2009年3月3日星期二

TheSevenMostTradedCurrenciesinFOREX|currencyforextrading

Currencies are traded in dollar amounts called "lots". One lot is equal to $1,000, which controls $100,000 in currency. This is what is known as the "margin". You can control $100,000 worth of currency for only 1,000 dollars. This is what is called "High Leverage".

Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded. The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency.

Here are some of the common symbols used in the Forex:

USD - The US Dollar

EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can not ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible.

Some of the common PAIRS are:

EUR/USD Euro / US Dollar

"Euro"

USD/JPY US Dollar / Japanese Yen

"Dollar Yen"

GBP/USD British Pound / US Dollar

"Cable"

USD/CAD US Dollar / Canadian Dollar

"Dollar Canada"

AUD/USD Australian Dollar/US Dollar

"Aussie Dollar"

USD/CHF US Dollar / Swiss Franc

"Swissy"

EUR/JPY Euro / Japanese Yen

"Euro Yen"

The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / however you want to SEE it) is called the base currency. The denominator (bottom of the fraction or "right" of the/however you want to SEE it) is called the counter currency. When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did with to base currency with the counter currency.

If this seems confusing then you're in luck. You can always get by with just thinking of the entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of the base/counter concept for Fundamental Analysis issues.

So why is it important to know about the base/counter currency? The base/counter currency concept illustrates what is actually taking place in a Forex transaction. Some of you reading this, know that short-selling was restricted in the stock market *(Short-selling is where you sell a stock/currency/option/commodity first and then try to buy it back at a lower price later). But in the FOREX you are always buying one currency (base) and selling another (counter). If you sell the pair you are simply flipping which one you buy and which one you sell. The transaction is essentially the same. This allows you to short-sell with no
restrictions.

You want to be able to short-sell with no restrictions so you can make money when the market drops as well as when it rises. The problem with traditional stock market trading is that the market has to go up for you to make money. With FOREX trading you can make money in all directions.



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Global Forex Trading Questions

Global Forex Trading Questions
What is really bought and sold on the Forex currency market? Quite simply, "nothing" is the answer. The Forex market constitutes a purely speculative market with no physical exchange taking place, no hard cash to hold of currencies traded. The trades all exist notionally, purely as computer entries, netted out dependent on market price. In US dollar-denominated accounts, profits and losses get calculated in US dollars and recorded like so on a trader's account.
The Foreign Exchange market exists primarily to facilitate exchange of one specified currency to another so multinational corporations needing to continually trade currencies (eg, for payroll, payments of costs for goods and services of foreign vendors, and mergers and acquisitions activities). However, corporate day-to-day needs only comprise about twenty percent of market volume. Eighty percent of currency market trades are speculative by nature, placed by multi-billion dollar enormous hedge funds, large financial institutions, and even individuals wishing to express their opinion on geopolitical and economic events occurring on the day.
As currencies are always traded in pairs, when traders make a trade they are always long on one currency and, obviously therefore, short on the other. If a trader were to sell a standard lot (100,000 units) in EUR/USD, he or she would have, in essence, exchanged the euros for dollars now being "short" on euros and "long" on dollars. To illustrate the dynamic, let's look at a concrete example. In an electronics store you purchased a computer costing $1,000. You exchange your cash, $1,000, for a computer. Now, you are basically "short" on $1,000 cash and "long" on 1 computer. So, the store is now "long" on $1,000 cash but "short" on 1 computer in their inventory. This same principle applies in exactly the same way to the Forex market, except, of course, that no actual physical exchange ever takes place. Since the transactions simply appear as computer entries, don't be fooled, their consequences are certainly no less real to traders of Forex.
Which currencies get traded?
Some retail dealers do trade exotic currencies like the Thai baht and the Czech koruna, but the majority of dealers tend to trade the world's 7 most liquid currency pairings, the 4 majors being:
EUR/USD (euro/dollar)
GBP/USD (British pound/dollar)
USD/JPY (dollar/Japanese yen)
USD/CHF (dollar/Swiss franc)
And 3 commodity pairs being:
AUD/USD (Australian dollar/dollar)
NZD/USD (New Zealand dollar/dollar
USD/CAD (dollar/Canadian dollar)
These seven currency pairs and their combination variations (like EUR/JPY, EUR/GBP and GBP/JPY) account for over 95% of all the speculative trading in Forex. With only 18 available pairs and crosses actively traded, the Forex market, compared to the stock market is most definitely more concentrated.




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Legal disclaimer and risk disclosure

Legal disclaimer and risk disclosure

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the authors and the publisher are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. In commodity trading, as in stock, and mutual fund trading, there can be no assurance of profit. Losses can and do occur. As with any investment, you should carefully consider your suitability to trade and your ability to bear the financial risk of losing your entire investment. It should not be assured that the methods, techniques, or indicators presented in this magazine will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples in this magazine are for educational purposes only. This is not a solicitation for any order to buy and sell. The information contained herein has been obtained from sources believed to be reliable, but cannot be guaranteed as to accuracy of completeness, and is subject to change without notice. The risk of using any trading method rests with the user.

 


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ForexAutopilotReview–DoesForexAutopilotSoftwareWork

Is Marcus Leary Forex Autopilot scam or the real deal? With so many excessive publications, to be honest, I thought this software is just another scam created to take your money away.

It is easy to fall into temptation of making $5,000 or $10,000 without doing anything other than sit and relax. Let's take a look at my forex autopilot review about this software.

1. What You Should Be Aware?

I would advise you to be aware first. You should do thorough research first before you buy any automated forex solution such as Forex Auto Pilot.

This was exactly what first came to my mind: skeptic. How could someone make a lot of money with just a one piece of software?

Now, don't get me wrong, I do appreciate technology and all fantastic things that can happen with today modern technology.

But if it is that easy, then we will see a lot of millionaire born from this software. You just need swap your credit card, buy the software, and in several months you will get rich beyond your wildest dream.

2. That Is Impossible To Happen

No, that is impossible to happen. I never heard such a thing before. Until one day one of my friends bought this software and made $1,300 in his first day. I simply didn't believe it, then I bought the software and it really worked!

Of course you wouldn't make $1,300 every day, one day you will get more profits and another day you will get loss.

But overall, the profit always exceed more than the loss, from my 1k initial investment I have averaged 100% return every month.

Of course, it took me a couple of months before I make such profits. You will still need a firm understanding of the forex market and how it works to trade profitably with this software.

Also, you should have some money to lose at the beginning when you are learning to trade with forex autopilot. So don´t use money that you need to pay the bills and put food on the table.

There is a slight learning curve but it shouldn´t be too difficult for most people interested in forex trading. It takes some practice and experience before you know what you are doing.

Unless you are determined to make money with forex trading and willing to learn and make some mistakes in the process, I don´t recommend you pick up forex autopilot.

However, if you are willing to learn and have some spare cash to play with, I recommend this software as it can help you save a lot of time and pick more profitable trades.

I highly recommend Marcus Leary Forex Autopilot software if you are looking for an automated forex trading software. Read my Forex Autopilot review and learn how to make money using this software.






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ForexTradingToday»U.S.ConsumerCofidenceFallsandtheYenContinuesFalling

The comments and posts published in this blog ARE NOT trading recommendations. They can NEVER be considered as trading calls or advices. If you decide to use the information offered here for your real trading it is at your own risk.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.






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Forex Micro Lots for Entry Level

Forex Micro Lots for Entry Level

forex-micro-lot.jpgAre you a forex beginner? Afraid of losing big money to start forex trading? Today many brokers offer to trade forex in micro lots (.10c) it is easy to get your position size correct no matter how small your account is.

 

Forex micro lots are used when trading currencies and are equivalent to 1,000 units of the base currency. They allow traders more flexibility when trading as they can trade in much smaller increments. A standard lot is 100,000 units of the base currency and a mini lot is 10,000 units. There are a variety of forex brokers that offer this type of trading.

 


For beginner here is what you need to do, pick several of your favorite pairs to trade, limit yourself to 1 good trade a week, this means your trade needs to be planed and have good technical reasons for price to go in your favour. Keep your charts clean and simple, use support and resistance with price action for setups.
Never risk more than 3% of your account on any one trade no matter what the stop size is.

 

If you have two really good setups in one week and you don't know which one to take just take them both but use half of your normal risk per trade on each. If you do what I have outlined I guarantee you will see an improvement in you trading.




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ForexRobotMarketing

PipZu is a cautious, low risk and trend adapting Forex Robot that will guarantee you a decent profit. Why do I say decent instead of huge? Well, PipZu's way of trading is kind of different compared to other Forex Robots. With trend adapting technology, PipZu's trading strategy changes as Forex market does, meaning that PipZu will only trade when is absolutely sure it is the safest trade possible.

PipZu also comes with a next-gen market timing algorithm that makes PipZu extremely accurate in trades timing. This robot calculates every trade it makes meaning there are no random trades. These two features limits PipZu to trade 2 times per week as maximum. You might be thinking this is too little, but PipZu developers found this is the safest way to trade in order to minimize risks.

Wondering why PipZu's developers claims to be the safest Forex robot? PipZu's safety secret lies in something called: Drawdown. PipZu's drawdown is the lowest of all Forex robots, about 11% vs at least 40% from other robots.

In case you don't know, drawdown represents the total loss ratio experienced by a strategy before it starts winning again, so a low drawdown means that the amount of money you can lose before starting to make money again is pretty low.

To sum up, PipZu is a robot that minimize risks instead of maximize profits, and is the best way to go for conservative people or for those trying a different angle to make money.

Price: 99.99 USD$

 
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ForexSignal,ForexSignalsAdvise—ForexandFuturesTrading

There are lot's of Forex signals providers out there. New Forex traders might be thinking of looking for a reliable Forex signals provider. Is there any reliable Forex signals providers available?

Personally, I will say do not pay for Forex signals. Think about it - if a Forex signals provider sells Forex signals for living, you can doubt their Forex trading skills? Or else if they are pretty good in Forex trading and making lot's of profit, I am wondering why do they still bother to sell Forex signals for money. Thus, what would be the value of such Forex signals providers? The answer is ZERO.

There are Forex traders who have been relying on Forex signals arguing those Forex signals providers really help them making money in Forex trading. These Forex traders can even show their Forex trading logs as evidence. After some though, I came out with the assumption that assuming I am the owner of a Forex signals provider, in order for my business to be in black, obviously I need some satisfying customers. If I have 100 new customers this month, I send out buy signal for the 50 of my new customers while the another half with sell signal. At the end, I will able to have "some satisfying customers". Finally, free advertising and testimonial will be made available.

If you are really new into Forex trading, it's better for you to sign up a demo Forex trading account from any Forex brokers and try some practice trades for a few months. This will give you insight into how the forex market behaves. Then only deposit a small amount of money to get a real feel. There are great differences between demo trading and real trading due to personal trading psychology.

Final words, if you really wish to buy Forex signals from a Forex signal provider, make sure they have got an audited results and do provide a free trial over a substantial period.

 
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