Bit-Learn

The foreign exchange market can be a baffling place for newcomers, and one of the sources of confusion is the forex quote. A forex quote is a small bit of information, yet it’s packed with numbers that may not make sense to someone unfamiliar with the forex system. Here’s a basic explanation of how it works. A forex quote consists of a currency pair -- forex deals always involve simultaneously selling one currency and buying another -- a bid price and an ask price. For example, one quote might be this: USD/JPY 118.71/75 The first currency is the base currency, and the other one is the quote currency. The value of the base currency is always 1 -- in this case, 1 U.S. dollar. The number tells you how many of the quote currency (the Japanese yen, in this case) you can buy with $1. But what kind of number is 118.71/75? It’s actually forex shorthand for two numbers: 118.71 and 118.75. The lower number is the bid price, the other is the ask price. The bid price is the p...

Forex is a nickname for the foreign exchange, a vast market of trading in which the commodity is money itself. In the forex market, traders are buying and selling foreign currencies -- trading dollars for euros, pounds for yen, and so forth. Forex is profitable because national currencies fluctuate from day to day based on predictions of the nation’s gross domestic product and other factors. As with the stock market, the idea with the forex is to buy low and sell high: Buy a lot of a particular currency when it’s weak, then sell it when it becomes stronger. For example, bad financial news in Great Britain means that forex traders will be selling off their British pounds as fast as possible, as the pound is about to become devalued. Once the pound recovers, those traders will sell it for something else, thus turning a profit. Though we talk of “buying” and “selling” pounds, euros, yen and francs, the transactions performed in the forex are not literal. That is, if you ...

Forex is a trading 'method' also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any country. Different currency rates happen and change every day. What the value of the dollar may be one day could be higher or lower the next. The trading on the forex market is one that you have to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. The main trading areas for forex, happens in Tokyo, in London and in New York, but there are also many other locations around the world where forex trading does ta...

Forex trading is done on a much greater scale than any other kind of market in the world. Some 1.9 trillion dollars are handled every single day. About 73 percent of all forex trading is done by 10 international banks with names you’re familiar with: Merrill Lynch, Citigroup, and so forth. National banks and other financial institutions account for another chunk of forex trading, and transactions by “day traders” -- regular individuals, people like you and me -- account for only 2 percent of all trading. Nonetheless, many average investors do try their hand at forex trading, and there are many financials institutions who handle such transactions. It’s known as “retail forex,” and it’s handled much the same way that day trading of stocks is handled. The downside is that unlike the stock market, the forex market is not particularly well regulated, and people inexperienced with it can be taken advantage of. The U.S. Commodity Futures Trading Commission (CFTC) gives several b...

It’s not easy to forecast the forex markets, but it’s what thousands of forex traders and brokers do every day, with varying degrees of success. Like forecasting the weather, predicting the forex market is sometimes a crapshoot, sometimes a guessing game, and always an adventure. There are two basic philosophies on how to forecast the forex markets. One is technical analysis; the other is fundamental analysis. We’ll look at them both.                                                                 The technical approach examines past market action and uses that data to predict the future. Previous trends in most areas of life are almost always good indicators of t...

There are dozens of world currencies being traded around the clock on the foreign currency exchange, and no one can possibly monitor them all at once. That is why many traders rely on forex signals to keep them apprised of movement in the market. Many brokers and other forex-related businesses offer forex signals to subscribers. Forex signals are simply recommendations to buy or sell based on mathematical algorithms and professional know-how. Usually these signals include specific entry, stop and target levels. They might say something like, in essence, “Right now the EUR/USD bid is at 1.2529 and dropping. When it gets to 1.2465, sell.” Forex signal providers usually charge for their service, sometimes as much as $100 a month. For this the subscriber gets 1-5 signals a day, sent via e-mail, text message or instant messenger. The trader is under no obligation to do anything with the information, of course. They are advisory in nature, and the trader is free to ignore them ...

When we talk about the forex rate, we’re talking about the relative value between two currencies -- how many of one the other is worth, in other words. For forex traders, the forex rate is the basic information they use to do their job. The rate is to a forex trader what nails are to a carpenter. If you plan to get involved in forex trading, reading and understanding the forex rates is absolutely vital to your success, like learning the basics of addition before becoming a mathematician. A forex rate is always expressed in pairs, followed by a number. The number is how many of the second currency you’d get for one of the first one. For example, you might see USD/EUR: 0.7928. That means that one U.S. dollar is currently worth .7928 euros. If you were to exchange $100, you’d get 79.28 euros for it. Since the number in this rate (0.7928) is less than 1, that means the second currency is currently stronger than the first one -- that is, the euro is stronger than the U.S. doll...

When it comes to forex trading, there are many, many resources out there to help you learn the ropes. There are online courses, seminars and even one-on-one training available. But sometimes the best way to learn is the old-fashioned way: by reading a book. The marketplace abounds with forex books, and many new traders find them the best way to learn because it allows them to re-read passages as many times as necessary to fully grasp the concepts. Imagine asking the speaker at a large public seminar to repeat himself and you can see why a book has its advantages! The question is, which forex book should you read? Like any other field, the forex trading world has its share of hucksters and liars. Be wary of any book that makes outrageous claims in its title or on the cover -- “Be a forex pro in an hour!” or “Make millions while you sleep!” for example. If a forex book promises something that’s too good to be true, it probably is. And if the book downplays or neglects the i...

Forex traders know one of the advantages of their field is that the forex market is open 24 hours a day, five and a half days a week. But a 24-hour marketplace means there’s forex news coming in constantly, too. With so much information coming from so many markets literally at all hours of the day, it can be hard to keep up with all the news available to you. But at the same time, an informed trader is a successful trader. To make informed decisions on when to buy and sell currencies, you’ll have to keep an eye on all the news you can get your hands on. Many Web sites make it relatively easy for you by corralling the forex news into one place, often dividing it into subcategories for easy navigating. Any forex trader, whether new or experienced, should find a news source he likes and check it often. Many of these forex news sites also offer commentary and analysis, beyond just a simple ticking off of the latest rates. Here you’ll find experts talking about the issues invo...

The forex market is all about trading between countries, the currencies of those countries and the timing of investing in certain currencies. The FX market is trading between counties, usually completed with a broker or a financial company. Many people are involved in forex trading, which is similar to stock market trading, but FX trading is completed on a much larger overall scale. Much of the trading does take place between banks, governments, brokers and a small amount of trades will take place in retail settings where the average person involved in trading is known as a spectator. Financial market and financial conditions are making the forex market trading go up and down daily. Millions are traded on a daily basis between many of the largest countries and this is going to include some amount of trading in smaller countries as well. From the studies over the years, most trades in the forex market are done between banks and this is called interbank. Banks make up about 50 perce...

The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies. The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The What is traded, bought and sold on the forex market is something that...

Forex or Foreign Exchange is the most liquid and the largest financial market in the world. Unlike other financial market, the Forex market doesn’t have a centralized location. Exchanges are done through electronic network and the whole world participates in the trade. Forex trading involves buying and selling of different currencies. As with most trades, to make a profit in Forex, you need to buy low and sell high. Forex isn’t really complicated. However, there are things that you need to consider in order to successfully make some profit out of this very liquid financial market. Forex trading can really give you a chance to earn large amounts of money. In fact, people who traded in Forex became instant millionaires almost overnight. However, you need to realize the fact that aside from the earning potential you can get when trading Forex, there are also risks involved and many people suffered huge financial losses trading in Forex. This is why it is important for you to get ...

People trade in a daily basis. Some trade their services for money, while others trade products like food, toys and other things for money. People trade to earn money to properly live their everyday lives. This is why people work, why people put up businesses and why people trade in the financial market. Today, it’s all about money in order for you to give yourself and your family a comfortable life. If you are considering making money aside from your day job or starting a career, you can do so by trading in Forex. Surprisingly, most people don’t understand how Forex works but are still interested to trade in this financial market. Besides, people would really want to trade in the largest, the most liquid financial market in the world. Forex operates 24 hours a day and 7 days a week with no centralized location unlike other financial markets. It involves all the currency in the world and trillions of dollars are being exchanged everyday in this market, thus, making it the worl...

New in the Forex market? This market may sound really complicated and scary to tackle but it’s not. Just like in any kinds of trade, you make money when you buy low and sell high. Forex trading is simply trading currencies in the Forex market. Forex is the largest financial market in the world. It generates trillions of dollars of currency exchanges everyday and it operates 24 hours a day and seven days a week therefore, also making it the most liquid market in the world. In the world of Forex, trading in this very liquid market is very unique compared to other financial market like stocks. Since the Forex market operates 24 hours a day worldwide, which starts at Sydney and ends in New York, trading is not centralized in one location. You can trade in Forex whenever you want regardless of the local time. In the past, Forex trading was only offered to large financial institutions, like banks. And, it was also only offered to large companies, multi-national corporations and larg...

Money is used everyday. You use it to buy all the things necessary to make it possible to live your everyday life. You use money to purchase food, purchase gas for your car, pay for your utility bills and you use money to get your children the best education you can possibly give them. It is a fact that money is one of the most important things in life. This is why there are trading systems available that trade world currency. Forex is the most liquid and largest financial market in the world. This market literally operates 24 hours a day, seven days a week in the whole world with trillions of dollars being exchanged everyday. If you are a trader, you would really want to consider trading in Forex. Besides, who wouldn’t want to trade in the largest financial market in the world? It is a fact that Forex can create the possibility for you to earn high amounts of income. There is even Forex trading softwares available to help you with your Forex trades. This type of software ca...

Today's modern world offers a lot of convenience for people. There have been great changes which brought about many inventions and critical lifestyle changes for most people around the globe. Life was quite simpler before, many people engaged in trading were able to trade goods and/or services within a specific location. After a while, when it was already possible to travel on the seas, trading was done from different places. Today, almost everyone is engaged in a certain trade, for him or her to be able to live a normal life able to get all their needs. These days, people who have no work, or does not earn any income whatsoever goes hungry. If you have no money, then you can't buy food, shelter, clothes, and other necessities. We live in a modern world which requires people to be effective and hard working individuals. Perhaps the most popular of all trades is the so-called forex trading. You probably have heard of it already. In this type of financial market, curren...

The concept of automated Forex trading system is mind-catching. Before the automation of the Forex market, exchange-traded futures market was the first to switch on automation. Then, the traders on the Interbank spot FX market decided to catch up with the latest trend and moved too to the new system. Automated Forex trading system enables traders to execute their trade on spot Forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are various features included in the automated trading system, such as: • Automatic trailing stops especially if the trader is losing in a particular trade position; • Account equity management; • Stop and/or limit orders; • Discretionary market orders; and • Various technical analysis indicators within your discretion for enabling trend-following systems. Automated Forex trading systems supports most of the following indicators (the technical support will depend on the tec...

Just how important is an automated system to the Forex trading system? Before we answer that question, let us first determine how large Forex trading market is. From there, we will know the importance of automated systems for the Forex market. It is true that the Forex market is the largest market around the world not just in terms of average daily turnover and average revenue per trader. It is also the largest market in terms of participants. You name it, we’ve got it. Take a look at the following: BANKS- they are not just for saving money and lending capital to entrepreneurs, but they are one of the major players in Forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billions of dollars worth of foreign currencies everyday. Some of the trades are undertaken on behalf of their clients, but most are through proprietary desks. COMMERCIAL COMPANIES- these commercial companies trade small quan...

Why Forex trading?  This is probably one of the questions that you need a reasonable answer. There are hundreds of investments out there that you can prefer, but why go trading foreign currencies instead?  Forex investment is unique in various aspects.   Its trading volume is relatively huge compared to other market.  It has extreme liquidity or the capability of either buying or selling the currency without causing                            significant movement in the market price.  It has the largest number and variety of traders. It is one of the markets that have long trading hours (24 hours each day, except during weekends.  Trading locations are almost everywhere, not just in the United States or major cities of Europe.  There are different factors that affect foreign exchange rate.  Another whooping fact that will make you excited to go...

If you are actively trading in the New York Stock Exchange, one of the most active exchanges in the world, you should be very thankful. Its total daily transactions are averaging approximately at U.S. $50 billion, making it the largest stock exchange in the United States in terms of dollar volume. There are many individuals who want to get their feet wet on the ground of this New York City-based stock exchange. Yet, you are luckier if you are actively involved in trading foreign currencies, or commonly known as Forex trading, which is considered to be the largest market on the world. Its average daily trading turnover is approximately U.S. $2 trillion, exceeding the combined magnitude of all other equity markets, including the New York Stock Exchange. Thus, you are luckier since you have the opportunity of getting more profits out of that $2 trillion traded everyday. If you are not yet involved in Forex trading, then you are currently missing the benefits of trading foreign cur...