Currency Trading

TATrader · #1 1st August 2005, 05:08 PM

Currency Trading

Quote:

The simplest definition of currency trading is the practice of exchanging one country's currency for another country's currency. Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate. The interplay of these variables creates opportunities for small investors to obtain investment returns that are generally unheard of in the traditional investment world. It is also referred to as foreign exchange, FX or Forex, but the essence remains the same that currency trading is the exchange of one currency against another.

Perhaps, in terms of trading volume, the currency exchange market is the world's largest market, with daily trading volumes in excess of $1.5 trillion US dollars (although the figures may differ, but this is just an approximation to show its importance). One thing is for sure that in orders of magnitude it is much larger than the bond or stock markets. For example, the New York Stock Exchange has a daily trading volume of approximately $50 billion. So you can easily imagine its importance in the trading world of today. Moreover, contrary to earlier thoughts, currency trading is not limited to just larger organizations and other large banks and financial institutions, but open to everyone who has enough expertise and determination to hard work.

You can start playing the currency trading market with real market conditions immediately. Trading opportunities in the forex currency trading market are now available to individuals through technology interfaces such as those used by major currency trading brokerage firms (usually large corporations with big tummies). If you decide to hire a professional who takes advantage of this technology, you will be able to view your accounts' closed trades 24 hours per day through a secured, online access portal.

Historically, SMBs and individual investors have had limited access to the forex market. For decades, major banks, multinational corporations and other participants, trading in large transaction sizes and volumes, have dominated this market. However, just like many other business segments technology has lowered the barriers of entry and opened up this attractive marketplace to a new breed of investors and speculators.

Technological advancement, along with liberal market sentiments, has allowed almost everyone to deal in currency trading, unlikely to the past when there were only few organizations that could trade the currency. You also can open a mini account with as little as $300 US although $2000 US is recommended. You can open a regular account with as little as $2000 US although $10,000 US is recommended. Mainly major banks, international organizations and some other are doing well in currency trading.

sara · #2 2nd August 2005, 10:44 PM

Hi, TaTrader,
Nice info,
I had been hearing of REFCO, which climbs to provide currency-trading facility without any brokerage in India with SIfy.
Can some of you tell me how lucrative is it, and are there any technicals involved, and other info on currency trading.

Traderji · #3 3rd August 2005, 07:59 AM

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.

phoenix · #4 3rd August 2005, 09:52 PM

2 very nice writeups...thx!!

Saint · #5 5th September 2005, 09:50 PM

Thanks for the info,TATrader!Nice!!

Josbarr · #6 1st November 2005, 12:21 AM

Broker comparison link:

1) http://www.proedgefx.com/autoemailsN...comparison.htm

2) Are they registered with the NFA and CFTC?

3) Are all monies pooled together? (Hopefully Not!)

4) Forex Trading hours? (trading hours will vary from firm to firm)

5) How long will it take them to wire your funds when you want them?

6) Will Bid/Ask spreads deviate from their Interbank feed to prematurely trigger stops? And if not may I have your assurance in writing?

7) Will I have an appointed representative/contact for my needs? (trading help, system education, general inquires)

8) Any incentives to open? (Referral bonus, cash back etc…)

9) Complimentary services?

10) Fees for Market news, withdrawals, technical support, minimum balance, etc…

http://www.proedgefx.com/gp_demoreg.aspx?ref=JBAR

das_ramesh · #7 5th December 2005, 04:24 PM

What is the limit to recive remittance by individual as per
FEMA (ofcourse from forex trading).

das_ramesh

dbsbdb · #8 6th January 2006, 05:15 PM

Useful info about FX. Could someone please explain how an individual in India can start trading in FX market ? Is there anything like authorization from Govt bodies, banks etc required? Any advise on this will be appreciated.
regds.......dbsbdb

amarnath · #9 10th January 2006, 12:03 PM

Hi,

check www.saitcapital.com

durgesh · #10 10th January 2006, 06:31 PM

Hello people!!!

Be very careful in choosing ur fxbroker.Many of them are crooks who eat away ur stops.Some of the bigger crooks are REFCO , FXCM and INTERBANK Fx.
So far , wht i have found is FXDD is the best.Dont ever signup thru introducing brokers.IT'll prove costly as when u sign up with IBs u have to give commissions apart from the spreads.
Like Amarnath posted SAITCAPITAL .Its an IB with NEUIMEX.
Anyone who wants to venture out in fx waters, first must demo trade and get experienced.

With a good broker, FX market is better than stocks and commodities.
But one has to do his homework well.

Moneytec is a specialised fx forum.You'll get other people's trading strategies,ideas and their experiences.Anyone thinking to start out in fx, plz do visit moneytec.

Thanks,
Durgesh

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