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Foreign Exchange (Forex)

The foreign exchange market (forex) is a worldwide financial market for the trading of currencies. It is open 24 hours a day except on weekends and is the largest and most liquid market in the world. A typical transaction would be the purchase of one currency with payment by another currency.

1,131 Questions

What is the meaning of parity value in foreign exchange?

In a pegged/fixed exchange rate system the value of currency is fixed in terms of gold or the value of other currency.This value is the parity value of the currency

What is net trading?

Net Trading Assets = Accounts Recievable + Inventory - Accounts Payable

Why do people do foreign exchange?

They are many reasons why people trade the Foreign exchange market or Forex but some of the main reasons are:

-The Forex is open 24 hours a day and 5.5 days a week.

-You can start trading with as low as $100.

-You can get a free demo trading account with many brokers.

-you can use leverage of up to 200:1 (50:1 in the US)

What is the best MT5 forex broker?

There is no one best MT5 broker.

Every trader has its own trading style and therefore need different things from his broker.

First, understand what you need in order to succeed and then find the broker that suits your needs.

How to swing trade in forex?

Swing trading forex is possible two ways. You can use fresh moving average crosses on the H4 or D1 time frames. You can use simple trend indicators like exponential moving averages set up on 5 and 12 time periods on any forex charting system to find this situation. Then demo trade this scenario until you get consistently profitable. Example: If the AUD/USD is starting a new trend on one of these time frames, just inspect the AUD pairs and USD pairs to see what currency in the pair is driving the movement.

Forex trading styles like swing trading are fully defined in this informative article on my website:

forexearlywarning.com/forex-lessons/forex-trading-styles

Can we really make some porfit from forex trading?

Forex trading takes a very disciplined approach and a good knowledge of the financial markets. Besides this you also need to have a good idea on how to read the charts and understand the various terminology such as bollinger bands, candlestick charts, and so on.

More than 50% of forex traders never make big profits because their goals are just to make money, instead of focusing on 'how to make money'

What is pips in forex trading?

A pip in Forex trading is used to calculate one's profits and losses. In Forex trading, the value of a currency is given in pips. For most currencies, a pip is 1/100 of a cent.

Do you need a license for forex trading?

Yes, in the US, you need to be registered with the NFA, CFTC, or SEC if you handle other people's money, but not necessarily if you are trading for yourself. If you are trading for others, you may need a license based on your country.s rules about being an adviser.

When one currency is getting stronger and other goes weak in forex which one you have to buy or sell?

In order to make profit you should buy the currency that is getting stronger and sell the currency that is getting weaker.

Is there a legitamite online forex trading program?

Plus500 is a legitimate online forex trading service located in London in the United Kingdom. They're governed through the FSA (Financial Services Authority).

What is trading instrument?

The various company stocks like symbol AAPL (Apple Computers) or BBRY (Blackberry)

What exactly is forex?

Forex stands for foreign exchange, i.e. the currency of any country anywhere in the world, such as the US Dollar, the Chinese Yuan, the British Pound and so on. The concept of forex trading implies that one currency is exchanged for another; hence it is also called currency trading. There exists a huge international forex market where currencies are bought, sold and traded.

The forex market is one of largest financial markets in the world. And the amazing thing is that Sunday to Friday, it is a 24 hour market, it does not close daily like the stock market. Further, it is an international market, so it is bigger than almost any domestic stock market could ever be.

Speculators on the forex market make money depending on the movements of the market and many have their own forex trading strategy. The most widely traded currencies are the US Dollar, the Euro, the British Pound, and the Japanese Yen. As you can see, these are the world's most powerful economies, implying that due to the amount of trade going on in these countries, businesses in these countries need plenty of foreign exchange.

As a speculator or forex trader, one would take a position on a country, depending on what one believes are the future prospects for that country and then either buy or sell its currency. For instance, if you believe that the US dollar will depreciate against the Euro, as a forex trader, you would sell US dollars right now at a higher price with the expectation of buying them from the market at a lower price when the US dollar depreciates. You will make the differential between the higher price and the lower price per dollar that you sold. Since you did not actually have stock of US dollars at the time you sold, this is called a short position.

An understanding of factors that go into successful forex currency trading is essential when you decide to become a forex trader, or maybe eventually a broker. The main factors that interact to form the basis for the trade are time, currency, interest rates and exchange rates. A solid understanding of these elements and their interplay is what makes a good forex trader.

The internet is a big driving force in the increased popularity of forex currency trading. With the introduction of the internet into every home, the average person now has gained access to the huge forex market. Earlier a playground for rich individual investors or huge institutions like financial companies and banks, the international forex market is now open to you and millions of others. And people are already tapping it to make their private fortunes.

Is corporation tax payable on foreign exchange gains?

Of course.

Even income from business deals occuring entirely out of the country are taxable income. Forreign source, but taxable here (and maybe there).

Are forex courses worth the money?

It really depends on you if you wish to pay for a forex course. I suggest you take a free one as there is no difference. You can find a free 5 days forex course here: www.forexrepublic.info

There is a free course available at Babypips to cover basic trading terminology. You may realize at some point that forex courses rarely cover full trading strategies that are logical and can be implemented on a consistent basis. You may wish at that point to consider automation of part or all of a particular strategy in order to ensure consistency. AwarenessForex will be offering free price action indicators and money management tools to facilitate the automation.

Is it possible to find free forex courses online?

yes. many.

most brokers/platforms will offer free training as a lead to get your business. try a few and see what works for you...

https ://wp.me/ PbUQY1-v

Is it possible to learn forex trading online?

There are a wealth of forex trading courses online. You must be cautious navigating different programs offered and trust companies that have an established record, excellent support, and winning programs.

Where is the foreign exchange market located?

The foreign exchange (Forex) market is a decentralized worldwide financial market. That means that it has no specific locations or source. However, the World Bank collects data and creates reports on currency performance and market share.