Currency trading? Forex trading? FX trading? Totally clueless about forex? Here's an introduction to the foreign exchange market.
Think the stock market is huge? Think again. Learn about the LARGEST financial market in the world and how to trade in it.
Currencies are the name of the game. Yes, you can buy and sell currencies against each other as a short-term trade, long-term investment, or something in-between.
The first thing that you need to know about forex trading is that currencies are traded in pairs; you can’t buy or sell a currency without another.
The Forex market is yuuuuuuuggggeeee! And that comes with a lot of benefits for currency traders!
Some of the more popular ways that traders participate in the forex market is through the spot market, futures, options, and exchange-traded funds.
Want to know some reasons why traders love the forex market? Read on to find out what makes it so attractive!
Low transaction costs and high liquidity are just a couple of the advantages of the forex market.
Nobody likes bullies! Good thing for us, unlike the stock market, there is no one financial institute large enough to corner the forex market!
The futures market trades a puny $30 billion per day. Thirty billion? Peanuts compared to the FIVE TRILLION that is traded daily in the forex market!
From money exchangers, to banks, to hedge fund managers, to local Joes like your Uncle Pete - everybody participates in the forex market!
Because there is no centralized market, tight competition between banks normally leads to having the best prices! Boo yeah!
The forex market is basically comprised of four different groups.
If it wasn’t for the Bretton Woods System (and the great Al Gore), there would be no retail forex trading! Time to brush up on your history!
Now that you know who participates in the forex market, it's time to learn when you can trade!
Just because the forex market is open 24 hours a day doesn’t mean it’s always active! See how the forex market is broken up into four major trading sessions and which ones provides the most opportunities.
Godzilla, Nintendo, and sushi! What’s not to like about Tokyo?!? The Tokyo session is sometimes referred to as the Asian session, which is also the session where we start fresh every day!
Not only is London the home of Big Ben, David Beckham, and the Queen, but it’s also considered the forex capital of the world–raking in about 30% of all forex transactions every day!
New York baby! The concrete jungle where forex dreams are made of! Just like Asia and Europe, the U.S. is considered one of the top financial centers in the world, so it definitely sees its fair share of action–and then some!
Trading is all about volatility and liquidity. Which times of day provide the most dynamic market action and volumes?
Each trader should know when to trade and when NOT to trade. Read on to find out the best and worst times to trade.
Now, it's time to learn HOW to rake in the moolah!
Just like any other market: buy low and sell high…and vice versa. Simple, right!?
Let’s start with the very basics. First, what drives the value of a currency?
You’ve probably heard of the terms “pips,” “pipettes,” and “lots” thrown around, and here we’re going to explain what they are and show you how their values are calculated.
How many units of currency can we trade? What size positions can we trade and what are they called?
Wanna impress your crush? Here are some forex terms to help you wow that special someone!
“Would you like pips with that?” Okay, not that type of order, but buying and selling currencies can be just as simple with a little practice.
Currency market behavior is constantly evolving. Trade on demo first to get a lot of the rookie mistakes out of the way before risking live capital. There are no take-backs in the real market.
While possible if you’re a trading genius with ice in your veins and you’re luckier than a lottery winner, building wealth through trading takes time and practice to build the skills and experience needed to be successful.
Self-trust is the first secret of success.Ralph Waldo Emerson