Category: forex

Forex trading involves buying and selling currencies with the aim of making a profit from fluctuations in exchange rates. The most often traded currencies, the major currencies, are those of countries with stable governments and respected central banks that target low inflation. Here are the basic steps to trade forex: Remember, forex trading involves risks,…

The mechanics of a forex trade involve the process of buying and selling currencies in the foreign exchange market. Forex (short for foreign exchange) is the global marketplace for trading different currencies against each other. Here’s a step-by-step overview of how a typical forex trade works: It’s important to note that forex trading carries a…

So how does the actual trading work? A complete transaction is the buying of one currency and selling of another at the same time. This is normally conducted as a spot transaction; there are other forms of Forex transaction, such as futures and options. The technical definition for a spot contract is a transaction at…

Whereas there are thousands of securities on the stock market, in the Forex market most trading takes place in only a few currencies; the U.S. Dollar ($), European Currency Unit (€), Japanese Yen (¥), British Pound Sterling (£), Swiss Franc (Sf), Canadian Dollar (Can$), and to a lesser extent, the Australian and New Zealand Dollars.…

Buying or selling currencies in response to economic or political events which occur are reactive, whereas buying or selling currencies on anticipated events is speculative. The bulk of currency activity is generated by market participants anticipating the direction of currency prices. In general, the value of a currency versus other currencies is a reflection of…

The most popular forex currency pairs are known as the “major pairs.” These pairs involve the world’s most widely traded currencies and typically have the highest liquidity and trading volume. Here are the most popular forex currency pairs: These pairs are considered the major currency pairs and are commonly traded by forex traders around the…

Leverage refers to the use of borrowed funds or financial instruments to increase the potential return on an investment. In other words, leverage is the practice of using a small amount of money to control a larger amount of assets. Leverage can be used in many different contexts, such as in investing, business, and finance.…

A margin call is a demand by a broker or lender for an investor to deposit additional funds or securities into their margin account to bring it up to the required level. This typically occurs when the value of the investor’s account falls below a certain threshold, which is set by the broker or lender.…

The Forex market is exciting and accessible to small retail traders because of the industry’s high leverage options. Leverage gives a trader the ability to increase the potential return on an investment. Leverage works both ways however; it increases potential returns, but it also increases potential risk. Therefore leveraging magnifies both gains and losses. Contract…

Fundamental analysis involves examining the intrinsic value of a nation’s currency based on economic news releases that reflect the strength, or weakness, of a country’s economy. Fundamental traders follow these news announcements, known as “fundamental indicators,” because they paint a picture of a currency’s strength in relation to other countries. Fundamental indicators are reports that…