Forex

Forex terms

is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or exchange foreign currency.


Leverage

Is the leverage in Forex trading, where the comparison factor will be multiplied by the contract size.

Example is 1:200 with a mini contract is 10,000 margin account is used (1:200) x 10,000 = 50 units of currency traded.

For example an open position USD / JPY the margin used is $ 50. If trade with the GBP / USD then the margin is used for 50 Pounds Sterling. If converted to dollars is 50 times the rate of GBP / USD. Eg rate GBP / USD is at 1.4000 rate. Then used margin is 50 x 1.4000 = $ 70

For Standard accounts, contracts used by 100,000 Leverage is 1:100. The average opening of accounts per lot is $ 1000.

MONEY IN FOREX

HOW TO REALLY MAKE MONEY IN FOREX



What is Forex?

Foreign Exchange popularly renowed as Forex otherwise FX is a market used for the buying and selling of diverse currencies and it is one of the fastest growing avenues to making money online. Transactions on the market are complete through electronic process (Internet and telephone) through an intermediary called the Forex broker. However, major trading 'centers' exists in London, New York, and Tokyo. Other trading 'centers' are: Singapore, Frankfurt, Geneva & Zurich, Paris and Hong Kong. Forex market is made up of various players: individual trader, institutional traders, banks, other financial institutions (investment firms, pension funds and enclosed funds etc), and governments through their Central Banks. An estimated $3.5trillion worth of transactions are being traded daily on the market and it is opened 24/6. Forex market is an unfettered market, making it reachable to everyone and easily exited by its players. This makes it impossible to know the whole number of players in the market at a particular time.

A Forex Trading System That Works

Before using a Forex trading method, whatever it is, it is essential to test it on a virtual Forex account, but more especially, to check its effectiveness, look at the past charts and check how many winning orloosing trades the method generates.

No method is effective at 100% and all those who try to sell you this type of method get rich by the sales of their expensive ebooks, rather than by Forex. If I would hold a method as effective as affirmed by certain salesmen, I would not waste my time in intensive marketing to sell it, I would apply it with a real account at the forex!