Fx Currency Pairs - Major, Minor, Crosses, Exotic

What Are Forex Currency Pairs

Now that we have taken a good look at What is Forex, Training, Software, Trading Times and Analysis, we need to understand what it is that we are actually trading. We should by now have understood that we are Trading Money. Now we need to understand how that money is displayed in a typical foreign exchange market.

Currency is generally an accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade.



When you trade forex, you will be trading a currency pair for example the GBP/USD. Directly put, 'What is the value of the GBP against the USD?' One currency normally has a greater value than the other. This is mostly reflected by a countries economic status. In the above example, the GBP is called the base currency and USD is called the quote currency.


The Bid (buy price) represents how much of the quote currency is needed for you to get one unit of the base currency. Conversely, when you sell the currency pair, you sell the base currency and receive the quote currency. The Ask (sell price) for the currency pair represents how much you will get in the quote currency for selling one unit of base currency. So in the above example, the bid or buy price represents how many USD are needed to buy one unit of the GBP.  The ask or sell price represents how many USD you will pocket for selling one GBP unit.

In previous articles, I mentioned go long and go short without properly explaining. That is what It basically means to go long or go short on a currency pair.

In the above, you would buy the currency pair (go long) if you thought the GBP was going to gain value against the USD. Conversely you would sell the pair (go short) if you believed the GBP was going to lose value against the USD.

Forex Jargon 102: 

Traders buying currencies are referred to as Bulls. Traders Selling currencies are referred to as Bears.

Buy = Go Long (Bulls) (Bullish Market when price is going up) i.e. There are many Bulls for the GBP/USD pair today, meaning the price is going up. There are a lot of traders buying the GBP/USD pair and the forex chart is displaying the value of the GBP against the USD going up up and up.

Sell = Go Short  (Bears) (Bearish Market when price goes down) .i.e. There are many Bears for the GBP/USD today meaning the pound price is depreciating against the dollar. It's time to join the party and sell the GBP/USD for some green. Green = Profit.

The Bid (buy Price for the broker) is normally lower than the Ask (sell Price for the broker). Bid on the left Ask on the Right. The ask price is also refereed to as the offer price. The broker or bank always buys currency at a cheaper price than they sell it. That is how they make their margin. Your broker offers the ask price, so in the above example the asking price for a trader to buy the GBP would be the value quoted on the right side. You will then Buy the GBP for 2.0466 from the broker and if you wish to sell the GBP you would sell it for 2.0463 to the broker.

If the Trader bought the GBP/USD pair @ 2.0466, they would have to wait for the value to go up and above 2.0466 in order to sell the pair for a profit. If the price remains exactly the same, they would have to sell it at a loss, because the broker will always buy at a lower price. So if the value stays the same or lowers you will be losing money if you had bought the pair. The same applies if you sold the pair and the price went up instead.

Simple when you know how.

Currency quotations use the abbreviations for currencies that are prescribed by the International Organization for Standardization (ISO). For example the major US Dollar is abbreviated as (USD). Currency Symbols always have three letters. The first two identify the country and the third the currency.

Major Fx Currencies

All currencies and pairs normally have a Nickname.The Term on far right is the currency or pair Nickname. For example, the US Dollar is nicknamed Buck. These Nicknames vary from trading centers in New York, London and Tokyo.

The major currencies and their designation in the foreign exchange market are:

USD	USA	Dollar	Buck
EUR	Euro Zone	Euro	Fiber
JPY	Japan	Yen	Yen
GBP	United Kingdom	Pound	Cable
CHF	Switzerland	Franc	Swissy
CAD	Canada	Dollar	Loonie
AUD	Australia	Dollar	Aussie
NZD	New Zealand	Dollar	Kiwi

Other currencies are classed as Minor Currencies and they are normally traded against a Major Currency.

Major Fx Currency Pairs

Majority of Fx Traders will be trading the Major Currency Pairs i.e. 'The Big Dogs.' These majors constitute the largest market share around 85% and therefore possess excellent liquidity. The major currency pairs also all contain the USD on one side. These are:

EUR/USD	Euro / US Dollar	Euro Dollar
USD/JPY	US Dollar / Japanese Yen	Dollar Yen
GBP/USD	Sterling Pound / Us Dollar	Pound Dollar
USD/CHF	US Dollar / Swiss Franc	Dollar Swissy
USD/CAD	US Dollar / Canadian Dollar	Dollar Loonie
AUD/USD	Australian Dollar / US Dollar	Aussie Dollar
NZD/USD	New Zealand Dollar / US Dollar	Kiwi Dollar

Minor Fx Currency Pairs

Minor Currency Pairs or Major Crosses are pairs that do not involve the US Dollar such as GBP/JPY. Pairs that involve the Euro are often called Euro crosses, such as EUR/GBP. There are many local sites providing these types of local currency crosses. Below are examples of the Major Crosses:-

Euro Crosses

EUR/CHF	Euro / Swiss Franc	Euro Swissy
EUR/GBP	Euro / Sterling Pound	Euro Pound
EUR/CAD	Euro / Canadian Dollar	Euro Loonie
EUR/AUD	Euro / Australian Dollar	Euro Aussie
EUR/NZD	Euro / New Zealand Dollar	Euro Kiwi

Yen Crosses

EUR/JPY	Euro / Japanese Yen	Euro Yen / Yuppy
GBP/JPY	Sterling Pound / Japanese Yen	Pound Yen / Guppy
CHF/JPY	Swiss Franc / Japanese Yen	Swissy Yen
CAD/JPY	Canadian Dollar / Japanese Yen	Loonie Yen
AUD/JPY	Australian Dollar / Japanese Yen	Aussie Yen
NZD/JPY	New Zealand Dollar / Japanese Yen	Kiwi Yen

Pound Crosses

GBP/CHF	Sterling Pound / Swiss Franc	Pound Swissy
GBP/AUD	Sterling Pound / Australian Dollar	Pound Aussie
GBP/CAD	Sterling Pound / Canadian Dollar	Pound Loonie
GBP/NZD	Sterling Pound / New Zealand Dollar	Pound Kiwi

Aussie Crosses

AUD/CHF	Australian Dollar / Swiss Franc	Aussie Swissy
AUD/CAD	Australian Dollar / Canadian Dollar	Aussie Loonie
AUD/NZD	Australian Dollar / New Zealand Dollar	Aussie Kiwi

Other Crosses

CAD/CHF	Canadian Dollar / Swiss Franc	Loonie Swissy
NZD/CHF	New Zealand Dollar / Swiss Franc	Kiwi Swissy
NZD/CAD	New Zealand Dollar / Canadian Dollar	Kiwi Loonie

Exotic Currency Pairs

Exotic Currency Pairs are currency pairs that are not common in the Foreign Exchange Market. Exotic currency is usually from developing countries such as parts of Asia, the Pacific, the Middle East and Africa. These often have huge spreads between the ask and the sell price. In comparing an exotic pair USD/ZAR to the popular major EUR/USD pair, the difference in spreads is about 200%. 

Exotic currencies are neither major nor minor, but they are still important in the Forex Market.

EUR/TRY	Euro / Turkish Lira
USD/TRY	US Dollar / Turkish Lira
USD/SEK	US Dollar / Swedish Krona
USD/NOK	US Dollar / Norwegian Krone
USD/DKK	US Dollar / Danish Krone
USD/ZAR	US Dollar / South African Rand
USD/HKD	US Dollar / Hong Kong Dollar
USD/SGD	US Dollar / Singapore Dollar
USD/THB	US Dollar / Thailand Baht
USD/MXN	US Dollar / Mexican Peso

Note: the exotics are not the best place to begin as a trader. Start with the majors and crosses first. This is some great advice for a newbie.

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Technical and Fundamental Forex Analysis

Various Types of Forex Analysis

In this article we will be looking at the various forms of fx analysis with two main categories that most traders pay attention to. They are Technical Analysis and Fundamental Analysis.

This is the juice that keeps forex traders alive. The more you understand the value of analysis, the better a trader you should become in due time. It is a general fx newbie mistake to ignore these but it is often at their own peril. There are literally hundreds of books covering forex analysis, so if in doubt, pick one up.



Some Traders just stick to Technical Analysis and some Fundamental Analysis. It is best to be fluent in both - which is often easier said than done. With that said, you have to remember that Practice, Makes Perfect. and the more you practice practice practice, the better you develop as a trader. If there is one piece of advice you should ever remember about trading currencies is just that - 'Practice makes perfect'. Don't expect to wake up a millionare by Friday. Learn about these important aspects of trading first and of course Demo Trade First with one of our selected Brokers. Take Baby Steps.

Technical Analysis

Examples of this include Chart analysis and Trend Analysis. When most traders think of technical analysis, the first thing that comes to mind is Charts.

The basic job of a Technical Analyst in trading is to look for patterns happening and most importantly past patterns. They believe that what happened in the past is most likely to happen in the future. They could be very right, but it is impossible in my view to trade on just this theory. Other factors have to be included. Technical analysts mainly look out for what is known as support and resistance levels and use these to determine whether to buy or sell a currency.

Of course it is not as simple as that. There are many other indicators that Technical Analysts use to determine their trades. Lets's dive into charts for a brief moment.

Technical Analysts use chart analysis simply because charts are the easiest way to represent historical price movements visually. As the name implies, it is just that. Reading Charts and deciphering what is the next likely move to happen to a currency pair. A lot of traders use charts and similar trading rules and ideas. This makes the market also behave in similar ways therefore assisting techinal analysts make some decent profit from their trades if there predictions were correct.

Because Forex is a 24 hour market, it provides fx analysts with a large amount of data that can be used to measure future activity resulting in an ever increasing significance of statistical data. This makes it perfect for traders to use technical tools like Charts, Indicators and Trend Lines.

Fundamental Analysis

The job of a Forex Fundamental Analyst trader is to evaluate different countries currencies and economic states. This includes social, economic and political factors. News Reports, economic data and social political events coming out are indeed very similar to news coming out about a particular company for stock traders to speculate on.

You could see the relevance of fundamental analysis and why some traders only use this type of analysis to determine whether to make a trade or not. It is highly effective and mostly used by long term fx traders.

There are practically thousands of fundamental strategies that are employed by traders due to the vast amount of fundamental data. Each to their own as they say. Commodity prices are also used as fundamental data to determine future currency activity.

The underline idea of fundamental trading analysis is to determine who's economy is growing and who's isn't. Sounds simple right. It could be if you know everything. But of course this is never the case. Later on I will be going deeper into fundamental analysis and how you can use this to your advantage to execute profitable trades. This is quite handy for news enthusiasts.

Sentiment Analysis

Another form of fx trading analysis which you cannot afford to ignore is Sentiment Analysis. Some say it is easier to read people than machines. You decide. Important thing to know here is, essentially, people just like you run these markets. They make the trades. Okay you can argue that there are automated robots, but just remember that they were programmed by someone just like you. They were not born out of thin air.

As a trader in any markets, you have to Make Decisions. You need to know whether to buy or sell. This decision firmly rests with you. For instance, you might want to short the Euro having read a news article or studied some charts. You firmly believe this will short. You wait and wait and you decide to short it anyway. To your utter surprise, it goes long. You cannot stop it. You are now looking at a red screen and all your monies have vanished into thin air!

This is why it is important to gauge market sentiment. You have to remember that one person or individual cannot control the market. It is a mixture of all the views, ideas and opinions of all participants in the markets. This combo is what is referred to as Market Sentiment. The emotions of all the traders combined explain the current direction of the markets.

In the above scenario, it would have been clearly better to either leave the trade alone or go long because that is what the market sentiment was suggesting against all logic fundamental and technical.
In other markets like stocks and options, traders can look at the overall traded volume as a sentimental indicator. If price has been rising, but volume declining, this could signal that it is time to sell and vice versa.

With Spot Fx, Sentiment Analysis can be a bit tougher since it is traded over-the-counter (OTC) and hence does not pass through a centralised exchange. If you read the previous article on Types of Forex Trading, You may have picked this up. There are weekly reports you can look at to gauge market sentiment, but as newbie, it is not important right now. Later in your forex journey, you will learn about these.
In conclusion, Sentiment Analysis although not as major as Technical and Fundamental analysis, should not be ignored. Understanding Market Sentiment, will help you and will come in time.

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Free Web Forex Trading Training For You

FX Training For You, The Newbie

As with all things, knowledge is power. This applies to Forex too. So far I have covered some of the essentials to get you to understand trading and in particular Forex Trading.

So far on this website, I have covered:-

• What is Trading - A beginners intro guide explaining trading with emphasis on Forex (Fx) Currency Trading.
• Trading Hours - What times are the markets open, best times to trade and the benefits of 24 hour forex trading. 
• Trading Software - The tools necessary for currency traders to execute their trades either manually or automatically.

Now we dive into Forex Trading training.

Learning Never Exhausts The Mind ~ Leornado da Vinci

Indeed. Never be afraid to learn something new. It is rarely a waste of time. Let's Begin.

Learn By Yourself

This is most certainly possible and many people have done it, but probably not recommended. I would say patience is a good virtue if you would like to go down this road.

There are many online resources that could get you on your way to become a Forex Pro but do not expect to learn overnight. It takes time, practice and dedication. It is by no means easy and never let anyone tell you otherwise. Sure you could be lucky and execute profitable trade after profitable trade, but the odds of this happening are minuscule. Traders often lose more so than profiting and seasoned trained traders are better equipped to deal with the emotional downturn that comes with losing a trade.

Often newbies might give up on trading because they jumped straight into the deep end and forgot that they needed to learn how to swim first. This is especially true in forex trading. There really are big sharks out there and they will eat you so you have to be prepared. Learn Learn Learn.

Online Training

This will come in two forms. FREE and PAID training. Which one to go for? You decide.

Free Forex Training

Okay, so you want to be a Forex Pro, but don't have the funds to pay for expensive training courses or books? Well, you could be in luck. There is a dedicated free online resource to teach you everything you need to know about Fx Trading. I have used this resource and could not recommend it highly enough. Of course I am talking about BABYPIPS.COM. In my opinion, hands down the best free resource you will find online to teach you everything you need to know about forex trading. They have an awesome school and From Kindergarten, all the way up to University. Check it out!

There are also many Forums About Forex and you can learn alot from these forums. You will often find other newbie traders looking to learn as much as they can about forex. There are often Professionals in these forums and you will be surprised at how friendly people can be and they will help you on your trading journey. My favourite forex forum apart from babypips mentioned above is FOREXFACTORY.COM. Another excellent resource with plenty of genuine individuals to help you on your trading journey.

You should also be able to find many training videos on websites like YOUTUBE or VIMEO.

Do not be put off because those websites are free. That's where I got most of my Forex Education.

Paid Forex Training

Paying for stuff doesn't make you lame. Sometimes you have to pay to get the good stuff. Education should be free, but if it were all free, who would pay the teachers? A question to ponder.

Dealing with currencies in itself sounds like a delicate matter. Money makes the world go round as they say. If you have the money to pay someone to teach you how to trade forex, It is probably not a very bad idea. The trick is finding trainers who's only interest is not vested in financial gain, but rather they are more into spreading the knowledge that they know and receiving a little something in return. This is easier said than done when it comes to Forex. Dealing with currencies may be a delicate matter, but so is dealing with people. I find it hard to recommend a good place where you can pay and not feel cheated in any way possible. I have grown to be very dubious about people claiming to be Forex Professionals and they will teach you what they know for X amount. Be very careful. There are many scamming individuals out there and even companies. Remember, you are primarily dealing with a financial market. Unfortunately, when it comes to money, most people cannot be trusted.

But always remember even if you pay for trading training, that you actively engage in learning whatever you can by yourself. That single piece of advice will really help you out.

Altogether, I have decided not to recommend anyone. I would hate for someone to feel as if they have been cheated. Head over to google and search for Forex Training or Learn Forex and you will find many people and companies willing to train you for money.

Offline Training

Most Paid Forex Courses that you would subscribe to online will have a center where you will be required to go for training. Mostly these average out from a few days to a month or two. On rare occasions, they may have a six months to a year course, but this is rare and might be very expensive.

You will also find other companies via flyers leaflets or in magazine and newspaper advertisements. Certainly here in London, there are plenty of places advertising for forex training.

As with the paid training I talked about above, I would find it very difficult to recommend anyone. I am self taught for the most part, but know of friends who have paid for very expensive training courses and learned pretty much the basics and nothing concrete. Be very wary before you part with your hard earned money on any forex course.

Having a friend who is a professional trader is also another way to get yourself trading in no time. Trading can be an Isolate Profession and if your friend trades from home he/she might appreciate the extra company and they might get you on your way to Trading Fx in no time.

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What is Trading - Learn Forex (Fx) Markets

What is Trading?

This is a question I get a lot: "What is Trading?" and "Who is a Trader?"

Trading is the act of engaging in trade and a Trader is one who Buys and Sells Goods, Currency, or Stocks. Trade can also be defined as the transfer of ownership of goods and services from one person or entity to another by getting something in exchange from the buyer.



Simple right? Now that we have identified the above, we can move on to learning more about Trading. The world of trading is vast and unfortunately majority of the world's population are left in the dark when it comes to Trading. I will try and change this scenario by Writing about Trading. My main area of focus will be Forex Trading. Most Financial Traders have a specific market they usually trade in and Forex Trading is one of my particular interests.

There are many other forms of trading including Stock Trading, Commodities, Bonds, Futures, Equities and others.

On this website, most of my efforts will be towards writing about Forex (Fx) Foreign Exchange Currency Trading.

Forex Trading

Okay, now we move on to another question I hear a lot. "What is Forex Trading?"

For starters, Forex simply stands for Foreign Exchange. The Foreign Exchange Market (Forex, FX, or Currency Market) is a form of exchange for the global decentralized trading of international currencies. Simply put,the Buying and Selling of Currency (Money).

The Foreign Exchange Market, is the Largest Financial Market in the World. Compared to the small $74 billion a day volume of the New York Stock Exchange, the Foreign Exchange Market looks absolutely huge as anything with its almost $4 TRILLION a day trade volume. Forex is King of the Markets in every sense!

That huge trillion number covers the entire Global Currency Exchange Market, but note that Retail Traders which basically means us, trade the Spot Market and that's about $1.49 trillion. As you can see, the Fx Market is definitely large on a global scale, but not as large as the media would like you to believe.

The $4 trillion break-down is as follows:

• $1.490 trillion in spot transactions
• $475 billion in outright forwards
• $1.765 trillion in foreign exchange swaps
• $43 billion currency swaps
• $207 billion in options and other products

Financial Centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The Foreign Exchange Market determines the relative values of Different Currencies. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to other countries' economies.

Forex Trading assists International Trade and Investment by enabling currency conversion. In a Forex Transaction, one person purchases a quantity of one currency by paying a quantity of another currency. The modern currency exchange market began forming during the 1970's.

The Currency Exchange Market is the Most Liquid Financial Market in the world. Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors. The average daily turnover in the Global Foreign Exchange and related markets is continuously growing. That's a plus for anyone looking to Trade Forex. It probably is one of the best investment tools out there, but of course, you have to learn about trading which like anything else takes a long time to become any good at it. Like any other form of investing, of course it has its risks. So be careful when deciding to Trade Currencies or any other markets for that matter.

Liquidity

Another question that I hear a lot: "What is Liquidity?"

In Business, Economics or Investment, Market Liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value.
Therefore in the Forex Market, liquidity pertains to a currency pair's ability to be bought and sold without causing significant change in its exchange rate. A currency pair is said to have high level of liquidity when it is easily bought or sold and there is a significant amount of trading activity for that pair.

Unlike other Financial Markets like Stock Exchanges, the Forex Spot Market has neither a physical location nor a central exchange. The currency market is considered an Over-the-Counter (OTC), or "Interbank", market due to the fact that the entire market is run electronically, within a network of banks, Continuously Over a 24-hour Period. This means that the Spot Forex Market is spread all over the globe with no central location, meaning it can take place absolutely anywhere in the world.

This means Forex attracts a wide number of traders from All Over The World making it the most liquid market to trade in. And before you start counting the money just remember, if only it were that easy, we would all be gazillionaires!

Different Types of Forex Trading

There are a number of different types of Forex Trading. This market being absolutely huge, Currency Traders came up with a number of different ways to invest or speculate in currencies. Among these, the most popular ones are Forex Spot, Futures, Options, and Exchange-Traded Funds (or ETFs).

Spot:

In the Spot Fx Market, currencies are traded immediately or "On The Spot," using the current market price. A spot transaction is a two-day delivery transaction (except in the case of trades between the US Dollar, Canadian Dollar, Turkish Lira, Euro and Russian Ruble, which settle the next business day), as opposed to the Futures Contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction.

Futures:

Futures are contracts to buy or sell a certain asset at a specified price on a future date hence the name. The average contract length is roughly 3 months. Futures Contracts are usually inclusive of any interest amounts.

Options:

A Foreign Exchange Option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The options market is the deepest, largest and most liquid market for options of any kind in the world. Just like futures, options are also traded on an exchange.

ETFs:

Exchange-Traded Funds (ETFs,) contain a set of stocks combined with some currencies, allowing the Trader to diversify with different assets. These are created by Financial Institutions and can be traded like stocks through an exchange. Like Fx Options, the limitation in trading ETFs is that the market isn't open 24 hours. Also, since ETFs contain stocks, these are subject to trading commissions and other transaction costs.

Advantages of Trading Forex

Now that you have learned about Forex, and the different types of Trading Forex, let's take a look at the Advantages of trading in these markets.

Decentralized

Unlike in Trading Stocks or Futures, you don't need to go through a centralized exchange like the London Stock Exchange with just one price.

Commissions

No clearing fees, no exchange fees, no government fees, no brokerage fees. Retail Brokers get what is called a Bid Ask Spread as compensation.

Middlemen

Spot Currency Trading Eliminates the need for Middlemen which is awesome.

Low transaction costs

The retail transaction cost (The Bid/Ask Spread) is typically less than 0.1% under normal market conditions.

Individuals or governments cannot dominate the market

'In Italian' - 'l’impossibile'

Great Leverage

In Currency Trading, a Small Deposit can control a much larger total contract value.

Even small pockets can trade

Online Forex Brokers offer "mini" and "micro" trading accounts, some with a minimum account deposit of $25 which is awesomeness - but not usually recommended.

Demo Accounts

Online Forex Brokers offer "Demo Accounts" on their software platforms to practice trading and build your skills.

No Waiting, a 24 hour Operation

Yes, another awesome feature of  Trading Forex.

And there you have it, the major advantages of Trading Currencies over other markets. Good Right!

Where Do I Start

Forex Trading Training

You're probably wondering how you can start Trading Forex. I have good news.

There are many online resources that can help you learn forex and be on your way to becoming a Forex Pro after training. BE WARNED, IT IS NOT EASY AS OTHERS MIGHT LIKE TO MAKE IT SOUND. Like anything, learning Forex Trading will take time and extreme patience. But like anything in life, you have to start somewhere. Once you learn the concepts, and perhaps even attempt to do a few demo trades, you should have a clearer picture if currency trading is something you would be interested in pursuing full time, part time or leave it.

I am a firm believer that people should do what is best for them. Currency Trading is not for everyone and some even find it excruciatingly boring and tedious. Others like the buzz of having to think quickly and do Scalp Trading or Technical Trading whilst others prefer the Long Term or Fundamental Trading approach and may even buy or sell a Countries Currency for the long term. Whatever floats your boat. The best advice I can give is give it a try even if it is just to learn more about this world. But be wary of people claiming to give you tips and things of that nature. Be very wary. Currency Trading like anything else can incur huge losses. In fact losses will most certainly occur. No trader doesn't experience losses. Even the famous stock trader Warren Buffet losses on many occasions.

The best free resource I have found to learn forex is BabyPips.com. There, you will learn all the basics you need to learn to start trading forex on your own. They are a great bunch and will give you all the help you need on the forums. Also ForexFactory.com with great forums to weed out scamming salesmen and brokers.

Like anything else, Wikipedia.com is also a great place to learn about what everything means.

After learning the Forex Basics, you should then find a suitable Online Forex Broker with whom you can open a Demo Fx Account with and start messing about with Currencies.

Okay I hope I have shed some light of Forex Trading and why so many people Trade Forex for a living. I will be writing a lot about Forex in this blog when I do get the time.

Happy Learning and all the best with your trading.

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The Right Forex Trading Software For You

With one of the most Liquids Markets in the World - FX Trading, you almost certainly need nothing less than the best trading software to give you the best possible chance of success at becoming a forex pro.

We all know that a glider plane can fly without an engine, but I guess you wouldn't dream of flying one to the moon or even across oceans. That would be plain silly. A Rocket Scientist is not required to explain that it is important to use the right tools for the right job when it comes to Currency Trading. We are Dealing With Money!



To Trade Forex or any other markets successfully, it is imperative to use the right software.

In life you always have choices for most things. This applies to Currency Trading too. People expect choice. And choice they get. I will try and write about some popular Software Platforms used by Online Currency Traders the world over.

Common Forex Trading Software types.

Trading Platforms
Essentially used for the manual execution of fx trades and management.
Technical Analysis Software
These provide historical charts of exchange rates along with technical indicators.
Trading Signal Indicator Software
Purposed for the recommendation of initiation levels at which currency traders can open and close out positions.
Automated Forex Trading Software or Forex Robots
As the title suggest they execute trades automatically based on pre-programmed specific algorithms.

FX Trading Platforms

As an Online Forex Trader you will most certainly need a Trading Platform. There are many Fx Brokers and as I mentioned earlier, this means you get choice. You will find that most brokers often have their own software on their website. They will in most cases try to push you to use one of their Web Platforms for executing trades. This is absolutely fine and please find one that you feel comfortable with as you are dealing wih your hard earned money.

My Trading Platform of choice which can be downloaded from most brokers is the MetaTrader Platform. Currently I use the MT4. (currently MT5). I find this to be a great piece of software to trade with. Just remember that it is not the only option as stated above. There is choice.

With the emergence of smartphones, another popular choice for the trader on the move is Mobile Trading. You will be able to download trading apps for your Iphone or Android and of course browser based trading optimised for Blackberry and Other Mobile Devices.

Even if you trade using platforms such as MT4 or web platforms, it is essential to have an App for your mobile so as to keep tabs on any open positions you may have with your broker. You can do this at any time since Forex is a 24hr operation.

FX Technical Analysis Software

These are very handy. To become a good Forex Trader, you will need some Charts. Forex Charting Software can be found on most platforms including the MT4 now (MT5) platform mentioned earlier. If you wish, you may also download Automated FX Charting Software.

All trading markets from Forex to Stocks, require the use of Charting Software. This does not mean you cannot trade without Charting Software.

Later on in another Forex Article, I will introduce Fundamental and Technical Analysis.

Fundamental Analysts, can get away with not using charts, but I think it is still crucial. Technical Analysts as the name suggest, rely on Moving Charts and Trend Lines to determine Entry and Exit Points.

If you search online you will come across different Charting Software. If you are Registered with a Broker already, most trading software downloaded from them for use the pc or mobile should already have some charts to get you started. There are Advanced Charts and more Basic charts. Once you start learning currency trading, you most definitely get to know the differences with different charting software.

FX Trading Signal Generators

These often come as Automated or with Human operation. What you are essentially looking for here is reliability. Profits is the name of the game when it comes to Forex, and signalling software may help with this. Some people will tell you to stay away from them and some would not think of trading without a signalling software. I am mostly in between. I try to use everything at my disposal to determine if i should enter or exit a trade.

A Good Signalling Software should be able to:-

• Displays real-time trade notifications through your Trading Platform.
• Follow your trades and include Entry, Stop and Take/Profit prices.
• Quickly give you trade instructions with with easy to follow indicator lights.

Some Signalling Software gives indicators as to whether you should enter a trade or not and some gives you complete instruction from entry to exit. Often people with programming experience may develop their own indicators but this is not necessary as you can find a vast array of indicators across the web from Human services to Automated Robots.

If using a subscription service for Trading Signals, these are normally delivered automatically directly to your e-mail and by SMS to your mobile phone worldwide. Alternatively, you can see them live on your Trading Platform or online on your members area.

These Signal Generators usually suggest stop-loss and take-profit levels so that the trader can appropriately try to manage any losses or gains on any positions they take based on the signals generated by the software. Be warned that there is no guarantee that a stop order is filled at the stop price and the same caution applies to automated Software Robots.

FX Automated Software or Robots

Very popular with some Traders both Institutional and Individual are Software Robots. Question is, 'Can you trust a robot with your money?'

Difficult question to answer really. I personally tend to stay away from these, but this is not to say they are not profitable. Programmed right, they can indeed take the hassle away from Emotional Trading. In your trading journey, it may be wise to try out some Automated Robots at some stage just to see if it they work or not.

You will find a lot of companies and individuals who sell these automated robots online. The are sometimes called EA's (Expert Advisors.) Beware of many Forex Scams Online in relation to robots and expert advisors on the internet. I will be writing a post on this topic on a future date. If you visit the Forums at ForexFactory.com, you might be able to find some genuine people with genuine Automated Robots.

Automated EA's can be used in conjuction with your Trading Platforms and they open and exit the trades on your behalf. Just a note with EA's as with signalling software, that there is no guarantee that a stop order is filled at the stop price. If you trade liquid pairs with a good broker, this is generally not an issue.

Other Factors To Consider With Forex Software

Demo Trading

This is the most important factor to consider with any Trading Software. You should be able to play with Virtual Money first before using your Own Money. Even if you are a Pro Trader, you will find that different software has different controls. As a newbie, this extremely paramount and you should always demo trade first. Never deviate from this rule as you may get some nasty surprises.

Downloads and Web Based Platforms

Majority of Currency Trading Software for personal use by traders will give you a Download option.

Very rarely you may purchase a CD of DVD with the software or it may come as an email attachment. I have heard of these, but have never used any personally. I would suggest the Download Option.

Fx Online Browser Based Platforms remove the download factor and any installation issues that you may face if you are not confident you are able to install software on your computer. With these, you will just need to log in using your given username and password. The main advantage of these types of Trading Platforms is that you can generally use them anywhere you can get access to an Internet Connection and compatible Web browser. You may also other operating systems other than Windows, like OSx and Linux.

Client Side Platforms And Remote Servers

Remote Servers provide a useful service for those using Automated Robots and Client-Side Forex Trading Platforms. This is especially the case when they require 24hrs Market Monitoring and execution of trades. Most Remote Servers charge a fee for both hosting the Forex Trading Software in its server storage space and bandwidth connection. The reliability factor is very good with servers and they rarely have issues. The server providers are quick to sort out any issues. You should be able to find remote server companies dedicated to Forex Software, but any server provider will do. This is very technical and you should seek some expert help if you intend to use a remote server.

Real Time Exchange Rates and News Feeds

Good Fx Software from your broker should provide close to Real-Time Exchange Rates that react to what is happening in the market. Needless to say, you will need to know what is happening in the market rates in order to make Good Trading Decisions. The same applies to the News Feeds which are crucially important to Fundamental Trading.

Good Forex Trading Platforms often provide access to high quality news feeds from Reuters, Associated Press, Bloomberg and others. In general, most software and brokers have reliable news feeds.

Your Data and Security

Personal and Private Information over the Internet, should be treated with caution. Credit card numbers, bank account data and trading account information is the target for most Online Fraudsters. The security of your data from unwanted prying eyes should be paramount. Make sure your computer has the most up to date virus and malware software to protect against such attacks. If using online platforms, make sure your Fx broker uses appropriate data security measures. These should include SSL-Encryption technology to protect any personal data entered into online forms.

Expect Good Customer Service Support, User Manuals and even Videos

All Service Providers in any industry should provide Excellent Customer Experience and you should expect nothing less from your broker. If at any time you feel they are not up to the job, by all means find another broker. There are Plenty of Forex Brokers. After all, they need you to keep going, so never feel like you need them.

Most users are not technical so you should expect Good User Manuals and Videos to help you understand your Trading Software so as to make correct decisions.

Always remember knowing your tools is very important when it comes to trading. You do not want to place a wrong trade by mistake because you did not know how to use your software.

EARNING FOREX TRADING (STEP-41)

Learn Strategies For more profits and minimize losses in the Forex market

 

If you are a potential investment player who wants to make it big in the world of business and finance, then you go for forex trading. FOREX, also known as the foreign exchange market is the largest financial market in the world and estimates of $ 1500000000000 in each round of the day.

Here are some forex trading strategies how to achieve success in the forex market.

Do you know your market.

The best way to gain an advantage, profit and minimize losses is to work with the market and how the whole system works to familiarize. In the forex market, the players usually banks, central banks and firms involved in foreign trade, investment funds, brokerage firms and other large birds of capital.

With the speed and high liquidity of asset, most companies engage in this business than any other company. The transaction is still no membership fees and there is always the charm and the promise of big, big profit.

Forex trading is done in pairs. Most commonly traded currencies are the U.S. Dollar, Japanese Yen, Euro, British Pound, Canadian Dollar, Australian Dollar and the Swiss Franc in general. The most commonly traded currency pairs are the U.S. dollar and the Japanese yen, the euro and the U.S. dollar, Swiss franc and U.S. dollar. In Forex trading, all speculative and virtual. There is no actual product sold or purchased.

Activity is mainly composed of the entries in the computed value of one currency to another. Say for example, you can buy Euros with U.S. Dollar, hoping that the Euro to increase in value. Once its value rises, you can sell the Euro again, thus earning you a profit.

Learn the language.

There are three concepts you need to know in the currency market. The article refers to an increase in 1/100 percent of the value of the currency pair you are trading. Normally each item costs $ 10 or $ 1. Volume is the quantity or amount of money at any given time are traded on the market. Shopping is the acquisition of a currency. The dealer buys the hope that the currency price will rise. Bestsellers put money on the card in the market because of the potential or the ability to reduce costs.

There are also two research methods are usually used in this business - the fundamental and technical analysis.

Technical analysis is usually used in small and medium-sized players. Here, the main point of the research is focused on the prize.
Fundamental analysis, on the other hand, is used by organizations as well as higher capital requirements, players use, because the consideration of other factors affecting the value of a particular currency. In this type of analysis, the player also looks at the situation in the country, particularly issues like political stability, inflation rate, unemployment rate and fiscal policy to have an influence on the value of the coin.

In order to develop a solid strategy for trade.

Their approach to forex trading is, what kind of trader you are dependent. Basics of developing a trading strategy is to identify what kind of forex trader you are. A good strategy to reduce the trade in the Forex market is, if not eliminate losses. Plan the size of your transactions. It is best to perform a variety of operations transaction. Not only for the development of the discipline, but also reduces the potential loss is only part of the capital is affected. A part of the business strategy of the values ​​of discipline and money management.

Practice.

Try to start with paper trading, a great way to practice. Notice how the market works and be familiar with the software and tools used. There are online brokers who bleached paper trades, which allows practice and experience before you make it with real money.

Choose the right forex dealer.

Make sure that it is regulated by law. List of dealers with plants that give out too good to be true-just-false promises of hope. Look investment deals before you start.

Forex trading strategy may seem easy and manageable. However, emotional stress, the demands and challenges of being a forex trader requires more knowledge about the market. It takes more than just a great and useful business sense. It's a game plan, a strategy.        SEE MORE

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Earnning Forex trading (Step-35)

Forex day trading and earn big profits every day!

Many forex traders today, which aims to profit regularly every day, and over time these small profits rise. Many forex trading systems on the network to choose from - but how do you choose the best for this form of trade?

The fact that you can choose the best one, because none of it works. 
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Facts:

It is impossible to make money every day or when regular shopping and nonprofit one day - because day trading simply does not work at all.

Reality

Day trading systems sold on hyped advertising copy and use hypothetical track record (that is, what was done retroactively know the price of closing!), So they're of no use to proof of profitability in the future.

Remember, you will not find a day trading system with real time track record.

So why not day trading work?

Since only the data time is short and you can not get the odds on your side.

Think about it:

There are millions of traders Trading trillions of dollars every day, and say that you can judge what they do for some time is absurd, but many naive and greedy traders take the bait, buy the system and lose . 
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Fact

All short term volatility is random and prices can and do go to any point in the day, the level of support and resistance, therefore, is meaningless.

You can not get the odds on your side, and over time you will lose - period.

Is there a day trader with Real Records jam tracks?

Many claim that they are, but you never show, maybe there is one somewhere, but I have not seen one in 25 years of trading.

The person selling the system know that a great story and just use the inflated advertising and sell pointless hypothetical simulation system. Of course, these people have no confidence in trade himself for real, they know the system is not functioning.

Transaction:

You buy a course or system, and they will lose their pocket fee or a guaranteed income.

You lose, they win, it's that simple.

Sorry - there is no free lunch

There are a large number of forex systems out there (most of the day Forex market), promising that if you follow them you will become rich. Of course, if it were that easy, everyone would be traders, and no one will work!

Forex trading is difficult - 95% of traders lose.

To win, players must learn and trade away you can get the odds in your favor, and that means no day trading - look long term and do your homework.

There is no "free lunch" when it comes to making money, so when you see the next "sure fire" forex day trading system is not fooled by a copy or ask for a real time track record, and if you get one - let enjoy.

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