:: Introduction to Foreign Exchange Markets

Being the main force driving the global economic market, currency is no
doubt an essential element for a country. However, in order for all the
countries with different currencies to trade with one another, a system of
exchange rate between their currencies is needed; this system, is formally
known as foreign exchange or currency exchange.

In the early days, the system of currency exchange is supported solely by the
gold amount held in the vault of a country. However, this system is no
longer appropriate now due to inflation and hence, the value of one’s
currency nowadays is determined through the market forces alone. In order
to determine the value of a currency’s exchange rate, two main types of
system is used which is floating currency and pegged currency.

For floating exchange rate, its value is determined by the supply and demand
of the global market where the supply and demand is bound by all these
factors such as foreign investment, inflation and ratios of import and export.
Normally, this system is adopted by most of the advance countries like for
example UK, US and Canada. All of these countries have a similarity where
their market is well developed and stable in economic terms. These countries
choose to practice this system due to the reason where floating exchange rate
is proven to be much more efficient compared to the pegged exchange rate.
The reason behind this is because for floating exchange rate, the market
itself will re-adjust the exchange rate real-time in order to portray the actual
inflation and other economic forces. However, every system has its own
flaw and so does the floating exchange rate system. For instance, if a country
suffers from economic instability due to various reasons such as political
issues, a floating exchange rate system will certainly discourage investment
due to the high risk of suffering from inflationary disaster or sudden slump
in exchange rate.

Another form of exchange rate is known as pegged exchange rate. This is a

system where the value of the exchange rate is fixed by the government of a
country and not the supply and demand of the market. This system is called
pegged exchange rate because the value of a country’s currency is fixed to
another country’s currency. As a result, the value of the pegged currency
will not fluctuate unlike the floating currency. The working principle behind
this system is slightly complicated where the government of a country will
fixed the exchange rate of their currency and when there is a demand for a
certain currency resulting a rise in the exchange rate, the government will
have to release enough of that currency into the market in order to meet that
demand. However, there is a fatal flaw in this system where if the pegged
exchange rate is not controlled properly, panics may arise within the country
and as a result of that, people will be rushing to exchange their money into a
more stable currency. When that happens, the sudden overflow of that
country’s currency into the market will decrease the value of their exchange
rate and in the end, their currency will be worthless. Due to this reason, only
those under-developed or developing countries will practice this method as a
form to control the inflation rate.

However, the truth is, most of the countries do not fully practice the floating
exchange rate or the pegged exchange rate method in reality. Instead, they
use a hybrid system known as floating peg. Floating peg is the combination
of the two main systems where one country will normally fixed their
exchange rate to the US Dollars and after that, they will constantly review
their peg rate in order to stay in line with the actual market value.

The Foreign exchange market, or commonly known as FOREX, is the

largest and most prolific financial market because each day, more than 1
trillion worth of currency exchange takes place between investors,
speculators and countries. From this, we can deduce that the actual
mechanism behind the world of foreign exchange is far more complicated
than what we may already know, and that, the information mentioned earlier
is just the tip of an iceberg.

:: Forex Margin Trading

Comparing to other investment, the Foreign Exchange margin trading is one
of the fairest and the most attractive investment method.
The Foreign Exchange margin trading meaning the traders borrow loan from
bank, finance organization or broker house to carry on the foreign currency
trading. Generally, the financing proportion is above 20 times, which means
the Forex traders’ fund may enlarge to 20 times to carry on the trading. The
bigger the financing proportion, means the Forex traders just need to pay
very less fund, for example, the financing proportion provided by the
financial organization is 400 times, namely the lowest margin request is
0.25%, the traders just need to pay 25 US dollars, then he or she could trade
as high as 10,000 US dollars, fully using the contra method to make big
profit by only paying a very less price.
Besides the fund enlargement, another attraction of the Forex margin trading
method is that it can be traded in both ways, you can make profit by buying
the currency when the currency rise (makes many), or to sell a currency
when the currency is dropping to make profit (short-selling), thus does not
need to be restricted by the restriction so-called bear market is unable to
make money.
Making Profit in the Foreign Exchange Market
The currency fluctuate continuously due to reasons such as political,
economical reasons, sometimes the changes could be extremely great,
therefore, the Forex traders also can have the opportunity in among which
makes a profit. For example, the Japanese Yen daily fluctuation is probably
between 0.7% to 1.5%, Forex traders may make profit through buying and
selling. All trading could be completed in a short time, the trading strategy
could be carry up according to the market conditions, it is extremely
flexible, even if the direction looks wrong, the lost could be stop
immediately, the lost could reduce but profit potential is still great.
Therefore, the Foreign Exchange margin trading is the most flexible and the
most reliable investment method.
Foreign Exchange Margin Trading elementary knowledge
Currency name Commonly used currency code
Singapore dollar SGD
Thai Bath THB
Swedish krona SEK
Danish Krone DKK
Norwegian krone NOK
Spanish peseta ESP
German Mark DEM
US dollar USD
Euro EUR
Japanese Yen JPY
Pound GBP
Swiss franc CHF
Australian dollar AUD
New Zealand Yuan NZD
Canadian dollar CAD
Hong Kong dollar HKD
French franc FRF
Italian lira ITL
Belgian franc BEF
:: The Foreign Exchange Rate

In the international market, the Foreign Exchange rate is demonstrated by

five numerals, for example:

EUR/USD 1.2653
USD/JPY 107.65
GBP/JPY 195.03

The Exchange Rate Change

The exchange rate smallest change for the final figure (is 1 pip), for
example:

The EUR/USD smallest change is 0.0001

USD/JPY smallest change is 0.01

Quoted Price

All quoted prices can be divided into direct quoted price and the indirect
quoted price, for example:

The direct quoted price currency includes: EUR/USD, GBP/USD,

AUD/USD, NZD/USD ......
The indirect quoted price currency includes: USD/JPY, USD/CHF,
USD/CAD ....

For example, the EUR/USD quoted price is 1.2653, which means each euro
could convert to 1.2653 US dollars, while the USD/JPY quoted price is
107.65, which means that each US dollar could convert to 107.65 Japanese
Yen.

The buying price and the selling price of the foreign currency is decided by
the bank or the broker house, customer decides only the buying trend. For
example, the EUR/USD quoted price general demonstration is 1.2652/57,
which means the broker house is willing to buy Euro dollar at the price of
1.2652, and sell at the price of 1.2657. At this time, the price difference
between the buyer and the seller (pip difference) is 5 pips, for foreign
exchange trading, the smaller the point means the trading cost is lower and
the chance of profit making is much larger.
:: Foreign Exchange (Forex) Market
Presently, there are various kinds of financial market, it is divided into:
Stock market, interest market (including bond, commercial bill and so on),
gold market (including gold, platinum, silver), futures market (including
grain, cotton and kapok, oil and so on), option market and foreign exchange
market or forex market and so on.

The foreign exchange market is a place to trade foreign exchange currency,

or it is also a place for the transaction of all foreign currency. The foreign
exchange market therefore is existence, because of:

Trade and investment

Import and export business, people pays one kind of currency when doing
business, but when earns another kind of currency when receive the
commodity. This means that, when settling account, business people will
pay and receive different currencies. Therefore, they must convert the
currencies that they received into the currencies that they could buy
commodities. With this similar, when buying a foreign property a company
must use the concerned country's currency to make payment, therefore, it
needs to convert the domestic currency is concerned country's currency.

Speculation
Currencies exchange rates could fluctuate according to the demand and
supply between two currencies. A Forex trader buys up one kind of currency
in an exchange rate, but up casts this currency in another more advantageous
exchange rate, he may gain. Speculation has occupied most of the Forex
market.

Hedging
Due to the fluctuation between two currencies, those companies who owns
foreign asset (for example factory), when these companies convert these
properties into cost country currencies, there consist of certain risks. When
the value of a foreign asset which is estimated based on foreign currencies
remained unchanged, if the exchange rate changes, when converting this
property value according to the domestic currency, there could be profit and
loss. The company may eliminate such hidden risk through hedging. This
carries out a foreign currency trading, its transaction result just
counterbalances the foreign currency property profit and loss which
produces by the exchange rate change.
Forex Market Development
The history of the Forex market as an international capital speculation
market is much shorter compared the stock, the gold, the stock, the interest
market, but it is developing in an astonishing speed. Today, the foreign
exchange market daily trading volume has amounted to 150 billion US
dollars, it’s scale has gone far beyond the stock, the stock and other finance
commodity markets, it has became the world's most biggest sole finance
market and the also the speculation market. Since the birth of the foreign
exchange market, the fluctuation of the exchange rate of the Forex market is
becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese
Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen,
in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign
exchange market wave amplitude has been bigger, on September 8, 1992, 1
pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged
1.5080 US dollars, in the short two months, the pound exchanged US dollar
exchange rate to fall more than 5,000, depreciated 25%. Not only that,
presently, everyday the fluctuation of the exchange rate of the Forex market
enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly
seen. On September 16, 1992, the pound exchanged US dollar from 1.8755
to fall to 1.7850, the pound on first lowers 5%.

Due to the large fluctuation of the Forex market, it has created more
opportunities for the investor, attracted more and more investors to join this
ranks.

:: Characteristics of Forex Market

In recent years, the foreign exchange market could favor more and more
people, it becomes a favorite for the international investors, and this is
strongly related to the characteristics of the Forex market. The main
characteristics of the foreign exchange market are:

1st, It consists market but no trading field

The finance industry in the western countries consist two sets of systems,
namely the centralism business central operation and there is no fixed place
for such business network. Stock trading is being traded through stock
exchange. Like the New York Stock Exchange, the London stock market,
the Tokyo stock market, respectively is American, English, the Japanese
stock main transaction place, it is a centralism business financial
commodity, its quoted price, the transaction time and hand over to the
procedure all consist of unification the stipulation, and has established the
same business association, it has formulated the same business rules. The
investor could buy and sells the commodity through the broker company,
this is known as "consist of trading market and trading field".

But foreign exchange business is done without any unification operation

market and business network, it has no centralism unified place like the
stock transaction. But, the foreign currency trading network actually is
globally, and it has formed a organization which has no formal organization,
the market is relied through an approval way and the advanced information
system, Forex traders do not consist any membership qualification for any
organization, but must obtain colleague’s trust and approval. This kind of
Forex market which has no trading field is known as "consist of market but
no trading field". Each day, the trading volume in the global Forex market
involves billions of U.S dollars, the so huge large amount fund, is being
control under both the non-centralism place and non central governance
system, plus it is settle based on non-government governance.

2nd, Circulation work

Due to the different geographical position of the various financial centre, the
Asian market, the European market, the Americas market because of the
time difference relations, it has become an entire day 24 hour continued
operation whole world foreign exchange market.

Early morning 0830 (New York time) New York market opens, 0930
Chicago market opens, 1830 Sydney opens, 1930 Tokyo opens, 2030 Hong
Kong, Singapore open, before dawn 1430 Frankfurt opens, 1530 o'clock
London market opens. So 24 hours uninterrupted movements, the foreign
exchange market becomes a day and night market, only on Saturday, Sunday
as well as the various countries' significant holiday, the foreign exchange
market only then can close.

This kind of continued operation, provided no time and spatial barrier ideal
outlet for investors, the Forex trader may seek the best opportunity to carry
on the transaction. For instance, Forex trader buys up the Japanese Yen in
the morning at the New York market, in the evening Hong Kong market
opens the Japanese Yen rises, the Forex trader sells in the Hong Kong
market, no matter Forex trader in where, he all may participate in any
market, any time business. Therefore, the foreign exchange market may say
is does not have the time and the spatial barrier market.
3rd, Zero and Game
In the stock market, the rise or the drop of stock market could influence the
value of the stock whether to rise or drop, for example the Japanese new date
iron stock price falls from 800 Japanese Yen to 400 Japanese Yen, the value
of this stock has been reduced to half. However, in the foreign exchange
market, the value of a stock and a currency is being calculated differently,
this is because the exchange rate is refers to the exchange ratio both
countries currency, the exchange rate change will influence one kind of
monetary value to reduce and at the same time another kind of monetary
value increase. For instance in 22 years ago, 1 US dollar exchanges 360
Japanese Yen, at present, 1 US dollar exchanges 110 Japanese Yen, this
explains the Japanese Yen currency value rise, but US dollar currency value
drops, in the end the value will not reduce or increase. Therefore, some
people described the foreign currency trading is "zero and the game",
exactly said is the wealth shift.

In recent years, investment foreign exchange market fund has continuously

increased, the exchange rate fluctuation expands day by day, urges the
wealth shift to be larger, the daily trading volume of the global foreign
exchange involves 150 billion US dollars, the rise or falls 1%, means that
the 150 billion funds has been shifted. Although the foreign exchange rate
change is very big, but, any kind of currency will not become waste paper,
even if some kind of currency unceasingly falls, however, but generally it
represents certain value, only if such currency has been abolished.

:: Forex Charts

Forex charts assist the investor by providing a visual representation of

exchange rate fluctuations. Many variables affect currency exchange rates,
such as interest rates, bank policies, geopolitics, and even the time of day
may affect exchange rates.

In order to help the investor attempt to predict when or in what direction a

rate may change, advisors provide forex charts. Quality forex websites
provide subscribers with a daily newsletter that includes a forex chart, forex
signals and a forex forecast.

There are a variety of forex charts available for the investor to use and study.
Some are very simple using only a couple of forex signals or indicators and
are ideal for beginners. Others include 30 or 40 forex signals or indicators
and live on-line streaming data so that the investor may analyze trades
quickly and accurately.

In order to make an accurate forex forecast, it would seem that the more
indicators, the better, but some analysts prefer a simpler system.

The idea behind studying forex charts is that history repeats itself. Instead of
trying to “see the future”, a forex forecast evaluates the past. That is to say
that the analyst who is responsible for attempting to predict future currency
moves analyzes what happened to an exchange rate yesterday, last week, last
month or last year and uses this knowledge to the best degree he knows how.

Some people trade short term, some intermediate term, and some long term.
All three types of traders may benefit from the use of forex charts, just
adapted to their own trading time frame.

Investors also create their own forex charts to evaluate their own
performance. Creating a forex strategy for oneself is the goal of many
investors. Instead of looking to a professional to analyze forex signals, these
investors choose to create their own forex forecast.

Others, however, create their own strategy but also follow the opinions of
professional currency traders at the same time. It all depends on your
personal preferences.

There are other forex charts that deal with known correlations between two
currency pairs, that is, how they move in relation to each other. Some
exchange rates are known to affect other exchange rates, either by moving in
the same or the opposite direction depending on the correlation.

Charts are available that explain these correlations in detail and show which
pairs have strong correlations or strong negative correlations, so that an
investor can use the movement of the exchange rate of one currency as a
signal to trade another currency. These correlations are also the basis for
some forex forecasts.

It can be difficult and overwhelming to enter the world of forex trading

alone. Experts recommend education, practice with a demo account and
advice from a reputable broker who is backed by a quality institution.
Learning to read forex charts and evaluate forex signals is a skill that comes
with time, skills that are essential when an accurate forex forecast is the the
goal.

::What Is The Difference Between Forex and Futures?

1. A Forex trader could trade more transaction compared to the futures

market (the trading volume could be a times larger), and the risk will
be strictly under control. The trading volume of the Forex market is
46 times larger compared to the futures market, moreover Forex
traders could make more profit from the Forex market due to the
larger trading volume (the transaction volume is a few times larger),
the REFCO Switzerland rich transaction platform allowed transaction
between 1-100 times to be carry on, moreover a Forex trader could
decide his or her own transaction amount, for example: Your account
has $30,000, the basic transaction unit is each $1,000 (which
transaction amount in $1.00, million), namely, so the proportion of the
margin of each transaction unit is 100:1.

2. The risk of the Forex trader is under control, such margin call will not
happen compared to futures, through the Forex trading system, your
risk will receive the strict limit, even if your margin if lower then the
deposit required, the Forex trading system will automatically settle
your position, this means even if a Forex trader suffered losses,
moreover if the market is suffering from a disaster fluctuation, your
loss could not surpass your account amount. In order to understand the
advantages, please apply for the demo account to carry on the
complete zero risk.

3. A Forex trader will receive a large limitation of liquidation and a

relatively fair market because the trading volume of the Forex market
is large and it is also the largest liquidation market in the world. At
present the trading volume in the Forex market is 140 billion Dollars,
such big market will completely digest your transaction cash.

4. A Forex trader may do 24 hours transactions and other markets are

different, the Forex market is a 24 hour linkages market, it starts from
every Sunday before dawn Australian Sydney market, substandard
collect the transaction center Singapore, Tokyo, London, Frankfurt to
New York continuously to open, such linkage market enable you to do
24 hours transactions, also provide flexibility for Forex trader to do
transaction.
:: Famous Forex Quotes

1. “If you get in on Jones’ tip; get out on Jones’ tip”. If you are riding
another person’s idea, ride it all the way.

2. Run early or not at all. Don't be an eleven o'clock bull or a five o'clock
bear.

3. Woodrow Wilson said, "a governments first priority is to organize the

common interest against special interests". Successful traders seek out
market opportunities capitalizing on the reality that government's first
priority is rarely achieved.

4. People who buy headlines eventually end up selling newspapers.

5. If you do not know who you are, the market is an expensive place to
find out.

6. Never give advice-the smart don't need it and the stupid don't heed it.

7. Disregard all prognostications. In the world of money, which is a

world shaped by human behavior, nobody has the foggiest notion of
what will happen in the future. Mark that word-nobody! Thus the
successful trader bases no moves on what supposedly will happen but
reacts instead to what does happen.

8. Worry is not a sickness but a sign of health. If you are not worried,
you are not risking enough.

9. Except in unusual circumstances, get in the habit of taking your profit

too soon. Don't torment yourself if a trade continues winning without
you. Chances are it won't continue long. If it does console yourself by
thinking of all the times when liquidating early preserved gains you
would otherwise have lost.

10.When the ship starts to sink, don't pray-jump!

11.Life never happens in a straight line. Any adult knows this. But we
can too easily be hypnotized into forgetting it when contemplating a
chart. Beware of the chartist's illusion.
12.Optimism means expecting the best, but confidence means knowing
how you will handle the worst. Never make a move if you are merely
optimistic.

13.Whatever you do, whether you bet with the herd or against, think it
through independently first.

14.Repeatedly reevaluate your open positions. Keep asking yourself:

would I put my money into this if it were presented to me for the first
time today? Is this trade progressing toward the ending position I
envisioned?

15.It is a safe bet that the money lost by (short term) speculation is small
compared with the gigantic sums lost by those who let their
investments "ride". Long term investors are the biggest gamblers as
after they make a trade they often times stay with it and end up losing
it all. The intelligent trader will . By acting promptly-hold losses to a
minimum.

16.As a rule of thumb good trend lines should touch at least three
previous highs or lows. The more points the line catches, the better the
line.

17.Volume and open interest are as important to the technician as price.

18.The clearest and easiest way to determine a trend is from previous

highs and lows. Higher highs and higher lows mark an uptrend, lower
highs and lower lows mark a downtrend.

19.Don't sell a quiet market after a fall because a low volume sell-off is
actually a very bullish situation.

20.Prices are made in the minds of men, not in the soybean field: fear and
greed can temporarily drive prices far beyond their so called real
value.

21.When the market breaks through a weekly or monthly high, it is a buy

signal. When it breaks through the previous weekly or monthly low, it
is a sell signal.

22.Every sunken ship has a chart.

 23.Take a trading break. A break will give you a detached view of the
market and a fresh look at yourself and the way you want to trade for
the next several weeks.

24.Assimilate into your very bones a set of trading rules that works for
you.

25.The final phase in a bull move is an accelerated runaway near the top.
In this phase, the market always makes you believe that you have
underestimated the potential bull market. The temptation to continue
pyramiding your position is strong as profits have now swelled to the
point that you believe your account can stand any setback. It is
imperative at this juncture to take profits on your pyramids and reduce
the position back to base levels. The base position is then liquidated
when it becomes apparent that the move has ended.

:: Forex Development History

Foreign exchange development history - exchange market evolution foreign

exchange development history - exchange market evolution gold
remittance system and Bretton woods agreement

In 1967, a Chicago bank rejected to provide pound loan to a professor

named Milton Friedman, because his purposed was to use this fund to sell
short the British pound. Mr. Friedman realized excessively that the price
ratio from the British pound to US dollar at that time was high, he wanted
first to sell the British pound, after the British pound fell he buys back the
British pound to repay the bank again. This family bank rejects the loan
offer based on the "Bretton woods Agreement" which was established 20
years ago. This agreement has fixed the various countries' currency to US
dollar exchange rate, and the price ratio between the U.S dollar and the gold
is also fixed to 35 US dollars to each ounce of gold.

The Bretton Woods Agreement was signed in 1944, the purposed was to
prevent the currency to escape between countries, and also to limit the
international speculation, thus to stabilize the international currency. Before
this agreement was signed, the gold remittance standard system which was
widely used since 1876 - was leading the international economy system until
the First World War. In the gold remittance system, the currency was at the
stable level under the support of the gold price. The gold remittance system
has abolished the old time king and the ruler which depreciates the currency
value unlawfully, which will lead to inflation.

But, the gold remittance standard system is certainly imperfect. Along with a
country economic potentiality enhancement, it can import massive products
from overseas, until it exhausts the gold reserve of certain country. It
resulted the supply of the currency reduces, the interest rate raises, the
economic activity will start to decline until it reaches the recession limit.
Finally, the commodity price falls to the valley, gradually attracts other
countries to stream in, massively rushes to purchase this country commodity.
This will pour gold into this country, this will increase this country currency
supplies quantity, and it will reduce the interest rate, and will create the
wealth. This is so called the "the prosperity - decline” pattern and is the
circulation of the gold remittance standard system, until the trade circulation
and the gold freedom was broken by the First World War.

After several catastrophes wars, the Bretton Woods agreement has appeared.
The countries which signed the treaty agreed to maintain the domestic
currency to US dollar exchange rate, as well as the necessity of the
corresponding ratio of the gold, and only allow a small fluctuation.
Countries are prohibited to depreciate the currency value for the gain trade
benefit, only allows the country to depreciate not more then 10%. Enters the
50's, the continuous growth of the international trade causes the fund large-
scale shift which produces because of the postwar reconstruction, this causes
Bretton Woods system which establishes the foreign exchange rate to lose
stability.

This agreement was finally abolished in 1971, US dollar no longer could

convert to gold. Until 1973, each major industrialized nation currency
exchange rate fluctuation has been more freely, mainly regulates by the
foreign exchange market through the currency supplies and demand
quantity. The business volume, the transaction speed as well as the price
variability, have achieved a comprehensive growth in the 1970's, come along
with the emerge of price ratio fluctuation, the brand-new financial tool, then
only the market liberalization and the trade liberalization could be achieved.

In the 1980s, along with the published of the computer and correlation
technology, the international capital has flow rapidly, and strongly related
the Asia, Europe and America market. Foreign exchange business volume
from 80's rises daily from 70 billion US dollars to 150 billion US dollars
after 20 years.

European market inflation

One of the reasons why the foreign exchange developed rapidly was the
rapid development of the Euro dollar market. In a Euro dollar market, US
dollar is stored beyond the border of America banks. Similarly, the European
market is refers to property depositing outside the currency rightful owner
country market. A Euro dollar market was formed at first in the 50's, at that
time Russia deposited its petroleum income beyond the US border, avoid
being freeze by the US government. This has formed a large offshore US
dollar national treasury which is beyond the control of the US government.
The American government has formulated a law to prohibited US dollar
from lending money for the foreigner. Because the degree of freedom of the
Euro dollar market is bigger and the rate of return is bigger, therefore it has
large attraction. Starting from the 80's, the American company starts to
borrow loan from the offshore market, they discovered that the European
market is a wealth center which consists of large amount of floating capital
which could provide short-term loan.

London once was (until now still is) one of the main offshore market. In the
80's, the Bank of England in order to maintain its global finance industry
center dominant position, using US dollar as England pound substitution to
make loan, thus to become a Euro dollar market center. London's convenient
geographical position (is situated between Asian and Americas market) also
helps to maintain the European market as the dominant position

:: Forex Trading

Forex trading isn’t strange words for those who looking forward to make
quick profit in the financial market. Most investors will have at least hear or
read about Forex trading. If Forex is a new term to you, please do read the
Introduction to the Forex market before proceed reading this Forex trading
article.

Forex trading is said to be the highest risk with highest return investment (or
speculation game to be more accurate) in the financial market. The amount
traded in the Forex market is much larger than any stock market or even
combining few stock markets. Forex trading is simply a world wide trading
market running 24 hours from Monday to Friday.

Everyday, there are new Forex traders entering into trading Forex. Some of
them don’t even fully understand how Forex is traded but have already
trading Forex. They are not idiot who want to burn their hard earned money,
it’s just because Forex market is simply too lucrative market to enter with
extreme high return. Any Forex traders can easily make a double return just
in few minutes time trading Forex.

Forex trading is the trading of buying or selling certain currency. For

example, buying US Dollar, then selling it later at a higher price to gain
profit. Forex traders may also first sell US Dollar and later on buy it back at
a lower price with the same gaining profit. It’s simple strategy of selling
price minus buying price to make profit. In Forex trading, we just treat
currency as a good, buy it and sell it.

You might now think how can Forex trading make huge profit just by selling
and buying currency? Forex is traded using margin, Forex traders don’t need
to full amount to buy any currency. For example, Forex traders just need
1000 Dollar to buy up 100,000 Dollar. This allows any Forex traders to
make huge profit with little money.

Another important factor that any Forex traders can make huge profit is the
high fluctuation for currency. Every day every seconds, the currency
exchange rate is moving up and down, the Forex exchange rate fluctuate
more heavily whenever there is any important economic data being released.

Forex trading is simply sounds too easy for anyone to make profit in very
short time. But before you committed into Forex trading, it is strongly
advised to have full understanding in Forex trading. Do read up other Forex
trading articles in this website and share Forex trading knowledge in the
Forex forums.