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Posts Tagged ‘forex’

What Markets IC Markets The Best For Forex In Australia

January 27th, 2011 No comments

I have been dealing in forex for more than eleven years, I originally started trading back in 1999 when there were only a couple of forex companies in Australia, as many of these brokers were quite new and not familiar with managing active investors like myself I was forced to search for a company offshore. After a great deal of searching I was able to locate a broker in Switzerland that could cater for high volume traders. It?s only been in the last 6 months that I once again began my search for a decent local Australian forex company and what I found was astounding to say the least.

After a couple of days scouring the internet I noticed that the forex landscape has changed dramatically, there is allot more choice than there use to be. Previously there we only really 2 major forex providers and both of them were market makers, not surprisingly the days of forex trading desks is over, the majority of providers now offer straight through processing a few of the top tier providers even have an ECN forex product offering.

I downloaded quite a few trading platforms, when I say a few I mean my monitor was covered with shortcuts to nearly every single platform available. Some trading platforms offered by brokers were online, although online trading platforms might at first appear simpler to use as no software needs to be downloaded they often lack the highly developed charting functionality of downloadable platforms and as a professional trader I can tell you that good quality charting is vital.

After road testing all of the online trading platforms that I had installed I found that the majority of them were probably not suitable for professional investors. The spreads on most of the trading platforms widened dramatically over news periods, although this isn’t uncommon as this is often when the market is the most unstable, I really didn’t expect the spread in EUR/USD to blow out by thirty five pips. A few of the broker platforms had fixed spreads, however I actually noticed a worse problem with these guys, their prices simply froze and I could not place any trades or get out of my open positions, in actual fact on two occasions the trading platforms simply crashed.

Of every one of the forex trading platforms that I trialled two were in fact ECN?s or electronic communication networks. An ECN is actually a mini marketplace where the forex company makes it possible for numerous banks to quote prices flowing into their trading platform. ECN brokers frequently have very tight spreads and far more transparent pricing than fixed spread providers and market makers. When trading with an ECN provider you will also find that your spreads won?t dramatically widen over news periods, the main reason for this is that with a lot of banks participating in the price formation it is expected that there will be buyers and sellers even in market instability.

Naturally as a professional trader my favored preference is an ECN forex broker, out of the two that I found in Australia I discovered that only one of them consistently had tighter spreads than the other on all the key forex pairs. I would say that it’s because they probably have more liquidity providers providing them with prices.

To cut a long story short I ended up picking IC Markets, it actually wasn?t a tough choice as these guys were the only company that could offer me consistently tight spreads even throughout news announcements in addition to a stable trading platform. So far so good, I have been dealing with them for about 3 months now and have had no troubles. As their spreads stay tight over the news I have had many more trading possibilities than I would have had with the other providers. If you?re in the marketplace for a trustworthy forex provider who is an ECN and can offer razor sharp spreads I can unquestionably say that form my experience IC Markets is one of the best out there.

Some Facts You Need To Know Concerning Forex Market

January 20th, 2011 No comments

Perhaps, you know that Forex is very popular presently. Although this is a complicated business, still many people are eager to try earn money on the Forex market. Actually, Forex can as well be called a foreign exchange trading. In the following post we are going to talk about on Forex market and the way it works.

To start with, we are going to look at the facts that can influence Forex. In case, you want to become a Forex trader, you need to know that “fundamental” factors of a country’s economy can play the major role on their currency?s exchange rates. Among these “fundamental” factors are: political positions and developments and relevant decisions made by a country’s central bank. Additionally, currency?s exchange rates of this or that country can be influenced by any relevant pieces of economic news affecting the country in question. That?s the cause why, for you to become a good Forex trader, it?s vital to be aware of this information at an early stage. What?s more, a good trader should be able to guess how the money markets will react to this or that news. Keep it in mind, it?s very important to know the latest political and economical news of the courtiers which currency you are dealing with. Indeed, this can be really unwise to ignore these fundamental elements basing the trading on the technical analysis only.

The next fact about Forex, you may be interested at is that each day approximately three trillion dollars is traded there. Because of this, it can be called the world’s most liquid market. Have you ever heard that Forex trading has many differences from to stock trading? Today many investors assume that Forex trading is a wonderful way to diversify their investments.

For sure, forex is a unique market as it has a few features that can differentiate it from other trading markets. These are: liquidity of market, the fact that the market operates 24 hours a day, 6 days a week, and that traders in the market typically generate low profit margins.

You also may want to know the Forex market was opened in the 1970? and it has changed much since then. For instance, today, it is not just the banks, but a range of institutions and investors that can take part in Forex trading.

And finally, it should be mentioned that every trader who choose to operate in Forex market, has to find as much useful things about forex trading and strategies used on this market. To do this, you may need to find some reputable course learning about all the peculiarities of the process of online trading and of course, suggest some good strategies.

How To Choose The Best Forex Broker

November 25th, 2010 No comments

On the Forex market a trading broker is here in order to help you to trade and traditionally has all the needed elements to educate and train you in the ways on how to train you in the best way possible. One thing that you obviously have to understand is that there are a lot of different Forex trading brokers out there and selecting one who is really good could be quite a challenging task to complete.

Today there are a lot of different ways for you to decide whether the Forex broker you are talking to is the proper one for you or not and the very first thing that you need to be looking at is whether you two could communicate or not. It is necessary to establish a certain link between your Forex broker and you because communication is a key to telling you what trades to enter and what not to enter in the Forex market. The job of the Forex broker is to make sure that you know what you are doing and to help you to make money while trading. Here the equation is quite simple one – the more money you make, the more money the company of the Forex broker makes, but your relationships need to have more synergy that simple mutual reliance.

The other thing that you have to know is that your Forex broker is qualified and in the majority of cases it is a good thing to get a good look at his or her qualifications, what his or her specialties are, which school he or she went through, where he or she was trained and whether he or she has any paper qualifications or degree. The next thing is the experience that he or she could have and you have to probe them on what trades they have actually done, what types of targets they could hit and in the end of the trading day what they could do for you as a new Forex trader.

As well, it is necessary to check on the brokerage that the Forex broker is representing and try to find out as much information as possible on how long the broker has been around, how good he or she is as well as what the common sentiments of the market is about him or her. In addition, you need to make sure that your potential Forex broker will try to assess your behavior as an investor and after than make some recommendations based on the portfolio that you want to open. Risk management is considered to be quite important while trading on the Forex market and your trading broker has to assess you as a Forex trader before you are given an account to open.

As in any other niche of our life foreign exchange market needs some education.

Of course, one can start forex trading and get quite successful in it. However sooner or later the losses will come. It is precisely when one might think “Why didn’t I start with a nice forex book?”

This does not imply that after reading even the top materials you will start making money, but this knowledge will save you from many dangers. And even if you make up your mind to get the assistance of a forex managed account service, still you will make a much wiser decision.

And a final piece of advice – today the Internet technologies give you a truly unique chance to choose what you want for the best price on the market. Strange, but most of the people don’t use this opportunity. In real practice it means that you must use all the tools of today to get the information that you need.

Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

And also sign up to the RSS feed on this blog, because we will do the best to keep updating this blog with new publications about Forex market.

Are You Ready To Trade The Forex Markets?

November 24th, 2010 No comments

Today Forex trading is a type of trading that a lot of people choose because it could be traded at any time of the day and night as it runs round the clock. Trading on the Forex market is conducted on the basis of trading of liquid currencies which are currencies of various counties that back them with commodities as silver or gold.

Due to the backing of the leading banks this financial market is becoming more and more popular. While trading the Forex market you try to make money based on supply and demand by using cash. In fact, you purchase one currency against another hoping that the exchange rate will go in your favor and you make some money.

The Forex market reacts to some variables like the stock market does. When there are some pieces of economic or political news are coming out it could reflect in the strength of that particular currency causing losses when you hold that currency when it happens.

If there is an economical gain in the company through new commodities or routes that are involved into the international trade, the cost of the currency exchange for their currency increases. It leaves you in a profit for your currency, than the previous day. As well, inflation proves to be profitable to you if you sell your currency at the high rate. It is so as like in the stock market, you need to purchase low and sell high.

The majority of the Forex traders are day traders. It means that they get in and out as fast as possible. They do so as when there is any political or economic news coming out it will reflect on the currency rates. Rumors could be sufficient to make the market move. Traditionally they get out of the trade quickly trying to maximize their profits and keel their losses to a minimum.

It is one of the reasons why success while investing in the Forex market lies in proper understanding and keeping up with the constant fluctuations of the currency market. With detailed monitoring of the Forex markets, you could understand when to change money in order to make the maximum profit in your currency market.

When you are going to invest a large sum of your money into the Forex market it is better to use an investment fund trades currencies because they are much more experienced at it and the change of making profits is much greater. However, if you are comfortable doing so yourself, you could always do it yourself using the Forex trading broker.

Like absolutely everything in life, checking up on some brokerage companies before deciding which one to use in a wise thing to do. The internet could be used as a valuable source of the information while studying the Forex markets and its brokerages.

As in every other sphere of our life Forex needs some education.

Surely, one can start forex trading and get quite successful in it. However sooner or later the losses will come. This is when one might think “Why didn’t I start with a good forex book?”

That does not mean that after reading even the best materials you will start closing trading positions with huge income, but this knowledge will save you from lots of troubles. And even if you decide to get the assistance of a managed forex accounts service, still you will make a much wiser decision.

And a final piece of advice – today the online technologies give you a truly unique chance to choose what you need at the best terms which are available on the market. Funny, but most of the people don’t use this opportunity. In real life it means that you must use all the tools of today to get the information that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a wise and nicely balanced decision.

P.S. And also sign up to the RSS feed on this blog, because we will everything possible to keep this blog tuned up to the day with new publications about Forex currency trading.

Discover All The Forex Techniques And Details With Trader Courses

October 10th, 2010 No comments

Forex trading has been greatly valued by the individual investors and has become a hot job option. Just like other jobs like finance and investment, Foreign currency trading moreover demands an ideal combination and know -how of experience, education and aptitude. The experience is usually gained little by little as you confirm yourself as a Fx trader, but the right education and aptitude is generally acquired using the help of the Trader courses.

Foreign exchange market or Forex as it is commonly known as is a worldwide decentralized OTC fiscal market for the trading of numerous currencies of the globe. Foreign exchange of different international locations are purchased not to mention sold by different traders and investors. The fluctuation in the worth of the foreign currency decides if the investors have gained the profits or have lost their investment.

The investors employ the services of the Foreign currency traders who deal the money on the behalf of the investors. Foreign currency markets are highly lucrative and therefore, the stress of the Foreign exchange investors are on the rise.

Fx Trader Courses immensely facilitate you to get familiar by means of the world of Forex and discover the essentials within a specific time cycle.
Forex techniques are essential to trade perfectly and obtain massive profits. It is advisable know about the distinctive components which govern the foreign exchange marketplace and easy methods to formulate a safe nevertheless profitable investment. You just can not take it lightly and start investing devoid of any plan. It is possible to even wind up losing a significant portion of your hard earned cash through one incorrect move. At this time, the Forex trading Trader Courses come into play! You will be really overwhelmed that each day in the stock market just about two-trillion us dollars are traded. Doesn’t the amount overawe you? Well, with the appropriate training and a firm grip on the strategies you’re able to build thriving investments. The Forex courses will introduce you into the numerous features of the Fx market and you can have expertise about each necessary detail.

The world of Currency exchange is so lucrative that still in the unstable intervals you may even now obtain profits. As a great number of peoples are benefiting from Foreign exchange trading, the demand for Forex traders and analysts have grown rapidly. So, in the event you have the appropriate attitude and a fondness to work in a challenging atmosphere but lack the knowledge and information, Forex trader courses are definitely the ideal solution!

Key Points To Know About Forex Trading

September 27th, 2010 No comments

Today a lot of people are searching for opportunities to make money in times of difficulty and recession. In fact, a lot of people have their day jobs for the past some years because of the tightening of the budget of some businesses.

Thus, people start looking for more conventional ways to make money and the World Wide Web provides the easiest ways to these venues. One the best instruments in making money is trading the Forex market.

In fact, the Forex market is where you could trade currencies of various countries of the world. The main idea behind the Forex trading is that you can make a lot of money by just trading foreign currencies while staying at home, only using your personal computer with internet connection.

Forex market is considered to be the most liquid financial market in the world. It means that an investor could sell or purchase foreign currencies easily contrary to the stock market where the prices depend on the demand and supply of the stock at a certain moment. An investor could make great profits or lose his or her investments depending on the area that he or she puts his or her money into.

You can make a lot of money on the Forex market only if you do it right. Before you get involved into the Forex market, first of all you have to be knowledgeable of all the basics of the Forex trading. Today there are a lot of Forex charts, demos, strategies and training available on the internet which will provide you will all the basic concepts and ideas that are necessary for getting started.

In fact, the Forex market could be extremely profitable and thus it has to be taken seriously. This financial market has a lot of advantages, some of which could be named:

- This financial market is huge. In fact, currencies are not as vulnerable as stocks unlike in the stock market. A Forex investor could sell or purchase currencies easily and even a single Forex investor cannot cause any bog changes in the currency rates. The trade volumes in the stock market are limited because the stocks are limited.

- Limitations on a Forex trader are less strict. Absolutely any Forex investor could decide how little or how large the amount he or she likes to trade with.

- The Forex market runs round the clock. This financial market involves a lot of investors from all over the world. It is open 5 days a week from Monday to Friday. Because there is no central marketplace for the Forex trading, all the currencies are traded throughout the time zones of the main financial centers including New York, London and Japan.

As in every other sphere of life foreign exchange market needs some education.

Of course, one can start forex trading and be quite successful about it. However sooner or later the losses will come. It is precisely when one might think “Why didn’t I start with a good forex book?”

That does not mean that after reading even the top materials you will start making money, but this info will save you from lots of troubles. And even if you decide to get the assistance of a forex managed accounts service, still you will be able to make a much wiser decision.

And a final piece of advice – today the online technologies give you a really unique chance to choose what you require for the best price on the market. Strange, but most of the people don’t use this chance. In real practice it means that you must use all the tools of today to get the info that you need.

Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a smart and nicely balanced decision.

P.S. And also sign up to the RSS feed on this blog, because we will everything possible to keep this blog tuned up to the day with new publications about Forex currency trading.

CFD Tips Using Contract For Difference – Some Important Tips To Make You Safe

September 2nd, 2010 No comments

Contracts for Difference have been creating so much interest of late that it’s essential to realize the basics of this exciting product before being too involved.

Here I’ll show you 3 key tips to make you safe and give you certain key areas to focus on when you perform your further CFD trade.

1. CFD trading leverage. CFD trading is only a leveraged stock market possibility that gives you access to bigger funds than what you normally could access if you were dealing with the stock market.

This may be both great and bad and unfortunately a lot of new comers to CFD trading suppose that because their stock market trading was bad, it will all change when trading CFDs. Unfortunately nothing could be further from the truth. CFD trading and using leverage will just stress your stock market losses, so the most essential thing to do is start small and cease the leverage employed.

A good rule of thumb is when starting out, don’t use more than 2-3 times leverage on your account. For instance if you begin your account with $10,000 then don’t trade total positions that are more than $20,000 – $30,000 in total. Perhaps extend your parcels with 4-6 positions at $5,000 every one.

Remember CFD leverage stresses your returns and your losses, so the most wise thing to do first is begin with small.

2. Develop a CFD trading plan that suits your individual profile. Improving a solid CFD trading plan is essential to your long term success. Whilst CFD trading is very similar to trading stocks, you have to tailor your plan to meet you individual objectives.

First of all you want to identify those places that you excel at and follow those. You may be great at picking what the CFD index, like the Aussie200, is planning to do every day or short period swing trading CFDs might be your forte. Whatever it is that you are keen of, stick with it and enlarge your opportunities in such places.

3. Employ stops religiously. Stops enable you to protect your worst situation scenario by limiting your downside (unless the stock gaps considerably). This cannot be emphasised enough when speaking about a leveraged product such as CFDs.

In particular I am talking about a stop loss that limits the downside as opposed to a stop that is used when taking advantages. The tip with getting your first stop right is putting it far enough away as not to kick you out too soon, but at the same time not too far away so you don’t lose a huge amount when your initial stop is hit.

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CFD Education: What New Traders Should Know

August 21st, 2010 No comments

Learning to trade DMA Contracts for difference can be fairly overwhelming at first, with new traders having to learn the trading platform offered by their DMA CFD provider and of course build a trading plan. Trading can easily be pleasurable and rewarding if you take some time in the beginning to do your research, below are some tips to help novice traders who are getting started.

1. Build a trading plan.
A typical error new trader?s make is that they use an inappropriate trading strategy, or worse still, they have no plan at all. Adopting a trading approach and using it on a consistent basis, provides a framework of order. It’s also likely that this is going to deliver improved results than a hap-hazard method or using a frequently changing series of methods. Care must be taken when selecting a trading plan. It would be a mistake to attempt trading a strategy dependent on five minute charts if you are unable to access your trading platform for much of the trading day. Similarly, it would be a mistake to utilize a technique based on monthly graphs if your trading horizon is calculated in days or weeks.

Certain traders often believe that a more complex system is usually the best system. They build systems that employ vast numbers of inputs and require exceptionally involved calculations and algorithms. They frequently generate charts that are so heavily covered in indicators that it gets hard to distinguish the price action. While some of these complex techniques certainly can be effective, the greater the amount of inputs and calculations they require, the greater potential there is for something to go amiss. In many ways, a simple approach can often be superior (and simpler to follow with confidence) than a more complex system.

One of many approaches employed by many traders is the short trade. This is where a trader sells a Contract for difference that they don?t currently hold in anticipation of buying it back again at a lower price in the future. While it could be argued that there is little difference between taking a long position or a short position, the short position might not be suitable for a conservative trader. In theory, a short position holds much greater risk than a long position. This is because of the difference in the highest potential downside for each type of trade. When owning a long CFD position, the worst potential move could be for the Contract for difference to fall to zero and become worthless. For a short position, where losses will mount as prices rise, the greatest loss is limitless. While owning a short CFD position over a stock with a skyrocketing price is not likely, it is possible. It would be a mistake for a very conservative trader to trade on the short side, especially without a stop loss order in place.

2. Learn how to use your trading platform.
It can sometimes be a steep learning curve when trading on a new platform however after you have spent the time and effort and overcome any lingering fears of technology you’ll realize that this is important if you’re to become a successful on line trader. It is no good waiting until you’ve got open positions and the markets start moving before you determine how to put on or amend a stop-loss or take-profit order. You need to ?know? how to move around the platform and open, close or adjust orders without having to look up the user guide.

You should also plan for more severe situations. Think about what could occur if your internet connection were to stop working or if your computer became infected with a virus and wasn’t operating at its peak. As a preventive measure, it is wise to store your DMA CFD providers telephone number written down near your computer. It’s also good practice to maintain an inventory of your open positions so that you know what your exposure is.

3. Take accountability for your trades.
The majority of traders closely observe their open positions but there are those who make the mistake of not doing so. By frequently checking on your open positions you will know what your overall exposure to the market is and whether or not you’re in profit or loss situation.

As well as trading mistakes, some traders simply forget that they have placed certain orders, or because they don’t understand the platform they find that they have unintentionally placed orders without intending to do so. It’s best to discover these errors as quickly as possible by checking your open positions. Errors made when entering trades tend to be more common than you might think. Traders often hit buy instead of sell (or vice versa) or enter the incorrect number or even the incorrect ticker symbol. These are simple mistakes that are often put down to having a ?fat finger?. However, if you take your trading seriously, it’s best to make sure that you exercise the appropriate level of care.

CFD trading can be very gratifying and enjoyable if you take some time at the beginning educating yourself and learning the tools of your trade.Naturally it is always important to remember that trading DMA CFDs can be risky, however the information outlined above will assist you in controlling risk and will help you to avoid most of the errors traders make when starting out.