Forex for a trader
Corporate forex trading account

Corporate forex trading accountCorporate forex trading account. Applications for Corporate Forex Trading Accounts should be submitted when a Legal or Registered Corporation intends to open an account. On the Corporate Account Application form you will find areas specially designed for assigning an Authorized Representative(s), to trade, deposit or withdraw on behalf of the applicant. Opening a Corporate Trading Account with FXCC is a straightforward procedure: Please download and complete the following documents: Complete and return these along with the supporting information requested to FXCC, either by Fax or email . Once your account application has been received and processed, your login details will be forwarded to you by the FXCC accounts department. Please make sure you have read and understood the following documentation: RISK WARNING: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all the initial capital invested. Therefore, Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. So please ensure that you fully understand the risks involved. Seek independent advice if necessary. RISK WARNING: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all the initial capital invested. Therefore, Forex and CFDs may not be suitable for all investors.

Only invest with money you can afford to lose. So please ensure that you fully understand the risks involved. Seek independent advice if necessary. FXCC does not provide services for United States residents andor citizens. FX Central Clearing Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), under CIF Licence Number 12110 and operates under the EU Markets in Financial Instruments Directive (MiFID). FX Central Clearing is on the FCA(UK) Register (Reference Number 549790) and EEA Authorised. Copyright © 2018 FXCC. All Rights Reserved. Trade with us on behalf of an organization. Brokers, prop traders, businesses hedging currency risk or business owners simply wishing to invest surplus company money have all opened corporate accounts with us. Whatever your company needs are, please get in touch as we can support you. XGLOBAL Corporate Account Advantages. The XGLOBAL Corporate Account provides legal entities the ability to trade our full variety of instruments through MT4 with competitive trading conditions. Such conditions include tight spreads, no dealing desk execution and flexible leverage without any commissions or fees. How to Open An account. Simply request and complete our corporate account application form and send us the necessary documents in accordance with the checklist below: For the legal entity: Memorandum & Articles of Association Certificate of Incorporation Certificate of Shareholders Certificate of Directors & Secretary Certificate of Registered Office Certificate of change of name (if applicable) Board of Directors’ Resolution (such resolution authorizes the opening of a Corporate Account with XGLOBAL Markets Ltd and includes a list of signatories with a specimen of individual signatures) Bank Statement (dated within the last 6 months) Documentation proving source of funds (only required for large deposits) For directors and shareholders owning 10% or more: Passport copy Utility bill (dated within the last 6 months) Personal photograph with passport in picture.

Important Note: XGLOBAL Markets reserves the right to request additional supporting documents at its discretion. Please send your completed Corporate Account Form and all supplementary documents to email protected . As soon as we receive all the necessary documents, we will process your application and open your Corporate Account. You will then be able to enter the market and begin trading. For any questions related to our Corporate Accounts please email us at email protected . ALL legal entities (both EU and Non-EU) that wish to open an account with X Global Markets Ltd must have a LEI (Legal Entity Identification) Code; otherwise, no transaction can be concluded with such entities. A broker on your side. Risk Warning: CFDs come with a high risk of losing money rapidly due to leverage. 65.68% of retail trading accounts lose money when trading CFDs with XGLOBAL Markets. CySEC Regulated FCA Registered BaFIN Registered. X Global Markets Ltd is an Approved Cypriot Investment Firm (CIF) registered with the Registrar of Companies in Nicosia under number HE 291958, regulated by the Cyprus Securities and Exchange Commission (CySEC) with license no. 17112. The Company is licensed to offer the investment services of Reception and Transmission of orders and Execution of orders on behalf of clients.

© 2018 X GLOBAL Markets Ltd. All Rights Reserved. How to Open a Forex Trading Account. So after demo trading on at least three broker platforms, you’ve narrowed down your choice to a single forex broker? After finding the right broker for you, you can open a forex trading account in three simple steps: Selecting an account type Registration Activating your account. Why not? It’s all FREE! Make sure to try out and “kick the tires” of several different brokers to get a feel for the right one for you. Choosing an Account Type. When you’re ready to open a live account, you have to choose which type of forex trading account you want: a personal account or a business (aka corporate) account. In the past, when opening a forex trading account, you’d also have to choose whether you wanted to open a “standard” account, a “mini” account, or a “micro” account. This is great for newbie and inexperienced traders who only have a small account of capital. This provides you great flexibility, as you won’t have to trade bigger than you’re comfortable with. Also, always, always, always remember: Always read the fine print. Some brokers have a “managed account” option in their application forms.

If you want the broker to trade your account for you, you can pick this. But is this what you really want? After all, you didn’t read through the whole School of Pipsology just to have someone else trade for you! Besides, opening a managed account requires a pretty big minimum deposit, normally $25,000 or higher. Also, the manager will also take a cut out of any profits. Lastly, make sure you open a forex spot account and not a forwards or futures account. You will have to submit paperwork in order to open an account and the forms will vary from broker to broker. They are usually provided in PDF format and can be viewed and printed using Adobe Acrobat Reader program. Also, make sure you know all the associated costs, like how much your banks charges for a bank wire transfer. You’d be surprised how much these actually costs, and they may actually take up a significant portion of your trading capital. Once the broker has received all the necessary paperwork, you should receive an email with instructions on completing your account activation. After these steps have been completed, you will receive a final email with your username, password, and instructions on how to fund your account. So all that’s left is for you to login and start trading.

Pretty easy huh? Time to log in, pop open those charts, and start trading! But wait just one minute! We strongly advise you DEMO trade first. There’s no shame in demo trading – everyone has to start somewhere. If you have been demo trading for at LEAST six months, then maybe you can dip your feet into live trading. Even then, we suggest you go in the shallow end and consider how much you want to risk. Trading live is a different beast altogether. It’s like the difference between sparring against your kid brother (or sister) and fighting Manny Pacquiao. If you start trading live without any demo trading experience, this is what usually happens: But no matter how successful you were in demo trading, nothing can replace the feeling of having real money on the line. And once you’ve started trading on a live account, never get too comfortable. Always remain vigilant and use proper risk management.

How to Start Trading: Trading as a Business. The idea of trading for a living – or having your own trading business – is appealing to many people: You get to be your own boss, set your own schedule and work from home while enjoying virtually unlimited income potential. In addition to these factors, anyone with a computer, Internet connection and a small trading account can give it a try. Unlike many other jobs, no degrees, special training or experience is required. Steep Learning Curve. Because trading is so easy to get into, new traders may not realize there's a very steep learning curve involved: Being successful is difficult and takes a lot of time and effort. Here are some quick facts about trading: About 90% of day traders fail within the first year. There is no way to completely eliminate risk in trading. There is no trading system that wins 100% of the time. You will always have losing trades, even if you are a rock star trader. You need money to make money – it will take a long time to get rich with a small trading account. Successful independent traders can earn a comfortable income, but most do not become millionaires. The ease with which you can start trading (just open a trading account and hit the “buy” button) in no way implies that becoming a successful and profitable trader is easy.

Many of the 90% of traders who fail within the first year do so because they start trading without having developed any type of logical business or trading plan. Any business entered into with such a lack of planning is likely to fail. Another common reason for failure is that the trader is undercapitalized; meaning, he or she doesn't have enough money to take on the risk and absorb the inevitable losses. There is also a lot of deception associated with learning the business of trading. Late-night infomercials and hundreds of websites would have you believe that trading is easy and that anyone can generate a huge and consistent income from the financial markets, with little or no effort. While there may be the rare case where a trader manages to make a huge amount of money in a short time, that's not the norm. For most people, trading involves a lot of hard work before becoming successful. As a business, trading requires constant research, evaluation and discipline. There are no guarantees in the trading business, and you could work a 40-hour week and end up losing money. Anyone considering trading should make sure they have both the personality and financial means to take on this type of business activity. You might ask yourself: Am I driven to succeed?

How do I handle losing? Do I have time to dedicate to learning the business of trading? Can I stick to a plan? Do I have my family’s support? Do I have money that I can afford to lose? How do I deal with stress? Do I have realistic expectations? If you want to become a part-time or full-time trader, it's important that you take the time to research and plan your trading business; these are essential steps in your overall success as a trader. This is not a profession at which you will become skilled overnight. Traders who start putting their money in the market too soon or without a well-researched trading plan often find themselves back at the beginning, but with a lot less trading capital. Traders who have realistic expectations and who treat trading as a business – not as a hobby or a get-rich-quick scheme – are more likely to beat the odds and become part of the group of traders who succeed. BTCUSD (Bitcoin US Dollar) Trading on MT4 at AAFX Trading. Benefits of trading BTCUSD (Bitcoin US Dollar) with AAFX Trading.

Low Margin Requirements. Available of MT4 Platform. Best Liquidity Providers Lowest Spreads Starting From 0 Pips. 35% Welcome bonus up to $20000. 30% Redeposit bonus. Now Trade on MT4 with 1:2000 Leverage And Instant Execution. Introducing Broker Affiliates - Refer A Friend. Commission up to $20 per lot. 10% Refer an IB Partner. Register - Refer Client - Start Earning! AAFX launches tailored apps for. android and iphone. is one of the world’s fastest growing Forex & CFD provider.

The company offers Foreign Exchange and CFD trading on multiple trading platforms, including the globally popular Metatrader 4 platform. AAFXTrading. com is a market leader when it comes to customer service, offering its clients top-notch products and services in over 20 different languages. The company’s focus on superior service has been frequently recognized by the industry. AAFXTrading. com was the recipient of the Malaysian investor show winning the best broker of asia 2013. AAFXTrading. com is a fully licensed and regulated company. The Alliance program was developed to reward our customers, affiliates, and Introducing Brokers for referring new clients to open trading accounts with AAFX Trading. This program is designed to offer a compensation… Start your own business. This is where technology, operations, and experience all meet in one place. We offer a standard, as well as completely customizable integrated solutions that include everything a brokeragerequires:… Social Responsibility. AAFX Child Foundation.

From our conception to where we are today, AAFX Trading has always endeavored to be the best. Being the best however is only half the journey, remaining the best takes teamwork, perseverance and passion. Team AAFX Trading Aylezo. AAFX Trading has a deep-rooted sense of responsibility that it should help those less fortunate and actively lend assistance at every appropriate opportunity to do so. Contributing to local communities through charitable.. AAFXTRADING pioneered the offering of an MT4 platform with trading execution quality in mind. Trade on an MT4 with No Requotes, No Rejections with flexible leverage ranging from 1:1 – to 1000:1. AAFXTRADING MT4 Features: Over 100 Instruments Including Forex, CFDs and Futures Spreads as low as 0 pips Full EA (Expert Advisor) Functionality 1 Click Trading and Built in News Functionality Technical Analysis Tools with 50 indicators and charting tools 3 Chart Types Micro Lot Accounts (Optional) Hedging allowed Swap-free trading accounts available* Asian stocks rose on Tuesday, supported by hopes … Asian share markets crept cautiously higher on Monday … We Offer Fast Account Approval That Only Takes Up to 24 Hours Before You Can Start Trading! Why Choose AAFX for Currency Trading? There are plenty of forex brokers out there in the market and we have differentiated ourselves from rest of the herd by focusing on providing top notch customer service to everyone including advance traders & beginner forex traders.

AAFX Trading consists of specialized team that have immense experience in currency trading and other commodities such as gold, oil, bonds and so on. We Know what you want Better Technology Best Customer service Best Forex Brokers. What is Forex Market All About? The roots of forex that is foreign exchange market can be traced backed to the end of 1970's after many countries decided to unpeg their currency against dollar and gold. Forex or FX or Forex market became a decentralized hub for currency trading. Currencies are bought, sold and exchanged at the live forex rate. FX is the largest trading market in terms of volumes traded. More than hundred thousand of forex beginners and traders have chosen AAFX as their forex service providers and open their forex trading accounts. Who are Forex Brokers? Forex Broker or Traders, tries to predict the direction of specific currencies in which prices of currencies may shift whether the price will go up or down, and traders decide if it is a right time to buy or sell the currency. Furthermore, the basic rule is to buy a currency at a lower price and then sell it a higher price to gain profits sounds easy but it is not a piece of cake.

It is high risk investment and there are many factors involved. All the factors has to be evaluated perfectly before reaching a decision. One can make profit either on currency deprecation or appreciation. One of the best features of Forex is that a trader can work from anywhere in the world. We are one of the best forex brokers in the market that will guide you in the whole process. Learn Trading Risk Free with a Forex Demo Account. AAFX offers a forex demo account to all the newbie traders who have developed a keen interest in trading currency. These demo accounts has been proven to be an excellent learning tool for beginners. Forex for beginners can be very challenging as there are many factors involved and it can also overwhelm the new trader moreover, beginners should know all the strategies before working in the live forex market. With a demo forex trading accounts you can begin your trade without putting your money at risk. We are one of the best forex brokers. Forex demo account at AAFX Trading offers. Trade virtual money Get Live Forex Rates that is buy and sell prices Trade online at any time, 5 days a week Practice making trades.

One of the best things about forex is that investors don't need to have a lot of capital to get started. They can begin their trade with few couple of dollars and predict the direction of the currencies. Furthermore, traders can trade at their own term which means that they can trade at any time or from anywhere in the world. Forex market is open 5 days a week and traders can get their forex trading accounts and begin the trades. Moreover, there are many opportunities in the market and around 4 trillion dollars are traded each day. However, forex for beginners need to have proper strategies since if the price of one currency is depreciating there is another currency whose value will be increasing so there is always a chance to make profits. How to Open a Forex Trading Account. So after demo trading on at least three broker platforms, you’ve narrowed down your choice to a single forex broker? After finding the right broker for you, you can open a forex trading account in three simple steps: Selecting an account type Registration Activating your account. Why not? It’s all FREE! Make sure to try out and “kick the tires” of several different brokers to get a feel for the right one for you. Choosing an Account Type. When you’re ready to open a live account, you have to choose which type of forex trading account you want: a personal account or a business (aka corporate) account. In the past, when opening a forex trading account, you’d also have to choose whether you wanted to open a “standard” account, a “mini” account, or a “micro” account. This is great for newbie and inexperienced traders who only have a small account of capital. This provides you great flexibility, as you won’t have to trade bigger than you’re comfortable with.

Also, always, always, always remember: Always read the fine print. Some brokers have a “managed account” option in their application forms. If you want the broker to trade your account for you, you can pick this. But is this what you really want? After all, you didn’t read through the whole School of Pipsology just to have someone else trade for you! Besides, opening a managed account requires a pretty big minimum deposit, normally $25,000 or higher. Also, the manager will also take a cut out of any profits. Lastly, make sure you open a forex spot account and not a forwards or futures account. You will have to submit paperwork in order to open an account and the forms will vary from broker to broker. They are usually provided in PDF format and can be viewed and printed using Adobe Acrobat Reader program. Also, make sure you know all the associated costs, like how much your banks charges for a bank wire transfer.

You’d be surprised how much these actually costs, and they may actually take up a significant portion of your trading capital. Once the broker has received all the necessary paperwork, you should receive an email with instructions on completing your account activation. After these steps have been completed, you will receive a final email with your username, password, and instructions on how to fund your account. So all that’s left is for you to login and start trading. Pretty easy huh? Time to log in, pop open those charts, and start trading! But wait just one minute! We strongly advise you DEMO trade first. There’s no shame in demo trading – everyone has to start somewhere. If you have been demo trading for at LEAST six months, then maybe you can dip your feet into live trading.

Even then, we suggest you go in the shallow end and consider how much you want to risk. Trading live is a different beast altogether. It’s like the difference between sparring against your kid brother (or sister) and fighting Manny Pacquiao. If you start trading live without any demo trading experience, this is what usually happens: But no matter how successful you were in demo trading, nothing can replace the feeling of having real money on the line. And once you’ve started trading on a live account, never get too comfortable. Always remain vigilant and use proper risk management. Open Forex Trading Account - GKFX. Please register your details below. *Spreads are subject to change. **Number of all open trades including pending trades.

***Number of standard lots per one single trade. ****Individual product settings specified in MIS sheets. Spreads (from 1.5* pips) Minimum lot (0.01) Minimum account opening deposit (0) Spreads (from 1.2* pips) Minimum lot (0.1) Minimum account opening deposit (0) Spreads (from 0.6* pips) Minimum lot (1) Minimum account opening deposit (€25.000) Demo Account. Explore Trading without Taking Any Risks. GKFX is a registered trademark of GKFX Financial Services Limited © 2017 GKFX Financial Services Limited – all rights reserved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details. Apple, iPad, and iPhone are trademarks of Apple Inc., registered in the U. S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details. 81.75% of retail investor accounts lose money when trading CFDs with this provider.

What is a 'Trading Account' A trading account can be any investment account containing securities, cash or other holdings. Most commonly, trading account refers to a day trader’s primary account. These investors tend to buy and sell assets frequently, often within the same trading session, and their accounts are subject to special regulation as a result. The assets held in a trading account are separated from others that may be part of a long-term buy and hold strategy. Excess Margin Deposit. House Maintenance Requirement. BREAKING DOWN 'Trading Account' A trading account can hold securities, cash and other investment vehicles just like any other brokerage account. The term can describe a wide range of accounts, including tax-deferred retirement accounts. In general, however, a trading account is distinguished from other investment accounts by the level of activity, purpose of that activity and the risk it involves. The activity in a trading account typically constitutes day trading. The Financial Industry Regulatory Authority (FINRA) defines a day trade as the purchase and sale of a security within the same day in a margin account. FINRA defines pattern day traders as investors who satisfy the following two criteria: Traders who make at least four day trades (either buying and selling a stock or selling a stock sort and closing that short position within the same day) over a five-day week. Traders whose day-trading activity constitutes more than 6 percent of their total activity during that same week. Brokerage firms can also identify clients as pattern day traders based on previous business or another reasonable conclusion.

These firms will allow clients to open cash or margin accounts, but day traders typically choose margin for the trading accounts. FINRA enforces special margin requirements for investors it considers to be pattern day traders. FINRA Margin Requirements for Trading Accounts. Maintenance requirements for pattern day trading accounts are considerably higher than those of non-pattern trading. The base requirements of all margin investors are outlined by the Federal Reserve Board’s Regulation T. FINRA includes additional maintenance requirements for day traders in Rule 4210. Day traders must maintain a base equity level of $25,000 or 25 percent of securities values, whichever is higher. The trader is permitted a purchasing power of up to four times any excess over that minimum requirement. Equity held in non-trading accounts is not eligible for this calculation. A trader who fails to meet these requirements will receive a margin call from their broker and trading will be restricted if the call is not covered within five days. Starting a Forex Trading Company – Sample Business Plan Template. Do you want to learn how to start a Forex trading business online as a beginner? If YES, here is an in-depth guide on how to make money online with forex trading for beginners . Though very risky especially for the less experienced, trading foreign exchange on the currency market ( also called Forex trading ) can be an interesting activity as well as great source of investment income. Currencies worth $5 trillion dollars are traded in the forex market per day. So, you can make a lot of money from the forex trading business without investing too much.

If you are been looking to start a profitable business that you can run from the comfort of your home, then you should consider forex trading. One of the good sides of the business is that there are no formal requirements required to start trading forex. Forex trading simply involves trading in currency. You buy a certain currency when its price drops and you quickly sell it once the price goes up. So, your aim is to make as much profit as possible from the fluctuations in the prices of currencies. Though the principle by which money is made is the same in forex trading, stock trading and commodities trading; both trading methods differ in the following major aspects: Stock trading involves buying and selling stocks, while forex trading involves buying and selling currency. The stock market is active for only certain hours of the day, but forex trading is done 247. Insiders and market makers can manipulate the stock market, but the forex market cannot be manipulated. Forex allows margin trading, which gives you the chance to buy thousands of dollars worth of a particular currency when all you have is less than $100. This is impossible in stock trading ( point of correction, margin stock trading option is now being offered by some brokerage houses banks ). With a little money, patience, a PC, and a reliable internet connection, you can become a forex trader. The ease of starting the business notwithstanding, you will need to know some things and follow certain steps, as forex trading is a very risky business. Here are the steps you should follow to become a forex trader. Starting a Forex Trading Business Online and Make Money – for Beginner. 1. Get the basic necessary knowledge. Forex trading is a little bit technical and it is quite difficult to learn on your own; though self learned video tutorials and courses are now available online. However I recommend you learn under the apprenticeship if an established forex trading expert. You should also attend seminars and read courses to further sharpen your skills.

It is also important you read books on business and economics as it will help broaden your insight; especially when trading forex with fundamental analysis. Some basic forex terminologies you need to know include the following: Base currency : The type of currency you’re spending or getting rid of. In other words, this is the currency you trade to purchase another type of currency. Quote currency : The currency that you’re purchasing with the base currency. Exchange rate : This tells you how much of the base currency you have to spend in order to purchase the quote currency ( or vice versa ). Long position : You take a long position when you want to buy the base currency and sell the quote currency. Short position : You take a short position when you want to buy the quote currency and sell the base currency. Bid price : This is the price at which your broker is willing to buy base currency in exchange for quote currency. The bid price is the best price at which you’re willing to sell your currency on the market. Ask price : This is also called the offer price. It is the price at which your broker will sell base currency in exchange for quote currency.

Spread : This is the difference between the bid price and the ask price. However, you must bear in mind that there are much more terminologies to learn than the few explained here. So, you will need to contact a forex trading expert, read books, or browse the internet for more information on the various terminologies used in forex trading. Examples of highly recommended books on forex trading include “ Trade What You See ” ( by Larry Pesavento and Leslie Jouflas ) and “ The Secrets of Economic Indicators ” ( by Bernard Baumohl ). 2. Get trading capital. You don’t need huge capital to start forex trading. This is because you can trade on margin, which means you can take buying decisions worth thousands of dollars with just $50 or even less. On the average, a forex broker needs about $300 to open an account and start trading. It is highly recommended that you open your trading account with at least $1000. This will help you trade with a bit of a buffer in case of losses.

But if you cannot afford this amount for a start, you can start with at least $300. 3. Choose a forex broker. A forex broker is the online platform through which you will access the forex market and do your trading. It is very important that you read the terms and conditions of any broker before you settle with them. This is because some brokers will offer certain options that will be helpful to some traders while being a disadvantage to other traders. So, you should compare many brokers with respect to their terms and conditions, trading options, and user reviews, and choose the one that you think is most suitable for you. You may want to seek advice from a forex trading expert before choosing your broker. 4. Open a demo account. Once you have chosen a broker, it is time to open a demo account. This is a virtual account offered by the broker for a certain trial period ( for example, 30 days ), which gives you a feel of the broker’s trading platform and a chance to trade on the platform using play money. Using a demo account helps you become familiar with the broker’s trading platform and tools. It will also prepare you for trading in the real market. So, don’t trade real money without having tested the broker’s trading platform with a demo account for at least 90days. 5. Practice well. Most online forex brokerage companies will allow you to create a free practice or demo account.

This is a simulation of the real forex market that allows you to train with virtual money before you start trading with real money. Forex trading is not the type that you will learn on the go. You have to train extensively to know when to make the right buying and selling decisions. As a recommendation, you should spend several weeks training with a free account until you can make profits consistently and have reduced your rates of losing to the barest minimum. To find free forex demo account, you can search the web. Since the demo account is just like what you will have in the real market, you should take your time to do enough practice. Try to implement the various expert trading tips and tricks you have learned to see which works best. And try to develop your own trading style and ideas. Master how to read charts and other indicators, and master which decision to take at what time. It can also be helpful to seek additional guidance from online resources as well as forex trading experts, as this will help you in the early days when forex trading could be very daunting. Set up a live forex trading account with a reputable forex broker after you have trained enough and built confidence with a demo account. Better yet, simply convert your demo account to a live account by depositing money as per the site’s instructions.

Most brokers offer mini and micro accounts, which means you can start trading forex with as little as $500. This amount will be leveraged into multiplied profits. Keep a note of the strategies that are fetching you huge profits as well as those that are not working for you. The secret to increased profits is to keep repeating what works ( until it works no more ) and to ditch what brings poor results. Entering into the real forex market is usually a nervous and exciting experience. Granted, the demo account can prepare you for the technical aspects of forex trading, but when real money is involved, your emotions will come into play. You will need to maintain self-discipline and do your best to stick with the same methods that worked for you while you were practicing with the demo account. Ignoring your emotions may be very difficult, but it’s possible. If you lose money after your first trade, do not give up. Rather, try to figure out what went wrong, fix it, and try again. In conclusion, you must understand that forex trading is a constant learning experience. Trading mistakes can incur losses; huge ones at times. Even veteran forex traders lose money on occasions. But you will become a successful forex trader only if you learn from your mistakes and strive to avoid them in the future. 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.



Articles:

  • Corporate forex trading account