Ask Your Forex Question Here

[csethna]

Since u have been trading for some time ,canu tell me how u declare your profits while filing tax returns

 

[M_S]

only requirement for live forex trading is depositing money with broker !!

If you have a valid ID (passport in case ur not in US) you can open an account with you choice of broker and thats it!

If you are new to FX then trade with DEMO account (at least for few months..) and this needs nothing but your email id etc....Demo accounts are all same as real(all the price movements news etc) only thing is you will trade with virtual money.

 

[robin000]

hi I am totally new to forex,just trying to learn, the only thing i wnna know before i move ahead is that, can we sell short in forex ? somebody told me we cant, but I was unable to understand why, for example i we are buying USDEURO who is selling it? the broker? or traders just like us? could anybody please explain just the basics?
thanx

 

[ag_fx]

hi I am totally new to forex,just trying to learn, the only thing i wnna know before i move ahead is that, can we sell short in forex ? somebody told me we cant, but I was unable to understand why, for example i we are buying USDEURO who is selling it? the broker? or traders just like us? could anybody please explain just the basics?
thanx

Forex trading is quite different from other forms of trading. The basic principles though, are the same in it.

Some points to note:

1) Forex is always traded in pairs. That is if you want to trade EURO, u will ahve to decide against which currency would you trade it. Generally EURUSD is traded as a standard pair(and not USDEUR)...This means that if you say you buy EURUSD, that means you Buy EUR by paying USD. Similarly, if you say you sell EURUSD, that means you sell EUR and buy USD.

2) Short selling is as much allowed in Forex as any other entity in trading markets.

3) The counterparty in a FOREX trade can range from fellow traders like us, hjedge funds, banks, brokers etc, depending on ur exposure, the kind of broker you use etc.

 

[robin000]

Forex trading is quite different from other forms of trading. The basic principles though, are the same in it.

Some points to note:
thnx a lot ankit

 

[VJAY]

Forex trading is quite different from other forms of trading. The basic principles though, are the same in it.

Some points to note:

1) Forex is always traded in pairs. That is if you want to trade EURO, u will ahve to decide against which currency would you trade it. Generally EURUSD is traded as a standard pair(and not USDEUR)...This means that if you say you buy EURUSD, that means you Buy EUR by paying USD. Similarly, if you say you sell EURUSD, that means you sell EUR and buy USD.

2) Short selling is as much allowed in Forex as any other entity in trading markets.

3) The counterparty in a FOREX trade can range from fellow traders like us, hjedge funds, banks, brokers etc, depending on ur exposure, the kind of broker you use etc.

Hi Ankit,
Can you please explain it with an example trade?I am not know the basic of forex trade.

Regards
VJAY

 

[ag_fx]

Hi Ankit,
Can you please explain it with an example trade?I am not know the basic of forex trade.

Regards
VJAY

Let me try...Not too sure if I can explain it well... I would use a very common and standard pair..EUR/USD.

Current Spot rate for EUR/USD is 1.3269/1.3272 (Bid/Ask)

If you want to BUY 10,000 EUR, you wud pay 1.3272*10,000 =13272 USD.
And similarly to SELL 10,000 EUR, you wud recieve 1.3269*10000=13269 USD.

Lets say now the prices moved upto 1.3279/1.3282 (Bid/Ask)
and you cover ur positions...
So,for a LONG position,you would now SELL @ 1.3279, recvng 13279 USD and thus a profit of 13279-13272= 7USD

ANd, for a SHORT position, you would now BUY @1.3282, paying 13282USD and thus a loss of 13282-13269=13USD.

now, this paying and recvng of USD is done on margin and leverage basis. Usaully a leverage of 1:50 to 1:400 is available. 1:50 means that for every 1USD in your account, you can trade(buy/sell) FX worth 50USD. Please note that no money is recd when you short sell any pair, only the margin is deduced from your account.

SO, with a 1:100 leverage, you can use $1000 to trade lots of USD 100,000

I hope this helps.

Happy Trading

 

[VJAY]

Dear Ankit,
Thanks for the detailed explanation.It's clear now.Which broker will give forex trading in india? is there any demo trading site available on net.If so please give me the link.


Regards
VJAY

 

[ag_fx]

Dear Ankit,
Thanks for the detailed explanation.It's clear now.Which broker will give forex trading in india? is there any demo trading site available on net.If so please give me the link.


Regards
VJAY

Dear VJAY

Well there are many brokers which provide accounts all over the world. But you should be beware of many of them as they are nothing but cheats. I personally dont have a trading account yet, so cant comment on which brokers to choose. All I would say is that in case you are looking forward to get an account opened, make sure you google the name of the broker to find reviews about the broker. One of the best broker available around the world is FXCM. They have a free demo trading platform as well & the rates they quote are same as the interbank OTC market rates. You may want to google fxcm o learn more and you can always download the free platform to learn more about trading FOREX.

Happy Trading

 

[ea.income]

i just want to share my experiece trade using ea/robot
i always update my blog..if have any question just mail me