What Online Forex is All About?
Forex trading online is facilitated and transacted through the interbank online exchange market via multiple Internet connections, and it's open 24 hrs a day every week day & half day on Sunday, due to differences in time zones within the specified global time zones.
The 24 hour market day has 3 sessions:
- New York Session
- London UK Session
- Asia Session
New York, London and Asia Sessions
When data centers in Europe are closed, those in US are open and when those in US are closed then those in Asia are open, and this forms the 24 hour day cycle.
What Forex is all about?
Forex entails the buying & selling of one currency for another. This term is derived from foreign-for and exchange-ex. This type of investing is somehow similar to stocks investing. Buying a currency, It is like buying a share based on which country the money belongs to, the price at which currency pairs are quoted is known as exchange rates & these rates are quoted & plotted using charts.
Just like the stocks investment, currency moves are determined by demand supply as well as the economic outlook of that currency & political factors. However, the online exchange (speculative) exists for the purpose of the very possibility of purchasing a currency at a low value & then selling it at a higher value this demands investors to scrutinize the trend/direction of the market through a Forex strategy.
Other financial Instruments also continue to be added in the online spot exchange market. These new financial instruments are also traded in the same way as spot currencies. From around 2013, online brokers started adding the following financial instruments to be traded alongside spot currencies:
Commodities: GOLD and SILVER
Futures: CORN, WHEAT, SBAN
Energies: NGAS, OIL
Indices: DOW, NSDQ, SP, NK,DAX, FTSE, SMI, ESX50 and CAC
These instruments are made available in the spot market, most of them being quoted against the US Dollar - USD, and with their popularity growing, these instruments continue to gain almost mainstream recognition just like currencies.
Because these financial instruments are offered alongside currencies & quoted against the USD, these are also becoming part of the online market a.k.a spot market.
Aspects of Online Forex
The software is one of the aspects & it's available from Online brokers to enable investors to receive financial information & execute transactions on this platform.
Profitable trading requires good financial management & in fact basically is the kind of internet trading designed for profiting from others hence one has to create a good profitable system & a plan.
There exist several ways of analyzing currencies, but the most effective one among them is the use of a system. This kind of system uses indicators to predict price direction & momentum.
Advantages of FX
Leverage is one of the major advantages of trading where traders can use leverage to increase their trading account capital by trading using leverage provided by their broker.
Forex is a money making idea that enables you to transact online & you can invest without being confined to any zone.
Online trading allows you to work from home with a computer from anywhere across the world & it's open 24 hours during the weekdays, this is why it's referred to as the global market.
Steps to Follow to Start Trading
To start, the first thing you need to do is to find is a Broker, this we have already done for you and you can read about one of one of the Best Brokers - One of the Best Brokers Information:
Then follow these steps:
- Open a practice account with an online broker.
- Train using this tutorial web site where you'll find all the training lessons required to learn.
- Use a system to interpret price movement, the best system is one that you develop & create for yourself.
- Practice til you start earning profits on your demo account
- Then invest after considering the amount that you want start with.
Accounts: in Forex there are 2 types of account the demo account and live account. Beginners will open a demo account which is a free practice account that the trader can use while learning. No money is invested for a demo account, the funds are virtual & meant for practice. Once one has completed learning & is earning profits & ready to start trading the live market, one will then open a real account, deposit their capital & start transacting on the real market.
Tips to make profit
- Follow the trend, How well you do that will determine how profitable your results will be.
- Learn utmost from using free demo accounts and free training tools and tutorials provided by this free online learning website to help you achieve the desired success in your investment. This tutorial will show you All learning & training topics & tips.
- do not Forget about indicators & fundamental indicators (news) that are oftenly used to analyze the price movements, these are
- Technical Indicators - used in analysis to determine price movement.
- Fundamental Indicators - Used to in prediction methods using fundamental economic indicators/economic news reports
About Forex Guides
Training tutorials also provides information about currency market & the risks involved as well, for those who want to start, a good tutorial can provide a good start by explaining all about Forex and the topics that beginners are required to know.
All of us have already participated in forex with out us being aware of it. A particular example which is done on a regular day to day basis in all parts of the world is when a need arises to & we seek the service of money changers & in that way, we have already exchanged foreign currency & participated.
Example of Platform
Meta Trader 4 Platform
This platform is for streaming price quotes from your online broker, these price quotes are also represented in form of charts. The charts are then used to analyze currency pair movements so as to decide which side the prices are likely to head & investors can place trade transactions in that direction. To get the software, just go to your online broker's web site and download this software platform for free.
Be it that as it is there's still no perfect business in the world- you gain some, you lose some. However, tutorials discuss some risks in trading and offers techniques to keep risks minimal. It provides strategic steps to stop you from risking your money like money management strategies. You may still lose money but the good thing is that you'll not lose more than what you specify & will make more in the long run.
FX tutorials have everything covered from the way to beginning learning how to become profitable & also shows investors how to come up with a schedule of when is the best time to be in the market. These are the times when the markets are very liquid & volatility is the highest making it the best time to transact.
However, before this you should learn the effective strategies used to develop systems & strategies, used in the world of forex. Illustrated Below is an example of a system.
Tutorials for New Traders - Systems & Strategies
For more information about strategies and systems, navigate to these 2 lessons:
