Monday, March 10, 2008

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Forex Trading Software Article Of The Month



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Before starting the forex trading, you should begin your Forex training. A professional instructor can assist you in learning different terminologies, concepts and process as a whole in forex trading. In a good Forex training, there are no high-pressure sales pitches, no tricks, and no hidden agendas, but just plain knowledge. Forex training provides traders the ability to take advantage of the foreign currency exchange. This Forex training empowers investors to become world-class forex traders.

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The Forex market is perhaps the biggest financial market in today�s world. According to the latest stats, today more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. There is so much to learn about this highly competitive, volatile and fragile market that we may find it a daunting task to learn it inside-out, so we do need some sort of forex training or education to equip our self to perform better in the market.

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Forex fx currency symbols are always three letters, where the first two letters identify the name of the currency and the third letter identifies the name of the country's currency.

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Spot FX transactions are usually based on currency rates quoted for two-day settlement (U.S. dollar versus Canadian dollar is traded for one-day settlement), in order In contrast to exchange transactions with real supply or real currency the participants of FOREX use trading with a margin deposit; i.e. marginal or leverage trading. In marginal trading, each transaction has two obligatory stages (they can be divided by period of time, which can be as long as you like): buying (selling) of currency at one price, and then selling (buying) it at another (or at the same) price. The first transaction is called opening the position, the second one, closing the position.Opening a position, a trader furnishes a deposit sum from 0.5 to 4 per cent of the credit line, granted for the transaction. So, in order to buy or sell 100,000 US dollars for Japanese yens, you will not need the whole sum, but only from 500 to 2000 US dollars depending on your policy of controlling risks. When the position is closed, the deposit sum returns, and calculation of profits or losses is done. All the profit or losses caused by the change of currency rates is credited on your account.
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Dollar dives as Fed rate cut eyed

Mon, 10 Mar 2008 07:53:13 EDT
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Forex Trading strategies Article Of The Month


Some Quick Forex Information
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Forex Knowledge
Through studies and research, a trader faces the task of making decisions to put this knowledge and system into practice. Then, how many traders can honestly say they can commit their ranch when the trade is suggested by their own system (given that trading is just a chance game) and let the profit run for weeks and months when their system tells them, and how many can manage to cut the loss as a routine process when the situation arise. It all sounds so easy when saying it but so difficult when doing it affecting real money in the market. I still do not sleep well when I am running position because even if the profits are running into a few hundred dollars and the system is telling you to carry on, there is no guarantee that the profit will turn into a yard or two in a month time, and it may even turn into a loss in a day or two when something unexpected happens. A painstaking process in real sense. The pain is not knowing what will happen in the future and in fear of losing. So at the end of the day, assuming one has decent trading system and market knowledge and decent info, it is ultimately how disciplined and how well that trader can take the pain of making right decisions at the right time that decides the outcome of the trades. Hence I call trading a mind game.

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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.

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The primary factors influencing exchange rates include the balance of payments, the state of the economy, implications drawn from chart analysis as well as political and psychological factors.

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Any broad-based economic conditions can cause a sudden and dramatic currency price swing if such conditions are seen to be changing. This is a key concept because what drives the currency market in many cases is the anticipation of an economic condition rather than the condition itself.

Some Forex Trading strategies Stories
Oil falls as South American tensions ease

Mon, 10 Mar 2008 08:12:32 EDT
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