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Below, you'll find extensive information on leading Foreign Currency Exchange articles and products
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Introduction To Forex
LiteForex.org
Foreign Currency Exchange Information
Introduction To Forex
Foreign Currency Exchange (Forex) Trading allows an investor to participate in profitable fluctuations of world currencies. Forex trading works by selecting pairs of currencies and then measuring profit or loss by the fluctuations of one one currency's market activity compared to the other. For example, fluctuations in the value of the $ U.S. Dollar are measured against another world currency such
as the British Pound, Eurodollar, Japanese Yen etc. Being able to discern price trends in market activity is the essence of all profitable trading and this is what makes foreign currencies so exciting, currencies are the world's 'best trending' market. This gives Forex investors a profit making edge that is unavailable in most other markets.
Forex Trading is being called 'today's exciting new investment opportunity for the savvy investor'. The reason is that the Forex Trading Market only began to emerge
in 1978, when worldwide currencies were allowed to 'float' according to supply and demand, 7 years after the Gold Standard was abandoned. Up until 1995 Forex Trading was only available to banks and large multinational corporations but today, thanks to the proliferation of the computer and a new era of internet-based communication technologies, this highly profitable market is open to everyone. The Forex Trading Market's growth has been unprecedented, explosive, and continues to be unequaled by any other trading
market.
Unlike traditional trading which brings buyers and sellers together in a central location (trading floors) in Forex Trading there is no need for a centralized location. Forex is a market where worldwide traders conduct business by high-speed Internet connections with the Interbank Foreign Currency Exchange via Forex Clearinghouses (also called Forex Brokerage Firms). Forex has not only become the fastest growing trading market, but also the most profitable trading marketplace in the world.
Simply
stated, Forex is the most profitable because it is the world's largest marketplace. The Foreign Currency market as a whole accounts for over 1.2 trillion dollars of trading per day (as determined by the fourth Central Bank Survey of Foreign Exchange and Derivatives Market Activity, 1998. This figure is understood to be significantly higher today). To put this into perspective, on any given day the Foreign Currency Exchange Market activity is vastly greater than the Stock Market. It is 75 times greater than the
New York Stock Exchange where the average total daily value (using 1998 figures) of both foreign and domestic stocks is $16 billion, and much greater than the daily activity on the London Stock Exchange, with $11 billion.
Furthermore, in addition to being the world's largest and most profitable market, The Foreign Currency Exchange Market is the world's most powerful and persistent trading market regardless of negative economic indicators. This is because currencies 'trend' better than every other market
due to their macro-economic nature. Unlike many commodities whose supply and demand fundamentals can literally change overnight (as we found in the sudden dot com 'market adjustment' and even more abruptly on September 11, 2001), currency fundamentals are much less random, and far more predictable. This is well illustrated in the way interest rates are changed gradually and only in small increments.
Other examples of fundamental predictability are illustrated by the following statistics. Of the $1.2 trillion
day trading in Foreign Currency Exchange, 83% of spot foreign exchange activity and 95% of swap activity involves US Dollars. The Euro is the second most active currency at 37%. The Japanese Yen (24%) and the British Pound Sterling (10%) are ranked third and fourth. The Swiss Franc is 7%, and the
January Employment Situation Surprises to the Upside
US Factory Orders Remained Positive in December
US ISM Non-Manufacturing Index Signals Improving Sentiment
US Employment: Gains in Jobs and Hours Worked Tell of Growth
US: The unemployment rate gender gap closes in January
Canadian employment: essentially unchanged in January
United States: Champagne!
US Nonfarm Payrolls +243K; Jobless Rate 8.3%
United Kingdom: Services activity continued expanding in January
World: Perspective on credit for SMEs
US: The Fragile Fiscal Policy Outlook: I
US: Productivity Growth Pulls Back in the Fourth Quarter
US: ISM Signals More Temperate Growth But Watch Out for Prices
US: Construction Spending Ends the Year on a Positive Note
United States: Manufacturing on the rise
Euro Zone: Inflation stable in January
US: Consumer Confidence Dips Slightly In January
Canadian GDP decreased in November
US: Another Steady Gain in Q4 Total Compensation Costs
France: Consumption falls at the end of 2011
Germany: New record low in the unemployment rate
US: Personal Income and Saving Bounce Back In December
Germany: Further slowdown in inflation
Canada: Are older workers being careless about debt?
Spain: Back in red
Euro Zone: Incipient signs of improvement
Obama Administration Expands Mortgage Modifications
Canada: Policies to keep the bond vigilantes at bay
US: Real GDP Growth in 4Q Strongest of 2011
GDP: Modest Growth Continues-Sustained Expansion Ahead
United States: Gaining momentum
State of the Union: The Populist Rebuttal
Japan: Rising food prices on contamination fears
US Leading Indicators: Turn and Face the Strange
US: New Home Sales End the Year on a Down Note
US: Durable Goods Orders - A Strong Finish in December
California Economic Conference Call
France: Consumer confidence: not worse?
FOMC: Why The Recent Past Seldom Predicts the Future
Quebec: Trade deficit widens in November
Canadian and Australian Dollars account for 3%.
Spot Forex is the type of forex trade in which self-traders concentrate most of their investment activity for reasons that are self-explanatory. By definition, a Spot Forex transaction is a currency trade transaction that has a settlement (liquidation) within a maximum of 2 working days following the closing of the trade. Therefore Spot Forex allows the self-trader high liquidity. Another popular feature for well-advised Spot Forex self-traders is the strong
profit potential from continual market fluctuations by buying a specific currency when it is weaker and selling it when it is stronger, and the continual pairing of strong currencies against weak ones. This potential for profit or loss is amplified by the effect of leverage. Leverage is a term that describes what can be achieved when a smaller amount of money controls a much larger amount of money. With regards to Forex Trading for example, a leverage-factor of 100 can allow the trader to hold a 100,000 US Dollar
position with a modest 1,000 US Dollar margin deposit. Online Forex day trading focuses its investment activity largely on Spot Forex because of the 'risk manageability' of in-and-out trading plus the potential to generate excellent and highly liquid profits.
"Few financial industries generate as much excitement and profit as currency exchange. Traders around the world enter trades for weeks, days or split seconds, generating explosive moves or steady flows, and money changes hands quickly at
a staggering daily average of a trillion US dollars. Forex profitability is legendary. George Soros of Quantum Fund realized a profit in excess of 1 billion dollars for a couple of days work in September 1992. Hans Hufschmid of Soloman Brothers, Inc. netted $28 million for 1993. Even by Wall Street standards, these numbers are heartstoppers".*
Despite its high trading volume and its fundamental role in the world, the Forex Market is rarely in the media limelight because its method of trading
transaction is less visible than the Floor of a Stock Exchange. However, trading on the Foreign Currency Exchange Market is today surging into the public awareness, as flocks of internet traders are attracted by the market's inherent profitability and risk manageability. Add to this the absence of geographic or temporal boundaries and vibrantly active Forex market is open to all players.
* "Trading in the Global Currency Markets", Cornelius Luca, 2000
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Forecasting Forex Trading
By Greywolf
What is Forex or Foreign Exchange: It is the leading financial market in the world, with a volume of more than $1.5 trillion daily, trade in currencies. the Forex market has no actual location, no Read more...
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Avoiding Three Common Mistakes In Forex Trading
By Ben Needles
Forex trading may seem simple enough once you get the hang of it. Buy a currency at a low price and then wait a while and sell it at a higher price. This apparent simplicity is deceiving. Read more...
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Bull – A bull market describes the Forex trading market when prices for currency are steadily rising.
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