These days everyone is talking about a new profitable activity called Forex trading and the great opportunity this activity represents for people willing to brake free from the corporate world and start working from home or any where else without losing their current lifestyle and even improving it.
Most experienced traders consider that the best and most profitable of the capital markets is the Forex market. For many years Forex trading was the sole domain of major banks, large financial institutions and countries central banks; for example the U.S. Federal Reserve Bank. But these days, thanks to the internet the market has been opened to everyone willing to learn the best techniques in Forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.
You have many advantages when trading the forex markets, for example; you don't have to worry about fees you may have to pay to your broker; there are also none of the usual fees to which futures and equity traders are accustomed to pay always; no exchange or clearing fees, no NFA or SEC fees.
The forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these five currencies account for over 70% of North American trading. Of course there are other tradable currencies; they include the Canadian, Australian and New Zealand Dollars. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies constitute the backbone of the Forex market.
The concept of “Buying” in Forex refers to the acquisition of a particular currency pair to open a trade and “Selling short” refers to the selling of a particular currency to open a trade, i.e, just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.
Showing posts with label forex broker. Show all posts
Showing posts with label forex broker. Show all posts
Wednesday, May 5, 2010
Thursday, August 21, 2008
Different Types of Orders
Guest Post by Jan Erik Miranda
When you buy or sell an instrument, you are placing an order. Different brokers have different orders, but here are the basic orders:
Market order
A market order is an order to buy or sell at the current market price. You use this type of order when you want to buy the instrument at its current price
Example: Currently, USD/EUR - 1.7522 1.7526. IF you want to buy at the current price of 1.7526, you place a Market Order
Limit order
A limit order is an order placed to buy or sell at a certain price.
Now suppose you do not want to buy the USD/EUR at a price of 1.7526, instead preferring to wait for it to touch 1.7536 before buying it (not really a good idea, but just for example sake). You can set a limit order, and your platform will automatically buy when the price touches 1.7536
Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you.
It just helps minimize your loss if by any chance the market goes against you. Supposing you buy USD/EUR at 1.7526 expecting the price to rocket, but on the contrary the price drops to 1.7501. If you have a Stop-loss order in place at 1.7517, you will lose only 9 pips whereas if you did not you would lose 25 pips.
Other Types of Orders
Other popular, but a bit more complicated orders.
GTC (Good till cancelled Order)
A GTC order remains active in the market until you decide to cancel it. The order remains in effect and your broker will not cancel it
GFD (Good for the day order)
A GFD order remains active in the market until the end of the trading day. The end of the market day is usually considered as 5pm EST but may vary from broker to broker
OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled.
Example: The price of USD/EUR is 1.7526. You want to either buy if the price touches 1.7536 expecting it to rise further or if it falls, initiate a selling position at 1.7505.
Simply, if one order is accepted, the other is cancelled.
About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.
When you buy or sell an instrument, you are placing an order. Different brokers have different orders, but here are the basic orders:
Market order
A market order is an order to buy or sell at the current market price. You use this type of order when you want to buy the instrument at its current price
Example: Currently, USD/EUR - 1.7522 1.7526. IF you want to buy at the current price of 1.7526, you place a Market Order
Limit order
A limit order is an order placed to buy or sell at a certain price.
Now suppose you do not want to buy the USD/EUR at a price of 1.7526, instead preferring to wait for it to touch 1.7536 before buying it (not really a good idea, but just for example sake). You can set a limit order, and your platform will automatically buy when the price touches 1.7536
Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you.
It just helps minimize your loss if by any chance the market goes against you. Supposing you buy USD/EUR at 1.7526 expecting the price to rocket, but on the contrary the price drops to 1.7501. If you have a Stop-loss order in place at 1.7517, you will lose only 9 pips whereas if you did not you would lose 25 pips.
Other Types of Orders
Other popular, but a bit more complicated orders.
GTC (Good till cancelled Order)
A GTC order remains active in the market until you decide to cancel it. The order remains in effect and your broker will not cancel it
GFD (Good for the day order)
A GFD order remains active in the market until the end of the trading day. The end of the market day is usually considered as 5pm EST but may vary from broker to broker
OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled.
Example: The price of USD/EUR is 1.7526. You want to either buy if the price touches 1.7536 expecting it to rise further or if it falls, initiate a selling position at 1.7505.
Simply, if one order is accepted, the other is cancelled.
About the Author:
As an internet marketer, Jan Erik Miranda is also trading Forex for quite sometime now. For more articles on Forex trading and/or currency trading such as this one, visit International Forex Trading.
Saturday, June 28, 2008
Learn to Trade Forex
Welcome!
Do you know that you can make a fortune in online Forex trading with as little as $300.00? Yes, you can. It is called trading with a "Mini" Account. Well, just hang on because through out this blog you will learn the strategy on Forex Trading. But, first I would like to warn everyone that trading Forex or Foreign Exchange Currency pairs contain substantial risks and may result in potential losses. Do not put or invest any funds that you cannot afford or willing to lose.
By the way, do you know what Online Forex Trading is? Well, I define it as the buying and selling of currencies through the internet and profiting from the changes in currency prices.
Is this legitimate? The answer is a big YES. Currency trading has been around since money was invented. Trading it online (via internet) is simply a more convenient and efficient way of doing it. To make this market more legitimate, a Forex Broker must be registered under a government agency in the particular country that they are based.They must also be a registered Futures Commissions Merchant (FCM) regulated by the Commodities and Futures Trade Commission (CFTC) and the National Futures Association (NFA).
How do I trade? Do I need a Broker? Apparently, the answer is yes, because you cannot trade by yourself. You have to trade through a broker. However, when choosing a Broker please make sure they are a registered FCM and regulated by the CFTC and NFA. There are lot of brokers, such as GFT Forex, Easy Forex, IBFX...too many to choose from. But for Mini Account, I am very comfortable with FXCM based in New York. Opening an FXCM trading is quick and easy. Applications can be submitted online, or via FAX. But the quickest and easiest way to open an account is online. Processing takes just minutes and once approved, you will have to deposit money to your trading account either through credit card or bank wire transfer.
The good thing about Forex trading is that your money can be withdrawn at anytime...24/7, funds can be credited back to your credit card or wire transferred back into your local bank account.
To be continued...
Do you know that you can make a fortune in online Forex trading with as little as $300.00? Yes, you can. It is called trading with a "Mini" Account. Well, just hang on because through out this blog you will learn the strategy on Forex Trading. But, first I would like to warn everyone that trading Forex or Foreign Exchange Currency pairs contain substantial risks and may result in potential losses. Do not put or invest any funds that you cannot afford or willing to lose.
By the way, do you know what Online Forex Trading is? Well, I define it as the buying and selling of currencies through the internet and profiting from the changes in currency prices.
Is this legitimate? The answer is a big YES. Currency trading has been around since money was invented. Trading it online (via internet) is simply a more convenient and efficient way of doing it. To make this market more legitimate, a Forex Broker must be registered under a government agency in the particular country that they are based.They must also be a registered Futures Commissions Merchant (FCM) regulated by the Commodities and Futures Trade Commission (CFTC) and the National Futures Association (NFA).
How do I trade? Do I need a Broker? Apparently, the answer is yes, because you cannot trade by yourself. You have to trade through a broker. However, when choosing a Broker please make sure they are a registered FCM and regulated by the CFTC and NFA. There are lot of brokers, such as GFT Forex, Easy Forex, IBFX...too many to choose from. But for Mini Account, I am very comfortable with FXCM based in New York. Opening an FXCM trading is quick and easy. Applications can be submitted online, or via FAX. But the quickest and easiest way to open an account is online. Processing takes just minutes and once approved, you will have to deposit money to your trading account either through credit card or bank wire transfer.
The good thing about Forex trading is that your money can be withdrawn at anytime...24/7, funds can be credited back to your credit card or wire transferred back into your local bank account.
To be continued...
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