Forex Basics and Opportunity

By Frank Rivera

The foreign currency exchange market is easily the largest marketplace anywhere in the world. Larger than any stock market, the volume of currency that is exchanged on the forex market each day exceeds a trillion dollars. Once the domain of banks, governments, large corporations or the super-rich, it's now becoming more popular with smaller investors too.

Forex trading simply means exchanging the currency of one country for the currency of another. If it appears that your own currency looks like it might be dropping, this must mean the value of another currency somewhere in the world is going up by comparison. By trading one currency for another in the hopes that the original one you began with goes up, you can generate profits when you close out that trade.

For example, if you're beginning with the US Dollar (USD) and trading it for the British Pound (GBP), then you hope that the value of the USD goes up or appreciates in value. When the price does go up, you trade your GBP back for your original USD and you receive the higher amount back again.

Pips are the pricing units using when you're trading currencies. Your trading prices will always be quoted in pips and you'll notice you're quoted two sets of prices. This is called your spread. You will need to spend a bit of time understanding how the pricing works if you want to succeed in forex trading.

As with any other form of trading, there are several ways to develop strategies. These can include scalping, swing trading or trending. Scalping is perhaps one of the more popular forms of trading where you simply buy and sell a lot of small transactions and then close out your position again quickly. This helps to minimize any potential losses as you're in and out of the market again very quickly.

When the foreign currency exchange market became more available to smaller investors, the massive surge of interest also brought with it a flood of forex-related products. These range from educational courses to forex robots and coaching programs. While understanding and learning about any form of investment is always a good idea for anyone, it's important that you don't simply buy products because they promise the world. Research any product thoroughly before buying.

Digital products, or informational books that you download to your computer, are a great idea. The only problem is that you can't verify what's inside until after you've paid your money. Always see if you can find reviews for the product you're considering. Join forex-related forums and ask questions of actual traders who are using the programs and systems you want.

The same rules apply when you're trying to find the right forex broker. Because the forex market is global and the internet is a global medium, you might find the broker is in a country where the regulations are not as strict as they could be. If you can, try to be sure to find a broker who operates from the same country in which you live.

While the forex market can be incredibly lucrative, it can also be equally volatile. Take a bit of time to learn how the market place works before you begin trading. - 23217

About the Author:

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Forex Market Popularity

By Frank M. Rivera

One of the most popular trading venues for investors is the Foreign Exchange or Forex market. This market works from the principle that currencies have an exchange rate that varies from day to day - even hour by hour. Buying currencies and working the trades (whether a short-sell or a buy-and hold position) can turn a nice profit. The forex markets are worth roughly three trillion dollars of action each day.

Forex is popular because it's accessible, and, on the surface, easy to understand. Your trade is aggregated to your broker, and entered straight into the market, meaning that it's possible to be a very agile trader, playing on the market's daily volatility. There are trading programs that you can download that can handle the routine actions of buy and sell orders, and even alert you of possible trends.

Forex markets happen the world over, not in some fixed location; you're trading online (like the major brokerage houses do). An order gets put in and gets consolidated at the broker's desk with all of their other clients. From there, it goes on to the market, and that means you can run from the start of business on Monday in London to the close of business on Friday in Hong Kong, 24 hours a day, for almost six days a week including the time zone adjustments.

In addition to that, you get to control large sums of money without having to actually have that much money in your account. Some brokers allow you to use 500:1 leverage on your trades. This means that for every dollar of your money you're trading, you are actually trading 500 actual dollars in the markets. Using other people's money is how people can create massive wealth for themselves.

Besides the ease of trading the forex market, you can realize huge gains in this form of trading. Unlike stocks where a stock raises based on an individual companies performance, these securities are rising and falling drastically at all times of the day. It is based on a lot of different factors and has a huge potential for profit.

Like any investment, there is an element of risk. Especially when playing with large amounts of leveraged capital, you run the risk of big losses. Be careful, start out slow, and used strict money management techniques while you figure out if this is a job you like.

Forex has a lot of strategies beyond day trading. One of the saner ones, for people who don't want to be glued to the Internet for 100 hours a week, is position trading. There are longer term trends in forex trading and this is a lot less stressful (and time intensive) than trying to run the volatile day by day swings.

Overall, the power of the forex market is what makes it so appealing. Many have compared this to the gold rush in that it is a way for a common man to become immensely wealthy. Just make sure that you know what you're doing, or you'll lose all of your money in a flash. Be prepared to learn a lot and keep your lessons in mind when you trade. With this type of power, you can provide for you and your family for years to come. - 23217

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Protect Yourself from Forex Scams

By Bart Icles

One can say that foreign exchange markets are similar to many other financial trading markets. There are foreign exchange quotes, buying rates, and selling rates. In foreign exchange markets, investors engage in currency pair trading. Currencies that investors usually choose to trade are those that they consider above the rest in terms of stability and value.

If you are a newcomer to the foreign exchange market, it is vital that you protect yourself from frauds. Different people from all parts of the globe engage in foreign exchange trading that it does not come as a surprise to know that frauds are able to infiltrate the market. The growing number of people engaged in foreign exchange trading also ushers in a growing number of scams that go around the financial marketplace. Nevertheless, you should not be all too worried by frauds and scams as the number of legitimate investors still outnumber shams, and these legitimate entities can always help you in your forex venture. Your most valuable weapon would be your awareness.

Hard as it is, do not get yourself fooled by high profits that come with minimal risks. High profits almost always get you subjected to higher risks. Reducing risks is entirely up to you. Staying on the safe side would not hurt. If a company guarantees you maximum profits without having to face the same amount of risks, better take caution.

Doing your homework is always to your advantage. You are better off researching backgrounds of potential brokers and taking note of the important details in every trading transaction that you wish to engage in. In looking for foreign exchange brokers, see to it that they are registered or certified brokers. If they are part of a company, their company should be registered with the government. As much as possible, stay away from inter-bank markets. Currency transactions in inter-bank markets are negotiated in a shaky network of large financial institutions and companies that give you more risks than payouts.

It is usual to come across companies that do not disclose information on their background. If you happen to find one, consider this as a red flag. Better discontinue doing transactions with them as they are most likely fraudulent companies. Also, do not even attempt to transfer cash to them through the mail or the internet.

Remember, it does not hurt to ask advice from investors who have engaged in foreign exchange trading for a long time already. Tips obtained from seasoned investors can be used for your own good and often to your advantage. - 23217

About the Author:

Your forex training starts with a desire to learn and a drive to become a great trader. Using forex trading training takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

The Market for Saddle Rock Real Estate in 2009

By John Fitzgerald

Saddle Rock real estate and the communities that surround it had seen a huge drop in sales during 2008, which many communities have also endured. The first few months of 2009 have seen the continuation of some interesting trends and reinforced the underlying strength of this neighborhood.

The average price of homes in Saddle Rock for 2009 has been $285,332. The homes that have been sold were on the market for an average of 97 days and the concessions for them is about $2,500.

While this represents a 5% drop in average prices from the second half of 2008, there are several factors that suggest the underlying value of Saddle Rock real estate is continuing to hold up well. It doesn't help that there have been no sales above $600k, and very few above $500k. This drop-off in high-end sales and prices, is consistent with broader market trends in Denver, and a significant factor in the drop in average prices.

You must keep in mind that the averages have been lowered due to the increase of sales below $300k. Once again, this is consistent with broader trends in the Denver market which we believe are driven by more first time buyers entering the market (motivated by the $8,000 first home buyer's credit and lower interest rates) and a short-term "burning off" of short sales and lender owned properties which occurred in the first quarter. We should expect to see the average prices of homes increase during the 2009 summer as the number of days that homes are on the market are decreasing as well as the amount of lender owned properties.

If you want to find a good Saddle Rock real estate deal, you should expect that the number of bargains will drop throughout the 2009 year. There should continue to be opportunities above $500k for the foreseeable future but the bargains below this price range will peter out unless we see significant additional negative economic factors in the Denver economy. For sellers above $500k a bounce back won't be apparent until lending terms on jumbo loans improve and more buyers have increased confidence in the economy and their job security.

The Denver market will continue to strengthen during 2009 while you can expect the Saddle Rock real estate market to stay resilient. Sellers that price their homes well will receive fast results similar to those in the past. The underlying value of the homes in Saddle Rock real estate combined with the minimal downside risk should give buyers confidence even if they don't find a bargain. - 23217

About the Author:

John Fitzgerald is a realtor/real estate investor with 15 years experience in Denver, Colorado. Come visit his site Saddle Rock Real Estate that is updated frequently and get more information about the Saddle Rock homes area before making any decisions.

Understanding Forex Accounts

By Ahmad Hassam

Good money management is the essential key that many currency traders miss. Many traders ignore adapting good money management rules at their own peril. As a consequence, they get their account blown in a few weeks of trading. You need to become a disciplined trader. Trading discipline means developing a trading system based on money management rules that limit your risk and avoid making trading decisions based on emotions. In the end, every trader has to develop his/her own insights and systems.

Without sufficient capital in your account, you wont be able to make meaningful capital gains. One of the worst blunders that forex traders can make is to trade without sufficient capital. Low capital increases your chances of getting blown out too soon. This does not mean that you should have a lot of capital before you start trading. You need to have sufficient capital in your account in order to take advantage of the movements in the currency markets. Low capital will never give you that opportunity.

Many forex brokers fix the minimum amount required to open a standard account as $2000. However, it is recommended by most of the professional traders that you should start with at least $2500-5000 to get good results. A trader with limited capital is always a worried trader. He is always looking to minimize losses beyond the point of realistic trading. Never ever trade live without practicing on the demo account for a few months. First, try to double your account at least three times in a row on the demo account.

A regular account or a standard account often also called 100k account lets you trade a $100,000 standard lot with a $1000 deposit. This $1000 is kept as the margin by the broker. This is a 1% margin.

When you open an account with a forex broker, you must first determine what the default margin requirement is. You can change the account margin requirement to whatever you feel comfortable with. If you start with a 2% margin, it will cost you $2000 to trade one standard lot of $100,000.

Many brokers try to offer huge leverage to the new trades in order to entice them. You can get a leverage of 200% in most of the standard accounts. Using 200% leverage means trading $200,000 with a $1000 deposit. With this small deposit you are controlling a huge amount. Be careful! Dont use more than 4% leverage while trading in the beginning. Too much leverage is dangerous.

Its not that leverage is bad. It is a double edged sword that cuts both ways. It increases your profit but at the same time wipes you out in case of a slight miscalculation on your part. Its just that you need to understand and learn how to use it. You can only do so with practice. With practice and more experience, you can increase the level of leverage in your trading.

Mini accounts are great for newbies. You can open a mini account with a deposit of only $300. The mini account was developed to accommodate investors who were looking for diversification out of their stocks portfolios. This small dollar requirement allows many investors to participate in the forex markets who were previously unable to do so. Recently micro accounts have also been introduced.

One lot on a mini account is equal to $10,000. This is known as a mini lot. As compared to a standard account, on a mini account you have a different lot size. You only need $50 to trade a mini lot of $10,000. This means a leverage of 200%. As compared to the standard account, pips size on a mini account is also small. A pip size on the mini account is equal to $1. 1 pip is equal to $10 on a standard lot.

A mini account is a great way for beginners to practice forex trading. If you lose 100 pips on a mini account, it means losing only $100 as compared to losing $1000 on a standard lot. You can say a mini account reduces your risk by 10%. But it also reduces the amount of profit that you can make. Start with at least $500 on a mini account. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.