The currencies are traded in pairs and therefore exchanged one for the other this is the reason this is called the exchange rate. The most of the currencies are traded against the US dollar, the euro, the Japanese yen, the British pound or the Swiss franc. These currencies have the greatest importance on the market and this is why are called the major currencies. According to a few other researchers we should include as well the Australian dollar within the group of major currencies.

When we analyze a pair we refer the first currency as the base currency and the second as the counter or quote currency. It is important that the counter or quote currency is the numerator in the ratio, and the so called base currency is the denominator. As a strict rule the value of the base currency always equals 1, which is the reason why the exchange rate tells how much of the quote currency should be paid to obtain 1 unit of the base currency. This same exchange rate as well tells the seller how much quantity is received in the quote currency for one of the base currency.

If we have an investor who buys a currency and immediately sells it and there is no change in the exchange rate this investor will certainly lose money. This is because there are: the so called “bid price”, which shows how many units will be received in quote currency when selling one unit of the base currency. It is always lower than the so called “ask price”, which represents the number of units which must be paid in the quote currency when buying one unit of the base currency. Generally, the smaller spreads are the better for Forex speculators because they need a smaller movement in the rates to profit from a certain trade.

for more information

Tips on Getting Started with Forex Trading

People go into Forex trading expecting big money. Many people have found it surprisingly easy to make a nice return on their money because the forex market changes every day.

Forex is the foreign exchange market. It is also commonly referred to as the FX market. Forex trading is done through a financial institution or broker. These are most often the same places that you are able to purchase other types of investments including stocks and bonds.

When considering if you want to start investing in the forex market or not, you should consider the fact that you are investing in other countries. With the forex market your investment could be in one country one day and in a completely different country the next. This all depends upon your broker or financial institution.

for more information

More importantly, trade pairs that have a direct negative or positive correlation. There are only a few pairs that have this relationship; however, it drastically reduces your risks.

for more information

Why day trade once you get a good seat and the market is going your way. It is always more profitable to ride even the short wave for 2-10 days by adding up. In general, you must day trade only when you are losing. To find a buy entry seat for short-term trades, you can study the "accumulation and distribution patterns and 20 MA" in 8, 4 hourlies or 30 min "Line Charts" (or Candle Charts), together with MACD "overbought and oversold indicators" with its Patterns. If you study them for awhile you will understand when it the best entry point. The remainder is for money management and discipline and of course, experience. Good trades

for more information

Please always give stop order per your risk profile when you open any new position. Medium-term reversals can be confirmed only in monthly, weekly and daily charts. Chart reading is not to predict the tops or bottoms of any move, but to confirm the change of trend as soon as they are made and adopt right strategies in that new trend. Good trades.

For position traders, the basic bias of the market in his trading time frame, the liquidity situation of the market in that time frame, and the size of trading positions must be all taken into account when exercising stops, be it based on tech levels or a certain sum of money or a percentage of a total equity. It is a must but also it is form of art like trading itself. And every trader must develop his own unique style of using stops. But unfortunately, all this can be learned only by paying a certain amount of tuition fee to the market.

Yes, but as a position trader I never use tight stops. Same goes for trailing stops. All very far away from the market not to be taken out by meaningless market noises. Initial stop is always 1% of my total equity, and never commit the whole position at a go but always scale in and scale out.

for more information

Order Types

Buy Market

Attempt to buy at the best available Ask price.

Buy Limit

Attempt to buy at the price you specify or better. This type of order should be placed below the current Ask price.

Buy Stop

Attempt to buy at the price you specify. Once the Ask price touches or goes through this buy stop order, it becomes a market order and filled at the best available price. This type of order should be placed above the current Ask price.

Sell Market

Attempt to sell at the best available Bid price.

Sell Limit

Attempt to sell at the price you specify or better. This type of order should be placed above the current Bid price.

Sell Stop

Attempt to sell at the price you specify. Once the Bid price touches or goes through this sell stop order, it becomes a market order and filled at the best available Bid price. This type of order should be placed below the current Bid price

for more information