Generally speaking, Forex currency trading is a simultaneous act of selling or buying one for the other in context of two different correlated currencies; when you buy you sell also, or when you sell you buy also. Polishing the view, let’s say - Buy when the price is low or down and sell when the price is high or up. Leave Money which is losing the charm and welcome the Money that is hot. This is a simple doctrine for trading currencies and earning profits. It is always expected that you buy or sell a currency on account of an assumption and anticipation. If not at present but in the future, you think, a currency is going to overtake or uplift further against some other currency, you need to buy the former for the latter or sell latter for the former. The quantity of buying and selling depends on how much gain you want to target in accordance with your ability, awareness, and risk taking behavior. For example, your anticipation suggests that in a near future EUR (Euro) will strengthen its position against USD (US dollar), at present, you are supposed to buy EUR for USD or sell USD for EUR (USD will weaken against EUR as per your anticipation); and the vise-versa when your anticipation comes correct in the future. If this assumption proves to be wrong and the market goes against your anticipation, you lose.
Forex currency trading is stated to be the best because of its over-the-counter (OTC) feature. Anybody can trade with anybody, straight forward, 24 hours a day, worldwide. There is no control of a Central Exchange over the market. Moreover, this market is free from any external power of any group or individual; because of its size such factors can never succeed to influence the market for personal interest. This market is also featured for its "liquidity" with the highest amount of trading per day as compared with the other financial markets in the world. It is liquid (flowing or runny) because there are buyers and sellers all the time all over the world with the fluctuating rates of the currencies; opening and closing of trading positions is a matter of few seconds. The term "fluctuation" refers to the frequently changing (within minutes or even seconds) prices of the currencies.
The participants are the only doers who will decide what to be the price of a particular currency against another specific currency, all depending upon the over all values of those currencies. These values may be as a result of "happenings" either within the market itself or within the nation of a subjective currency. These two situations refers to two investment strategies, respectively, the Technical Analysis and Fundamental Analysis.
Marginal trading is a biggest plus point of Forex. This makes it more easy, especially for small investors, to trade for bigger position with a much smaller actual amount of capital in their accounts. For instance, you can trade for $100,000 by just investing $500 as a "real money" supply. The money representing your bigger position in marginal trading is called Leverage; and the initial required smaller amount of transaction in your account is called the Margin. However, as there is a significant risk of money loss involved, and this may require an expertise, marginal trading or leverage is not recommended.
Remember, Forex market with varied participants and universal size bestows you with an "equal opportunity" for gaining profits along with others located all over the world.
Watch out for my upcoming articles on Forex. Also, please visit the links shown within the article and my previous article on Forex.
Forex : An Introduction
http://www.forextrading.com/articles/HowToTrade.aspx
http://www.onlineforextradingeducation.com/
http://www.leandernet.com/All-About-Forex-What-You-Need-To-Know!154!article
http://ezinearticles.com/?FOREX-101:-Make-Money-with-Currency-Trading&id=16134
Forex currency trading is stated to be the best because of its over-the-counter (OTC) feature. Anybody can trade with anybody, straight forward, 24 hours a day, worldwide. There is no control of a Central Exchange over the market. Moreover, this market is free from any external power of any group or individual; because of its size such factors can never succeed to influence the market for personal interest. This market is also featured for its "liquidity" with the highest amount of trading per day as compared with the other financial markets in the world. It is liquid (flowing or runny) because there are buyers and sellers all the time all over the world with the fluctuating rates of the currencies; opening and closing of trading positions is a matter of few seconds. The term "fluctuation" refers to the frequently changing (within minutes or even seconds) prices of the currencies.
The participants are the only doers who will decide what to be the price of a particular currency against another specific currency, all depending upon the over all values of those currencies. These values may be as a result of "happenings" either within the market itself or within the nation of a subjective currency. These two situations refers to two investment strategies, respectively, the Technical Analysis and Fundamental Analysis.
Marginal trading is a biggest plus point of Forex. This makes it more easy, especially for small investors, to trade for bigger position with a much smaller actual amount of capital in their accounts. For instance, you can trade for $100,000 by just investing $500 as a "real money" supply. The money representing your bigger position in marginal trading is called Leverage; and the initial required smaller amount of transaction in your account is called the Margin. However, as there is a significant risk of money loss involved, and this may require an expertise, marginal trading or leverage is not recommended.
Remember, Forex market with varied participants and universal size bestows you with an "equal opportunity" for gaining profits along with others located all over the world.
Watch out for my upcoming articles on Forex. Also, please visit the links shown within the article and my previous article on Forex.
Forex : An Introduction
http://www.forextrading.com/articles/HowToTrade.aspx
http://www.onlineforextradingeducation.com/
http://www.leandernet.com/All-About-Forex-What-You-Need-To-Know!154!article
http://ezinearticles.com/?FOREX-101:-Make-Money-with-Currency-Trading&id=16134
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2 comments:
Dear Sir,
I am Aruna of gzyn. Thank you for your comment. After that incident, I have almost stopped thinking about what happened. The purpose of writing that article was to pull out all my anguish. Now that my half-yearly's are around, my kid is spending more time in studies. If we would have put him into swimming, may be it would have been a diversion which god has averted. Thank god that we came to know all this very early. As for the coach, I presented a diya set for the goddesses photo which he has set up in the pool. I don't know what he did with them. But, that is what I thought as apt. Kill vengeance through kindness.
As for your forex blog, I will try to understand it sometime else when I have time. Sorry, but I am a bit busy with the kids ongoing exams. Thank you once again for your valuable comment.
Thank you for putting comment on my blog. I would still like to know whether you wrote "Painting" instead of "Swimming", or you really associate both to each other. Why you make any correlation between these two? Is there anything such ?
I would also like you to rate my article on singers that is "AKLMR", if you really like it.
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