Beginners Guide to Forex

Originally Posted by nautilus

The FX markets offer a similar or greater leverage than the furtures markets - depending on your broker. Obviously it does not mean that it is good - just a question of how much risk you feel comfortable with. As traderji has pointed out it is truly a 24 hour global market and thus one can use 24 hour basis stop loss. A great advantage that will allow one peaceful sleep. Interbank FX market hardly ever gaps - beauty of a 24 hour market - unlike stock markets opening say 100 or 200 points lower.

Nautilus

Originally Posted by 4candles

Sir,

good to hear about FX trading. Can you provide information wheather an individual can trade in India in FX, who is providing the traging platform,etc.

Thanks,

4candles

Originally Posted by Traderji

Beginners Guide to Forex

What is Foreign Exchange?
The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.

Where is the central location of the FX Market?
FX Trading is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

Who are the participants in the FX Market?
The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.

When is the FX market open for trading?
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

What kind of trading strategy should I use?
Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

Originally Posted by amarnath

Remember there is no broker / bank offers STOP LOSS gaurentee during economic releases and certain volatile conditions

Originally Posted by amarnath

Hi all,

Forex trading can be 100% automated . Its my recent 100% automated forex trading result with safer leverage and MM based models . . If need more info contact me on YM or mail.

Originally Posted by nautilus

It would be very interesting to see the results with either brokerage or commission deducted!

Nautilus