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Monday, February 20, 2006

Forex Softwares

Trading in foreign currency has grown in popularity in the last years and it is now the most secure financial market in the world. This market never closes! Millions trade are made daily, all over the world. The global economy is host of new trading opportunities and online currency trading is the faster way to do it. Using forex software it is easy to invest in devises and actions, on line and without supplementary costs. Online currency trading is convenient and understandable, allowing the opportunity to find efficient investment. You can manage al your trades from the comfort of your home computer. Using the appropriate software, the trading services are available for any customer, from individuals to most important institutions. Regardless of the size of the client, the software application is the same; the resources have the same quality for the independent investor to large institutional clients. The easy-to-use quality of the online currency trading makes an important grow in online currency trading number. This must be a powerful tool, with standard features. It manages foreign currency trades using many security features, in real time. The software dedicated to online forex operations is allowing keeping track of clients’ transactions, editing orders or canceling them. It is possible also to customize the dashboard to allow the possibility to monitor the trades while simultaneously working in other projects. An appropriate software package for forex trading is completely customizable and its intricate tools will allow to customers to build its own technical indicators for the forex trades. It must serve the beginners and the professional traders as well. The software application receives and interprets live data generated all over the world, transforming it into some easy to understand visual parts. The main directions are to calculate the fundamental indicators about the overbought or oversold conditions, trend direction or strength for the main currency pairs (USD / EUR, USD /JPY, USD / GBP, USD / CHF). In the same time, the software package must handle the techniques to allow the strategic risk and money management techniques. Hire is a quote from George Soros: "It doesn't matter how often you are right or wrong - it only matters how much you make when you are right, versus how much you lose when you are wrong." Any software package will allow an efficient illustration for the current market condition.

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.

Accounts In Forex

From my observation the trend is more pronounced in the US as you would expect. Most US based traders assume they will see their balance at the end of each day in US Dollars. I have even spoken with some traders who are oblivious to the fact the their profit might have actually been in Japanese Yen.Let me explain a little more. You sell (go short) USD/JPY and as such are short USD and Long (bought) JPY. You enter the trade at 116.10 and exit 116.90. You in fact made 80,000 Japanese Yen (1 lot traded) not US Dollars.If you traded all four major currencies against the US Dollar you would in fact have made or lose in EUR, GPY, JPY and CHF. This might give you a ledger balance at the end of the day or month with four different currencies.This is common in London. They will stay in that currency until you instruct the broker to exchange the currencies into your own base currency.This actually happened to me. After dealing with mainly US based brokers it had never occurred to me that my statement would be in anything other than US Dollars.This can work for you or against you depending on the rate of exchange when you change back into your home currency. Once I knew the convention I simply instructed the broker to change my profit or loss into US Dollars when I closed my position. It is worth checking how your broker approaches this and simply ask them how they handle it. A small point, but worth noting.Nowadays most countries have regulated forex, but it is still worth checking that the broker who you are dealing with is regulated in the country that it operates, insured or bonded and has some kind of track recorded.I cannot advise you on which broker you should use as there are just to many variables to each person, but as a rule of thumb, nearly all countries have some kind of regulatory authority who will be able to advise you. Most of the regulatory authorities will have a list of brokers that fall within their jurisdiction and will give you that list. They probably wont tell whom to use but at least if the list came from them you can have some confidence in those companies.Once you have a list, give a few of them a call, see who you feel comfortable with, ask for them to send you their polices and procedures. If you live near where your broker is based, go spend the day with him. I have been to many brokerages just to check them out. It will give you a chance to see their operation and meet their team. This brings up another interesting point. When you open an account with a broker you will have to fill in some forms basically stating your acceptance of their polices. This can range from a 1 page document to something resembling a book. Take the time to read through these documents and make a list of things you don't understand or want explained.Most reputable companies will be happy to spend some time with you on this. Your involvement with your broker is largely up to you. As a forex trader you will probably spend long hours staring at the screen without talking to anyone. You may be the sort of person who likes this or you may be the sort of person who likes to chat with the dealer in the trading room. You will normally get a call once a week or once a month from someone in the brokerage asking if everything is OK.