Profit And Loss Calculation in Forex Trading

The cumulative buy and sell of a currency causes the value of your Forex investment to move either up or down. Foreign Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is […]

Lot Sizes and Leverage in Forex Trading

I think most of you will know by now that one of the major advantages in Forex Trading is the high degree of leverage provided by most brokerage companies. In the Forex market, depending on which brokerage firm a trader use, $1,000 could control $100,000 in currency. Such controlling leverage of 100 to 1 […]

Forex Market Mechanism

I believe all of you already know by now that the Forex market is the largest traded market in the world. So how are these currency pairs quoted on the Forex market? You will see two numbers on all Forex quotes. The first number is called the bid and the second is known as […]

Technical Analysis in Forex Trading

In Forex Trading, technical analysis is the study of market action, mainly through the use of charts and indicators to forecast the future movement of a currency.
There are a few principles that a technical analyst applies. The price is a compressive reflection of all market forces.
To a technical analyst, regardless of what the fundamentalist […]

Fundamental Analysis in Forex Trading

In Forex Trading, fundamental analysis focuses on the theoretical models of exchange rate determination such as purchasing power parity (PPP) and the theory of elasticity.
Fundamental analysis also concentrates on other major economic factors such as Gross National Product (GNP) that measures the economic performance of a nation economy. Other economic indicators include Gross Domestic Product […]

Types of Forex Trading Orders

To trade the Forex market, traders must understand the different type trading orders. The following are some of major types of orders that can be found on most Broker trading platforms if one would to trade Forex.
Market Order - A market order is an instant order to buy or sell a currency pair at the […]

What are the Different Sectors in the Forex Market?

Within the Forex market, there are various different sectors, some as follows:
Currency Spot Market - This is where a spot deal takes place between two parties who deliver a certain amount of different currencies to each other, based on an agreed exchange rate, within two business days of the deal date.
Currency Forward Market -This is […]

Factors that Cause Currencies to Fluctuate

In Forex Trading, the cumulative buying and selling of a currency causes it to move either up or down. There are numerous factors that cause the fluctuation of exchange rate.
• Government and Central bank monetary policy and balance of payment.
• A country’s political, social and fundamental economic environment such […]

The Major Currency in the Forex Market

The US Dollar, Japanese Yen and the Euro dollar combined are the globe three major economic powerhouses.
The US dollar is the most dominant currency in today world’s Interbank Forex market. The four next most traded currencies are the Euro dollar, Japanese Yen, British Pound and Swiss Franc. Though the Forex market comprises of almost all […]

Who are the Major Players in the Forex Market?

 
In Forex Trading, it is important that a newbie knows who are participating in the Forex arena. Below-mentioned are the major players in this market.
Central Banks and Governments- Monetary Policies such as Interest Rate that are implemented by central banks or governments can play a major and critical role in the Forex market. Central banks […]

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