|
|
| Discuss Beginners Guide to Forex at the Forex within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Beginners Guide to Forex What is Foreign Exchange? The Foreign Exchange market, also referred to ... |
|
|||||||
| Forex Discuss trading the foreign exchange markets. |
 |
|
|
Thread Tools |
|
#1
11th July 2005, 10:05 AM
|
|||
|
|||
Beginners Guide to Forex
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. 
|
| The Following User Says Thank You to Traderji For This Useful Post: | ||
rishi_kapoor777 (27th February 2010) | ||
| Sponsored Links |
|
#3
11th July 2005, 03:01 PM
|
|||
|
|||
Re: Beginners Guide to Forex
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
|
|
#4
11th July 2005, 04:00 PM
|
|||
|
|||
|
Re: Beginners Guide to Forex
Quote:
Yes now even an individual can trade in forex, which is the biggest financial market on earth. Initially it was not possible in India, but now, with the RBI allowing individuals to invest upto $25000 in the currency or commodity derivatives in the overseas market, anyone can do it. There are many trading platforms available like REFCO/MAN FINANCIAL etc. Regards, Sean
|
|
#5
11th July 2005, 10:36 PM
|
||||
|
||||
|
Re: Beginners Guide to Forex
Dear Sean,
You have mentioned that we can invest upto $25000 in currency or commodity derivatives in over sean mkt. I wud like to know whether this 25000 is the exposure or margin money. (if this is margin than we can take position upto $200000?
|
|
#6
12th July 2005, 12:44 AM
|
|||
|
|||
|
Re: Beginners Guide to Forex
The $25000, as far as my knowledge goes, is the amount that you can use to trade in overseas markets. I dont think it matters as to how you use it... as margin money, or to buy the underlying stocks, or any other stocks. If you want to use it as margin money, so be it!!
|
|
#7
12th July 2005, 09:04 PM
|
|||
|
|||
|
Re: Beginners Guide to Forex
The FX markets offer a similar or greater leverage than the furtures markets - depending on your broker. Obviously it does not mean that it is good - just a question of how much risk you feel comfortable with. As traderji has pointed out it is truly a 24 hour global market and thus one can use 24 hour basis stop loss. A great advantage that will allow one peaceful sleep. Interbank FX market hardly ever gaps - beauty of a 24 hour market - unlike stock markets opening say 100 or 200 points lower.
Nautilus
|
|
#9
15th July 2005, 10:54 PM
|
|||
|
|||
|
Re: Beginners Guide to Forex
Quote:
Max leverage allowed on forex is as high as 400:1 i.e 25$ margin can be used to trade 10k $ lot size . so calculate max leverage of 25k  
|
|
#10
15th July 2005, 10:55 PM
|
|||
|
|||
|
Re: Beginners Guide to Forex
Quote:
It is OTC type market which is decentralised market place 
|
|
| Bookmarks |
| Thread Tools | |
|
|
Similar Threads for: Beginners Guide to Forex
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Beginner's Orientation- Sharing Experiences On Technical Analysis Two Day Seminar | sh50 | Seminars & Tutors | 29 | 25th December 2007 12:45 AM |
| Beginners guide to trading commodities in India | Traderji | Commodities | 4 | 24th October 2007 07:06 AM |
| Interesting Trade Record Formats-must For Beginners. | sh50 | Words of Wisdom | 5 | 17th January 2006 12:17 AM |
Indemnity, Disclaimer & Disclosure
Notice:
• By visiting Traderji.com you automatically indicate that you agree to our Forum Rules, Indemnity, Disclaimer & Disclosure Notice and General Content Disclaimer Notice and indemnify Traderji.com, its
associates and related parties of all claims howsoever resulting from
the usage of the forum/site.
• Disclaimer: Trading or investing in stocks & commodities
is a high risk activity. Any action you choose to take in the markets
is totally your own responsibility. You are recommended to make appropriate enquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any advertisement published here. Traderji.com does not vouch for any claims made by the advertisers of products and services. Traderji.com will not be held liable for any consequences in the event such claims are not honoured by the advertisers. Traderji.com will not be liable for
any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site.
• Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein.
The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
