Welcome to Currency Trading Guide
 |
|
 |
|
 |
Online Currency Trading System Article
This is a selection made from among articles on Online Currency Trading System. For a permanent link to this article, or to bookmark it for future reading, click here.
Earning Big in FOREX Trading
from:
There’s the stock market, the underground market and the foreign exchange market or more popularly known as FOREX, which can also be called as currency trading or foreign currency trading. The FOREX is one of the largest financial markets in the world. It has an estimate of $1.5 trillion turn-overs daily.
Operating 24 hours a day, the key players in the foreign currency trading are commercial banks, central banks, firms involved in foreign trade, investment funds, broker companies, retail investors and some private individuals. These players can come from Asia, North America and Europe. These key players are those with large amounts of money, involved in cash businesses or in the trading of assets that can be sold and bought easily.
Among the identified benefits of foreign currency trading is the speed and high liquidity of assets. Transactions are conducted in a matter of seconds. A trader can also open a position for any period of time he wants. There are no fees. And of course, there’s the promise of bigger profit.
The Process
Basically, FOREX trading involves trading of foreign currency and other similar products. The currency of one country is weighed against the currency of another. It is different from the stock market as it involves a transaction between two countries and the business takes place through a broker. Trading of foreign currencies take up almost 80% of the market activity. This ‘trading’ is purely speculative in nature; only 20% of the market activity is spent on actual exchange of currencies for the corporations and companies involved in the FOREX market.
Trading of currencies is done is pairs. You can buy Euros with Dollars, hoping that the Euro will increase its value. When the value of the Euro rises, you sell it, thus the profit. The commonly traded currencies are the US Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), and the Swiss Franc (CHF). Among the usually traded currency pairs are the, the Euro and US Dollar (EUR/USD), US Dollar and the Japanese Yen (USD/JPY), the British Pound and US Dollar (GBP/USD), and the US Dollar and Swiss franc (USD/CHF).
In retrospect, there is no actual product being sold or bought in the FOREX market. The ‘trading’ is just composed of computer entries on the value of one currency against another.
In FOREX trading, the trader uses both fundamental and/or technical analysis. Small and medium players use technical analysis, of which the primary item for study is the price. Fundamental analysis involves a study of the situations in the country of the currency. This would include issues like political instability, rate of inflation and unemployment, tax policy and interest of the Central Bank.
FOREX vs. STOCK market
Currency trading has no central governing body. There are no clearing houses or panels that agree on trades of disputes. The FOREX market does not have any limits on the size of the position being sold or bought as long as the player has enough capital.
Online FOREX trading has opened a new window of opportunity for market players and business bigwigs. It has evolved to become more interactive, convenient, and easy to the players, not to mention, one of the highest earning markets in the business world. With online FOREX trading, one can play more and earn more.
Online Currency Trading System Specific links
Online Currency Trading System News
China’s Yuan Is ‘Spanner in Works’ at Paulson’s Beijing Talks - Bloomberg
Dec. 4 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson will press for a stronger yuan in talks starting in Beijing today, just three days after the currency’s biggest fall since the nation scrapped a fixed exchange rate in 2005. “A spanner ...
Read more...Paulson Urges China to Continue With Currency Reforms - Wall Street Journal
WASHINGTON -- China should continue the process of currency policy reforms to ensure more balanced economic growth, U.S. Treasury Secretary Henry Paulson said Tuesday. With the Chinese economy facing a slowdown in exports, the country's leaders ...
Read more...The fool’s gold of carbon trading - Times Online
It was a deal to make Alistair Darling hug himself with glee. Just as the world’s existing financial markets were hitting a five-year low two weeks ago, the Treasury raked in a cool £54m from a brand new one. The occasion was Britain’s first ...
Read more...Rupee ends trading at 50.12/13 - Commodity Online
Commodity Online The MCX-SX INR December futures opened weaker due to sharp losses seen in Asian stock markets. Looses in the market would see more outflows of funds, which would continue to pressure rupee in the near term. One-month offshore non ...
Read more...China's yuan set to reverse course - Asia Times
TOKYO - China, faced with factory closures and slowing export growth as the global economy slows, is apparently prepared to weaken the value of its currency against the US dollar in defiance of a key policy goal of the United States, even as US ...
Read more...