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Earning Big in FOREX Trading
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There’s the stock market, the underground market and the foreign exchange market or more popularly known as FOREX, which can also be called as currency trading or foreign currency trading. The FOREX is one of the largest financial markets in the world. It has an estimate of $1.5 trillion turn-overs daily.
Operating 24 hours a day, the key players in the foreign currency trading are commercial banks, central banks, firms involved in foreign trade, investment funds, broker companies, retail investors and some private individuals. These players can come from Asia, North America and Europe. These key players are those with large amounts of money, involved in cash businesses or in the trading of assets that can be sold and bought easily.
Among the identified benefits of foreign currency trading is the speed and high liquidity of assets. Transactions are conducted in a matter of seconds. A trader can also open a position for any period of time he wants. There are no fees. And of course, there’s the promise of bigger profit.
The Process
Basically, FOREX trading involves trading of foreign currency and other similar products. The currency of one country is weighed against the currency of another. It is different from the stock market as it involves a transaction between two countries and the business takes place through a broker. Trading of foreign currencies take up almost 80% of the market activity. This ‘trading’ is purely speculative in nature; only 20% of the market activity is spent on actual exchange of currencies for the corporations and companies involved in the FOREX market.
Trading of currencies is done is pairs. You can buy Euros with Dollars, hoping that the Euro will increase its value. When the value of the Euro rises, you sell it, thus the profit. The commonly traded currencies are the US Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), and the Swiss Franc (CHF). Among the usually traded currency pairs are the, the Euro and US Dollar (EUR/USD), US Dollar and the Japanese Yen (USD/JPY), the British Pound and US Dollar (GBP/USD), and the US Dollar and Swiss franc (USD/CHF).
In retrospect, there is no actual product being sold or bought in the FOREX market. The ‘trading’ is just composed of computer entries on the value of one currency against another.
In FOREX trading, the trader uses both fundamental and/or technical analysis. Small and medium players use technical analysis, of which the primary item for study is the price. Fundamental analysis involves a study of the situations in the country of the currency. This would include issues like political instability, rate of inflation and unemployment, tax policy and interest of the Central Bank.
FOREX vs. STOCK market
Currency trading has no central governing body. There are no clearing houses or panels that agree on trades of disputes. The FOREX market does not have any limits on the size of the position being sold or bought as long as the player has enough capital.
Online FOREX trading has opened a new window of opportunity for market players and business bigwigs. It has evolved to become more interactive, convenient, and easy to the players, not to mention, one of the highest earning markets in the business world. With online FOREX trading, one can play more and earn more.
Trading Foreign Currency News
Indian Rupee Trades At New Record Low Against Dollar - RTT News
 Moneycontrol.com | Indian Rupee Trades At New Record Low Against Dollar RTT News The Reserve Bank of India imposed restrictions of $100 million on position limit for forward contracts by banks and advised the banks dealing in foreign currency to bring down their trading limits by June-end. "The position limit for the trading ... MARKET EYE-Only $400-500 mln left in exporter USD sales-traders Steps taken by India to support rupee India Shares End Lower |
Rupee sinks below 55 - Calcutta Telegraph
 Calcutta Telegraph | Rupee sinks below 55 Calcutta Telegraph At the Interbank Foreign Exchange market, the domestic currency opened slightly lower at 54.45 a dollar from last weekend's close of 54.43 and immediately touched a high of 54.44. However, it fell sharply at the fag-end of trading, breaching the ... Rupee at record low of 55.35 despite RBI steps Rupee up 4 paise against dollar after touching all-time low Rupee stages recovery after touching new low of 55.07 |
Seniors on the Go: Coping with foreign travel hassles - Chicago Tribune
Seniors on the Go: Coping with foreign travel hassles Chicago Tribune HASSLES YOU CAN MITIGATE Foreign currency in advance. Many guidebooks still advise you to get "some" foreign currency so you can pay for transportation when you arrive. These days, that is an unnecessary hassle, and you typically get a lousy exchange ... |
Brazil Real Closes Weaker - Wall Street Journal
Brazil Real Closes Weaker Wall Street Journal By JEFF FICK RIO DE JANEIRO—Brazil's real currency continued its slide against the US dollar Monday, but stopped short of the key BRL2.05 mark as traders attempted to elicit central bank intervention amid a backdrop of global uncertainty. |
TEXT-Fitch affirms CPC Corporation,Taiwan at 'A+';outlook stable - Reuters
 Telegraph.co.uk | TEXT-Fitch affirms CPC Corporation,Taiwan at 'A+';outlook stable Reuters (The following statement was released by the rating agency) May 22 - Fitch Ratings has affirmed CPC Corporation, Taiwan's (CPC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A+' with a Stable Outlook and its Short-Term Foreign Currency IDR ... UBS - Fitch Downgrades Japan Stock futures drop on global growth concerns Fitch Cuts Japan's Credit Rating |
Sudan starts trading devalued pound to end black market - BusinessLIVE
Sudan starts trading devalued pound to end black market BusinessLIVE Sudanese foreign exchange bureaux started trading Sudanese pounds at a devalued rate on Monday as part of an effort by officials to curb illegal trade and stablise the currency. Black market dealers in the capital Khartoum said they would continue to ... |
Euro Falls as Confidence Forecast to Drop Amid Contagion Concern - Bloomberg
 Bloomberg | Euro Falls as Confidence Forecast to Drop Amid Contagion Concern Bloomberg Brazil's real sank as Finance Minister Guido Mantega said a weaker currency is helping to reignite the economy. India's rupee plunged to a record against the dollar, spurring the central bank to impose curbs on trading in the foreign-currency futures ... |
Sudan starts trading devalued pound to end black market - Reuters Africa
 Al-Arabiya | Sudan starts trading devalued pound to end black market Reuters Africa By Alexander Dziadosz KHARTOUM (Reuters) - Sudanese foreign exchange bureaux started trading Sudanese pounds at a devalued rate on Monday as part of an effort by officials to curb illegal trade and stablise the currency. Black market dealers in the ... You are here:Home |