Exchange Money Rate

As the name would imply, the exchange money rate, also called the foreign exchange rate, the forex rate or the currency exchange rate is the rate at which one currency can be exchanged for another. As such, exchange rates are always quoted in pairs, between two currencies, with a bid price and an ask price for each currency against the other; the difference between the bid price and the ask price is also known as the spread. This spread between the offer and sale price for any currency pair will comprise the profit margin for intermediaries, such as banks, brokers and forex dealers, who execute forex transactions for their retail and institutional clients.

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What Is the Best Type of Forex Platform?

Best Forex PlatformsThe determination of which forex trading platform is the “best” will of course be subjective. Depending on the type of trader that you are (short term scalping? going long with the trends? highly analytical? In need of the platform to provide your analytics?)  and the type of trading strategy that you use, what’s best for you might not necessarily be what’s best for someone else. It’s a personal choice that has everything to do not only with the platform itself, but also with the forex broker offering the platform in question, and as such, the best type of forex platform for you will be closely tied to the choice of the best broker for your needs.

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Indicator Of Forex Market Economy

Indicator Of Forex Market Economy

Don’t let yourself be misled by the use of the word “indicator”: market economy indicators are not the same analytical indicators utilized by traders, such as stochastics or moving averages, to plan their market entry and exit points and confirm their hunches, but rather, market economy indicators are bits of economic data and information released by governments and private sector interest groups which summarize various aspects and facets of a nation’s economy and as such, serve as a reflection of the given country’s economic health, wealth and prospects. The release of these indicators has a significant impact on the forex markets both in terms of substance as well as in terms of timing and in fact, play a major role not only in forex pricing but in forex forecasting, forward trading and the pricing of forward forex options as well.

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Foreign Exchange Education

If you’re involved in any kind of investing then you already know how important it is to remain informed of trends, developments, news and techniques that can have an effect on your returns (and ultimately, on your portfolio). Nowhere, however, is the need for continual education and for continually remaining abreast of news and developments as paramount as in the realm of foreign currency trading, wherein external stimuli can cause the quickest movements in price, while the quickest and smallest movements in price of only a pip or two can correspondingly wipe out a retail forex trader’s profit…or make his day. In forex trading, staying on top of economic and political news and developments and educating yourself as to their effect on your chosen currency pair(s) is an ongoing requirement, without which it would be impossible to optimize your forex trading gains.

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How To Guide To Forex Hedging

Hedging is a financial strategy that has applications in a wide variety of investment scenarios and can be implemented in any investment or trading situation where rapid and potentially large price fluctuations can summarily wipe out an investor’s profit from one minute to the next, such as in the trading of commodities and the trading of foreign exchange. It is the process of making offsetting investments in order to mitigate the risk of loss resulting from these rapid price changes, and is a particularly effective strategy when properly utilized in the context of retail forex trading. In forex trading, hedging involves the buying or selling of currency pairs in order to protect your position against movements in the market that are contrary to your interests and your bottom line.

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Forex Strategy Secrets

Forex  Strategy SecretsIf you ask 100 forex traders to provide you with some measure of insight into their trading strategies and secrets, it’s a given that you’ll receive an equal number of answers. Each may have their own preferred or “secret” strategy, or combination of strategies, in their arsenal of forex trading tools, yet forex traders are a surprisingly friendly, helpful and egalitarian lot and as such, most traders are happy to share their secrets in the hope of picking up a new trick or two, or of helping a fellow trader to improve his returns. Most of these strategies rely heavily on the use and interpretation of market indicators and thus are of a decidedly analytical bent, but we’ll try to break down a few of the most well-known trading “secrets” for you in a simple and straightforward manner.

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Currency Forex Market Trading

currency forex market tradingSwapping currencies on the foreign exchange currency market (FOREX) represents a nearly $5 trillion dollar per day activity. That is roughly 10 times the entire capitalization of the New Zealand stock exchange on a daily basis.

The staggering amounts of money involved and the millions of participants provide some substantial benefits for the individual or retail trader.

Trades in any of the world’s major currencies can be a executed essentially instantaneously. The difference between the desired price and the actual price at which an order is filled, known as slippage, is negligible, unlike some other types of investments where an order may languish for some time, giving prices an opportunity to change to an extent where the trade is no longer desirable.

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Buying Foreign Currency

Buying foreign currency reserves is an investment strategy that takes patience, awareness of market trends and foreign events, and a bit of luck to pull off successfully. As such it is a somewhat less popular form of investment than, say, stocks or mutual funds. However to savvy investors foreign currency purchases can be an integral aspect of maintaining a diversified and hedged portfolio capable of withstanding unforeseen international events.

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Forex Trading: How To Become A Currency Trader

Forex Trading How To Become A Currency TraderWhether you’re looking for a way to get started in trading foreign exchange, looking to become a full-time foreign exchange trader or looking to occupy the space between the two extremes by supplementing your net income with profits derived from trading foreign exchange on a regular basis, you have got to start somewhere. The good news is that it’s quite simple to become a currency trader, since the tools you’ll need are widely available to you without having to search far and wide, however, there’s a great distinction between becoming a currency trader and becoming a successful currency trader with measurable trading gains; at the end of the day, which type of currency trader you become—successful or less-so—depends on your skill set, your level of discipline and your willingness to follow some basic, common sense advice.

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How To Easily Spot A Forex Scam

If you’ve got experience in trading in the stock market, then chances are good that you’ve learned how to spot a stock scam or to notice the signs of stock manipulation along the way. Scams that hinge on the unscrupulous activity of stock promoters and company insiders display certain visible characteristics (such as unwarranted spikes in volume or sudden price volatility) that can be identified and investigated. It’s more difficult, however, to identify a stock scam that’s put into action by unscrupulous stockbrokers (such as front running or circular trading), because the retail investor does not have any insight into the brokerage house’s internal practices and therefore, has no independent means of researching or confirming their hunch that certain activity may be fraudulent. This situation parallels exactly the dangers of getting taken in by a forex scam.

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