Make More Money On Forex Market With 100% Free Forex Trading System And Start Trading On Forex Like A Pro

Forex (FOReign currency EXchange market) is an interbank currency market. Its major function is to provide currencies' exchange between banks of different countries.

The rate of exchange is the price of the monetary unit of one country, represented in the monetary units on another country.

The agents on Forex market, who are responsible for operating with market quotations on buying/selling different currencies and responsible for making real trades on these currencies, are called Forex market makers.

The agents of market, who create the demand for the certain currency rates, are called Forex market users.

The relations between Forex market makers and Forex market users are performed through the mediation of brokerage companies.

Now some Forex basics. The currency quotation looks the following way:

USD/CHF=1.3560/64

This means that trader can buy USD at the bid price of CHF 1.3564, and sell USD at the ask price of CHF 1.3560.

The least possible price change unit is called a pip.

1 pip=0.0001

The essence of speculative trades on Forex to get profit from favorable changes of currency rates.

The graphic visualizations of market movements are called charts.

The are different ways for graphical representation of price changes given at a certain time interval.

Price changes can be shown as:

Bar Charts

Four different prices are viewed for each time interval:

Open (opening price), Close (closing price), High (the highest price), Low (the lowest price).

CandleStick Charts (Japanese candles)

If opening price is lower than the closing price, the body of the candle is white.

If opening price is higher than the closing price, the body of the candle is black.

The following analytical methods are used to examine Forex market movements:

• fundamental methods (special macro economic indexes of any national economy indexes influence both the level of currency rate and the market competitors);
• technical methods (method of investigating the prices, based on charts and various indicators which are calculated from ‘state of the market’ information).

The results of market analysis are used to make Forex trading plan. This Forex trading plan must have these elements:

1. The currency to be traded.

2. The trading operation to be performed: buy or sell.

3. The price to enter the market (opening position price).

4. The price to leave the market (closing position price) if the position continues bringing profit.

5. The price to leave the market in case of unfavorable market changes (stop loss level).

The trading is made in fixed volumes that are called lots. Usually 1 lot is equal to 100,000 USD.

This is the example of a Forex trading operation done with US dollar traded against Swiss franks:

OPEN BUY 1 LOT USD @ 1.3450

CLOSE SELL 1 LOT USD @ 1.3650

200 pips profit was gained (about 1,500 USD).

Major speculative trades on Forex are made using the principle of margin trading. The margin trading principle is the following: one does not need the whole lot sum for the trading operation, only a small part of the lot (called margin).

The margin usually makes 1-10% from the sum of the lot. When you wish to make any Forex trading operation, your financial partner (brokerage company) credits you with the rest of the necessary sum, or as the traders say “gives you the leverage”. For example, when you wish to buy 100,000 US dollars for Swiss franks with 1% margin, you pay only 1,000 USD and trade the whole big sum. You open the trading position, trade it as long as you need and close when necessary.

Forex Market - The Best Place To Make Big Money From Trading.

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