Forex Trading 101: Making Money in the Forex Market

The Forex (Foreign Exchange in English, or "foreign exchange market") is the market "OTC" (that is to say between operators that are not subject to market "regulated") on which traded currencies around the world between them, currencies quoted against each other in the form of parity.

The Forex is today the largest financial market in the world, the average daily volume of transactions (about 4000 billion dollars in April 2010) representing three times the equity markets and futures (futures markets) combined. Is being developed since the abandonment of fixed exchange rates of various currencies them (and also the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.

The most traded currencies in the world are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency called "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are subject to little exchange on Forex.

Forex key stakeholders are:

Banks and financial institutions that provide 50% of transactions through proposals for "market makers," offering a price at any time buyer ("bid") and ask price ("ask"), the difference (the "spread" ) is the financial gain;

Large companies who want the whole hedge against currency risk in relation to their international activities (but multinationals have also developed their own trading floors directly involved in Forex speculative purposes);

The central banks involved sometimes the market (buying or selling massively currency) in order to regulate and maintain a specific monetary policy: the European Central Bank will be able to sell Euros if it hopes to reduce this currency;

Institutional investors (hedge funds, etc.). Involved both cover portfolios stocks or bonds in an optical speculative direct up to 30% of Forex transactions;

Individuals whose investments are highly developed through trading "on line" and represent approximately 5% of forex transactions.

A position on the Forex involves selling one currency and buying another. Buy EUR / USD means for an investor to buy Euro and sell dollar.

If an investor expects an increase of EUR / USD (appreciation of the Euro against the dollar) and the euro / dollar actually goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will be purchased allowed the investor to earn 50 Dollars.

From Asia to the United States via Europe, Forex is a market that operates continuously, 24 hours on 24. A strategy called "arbitrage" will also play on a shift observed during the same medium. for more visit forex news

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Forex Trading versus Working a Regular Job

If you are interested in embarking on a Forex trading career of your own, you may want to consider the both advantages and disadvantages of both trading currencies and working a regular job.

With Forex trading, you get a lot of freedom; you can work whenever and wherever you want, since the market for currencies open all day every business day and you can trade from your own home. You don't have a boss and you work self-employed.

By working a regular job, you will most likely get very little freedom; you will have set hours and most likely more hours to work. You will also have to travel to work, instead of working from home. With a regular job, you will of course also have a boss that you will have to take orders from.

You can probably now why Forex trading is seen to be a desirable job when self-employed, however there is an issue with security. It is just like any other business. By trading currencies for a living, you will be your own boss, which means that you will have to really work for your earnings. With a regular job, you get a set wage and that is guaranteed, provided that you don't get fired or made redundant.

So with Forex trading, your livelihood could be described as less secure. However, this disadvantage can be overcome by simply ensuring that you earn a good amount of money through your trading, before you quit your regular job and decide to trade full-time. Some days will be bad and some will be good; if you want to make sure that your livelihood is secure, don't quit your day job until you are consistently earning a solid amount of money.

There is also a huge amount of potential in Forex trading, which is another reason why trading currencies is better than working a regular job. As a Forex trader, you can literally make millions annually, which is obviously a lot more than what most bosses can provide their employees with. With a regular job, however hard you work, you will get the same wage unless you get pay rises which aren't too common. However the harder you work when it comes to Forex trading, the more you earn, most of the time. Of course this isn't all the case, but the people who work the hardest tend to get the luckiest.

In conclusion, as long as you get to a stage where you are profiting well and consistently, Forex trading has to be better than working a regular job full-time. With all the freedom, flexibility and potential, Forex trading has to come out on top when compared to working a regular job full-time. It may have its flaws, like the fact that it could mean less financial security since Forex traders don't get a set wage, but this is just like any other business. In order to make money, you need to take risks and as previously mentioned, it doesn't even have to be that risky as long as you don't quit your day job until you are making a substantial amount of money on a regular basis. There are some other minor flaws of Forex trading; it can get lonesome and boring, but these can also be overcome; by being self-employed you can take time off to spend with family and friends whenever you feel like it and some Forex brokers offer fun and enjoyable features that can prevent you from becoming bored of Forex trading.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone. Providing useful tips, reviews, articles and writings on forex online.

Socializing as a Forex Trader

Forex trading is quite a lonely profession really, as you will find yourself trading alone a lot at your computer, especially if your strategy involves day trading or at least is time-consuming for you. Not only will you find it hard to find time to socialize as a Forex trader, but you will also probably not know where to go in order to find like-minded individuals.

Networking is the answer. You need to interact with people like you. Of course it's good to go out, make friends and see your family too but if you want your socializing time to also be beneficial for your Forex trading career, networking would be the answer. You can network in a variety of different ways, on the internet and in real life. However, regardless of whether you want to do it online or offline, you will find it far easier finding groups online.

If you look on the internet you can find Forex trading groups on popular social networks, but you can also find local meetups, seminars and other networking events too if you look carefully.

Social Forex trading networks are also a good idea, which involve interacting with other Forex traders and exchanging information etc. All of this can not only help you to get in touch with people like you, but it can also help you to make more money in the Forex market and throughout your Forex trading career.

Some extremely driven people will put off socializing altogether and just keep on working, but if you do this you will burn out eventually. Every now and then you should take a break. You should see breaks as profitable, because they are. By taking a break, you will go back feeling much better and more refreshed. It is mentally and physically draining, trading the markets and so it's best if you take a break once in a while. As mentioned before, these breaks can also be beneficial for you. Going to a networking event for Forex traders could be very beneficial and you would be able to meet lots of different people just like you who trade currencies for a living. Even if you don't trade currencies for a living, you could make lots of contacts and learn a lot by going to a networking event for Forex traders.

In conclusion, there are lots of ways in which Forex traders can socialize in reality. While Forex traders should take time off to spend with their friends and family, they can also take breaks in order to benefit their career more directly by networking with like-minded individuals. If you don't currently do any networking, you really should. One good reason for building a list of contacts is that when you go through a particularly bad time, if you ever do, you can then consult your contacts and ask for help. With all the social networks around online today, networking is easier than ever, so if you aren't already actively networking then you should seriously consider starting soon.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone. Providing useful tips, reviews, articles and writings on forex online.

How Students Can Trade Forex Profitably

Students can trade Forex profitably, just like any other Forex trader can. As a student, you will probably find yourself tight on money. However, at the same time you will probably have a good deal of time to work and make money, depending on your course. Forex trading can be a great way for a student to make money comfortably in their accommodation when they are not working on their academic studies.

First of all, if you are a student and are looking to make money trading currencies, you should know that it isn't as easy as it sounds. You can't just open an account, deposit money and guess your way to success. Traditional Forex trading takes a lot of work, so you do need to be prepared to do the work required.

If you don't like the sound of having to dedicate lots of time to your Forex trading, you should consider joining a social network for Forex traders. Some networks will allow you to copy other Forex traders automatically. This way you can have fun, do minimal work and let your money work for you. Of course there is some skill involved and you will need to seek out the top Forex traders within networks and invest your money wisely, however it is fair to say that this way of trading currencies is a lot less demanding than the traditional way.

As a student Forex trader, you should also make sure that you don't risk more money than you can afford to lose and you should ensure that you take your Forex trading career one step at a time. Don't look for fast gains as they most likely won't happen. They could of course, but you can't keep up big gains consistently unless you have discovered a truly innovative way of trading the markets. The Forex market is always adapting though, so you will always need to test and adapt. It isn't easy to trade currencies successfully by any means, or at least not consistently. Before you even get started with traditional Forex trading, with live currencies, you should already have studied and practiced.

Before you even place your first live order, you should know the basics, understand fundamental analysis, know all about the technical side of Forex trading, have a clear plan for your trading career outlining all of your tactics and have a set strategy that you plan on following. You will also of course need a good Forex broker and the right tools to help you succeed. Some practice also goes a long way. So all in all, there's a lot that goes into a Forex trader's career. If this all sounds exciting to you, then search up some Forex brokers and get started today. You could become a Forex trading millionaire one day. If this all sounds too much to you though, you could simply join a social network for Forex traders as previously suggested, which you might find more appealing.

In conclusion, students can become successful Forex traders too, however students must realize that they will have to put in just as much work as everyone else in order to succeed in the Forex market. Students can make a lot of money trading currencies, but they must understand that taking a professional approach to Forex trading is important. If you are a student and you like the sound of trading currencies in order to make some extra money or perhaps even a lot of money, you should get started as soon as you can and work as hard as you can. If you fit your Forex trading endeavours around your academic studies, you could absolutely become a successful Forex trader.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone. Providing useful tips, reviews, articles and writings on forex online.