Forex for a trader
Forex market value

Forex market valueMarket value of a forex position at any time is the amount of the domestic currency that could be purchased at the then market rate in exchange for the amount of foreign currency to be delivered under the Forex contract. Free Forex Trading Courses. Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Most Visited Forex Broker Reviews. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page.

While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Forex Trading – How to Trade the Forex Market. Learn about the best forex trading strategies. How to Trade the Forex Market. Whether you’re an individual trader or a financial or investment professional, the foreign exchange (forex) market, also known as the currency or foreign currency market is where the money is. Forex trading amounts to approximately $5 trillion (yes, trillion, not billion) per day. By comparison, the approximately $700 billion a day bond market and $200 billion a day in stock trading worldwide appear relatively small in size. The total daily value of all the stock trading in the world equals just about one hour’s worth of trading in the forex market every day. Forex Players – Banks. There are several distinct groups of participants in the forex market. The largest group of forex traders, in terms of the total dollar value of trading that they account for, is comprised of commercial and investment banks. Banks conduct a large amount of currency trading on behalf of their customers who are involved in international business and trade operations. They also serve as market makers in forex trading and trade heavily in their own accounts. (If a banker ever cautions you against forex trading, you might want to ask them why, if forex is such a bad investment, their bank invests such huge sums in the forex market.

) Forex Players – Governments. Governments, through their central banks, are also major players in the forex market. The central bank of a nation will often adopt large positions of buying or selling its own currency in an attempt to control the currency’s relative value in order to combat inflation or to improve the country’s balance of trade. Central bank interventions in the forex market are similar to policy-driven central bank interventions in the bond market. Forex Players – Companies. Large companies that operate internationally are also substantially involved in forex trading, trading up to hundreds of billions of dollars annually. Corporations can use the forex market to hedge their primary business operations in foreign countries. For example, if a U. S.-based company is doing a significant amount of business in Singapore, requiring it to conduct large business transactions in Singapore dollars, then it might hedge against a decline in the relative value of the Singapore dollar by buying the currency pair UsdSgd (US dollar vs. Singapore dollar). Forex Players – Traders. Last, but certainly not least, are individual forex traders, speculators who trade the forex market-seeking investment profits. This group includes a disparate cast of characters, from professional investment fund managers to individual small investors, who come to the market with widely varying levels of skill, knowledge, and resources. Learning Forex Trading – Currency Pairs.

The forex market trades fluctuations in the exchange rate between currency pairs, such as the euro and the US dollar, which is stated as EurUsd. In the quoting of exchange rates, the first currency in the quotation is known as the base currency and the second currency is the quote currency. The exchange rate for a currency pair appears as a number like 1.1235. If the pair EurUsd is quoted as 1.1235, that means that it takes $1.12 (and 35100 th ) in US dollars to equal one euro. The most widely traded currency pairs are, naturally enough, those involving the currencies that are most widely used worldwide – the US dollar (USD), the euro (EUR), the British pound (GBP), and the Japanese yen (JPY). Learning Forex Trading – Pips. Generally, the smallest fluctuation in an exchange rate between two currencies is called a “pip”. With most currency pairs, which are quoted to four decimal places, a pip equals 0.0001. The primary exception is Japanese yen currency pairs that are only quoted to two decimal places so that a pip equals 0.01. Many brokers now quote to five decimal places, with the last number signifying a fractional 110 th of a pip. The value of a pip depends on both the currency pair being traded and what lot size is traded. For one standard lot, a pip commonly equals $10 (US); trading mini-lots, a pip equals $1; and trading micro-lots, a pip equals 10 cents. The value of a pip varies slightly depending on the currency pair being traded, but those figures are roughly accurate for all pairs. Advantages of Forex Trading – Leverage.

One of the major attractions of forex trading is the unparalleled leverage that is available to forex traders. Leverage is the ability to hold a market position with only a fractional amount of the market value of the instrument being traded. This fractional required deposit amount to hold a trading position is known as “margin”. Leverage is expressed as a ratio that shows the amount of margin required by a broker to hold a position in the market. For example, 50:1 leverage means that a trader only needs to put up 2% of a trade’s total value to initiate a trade. Some brokers offer up to 1000:1 leverage. High amounts of leverage mean that forex traders can utilize a small amount of investment capital to realize sizeable gains. For example, with an investment of only around $10, trading micro-lots with 500:1 leverage, a trader can realize a profit of approximately $20 (or roughly double his investment) on just a 20-pip change in the exchange rate. Given that many currency pairs often have a daily trading range of 100 pips or more, it’s easy to see how traders can realize substantial gains from very small market movements, using minimal amounts of trading capital, thanks to leverage. However, traders have to keep in mind that just as leverage magnifies profits, it also magnifies losses. So a trader might only commit $10 of his total trading capital to initiate a trade, but end up realizing a loss substantially greater than $10. Advantages of Forex Trading – Liquidity. The extremely high volume of trading that occurs in the forex market each trading day makes for correspondingly high levels of liquidity. High liquidity makes for low bid-ask spreads and allows traders to easily enter and exit trades throughout the trading day. The bid-ask spread on major currency pairs, such as GBPUSD, are typically much lower than the bid-ask spread on many stocks, which minimizes transaction costs for traders. For large institutional traders, such as banks, high liquidity enables them to trade large positions without causing large fluctuations in price that typically occur in markets with low liquidity.

Again, that makes for lower total trading costs and thus larger net profits or smaller net losses. Higher liquidity is also considered by many traders to make markets more likely to trade in long-term trends that can more easily be analyzed with the use of charting and technical analysis. Advantages of Forex Trading – Volatility. As previously noted, many of the most widely traded currency pairs often have a daily trading range of up to 100 pips or more. This daily volatility makes for significant opportunities to realize profits simply within the range of price fluctuations that occur within a normal trading day. The advantage of volatility is enhanced by the fact that in forex trading it is just as easy to sell short as it is to buy long. There are no restrictions on short selling such as those that exist for trading stocks. A wide daily trading range, with equal opportunities to profit from both buying and selling, make the forex market very attractive to speculators in general and day traders in particular. Forex Trading Strategies – Fundamental Analysis. There are two basic strategic approaches to forex trading – fundamental and technical. Fundamental analysis trading is generally more favored by long-term traders, those who buy (or sell) and hold a currency pair for an extended period of time.

Fundamental analysis is analysis that is based on economic conditions, both within specific countries and globally. Throughout most trading days, various economic reports from the different countries in the world are released. The indications, positive or negative, coming from such reports are the main drivers of major changes in exchange rates between currency pairs. If, for example, several positive reports on the United Kingdom’s economy are issued within a three-month time frame, that is likely to increase the value of Gbp against other currencies such as the Eur and Usd. Among the most significant economic reports issued, those most likely to impact the currency markets, are gross domestic product (GDP), the consumer price index (CPI), the producer price index (PPI), various employment and consumer confidence reports, and the policy decisions of central banks. Fundamental analysis may also be based on global economic trends. For example, if the usage of cotton is rising worldwide, then the economies of countries that are major cotton producers can be expected to benefit, and the relative value of their currency may be expected to increase. Interest rates, which are set by a country’s central bank, are a major factor in determining the relative value of a currency. If investors can realize significantly higher gains from money held in interest-bearing accounts in the United States than from interest-bearing accounts in other countries, then that makes the US dollar more attractive and therefore likely to increase in value relative to other currencies. Forex Trading Strategies – Technical Analysis. Many forex traders favor technical analysis in determining the trading positions they adopt. Technical analysis – analysis based on charts of price movements in a market, with the aid of various technical indicators – is generally favored by speculators and short-term or intraday traders, although long-term traders may also utilize technical analysis.

Technical analysis is simply analysis that is based on past price movement and market behavior (such as volume or volatility), Technical indicators include trend indicators such as moving averages, and market strength, or momentum, indicators such as the relative strength indicator (RSI). A basic technical trading strategy might be something as simple as buying a currency pair when the priceexchange rate is above a 50-period moving average, and selling the pair when it is below the 50-period moving average. Some technical traders utilize a single technical indicator for trades, while others apply multiple technical indicators as trade indicators. For example, the simple technical trading strategy just outlined, using a moving average, might be combined with a momentum indicator such as the MACD, with trades only being initiated when both certain price levels and momentum levels exist. Technical traders analyze charts of varying time frames based on the trader’s individual trading time frame preference. Traders who make very quick, in-and-out of the market trades, may concentrate their analysis on a 5-minute, or even 1-minute time frame chart. Traders with a longer term trading time frames are more likely to apply technical analysis to hourly, 4-hour, or daily charts. The Forex Market – The Profit Opportunity Market. The forex market is one of the most attractive markets for traders. Forex trading has exploded in popularity since retail trading by individual small investors became more readily available around the turn of the century.

The ability to open a trading account with amounts as small as $50-$100, and the possibility of then turning such a small amount into millions within just the space of a few years, is an almost irresistible draw. However, the lure of “easy money” from forex trading can be deceptive. The fact is that the majority of forex traders lose money, and only a small percentage of traders are consistent winners in the currency trading market. The keys to success in forex trading include not just a good, sound trading strategy, but exceptional trading discipline, patience, and risk management. A number of super-successful forex traders have summed up the secret to their success as something like, “Just avoid taking big losses until you stumble into a huge winner. Most traders fail because they gamble away all their trading capital and don’t have any money left to trade with when a ‘million dollar’ trading opportunity finally comes around”. Corporate Finance Training. Advance your career in investment banking, private equity, FP&A, treasury, corporate development and other areas of corporate finance. Enroll in CFI’s Finance Courses to take your career to the next level! Learn step-by-step from professional Wall Street instructors today.

Real Market Value Forex Indicator. This Metatrader 4 forex indicator measures real market price movements. It doesn’t react quickly to spikes and rapid price movements. As a result, it’s a great trend following indicator for overall trend direction. Trading Signals. Buy: Wait for the price to move above the indicator from below. Alternatively, wait for a slope upwards of the realvalue indicator, then find entry points in the upwards trend. Sell: Wait for the price to move below the indicator from above. Alternatively, wait for a slope downwards of the realvalue indicator, then find entry points in the upwards trend.

Indicator Preferences. Currency pairs: any. Preferred Time frames: Suitable for 1 min charts up to the weekly charts. Download. Configurable Indicator Options. Period, Colors, Alpha, Variation,… GBPUSD Daily Chart Example. Forex (FX) is the market in which currencies are traded. The forex market is the largest, most liquid market in the world, with average traded values that can be trillions of dollars per day. It includes all of the currencies in the world. Real-Time Forex Trading. BREAKING DOWN 'Forex - FX' There is no central marketplace for currency exchange; trade is conducted over the counter.

The forex market is open 24 hours a day, five days a week, except for holidays, and currencies are traded worldwide. The forex is the largest market in the world in terms of the total cash value traded, and any person, firm or country may participate in this market. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX." The global foreign exchange market is the largest and the most liquid financial market in the world, with average daily volumes in the trillions of dollars. Forex transactions take place on either a spot or a forward basis. There is no centralized market for forex transactions, which are executed over the counter and around the clock. The largest foreign exchange markets are located in major financial centers like London, New York, Singapore, Tokyo, Frankfurt, Hong Kong and Sydney. Just How Large Is the Forex Market? The forex market is unique for several reasons, mainly because of its size. Trading volume is generally very large. As an example, trading in foreign exchange markets averaged $5.1 trillion per day in April 2016, according to the Bank for International Settlements, which is owned by 60 central banks, and is used to work in monetary and financial responsibility.

The world's largest trading centers can be found in London, New York, Singapore and Tokyo. How to Trade in the Forex Market. The market is open 24 hours a day, five days a week across major financial centers across the globe. This means that you can buy or sell currencies at any time during the day. The foreign exchange market isn't exactly a one-stop shop. There are a whole variety of different avenues that an investor can go through in order to execute forex trades. You can go through different dealers or through different financial centers, which use a host of electronic networks. From a historic standpoint, foreign exchange was once a concept for governments, large companies and hedge funds. But in today's world, trading currencies is as easy as a click of a mouse — accessibility is not an issue, which means anyone can do it. In fact, many investment firms offer the chance for individuals to open accounts and to trade currencies however and whenever they choose. When trading in the forex market, you're buying or selling the currency of a particular country. But there's no physical exchange of money from one party to another. That's what happens at a foreign exchange kiosk — think of a tourist visiting Times Square in New York City from Japan. He may be converting his (physical) yen to actual U. S. dollar cash (and may be charged a commission fee to do so) so he can spend his money while he's traveling. But in the world of electronic markets, traders are usually taking a position in a specific currency, with the hope that there will be some upward movement and strength in the currency they're buying (or weakness if they're selling) so they can make a profit.

A spot deal is for immediate delivery, which is defined as two business days for most currency pairs. The major exception is the purchase or sale of U. S. dollars vs. Canadian dollars, which is settled in one business day. The business day calculation excludes Saturdays, Sundays and legal holidays in either currency of the traded pair. During the Christmas and Easter season, some spot trades can take as long as six days to settle. Funds are exchanged on the settlement date, not the transaction date. The U. S. dollar is the most actively traded currency. The euro is the most actively traded counter currency, followed by the Japanese yen, British pound and Swiss franc. Market moves are driven by a combination of speculation, especially in the short term; economic strength and growth; and interest rate differentials. Forward Transactions. Any forex transaction that settles for a date later than spot is considered a "forward." The price is calculated by adjusting the spot rate to account for the difference in interest rates between the two currencies. The amount of the adjustment is called "forward points." The forward points reflect only the interest rate differential between two markets. They are not a forecast of how the spot market will trade at a date in the future. A forward is a tailor-made contract: it can be for any amount of money and can settle on any date that's not a weekend or holiday.

Transactions with maturities longer than a year are relatively unusual, but are possible. As in a spot transaction, funds are exchanged on the settlement date. A "future" is similar to a forward in that it's for a date longer than spot, and the price has the same basis. Unlike a forward, it's traded on an exchange, and can only be executed for specified amounts and dates. With a futures contract, the buyer pays a portion of the value of the contract up front. That value is marked-to-market daily, and the buyer either pays or receives money based on the change in value. Futures are most commonly used by speculators, and the contracts are usually closed out before maturity. Differences Between Forex and Other Markets. There are some major differences between the forex and other markets: Fewer rules : This means investors aren't held to as strict standards or regulations as those in the stock, futures or options markets.

There are no clearing houses and no central bodies that oversee the forex market. Fees and commissions : Since trades don't take place on a traditional exchange, you won't find the same fees or commissions that you would on another market. Full access : There's no cut-off as to when you can and cannot trade. Because the market is open 24 hours a day, you can trade at any time of day. Ease : Because it's such a liquid market, you can get in and out whenever you want and you can buy as much currency as you can afford. Market value of a forex position at any time is the amount of the domestic currency that could be purchased at the then market rate in exchange for the amount of foreign currency to be delivered under the Forex contract. Free Forex Trading Courses. Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Most Visited Forex Broker Reviews. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly. 03:59 PM | 24 Aug. Unleash the power of SIP - Invest in Mutual funds. Get ET Markets in your own language.

DOWNLOAD THE APP NOW. ENG - English HIN - ?????? GUJ - ??????? MAR - ????? BEN - ????? KAN - ????? ORI - ???? TEL - ?????? TAM - ?????. Forex Rates Forex Returns. 1D 5D 1M 3M 6M 1Y 2Y. Rupee makes a strong comeback, rises 20 paise to 69.91. Reuters 24 Aug 2018, 20:38. The domestic currency recouped early losses and withstood the headwinds of surging crude prices and trade deficit worries. Traveller's Pocket Guide. USD 50 100 250 500 1000 5000 10000 INR 3506.12 7012.25 17530.62 35061.25 70122.50 350612.50 701225.00. INR 50 100 250 500 1000 5000 10000 USD 0.71 1.43 3.57 7.13 14.26 71.30 142.61. Rupee marks gain; outlook by experts. Rupee snaps 2-days of gains, ends at 62.43. Rupee at 1-week high ahead of US jobs report. Rupee closes at 62.36 against dollar. Currency call: Rupee closes flat. Forward Rates* - USDINR. Data Sources: Mecklai Financial Services - 5 Minute delayed currency spot data, EOD currency forward and futures data, reports, deposit rates. Oanda – Currency Spot EOD data for Forex convertor, continent based currency data and historical performance. All times stamps are reflecting IST (Indian Standard Time). By using this site, you agree to the Terms of Service and Privacy Policy. Copyright © 2018 Bennett, Coleman & Co. Ltd. All rights reserved.

For reprint rights: Times Syndication Service. Get Your Free EUR Forecast. Improve your accuracy by identifying key technical levels. Find out the fundamentals that look likely to drive future price action. Learn from DailyFX experts with decades of market experience. Download My EUR Forecast. IGCS: IG Client Sentiment data provided by IG. Pivot Points data provided by IG. The Dollar has transitioned from a breakout after a 12-month, inverse head-and-shoulders pattern directly into a bearish standard, head-and-shoulders in the matter of a week. Has the bullish wave proved a dud? Continue Reading. Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets. We'll email you login details shortly. Your forecast is headed to your inbox.

DailyFX. com – the news, research and analysis website provided by IG – is one of the world's leading sources for news and analysis across currencies, commodities and indices. Discover our extensive calendar of free educational webinars and test your trading skills, risk-free, with an IG demo account. An error occurred submitting your form. Please try again later. Market Datadata provided by IG. Forex Economic Calendar. About your FOREX. com Demo Account. A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment. (1) The price at which a security is trading and could presumably be purchased or sold.

(2) What investors believe a firm is worth; calculated by multiplying the number of shares outstanding by the current market price of a firm's shares. Investing Essentials. Financial Advisor Magazine. Financial Advisor Magazine. Financial Advisor Magazine. Financial Advisor Magazine. Bank Investment Consultant. Bank Investment Consultant. Bank Investment Consultant. Bank Investment Consultant. Bank Investment Consultant. Also called a mean-variance efficient portfolio, a portfolio that has the highest expected return at a given level of risk. Get the Term of the Day in your inbox!

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Please disable your ad blocker (or update your settings to ensure that javascript and cookies are enabled), so that we can continue to provide you with the first-rate market news and data you've come to expect from us. What is Forex Trading? Updated: February 19, 2018. There is no doubt you have heard a lot about the Forex market, especially now with economies in turmoil. People are looking for alternative ways to generate income. On your quest to discover what is forex trading, you’ve no doubt come across claims that it’s a means to generate an “unlimited amount of money”, all from the comfort of your own home. Sounds like the ultimate dream lifestyle, yeah? Forex trading is a profession and it’s just like learning any other profession out there, it is no overnight task. Learning to become a competent, professional full time Forex trader is a process that can take months, even years to achieve. So, we better get started… Forex stands for the ‘foreign exchange’ market. So, what is Forex?

It’s the medium used to exchange one currency for another. Let me ask you something. Have you ever traveled to another country? Surely you’ve purchased a product from overseas on EBay? Maybe you simply needed to transfer money to an overseas bank account. If you answered yes to any of these, you would have needed to exchange currencies on the Foreign Exchange market to complete the transaction. Don’t worry, most of the technical stuff gets taken care of on the banks end, but essentially you’ve already traded on the Forex market. Go you! If I ask colleges what is Forex, they generally think i’m talking about the stock markets. People believe Forex trading is dealing with centralized markets like the New York Stock Exchange (NYSE). People’s perception of the NYSE is that it’s the largest, and most powerful financial market place in the world. This means that’s where all the big money is right? No, that’s incorrect. The Foreign Exchange market is the largest in the world.

In fact, it’s about 200 times bigger than the New York Stock Exchange. To put that in perception for you, take a look at the picture below. Overall, there is approx. 4 trillion dollars traded across the entire Forex market in a 24 hour trading day. Even if you combined all the stock, bond and equity markets together, you still wouldn’t come close to the total size of the Forex market. The Forex market is truly EPIC in comparison to any other financial market in the world. Next time someone asks you what is Forex, you will be able to distinguish the difference from the other more well known markets. Forex trading has become exponentially popular since the implementation of electronic trading. That’s all thanks to the development of the internet. To get started with Forex trading, all you need is a basic computer setup with a reliable internet connection. Another great reason Forex trading has gone viral is because the Forex market gives you the freedom to trade from the comfort of your own home. Most people thrive to achieve the ‘full time Forex trader’ milestone with the goal of becoming their own boss. But beware, it sounds very appealing but a lot of new traders experience Forex trading failure. One positive note to starting your dream of trading Forex from home is you don’t need any special qualifications to be successful. No need for university degrees in economics or physics, advanced skills in math. You don’t even need to be be in tune with the global financial news, or have your hands on the latest economic data.

These are all common misconceptions. In fact, the high school dropout can be more successful with trading than say a doctor, dentist, professor or engineer. The market does not discriminate between IQ scores or your qualifications, it is an equal opportunity for all. But, that doesn’t mean it’s going to be easy. Forex trading is the biggest psychological challenge you will ever face in your life. You need to be headstrong and maintain realistic expectations of trading. For a person to become a successful trader they must undertake an emotional journey that all other traders go through. The successful trader has a cool, calm & collected attitude with hisher emotions which are kept in check at all times. A lot of Forex traders lose money and are washed out of the game repeatedly. Mainly because they couldn’t remain in control, and were overcome by their emotions. Do you think you’ve got what it takes to become a trader?

Most new traders think of the Forex market as a way to get rich quick. Negligence, and bad attitudes towards the markets will wipe out a cocky traders account at alarming speeds. In our Price Action Protocol Course we teach traders how to control risk and maximize rewards. Only by keeping a positive risk reward ratio money management ratio model, can you achieve consistency as a trader, and have the chance to make a career out of Forex trading. Common Forex Terminology. Before we go any further, part of understanding what is Forex will be learning some of the common Forex language or ‘jargon’. It’s used every day by traders and it is critical that you are familiar with these terms to be able to fully absorb any information presented on this site. Don’t worry, it’s not super complex. It’s quite easy, as you may know we keep things simple with our trading and that includes the lingo. Bulls & Bears.

You may have heard terms like, “Oh that chart looks very bullish”, or, “that is a bearish price action setup”. These are metaphoric terms that describe whether the market is moving up and down. A bull is somebody who believes that the market will rise. The bull is used here because a bull will generally attack its opponent by using its horns to flick them up in the air i. e. the rising prices. A bear is somebody that believes the market will fall, this was derived from the way the bear attacks its opponents. Bears generally use their large body weight and powerful arms to knock down is opponent, hence the ‘falling’ prices. The use of bulls and bears as metaphors is believed to have come from the early stock market days, when blood sports like real bull and bear fights were common. Long or Short. Long and short and interchangeable with buy and sell. To go ‘long’ is to open a buy position. To go ‘short’ is to open a sell position. Where the buy button is on some trading platforms you will find a ‘long’ button instead. Or instead of a sell option, you will find a ‘short’ button in its place. There is no difference between the two, just a different way of expressing a trade direction.

“I am looking at going long on EURUSD, I am very bullish on that market”, can also be viewed as “I am looking at buying EURUSD, I strongly believe that market is going to rise in value”. “I have opened a short position on the GBPUSD because I am bearish on that market”, can be translated to “I have opened up a sell position on the GBPUSD because I believe that market is going to fall”. Bid Vs Ask Prices. When you open and close trades through your Forex Broker, you will be dealing with two separate prices. The Bid Price: The bid is the market value, basically the price that you see on the screen is the bid price. The Ask Price: This is the price that your broker is willing to sell you currency for. Of course brokers are a business so they need to be able to make money. How they achieve this is by selling currency to you at a slightly more expensive price than they can get their hands on it for. The difference between the price they can buy currency for and the price they sell it to you for is called the spread. More details on Bid, Ask and spread prices later on in the course. Hopefully now you have a bit more clarity on what is Forex trading. In the next chapter we are going to have a look at the history of the Forex market and see how it evolved into today’s biggest financial market. MASTER YOUR FOREX TRADING. Join my weekly newsletter to get my latest price action analysis and my trading tips.

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