The foreign currency markets offer investors a unique way to speculate. Various factors have contributed to the wild popularity of foreign exchange. The market itself is enormous and dwarfs equity and bond markets. Forex markets are extremely liquid. And unlike traditional stock markets, currency trades 24 hours a day, 7 days a week. When trading markets close in the West, they are just opening up in the East. This makes forex trading convenient for anyone with an internet connection.
Leverage is another attractive forex trading feature. For example, an investor could potentially control a $50,000 position by adding just $500 to a forex account, then borrowing the rest from the broker. Equity traders do not have this type of extreme leveraging capability. Keep in mind that leverage works both ways. Yes, you can potentially make large profits. But it’s also possible to experience damaging losses. Perhaps you have been thinking about dipping your toes into forex trading. Here are some forex tips for trading in the foreign exchange markets.
Keep A Macro View, Research Heavily
Continue reading Tips for Foreign Currency Exchange
The foreign exchange market, being a good example of globalizing trends, works as a form of exchange for Forex trading that refers to the decentralized trading of global currencies across the globe. In Fx trading, transactions require a trader to purchase a specific amount of a particular currency by paying in an amount of another specified currency. The Forex market has several other variations in its name such as the “Fx market” or “Foreign currency market”. Forex trading broker call it the “Currency market” or “Foreign exchange currency market”.
Related: xe.com review
Facts to be known about Forex trading and the Forex market
In practical, the Forex market is a great place for many banks, several businesses, many governments, global investors and individual traders to do exchange and speculation on international currencies. One thing should be well-known to all potential traders about the market that all activities or operations of the market are conducted ‘over the counter’ but not in any central marketplace because the market has no such central marketplace. In this respect, the foreign exchange market differs
Continue reading Facts and Benefits of The Foreign Exchange Market
The following is a guest post by Philip.
What is the Forex market?
The Forex market is a platform to trade international currencies. Financial centers all over the world act like anchors for Forex trading. The main purpose of Forex market is to make sure the smooth functioning of international trade by facilitating currency conversions. In layman’s term Forex trade is when a person buys one currency by paying some quantity of another currency.
Apart from Forex market, two other markets which are mostly used by common people are the stock market and the commodity market.
What is Stock Market?
A stock market is platform where the stocks of publicly listed companies are traded freely. Here the transactions are made though appointed share brokers. The overall value of the world stock market is pegged at $36.6 trillion. When a company is listed in stock market the market value of that particular firm is calculated by the share price of that company.
What is Commodity Market?
Commodity is market where precious metals like gold, silver and agricultural products like rough rice, Soybeans and wheat are traded. These commodities are bought
Continue reading Differences between Forex and Other Markets?
In a previous post about foreign exchange, I learned about xe.com as an online currency exchange house. I was quite eager to give it a try in order to avoid driving downtown just to exchange my US dollars.
Getting Setup With XE.com
The setup was a little more demanding than your standard process online and for good reason since any individual transferring money must be validated against money laundering. Don’t let the requests for identification deter you away like it did for me at first. I must have stopped on the doorway a few times until I just forge through with it.
Don’t expect to be in after 10 minutes… You’ll have to actually wait for manual verification and you may be asked some questions by email as a follow up. They requested a bank statement showing my name and account numbers to validate the information I provided. The process is heavy to validate all users wanting to do currency exchange.
Be ready with your bank account numbers and all the routing numbers you need since you probably want to trade between a CDN and US accounts.
XE.com User Interface
I was very
Continue reading Forex: xe.com review
Do you want to avoid foreign exchange fees? Do you still use the banks to convert your funds in other currencies? In my previous foreign exchange post, I discussed the Norbert’s Gambit. It’s definitely one way to improve on your foreign exchange fees but it can have its disadvantages. On the other hand, a better way to do foreign exchange on a regular basis is to use a forex broker platforms. I have not personally used one of those platforms yet but I have looked into a couple of them and I am hungry to know more. Before we dive into the forex platforms and what they can do for you, I’d like to establish the scenarios under which people tend to do foreign exchange.
Foreign Exchange Scenarios
Currency For Trip
Be it a family vacation, a personal or a business trip, going to a foreign country usually requires funds in the countrie’s currency for your day-to-day spending. In some cases, your VISA or Master Card can cover many of the expenses but having cash on hands is beneficial too. In those cases, the cost of
Continue reading Foreign Exchange: Using a Forex Platform