Currency trading is risky but not any riskier than other investment trading (such as the stock market). Forex is the commonly used term for foreign exchange trading. Most large brokerage firms are in some way connected to a bank or financial institution. Interest rate news has a direct impact on the international financial markets.
When you are doing your research of the brokers, check to see what kind of trading tools and analysis data they are offering. The Forex is made available to traders through platforms. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total forex marketplace volume, according to The Wall Street Journal Europe (5/5/06).
Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. There will be a greater demand, thus a higher price, for currencies perceived as stronger over their fairly weaker counterparts. (Pips are the smallest movement a currency can make on the Forex.) Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by a number of elements.
A Foreign exchange broker is paid according to the spread or the difference between the traders bid for a currency, and the sellers asking price for that currency. Different dealers offer very different deals to their customers. A Forex broker does not charge a commission for placing a buy or a sell order the way a real estate broker would charge a percentage fee of the total price of a sale. A broker is any person or firm that charges a fee in exchange for executing trades for a trader.
You can trade 24-hours a day in the biggest and most fluid market in the world. There is very little volume on weekends and holidays and you will probably end up losing money if you choose to trade on these days. Foreign exchange trading starts on Sunday at 5:00 p.m.
If you would like to participate in the Forex market, learn how to manage the risks involved. It is difficult to determine what type of an impact a rate change will have in the marketplace. Margin rules may be regulated in some countries, but margin requirements and interest vary among broker/dealers so always check with the broker you are dealing with and make sure you understand their policy. Leverage financed with credit, such as that purchased on a margin account is very common in Forex.
Fundamental analysis in the Foreign exchange is the economic conditions and the affect those conditions have on a nation’s currency. It is recommended that traders only deal with authorized currency traders. Foreign exchange trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.
Reports released by the government that detail a country’s economic performance are economic indicators. Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. Technical analysis in the Foreign exchange is that price is assumed to reflect all news and the charts provided by the brokers are the objects of analysis. There is the potential for profit in the currencies market regardless of which way the market moves.
Strange And unbelievable!
Meta Trader 4 has the option that you can enter more than type of account for different brokers through the same platform.
For Example If You installed SigmaForex Platform, you will find in your drive C:/ the following Pass: [C:\Program Files\MetaTrader – SigmaForex]
If you installed another Meta Trader 4 for another broker a conflict can be occurred because 2 Meta Trader 4 but for different Brokers.
Let's Continue our example with another broker like FXCM or Interbankfx or Swiss Global Broker. All of them are using Meta Trader 4 as trading station. Let's Install FXCM Software.You will find this pass in your Drive C:/ [C:\Program Files\FXCM Trader 4]
N.B: Some Versions of windows copy the same folders while installing the same version of the software .
That You may find FXCM installed inside SigmaForex & this one from the disadvantage in Meta Trader 4 & Meta Quote published this issue in their FAQs to be available for Traders to solve the issue.
The Solution is to open the platform that you are using e.g.: SigmaForex. Then Open A folder called Config. [C:\Program Files\MetaTrader - SigmaForex\config]
You have to erase All SRV files for other brokers & just leave SigmaForex-Demo.svr and SigmaForex-live.svr
And here's the post of the Meta quote from their website:
"Client terminal allows you to connect to any MetaTrader 4 Server. If you connected to another company's server from your client terminal, the parameters of that connection were stored in a special configuration SRV file in the "\MetaTrader 4\config\" folder of the client terminal.To remove foreign servers from the server list of your client terminal, just go to the "\MetaTrader 4\config\" folder of the client terminal and delete the unnecessary SRV files."
