to gambling! Shame on you!

We all want a great deal, and we want more money. When that happens it can lead to us getting a clouded perception. If you chose to go short the second time, you have just given in to the emotional pressure of greed. Not only that, you were trying to force the market to cough out and give you more than what it could do. Most of the time what happens is that the trader would lose money on the second trade. There will be times that you make of course, but that is luck. If you trade based on luck then you will realize that luck is not a good friend to most traders.

If you wish for guaranteed profits with this tip I just shared, please understand that it is the first and most important rule to observe. It encompasses money management, psychology and discipline. Work hard at build these 3 aspects and you will be profitable always in everything you do.

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Source by Joshua Geralds

A Short Introduction To FOREX

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FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.

Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.

But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind

has to be open and the slate has to be clear for starting out fresh with the CORRECT information.

So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.

As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry

have also said, Trading FOREX is like having an ATM machine on your own computer.

Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it:

The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.

But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.

What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.

So, you're probably wondering where it's at ... or ... how to access the FX market?

The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.

Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:

Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is

simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate

between the two currencies.

In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.

Example:

EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.

There's plenty of money to be made using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them to profit immensely. And, with only 5% of the daily turnover of volume coming from banks, government and large corporations who need to hedge, the other 95% is for speculation and profit.

[http://www.1-forex.com/]

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Source by Omar Vargas

Iraqi Dinar Scam Hits Brunei

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After the newspaper ads featured in USA Today and other major US newspapers, the popular Iraqi Dinar scam has moved to another country. Just when you thought it was safe for the US based investors, with all the warnings recently published by major media sources, the scammers have found yet another country ripe for profit.

10,000 Iraqi Dinars selling at B$ 110 was the title of a recent ad than ran in a Brunei newspaper. And people are jumping on it like crazy. Rumors are the sellers have run out of stock in less than one week.

How could this be possible? Because they don't know better. Ordinary people, people just like you and I read about this new investment in a newspaper they trust. The ad is claiming they're sitting on a pot of gold, and the Iraqi Dinar is about to jump in value big time. They start dreaming about fast riches. They swipe out their wallet faster than the blink of an eye and hand their hard earned money to the scammers.

The truth? The current exchange rate as of today is approximately 1 USD for 1.63 BND (Brunei Dollars).

This means at the exchange rate set by the Central Bank of Iraq people could, in theory, get close to 100,000 Iraqi Dinars for the same BND 110. This is almost TEN times more the amount the scammers are selling it for. And people are jumping on it like crazy! Why? Because they don't know better.

When they wake up later on and try to sell the dinars back they're in for a big surprise. They can't. Nobody is buying Iraqi Dinars. There's currently no way for them to recover at most 1/10 from their investment except if they are willing to travel to Iraq to cash it in.

But first they have to wait and pray for the dinars to jump in value at least 10 times for them to merely recover their money back. By the way it looks now this sudden jump in value is not going to happen. Not today, not tomorrow, and neither in a month from now. It could happen in 3 years. Or 5 years. Or never.

Sad truth is people who were sold in at these rates were scammed. They were profited for their lack of knowledge. And the sellers knew exactly what the exchange rate was. They knew exactly what's the potential for this type of investment. And the only potential it has right now is for them, the scammers, to get rich from selling Iraqi Dinars.

So, why did the people buy in? Because they didn't knew better. But you do!

Don't fall prey for these scams! You deserve to be informed.

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Source by Catalin Ionescu

Basic Terms and Slang Expressions - Forex For Beginners

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This page contains common terms and slang expressions that should know any trader!

Ask
Rate at which bank (dealer) sells a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2238 (ask) the Bank shall sell euros for U.S. dollars.

Bid
Rate at which bank (dealer) buys a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2234 (bid) shall purchase the bank euros for U.S. dollars.

CFD
Transactions in shares of any product without their actual delivery.

Change
The difference between the current price and the closing price the previous trading day.

Change%
% Change is calculated as the ratio of Change and the current price of an instrument (% Change = (Change / Price) * 100)

MetaStock
One of the most popular and powerful programs of technical analysis.

OCO (Order Cancel Order)
This order is a combination of two separate orders for the purchase or sale. Once executed one part of the order (the first that can be executed), the alternative order is automatically canceled.

Omega
One of the most popular and powerful programs of technical analysis.

Active Balance
Cash account

Broker
Professional market participants conduct transactions with a specific set of instruments on behalf of and at the expense of the client or on its behalf and the client's account on the basis of onerous contracts with the client.

Usable Margin
Funds that can be used to open new positions or removed from the account.

Used Margin
Funds involved in the maintenance of all open positions at the time of the data.

Close position
Make a transaction leading to the closure of the open position.

Indicative quotes (Composit)
Quotes coming from several banks. Show the general trend in the Forex market and allow for those. Analysis.

Indicators graphic
Means of technical analysis to help predict the behavior of the market.

Execution warrant
Committing a transaction broker in accordance with the order (warrant) and cancellation of orders.

Leverage
Credit provided by the bank customer to conduct transactions. Shows how many times the required margin is less than the contract price.

Liquidation Balance (Equity)
Calculated as the difference between the active and total balance of Profit / Loss on all open positions.

Market Liquidity
Liquid market - the market in which relatively frequently committed transaction of buying and selling. A liquid market is characterized by opportunity for the seller (buyer) to quickly sell (buy) goods.

Limit
Order to buy or sell currency at a specified price or better. This warrant is usually exposed to capture profits. Can also be used for open positions.

Lock
The opening of two positions for one instrument, one specification and the same size in different directions. For example, the opening position 1 eur buy at the open 1 eur sell - called "zalokirovat position."

Loss
Loss of the transaction (or in the open position)

Lot
Target volume transaction torguemovogo financial instrument. When trading on Forex and CFD markets differentiate minimum and standard lots.

Better price
When selling price is better, if it is higher than is currently available in the market. When purchasing price is better, if it is lower than is currently available in the market.

Market maker
Large banks and financial companies, determining the current level of the exchange rate at the expense of a significant portion of its operations in the total market. Market makers set the current level of the exchange rate through a transaction with each other and with the smaller banks are users of the market.

Market order
Order for immediate purchase / sale of currency at the prevailing price at the moment on the market.

Margin call
The moment when there is a lack of maintenance margin account, you must either update your account or close some open positions.

Margin
Deposit (deposit insurance), which provides cover possible losses that may arise in margin trading.

Mini Lot (Mini)
Trade mini lots.

Illiquid market
Illiquid market - the market, which is relatively rare to contract for the purchase and sale. Illiquid market is characterized by lack of opportunities for the seller (buyer) to quickly sell (buy) goods.

Necessary Margin
The amount required to maintain an open position

Overnight
The fee is charged when passing an open position on the next day.

Order
Order broker to complete the deal under certain conditions.

Refused order
When installing the order agent may refuse to accept it in some cases: If the customer does not have enough funds in the account for the transaction If the warrant specifies incorrect price: worse for the limit, or better to stop.

Open Position
If the transaction has taken place (buying / selling) and has not yet been committed to her opposite transaction (sale / purchase) on the client's balance existing open positions.

Open positions
To make a deal leading to the emergence of Open Position

Cancel Order
Order broker to cancel an active warrant

Pips
The last digit of writing the exchange rate, for example, EURUSD 0.0005 - a five pips.

Scalping
Enter the market at the minimum possible time, sufficient to take profits, as a rule, the entire capital.

Profit
Profit from the transaction (or in the open position)

Item
For Forex is the same as teak.

Session
Intraday time trading tool.

Spread
The difference between the quotations of Bid and Ask.

Standard
Trade standard lots.

Stop
Order to buy or sell currencies in the market reaches a certain price, worse than the current market price. This warrant is usually billed to limit losses if the market moved in the opposite direction expected. Can also be used for open positions

Stop Loss
Stop order, fixing a possible loss for a specific open position.

Take Profit
Limit orders, fixing possible profit for a specific open position.

Technical Analysis
The method of forecasting future price trends through the study of graphs of the dynamics of the market for prior periods.

Teak
The minimum step change in the price

Trading quotes
Quotations particular bank (broker / a dealer firms). These quotes are committed transaction.

Forex (Foreign Exchange Currency Market)
International market exchange

Fundamental Analysis
The method of forecasting future price trends, based on the analysis of economic data.

Futures Contract
The agreement to buy or sell a specified quantity of a certain commodity at a specified time at a specified price.

Worse price
When selling price is considered to be worse if it is lower than is currently available in the market.

When you purchase price is considered to be worse if it is higher than is currently available in the market.

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Source by Dr Michael John

Trading Forex and the Theory of Relativity!

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Albert Einstein would have loved the forex market. It's the one market where you are trading on relativity!

When you "buy" a currency on the foreign exchange you aren't really "buying" anything. What you are doing is opening a contract in one currencies value relative to another.

The contracts on the forex are quoted in the value of one currency (the "quote") relative to another (the "base").

For example, the most actively traded currency pair is the Euro relative to the U.S. Dollar. The pair is listed as EUR/USD. In this case, the Euro is the quote currency. The U.S. Dollar is the base. So, you could look at EUR/USD quoted at 1.5929 as the Euro trading at 1.5929 US Dollars or it takes 1.5929 USD dollars to buy one Euro.

Most traders watch the economic fundamentals of the country underpinning each currency. They then look for the relative strengthening or weakening of one economy versus another. When they see one countries economy becoming stronger while another's becoming weaker, they see the trade develop in favor of the stronger countries currency.

Here's an example. The Australian economy has been very strong, recently because it's economy is very much linked to the price of commodities - it is the largest exporter of gold. The demand for gold has been, and continues to be, on the increase by Chinese industry. India, too, is demanding more of the precious metal as their rising middle class is better able to afford the gold jewelry that Indian women have always desired. This has been a boon well for the Australian dollar for many reasons but one is that the Royal Bank of Australia - the Aussie equivalent of our Federal Reserve - has had to raise interest rates to keep the Australian economy from overheating and kicking off inflation.

At the same time that Australia has been raising their overnight rate, our Federal Reserve has been lowering ours. Therefore, you would expect to see a relatively stronger Australian Dollar with respect to the U.S. Dollar.

So, this is the trade. If you open a contract on the AUD/USD, you would do so in favor of the AUD. The other advantage of taking this position and another reason to expect increasing strength in favor of it is that you are paid interest every day that you hold the position. Yes, the interest differential between the two currencies gets deposited into your account every day that the market is opened!

A glance at the 5-year chart of the AUD/USD shows the trend.

This is the theory of relativity at work!

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Source by Kevin Mastaw

Importance Of Cryptocurrency As A Medium Of Financial Transaction

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These days, the global economy is just moving towards a complete digital eco-system and therefore everything starting from money transfer to investment are going paperless. And the cryptocurrency is the latest as well as the most capable addition to the field of digital payment. The cryptocurrency is basically an exchange medium like the normal currencies like USD, but it is mainly designed for exchanging digital information. And here are some of the reasons why cryptocurrency has become so popular in the recent past.

1. 
   Asset transfers: The financial analysts often define cryptocurrency as the method that on a certain level can be used to enforce and execute two-party contracts on the commodities like real estate and automobiles. Besides, the cryptocurrency ecosystem is also used to ease some specialist transfer methods.


2. 
   Transactions: In the conventional methods of business dealings, legal representatives, agents, and brokers can add some great cost and enough complication to even the straightforward transaction. Besides, there are brokerage fees, commissions, paperwork and some other special conditions that may apply as well. On the other hand, the cryptocurrency transactions are one-to-one affairs that mainly take place on some peer-to-peer structure of networking. This thing results in better clarity in setting up audit trails, greater accountability and less confusion over making payments.


3. 
   Transaction fees: Transaction fees often take enough bite out of the assets of a person, mainly if the person performs loads of financial transactions every month. But as the data miners do number crunching that mainly generates different types of cryptocurrencies get the compensation from the network involved and therefore here the transaction fees never apply. However, one may have to pay a certain amount of external fees for engaging the services of any third-party management services to keep up the cryptocurrency wallet.


4. 
   More confidential method of transaction: Under the credit/cash systems, the complete transaction history can become a reference document for the credit agency or bank involved, every time while making transaction. At the simplest level, this might include a check on the account balances to make sure the availability of adequate funds. But in the case of cryptocurrency, every transaction made between two parties is considered as a unique exchange where the terms can be agreed and negotiated. Besides, here the information exchange is performed on a "push" basis where one can exactly send what he/she likes to send to the recipient. This thing completely protects the privacy of the financial history as well as the threat of identity or account theft.


5. 
   Easier trading system globally: Although cryptocurrencies are mostly recognized as the legal tenders on the national levels, these are not dependent on the interest rates, exchange rates, transaction charges or any other levies that are imposed by any particular country. And by using the peer-to-peer method of the blockchain technology, transactions, and cross-border transactions can be performed without any complications.


6. 
   Greater access to the credits: The Internet and the digital data transfer are the media that ease cryptocurrency exchanges. Therefore, these services are available to people with knowledge of the cryptocurrency networks, a workable data connection and immediate action to the relevant portals and websites. The cryptocurrency ecosystem is capable of making transaction processing and asset transfer available to all the wiling people after the necessary infrastructure is present in place.


7. 
   Strong security: After authorizing the cryptocurrency transfer, this can't be reversed like the "charge-back" transactions of different credit card companies. This can be a hedge against the fraud that needs to make particular agreements between sellers and buyers about refunds of the return policy or a mistake in the transaction.


8. 
   Adaptability: There are around 1200 types of altcoins or cryptocurrencies present in the present world. Some of these are a bit of ephemeral, but an adequate proportion is used for specific cases, which depict the flexibility of this phenomenon.

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Source by Sarbani Bhattacharjee

Beginner Guide to Basic Forex Trading

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Pick Up Forex Trading Now!

The name Forex, come from Foreign Exchange Market, which also referred as "Forex" or "FX" in short. Basically it involves a pair of currency. Meaning you buy a currency in exchange to another country currency.

For example if you visit Hong Kong from US. What would you do? Go to the money changer, use your US dollar to exchange for Hong Kong dollar right? By doing so you are actually selling your US dollar and buying Hong Kong dollar so that you can spend in Hong Kong. So if you return to US, you too will exchange your Hong Kong dollar to US dollar. Now you are buying back US dollar and selling your Hong Kong dollar. By now I hope you get the idea of basic currency trading.

So why trade Forex, you may ask? Well Forex is a 24 hours market and it is one of the largest markets in the world in term of daily volume. It trade volume range from 1 to 3 trillion USD every day. This is 6 to 8 times higher than the volume of the stock market in the world. It provides a lot of liquidity in the market. The large volume of participants also reduces opportunities for insider trading. To put thing to simple, there has NEVER been a case of complete currency collapse in a developed country.

For Forex trading is there is no restriction of short selling. Meaning you can buy (Long) or sell (Short). This mean you can easily trade in a rising or falling market.

Another great advantage of Forex Trading is leverage. Typically leverage increases your buying power. With this you are able to increase your total return on investment with less cash outlay. Of course increasing leverage increase risk too. However if you know how to manage your risk, this should not be a problem. Example if you have only $1000 dollar cash in a forex margin account, and a 200: 1 leverage, you can trade up to $200,000 in notional value.

Here is only some of the basic information on Forex Trading. To pick up forex trading, you may search more information in the internet or buy some books on Forex to read. Understand the basic foundation of Forex is a must!

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Source by Yeo Kian Poh

Forex Trading Robots - Scam Or Reality?

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With about 3.2 trillion USD worth of currency changing hands every day its hard to deny that Forex trading is a huge industry with insane amounts of money to be made. With that being said A large number of investors, most having absolutely no idea what they are doing have invested their hard earned money in the forex market with no return or even losses.

It seems for every wide eyed investor looking to supplement their income there are "so called" 10 experts claiming to have the answer or exact formula to making money in the forex market. Most make almost impossible claims of success, even for the most experienced traders. Lets face facts here, if you or anybody for that matter had a software, robot or trading system that guarantee to make money day in and day out with the forex market you would never share that information with anybody except if they were to be paid millions of dollars for their information.

In the past 2 years or so i have seen numerous "Forex trading Robots" pop up across the net. Basically what they promise to do is take all the guess work out of forex trading by buying and selling currency for you. The robot is suppose to run with no intervention from you while making loads of cash, in reality this is hardly the case. There are two types of robots i have come across, MT4 robots which make trades strictly based on mathematical formulas and the 2nd is Forex auto alerting which basically works on data the users inputs about the markets such as (stock prices, commodity prices, time of year etc.)

While the MT4 robot sounds great From my personal experience these robots make way to many trades with little or no gains making me think only the brokers are making any money plus it seems everybody who sells this robot always recommends you use it with their "favorite trading platform" I would assume the sellers are getting a kickback from the currency brokers based on every trade the robot makes because they referred you. I have used this robot for sometime, and found the demo accounts after a few months do end up making tiny amount of money but i would hardly recommend anybody invest $50,000 to only make $5000 return in 4 months. The risk in the forex market is too great to make such small gains with such large risk.

As for the Forex auto alerting i found this to be much more useful due to the fact it takes real live data the users inputs and make trades based on that information. The only real flaw with the Forex auto alerting is they tend to be quite time consuming since the software requires the user to input a large amount of data to obtain accurate forex trading results.

My personal advice to you is be sure to research every trade you make, take it slow its not a race and there is lots of money to be made all the time. Profiting from trades and knowing exactly why is a great feeling.

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Source by Anthony Bertucci

Forex Price Shading

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Bid-offer spreads

Prices on currency exchange currency pairs are quoted as bid-offer spreads, the bid being the sell price and the offer being the buy cost. So, if the EUR / USD is quoted at 1.4256 / 1.4258, a trader desiring to go long ( buy ) would buy the currency pair at 1.4258, while a trader desiring to go short ( sell ) would sell the currency pair at 1.4256.

The difference between the 2 costs, in this case, is 2 pips, or 0.0002 ( a pip is generally measured as 0.0001 ).

Typically, the more liquid a currency exchange pair is, the smaller the bid / offer spread will be. The liquidity of a pair is decided by how many trades are happening on it, so that the most commonly traded pairs generally have the smallest bid-offer spreads.

How currency exchange providers make their cash

Foreign exchange is a market on which traders can trade commission-free. This means that currency exchange providers make their profits on the differences between the bid and offer costs.

In the case of the EUR / USD pair quoted at 1.4256 / 1.4258, a trader going long would buy the pair at 1.4258. The pair, now costed at 1.4256 in the market, would have to rise 3 pips for the trader to earn a profit one pip to 1.4257, a 2nd pip to 1.4258 ( the break-even point ), and a 3rd pip to 1.4259. The two-pip movement in which the trader breaks even is where the currency exchange provider makes its profit.

What is price shading?

Currency exchange providers generally add pips to the prices quoted to them by the banks to extend their margin. Price shading is when a currency exchange provider, believing that a particular currency is going to move in a certain direction, will add pips to one side of the currency quote. So if a currency exchange provider assumed the EUR / USD pair would rise, it may quote the pair at 1.4256 / 1.4260, instead of 1.4256 / 1.4258, meaning that a trader going long would have to buy the pair at 1.4260.

Accordingly, the currency pair would have to move 5 pips for the trader to earn a profit, and the four-pip movement in which the trader broke even would be the currency exchange provider's profit.

Generally, if there are way more buyers than sellers of a currency pair, a provider will shade the buy side by adding pips to the offer cost. Likewise, if there are far more sellers than buyers of a currency pair, a provider will shade the sell side by adding pips to the bid cost.

Why it works

If there were 500 consumers and 500 sellers of a certain currency pair, and the foreign exchange provider had added one pip to each side of the inter-bank quote, the provider would make one pip for each trade ( or 1,000 pips ).

If there were 300 customers and 700 sellers, the provider would add 2 pips to the bid price and no pips to the offer cost.

So that the inter-bank rate for the EUR / USD pair is 1.4255 / 1.4256 and the broker quotes it at 1.4253 / 1.4256, meaning the sellers sell at 1.4253 while the buyers buy at 1.4256. As the amount of sellers in the market is higher than the number of buyers, the currency pair falls in value. The pair wants to fall by 2 pips for the sellers to break even ( from 1.4255 to 1.4253 ), and the foreign exchange provider makes those 2 pips in profit. That is 1,400 pips of profit for 1,000 traders.

The simplest way to use this to your advantage

To ascertain whether your forex provider is using price shading you would need to compare the quoted costs to those quoted by Reuters or Bloomberg, or create an account with 2 providers, one of them being a straight-through processing broker who will charge a commission instead of profit on the bid / offer spread.

If your provider's costs are constantly biased to one side, it means that the majority of orders coming from retail patrons are coming from that side. Because the majority of retail investors are usually wrong, you might trade on the other side if the bias is on the purchase side, you might sell, and if the bias is on the sell side you might purchase.

Also, as these spreads drawback the majority by cutting into their profits ( remember, your forex pair wishes to cross the ask / buy spread to get to break even before you can turn a profit ), you will get advantages from not losing the shaded pips, fundamentally entering your position at a nicer price than the majority of investors.

When selecting a forex broker

Any broker that doesn't charge a commission for forex trading will make its profit in the ask / buy spread; and it is the trader's responsibility to compare different fx providers to underdant their commission structures and how they get paid.

A trader should choose a reputable provider based on the strength of the company, their history of service, any awards they have won and whether they are regulated by your country's regulatory authority. A good forex provider will offer this information freely, along with transparent information about their spreads, accessible on their website or by phone.

As forex spreads can vary thanks to the levels of liquidity in the market, a good forex broker should pass narrow spreads in the underlying market on to clients, as well as having a maximum spread cap.

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Source by Bjarni Gagne Johnson

Are You Winning? Calculating FOREX Profits and Losses

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When trading currency you deal with much smaller divisions than when dealing with actual cash. For example the smallest denomination of US is currency is the penny ($ 0.01) but on the FOREX market it can be traded down to $ 0.0001. The smallest division that a currency can be traded at is known as a pip. A pip is short for Price Interest Point; this is sometimes also referred to as points. Currencies are traded in very large lots so even a small change in the value can create a significant profit or loss. If you are trading $ 100,000 in US dollars a single pip is worth $ 10 so a change of 60 pips or 6/10 of one cent will generate a profit or loss of $ 600 depending on the direction of the move.

When trading currencies various lot sizes are not unusual but 100,000 units are considered a standard lot. A single unit is what ever the name of that particular currency is for example when trading Japanese currency a single unit is the Yen. Some trades are done in lots of 10,000 these are commonly referred to as mini lots. Even though lots of various sizes are possible the majority of trades involve standard lots of 100,000 units.

The size of the pip is based on the currency type; different types of currencies have different pip sizes. For example the Yen pip is 0.01 where as the US dollar has a pip of 0.0001. Both the type of currency as well as the size of the lot determines the actual value of the pip. Using the US dollar as the quote currency (second currency) such as CAD / USD then the pip always equals $ 10 for a standard lot and $ 1 for a mini lot. For other currencies it is easiest to use a pip value calculator to determine the pip value.

In the FOREX market there are a variety of order types available for making trades. You need to have a solid working knowledge of the different order types to be a successful FOREX trader.

Market Orders - This is simply an order to buy or sell at the current market price. Market orders can be used to enter or exit a position. Market orders can be dangerous during times of high market volatility. The price can change significantly between the time that you enter your order and the time when it is actually recorded or executed. The amount that the market changes between the time that an order is placed and when it is executed is known as slippage. Depending on market conditions slippage can result in the gain or loss over several pips.

Limit Order - This is an order to buy or sell at a specific price. These are used to help you control your trades without having to constantly monitor the market. If you have a sell limit in place for a price higher than the current rate your order will be executed as soon as the market rate rises to match your limit. If you have a buy order in place to purchase a currency at below the current market price your order will not execute until the current rate drops to match your limit.

Stop Order - These are used to limit your losses if the market moves in the opposite direction of what you are expecting. This will cause your currency to be sold at below the market price or purchased above the current price. A stop loss is executed when the market crosses the threshold set by the trader when placing the order.

To be successful on the FOREX market it is essential that you learn to figure profit and losses and to use the various order types to their fullest potential.

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Source by Steve Welker

If You Own Iraqi Dinar Currency, Selling It Won't Be Easy

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If you are among the thousands of people who have bought Iraqi Dinar currency in hopes of scoring a big profit, you may now be wondering what options there are for liquidating your Dinar holdings.

The Iraqi Dinar investment dream has been around for nearly a decade now. The dream is promoted by a slew of websites that sell Iraqi currency - that is, actual physical bundles of currency - to "investors" through mail order. The websites' sales pitch goes like this: "Before the 1990's Gulf War 1 million Dinar was worth $3,200,000 USD; today you can buy 1 million Dinar for just $1,150.00 USD". As the Iraq economy improves the Dinar will likely be revalued. If the revalue is at a level approaching it's pre-war exchange rate, today's small cash outlay could return millions for those savvy enough to get in now. Iraq's vast oil resources, well-educated population and guaranteed rebuilding aid from the US make buying Iraqi dinar almost a sure bet."

This rationale has proven compelling for thousands of people who've taken the plunge and bought Iraqi currency.

But people who buy Iraqi dinar are not buying a liquid, actively traded investment; rather they are buying a numismatic "collectible" that has very high transaction costs. For example, today you can expect to pay about $1,150 USD for 1,000,000 of Iraqi Dinar (IQD) currency from on-line dealers. The same 1,000,000 IQD has an official exchange rate value of just $854 USD - a hefty 30% markup. Dealers justify this margin by noting the high costs of transporting and safekeeping foreign currency bundles.

Similarly, if you are a holder of Iraqi currency and have decided to convert your Dinar back into US dollars, your options are limited and costly. One Dinar website makes the following noteworthy disclosure in its fine print Q&A page: Until markets develop for the resale of Iraqi Dinars, it may be difficult for you to liquidate your Iraqi Dinars or exchange them for US Dollars.

One option is to sell the currency back to a Dinar dealer. Typically, online Dinar dealers who advertise 1,000,000 IQD for sale for $1,110 are willing to pay $800 to buy back the same 1,000,000 IQD. In other words, when you drive the Dinar off the lot, it's instantly worth 32% less in the eyes of the dealer that just sold it to you! Selling Dinar back to a dealer is the option having the highest transaction cost but least amount of hassle.

A second option is to sell your holdings on eBay. With eBay, transaction costs should be 10% or less (meaning you might pocket $1,000 if your 1,000,000 IQD can fetch $1,100). (This eBay fee calculator will give you a good idea of your transaction costs.) However, for the newcomer, eBay can be intimidating and entail a substantial learning curve. You should be aware too that eBay has a very active community of Iraqi dinar dealers who you will be directly competing with.

A third option is to sell your Dinar holdings on Craigslist. Craigslist is free, easy to use and very effective for selling items. However, the audience is primarily local and the number of listings for IQD is relatively small - even in the larger Craigslist communities.

The Iraqi Dinar dream may someday become reality for those investors willing to buy and hold dinar for the long-term. But people looking to liquidate their Dinar holdings today will likely take a significant loss on their "investment".

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Source by Tim Paul

Forex Trading Machine - Avi Frister Review

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Forex Trading Machine by Avi Frister is a very popular book based on a mechanical model of trading and therefore uses no pivot points, chart patterns, moving averages, Bollinger bands that require user discretion and judgment.

There seems to be a sudden explosion on the number of forex books bubbling in the market, all supporting a heavy price tag. Warning, most of them are a waste of time. My experience in reviewing them: Big promises, shoddy information. Thankfully Forex Trading Machine is different from the breed and actually delivers what it promises.

Here's a brief overview of the strategies explained in the forex trading machine:

Cash Cow Strategy is designed with the GBP/USD currency pair. Avi says this pair has been specifically chosen because of its volatility. Using this system you can throw three to four trades a month. The advantage is that you don't have to stick your eyes to the computer monitor all day.

Flip & Go Strategy is a strategy for day trading .It shows you how to take advantage of a certain characteristic of the EUR/USD pair .

Forex Runner Strategy is another strategy for day trading. It's purely mechanical and based solely on what price is doing.

Avi also includes a bonus strategy Forex News Trading Strategy.He explains how certain important reports such as the Non Farm Payroll can create moves in the market that can be very significant .

Overall Forex Trading Machine makes a good reading. Avi Frister also has a bonus offer giving Mark Mcrae's book Trading for beginners absolutely free. Also included is a 56 day money back guarantee.

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Source by Mike Lombardy

How to Convert Bitcoins to Dollars

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Exchanging bitcoins to an useful currency.

Bitcoins seem to have been heralded by most as the currency of tomorrow, but there are only a handful of sites that agree to accept them. Luckily for us, transforming bitcoins to a workable currency like dollars is simple and plain. If you desire to be aware of just how much bitcoin is worth, run a simple net search. If you want to essentially convert bitcoin to dollars, transfer them in an internet market and sell them to an interested consumer. The online marketplace might promptly and easily convert your bitcoins to dollars and transmit them to a debit card, bank account, or digital wallet of your determination.

Selecting a Conversion Service.

1) Compare the rates made available by diverse conversion services and determine the top one.

Equally when the general bitcoin conversion rate improves, several conversion services provide you with diverse conversion rates. For example, think one service gives to convert your bitcoins at a rate of 1 to $5000 USD and one other offers to turn 1 bitcoin in to $5250 USD. All additional things getting equivalent, you should go along with the second service to acquire the most of your bitcoins.

2) Convert your bitcoin adding a service with low fees.

Conversion services often ask for a fee. Usually there is a flat fee if how highly you exchange, and often the conversion service charges a segment of the sum you exchange. Evaluate the costs associated with the numerous conversion services and choice one that offers you the ideal deal. Service fees modify over time, so make sure to verify the services terms and fee routinely.

3) Confirm that the service you're utilizing is safe.

Generally there are a handful of ways to authenticate that a bitcoin conversion web page is harmless. One is to check review sites for testimonials. One other method is to ensure the website uses https (as opposed to the less comfy http) in their URL. At last, implement a conversion service that permits two-factor identification, making certain that simply you will likely be able to confirm bitcoin conversions.

4) Choose a service that has low transfer time period.

A bit of web sites transfer bitcoins to your account just after 2 days, but quicker services may convert your bitcoins to dollars in 2 hours or even less.

Enrolling and Uploading Your Bitcoin.

1) Register for an account.

Enrolling for an account comes to providing your name, date of birth, address, email address, telephone number, and other personal data. You'll also need to provide bank account information, an online payment service like PayPal, or similarly (depending on in what way you want to convert and transfer your bitcoins).

2) Decide on the most effective security options every time you sign up.

Each time you obtain an account on a bitcoin marketplace, you'll have the probability to let two-factor authentication, which will results in you would enter a password and a randomly built code sent to your cellphone. You may also wish to let a multi-signature option, which in turn requires innumerable independent approvals in advance of producing a bitcoin conversion or withdrawal. Both of these kinds of security settings can safeguard you from theft and hackers.

3) Deposit your bitcoins in the markets.

The specific mechanism by which usually you deposit your bitcoins should differ subject to how your bitcoins are really today stored. Primarily, depositing your bitcoins is as easy as clicking deposit bitcoins, on the top of the marketplace's web site. No matter your bitcoin encryption key factor is printed out, you'll be advised to enter into it. Regardless whether your bitcoins are in a wallet (an encrypted file or code), you could be asked to upload the file. Don't be afraid to contact customer support in the event you're having problem depositing your bitcoins.

Exchange Rates.

Convert your bitcoins in the event that the exchange rate is very good. Across time frame, exchange rates climb and fall down. As a representation, one day the exchange rate may well allow you to trade 1 bitcoin for $4900. A week later, the exchange rate may perhaps provide $5150 meant for 1 bitcoin. Hold out to exchange your bitcoins right up until the according dollar worth increases. Presently there is no fixed segment or worth that specifies a helpful exchange rate. Some people may possibly experience that if the worth of a bitcoin springs up by $100, it is an OK instance to convert their currency. Some people may delay until the value they'd get springs up by 5 percent. Confirm the exchange rate constantly online or sign up intended for a service that updates you on the bitcoin-to-dollar exchange rate so you can understand when it improves.

Sell off your bitcoins in the market place.

Offer your bitcoins in the current market. Several marketplaces permit you to sell your bitcoins to another person. Individuals enable you to sell them instantly to the market place, which usually will after that resell them to interested buyers later on. In either case, the certain manner you implement to sell off your bitcoins will differ slightly according to the market place you make use of. Most of the times, you can merely click on Sell your bitcoins or some equivalent choice to get the process initiated. The bitcoins will the be turned to dollars and moved to the bank account you offered.

Save your bitcoins on a debit card.

Place your bitcoins on a debit card. A handful of marketplaces let you to load your bitcoins on to a debit card that conveniently converts them to dollars. You may be able to acquire an online digital debit card, which usually only supplies you with a string of figures you can adopt for online purchases that need to have dollars, or you can generate a basic debit card in the mail. Similarly these kind of debit cards cost money, but they present an added benefit, exclusively if you pretty much never make use of cash.

Transfer your bitcoins to another digital wallet.

Switch your bitcoins to one different online wallet. Several bitcoin conversion services make it easy for you to convert your bitcoins to dollars by switching them to PayPal, Apple Pay, or similar services. If this is the approach you want to convert your bitcoins to dollars, put your payout method to the online digital wallet you want to use. Then simply, basically sell off or transfer your bitcoins to the service of your determination by using the marketplace menus. Transforming bitcoins to dollars by transferring them to an online wallet sometimes has bigger fees and reduce limits than transferring them to your bank account. This alternative may perhaps, nonetheless, be much better intended for users who do online acquisitions repeatedly and don't wish the inconvenience of relocating their money from a bank to an online wallet.

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Source by Ramon Tarruella