forex online

Unlike other financial markets like the New York Stock Exchange, the forex spot market has neither a physical location nor a central exchange.

The forex market is considered an Over-the-Counter (OTC), or "Interbank", market due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

This means that the spot forex market is spread all over the globe with no central location. They can take place anywhere, even at the top of Mt. Fuji!

The forex OTC market is by far the biggest and most popular financial market in the world, traded globally by a large number of individuals and organizations.

In the OTC market, participants determine who they want to trade with depending on trading conditions, attractiveness of prices, and reputation of the trading counterpart.

The chart Below shows the ten most actively traded currencies.

The dollar is the most traded currency, taking up 84.9% of all transactions. The euro's share is second at 39.1%, while that of the yen is third at 19.0%. As you can see, most of the major currencies are hogging the top spots on this list!

There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market:

No commissions

No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail brokers are compensated for their services through something called the "bid-ask spread".

No middlemen

Spot currency trading eliminates the middlemen and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

No fixed lot size

In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5,000 ounces. In spot forex, you determine your own lot, or position size. This allows traders to participate with accounts as small as $25 (although we'll explain later why a $25 account is a bad idea).

Low transaction costs

The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%. Of course this depends on your leverage and all will be explained later.

A 24-hour market

There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep.

No one can corner the market

The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank or the mighty Chuck Norris himself) can control the market price for an extended period of time.

Leverage

In forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.

For example, a forex broker may offer 50-to-1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $2,500 worth of currencies. Similarly, with $500 dollars, one could trade with $25,000 dollars and so on. While this is all gravy, let's remember that leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

High Liquidity.

Because the forex market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will as there will usually be someone in the market willing to take the other side of your trade. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position once your desired profit level (a limit order) has been reached, and/or close a trade if a trade is going against you (a stop loss order).

Low Barriers to Entry

You would think that getting started as a currency trader would cost a ton of money. The fact is, when compared to trading stocks, options or futures, it doesn't. Online forex brokers offer "mini" and "micro" trading accounts, some with a minimum account deposit of $25.

We're not saying you should open an account with the bare minimum, but it does make forex trading much more accessible to the average individual who doesn't have a lot of start-up trading capital.

Free Stuff Everywhere!

Most online forex brokers offer "demo" accounts to practice trading and build your skills, along with real-time forex news and charting services.

And guess what?! They're all free!

Demo accounts are very valuable resources for those who are "financially hampered" and would like to hone their trading skills with "play money" before opening a live trading account and risking real money.

Now that you know the advantages of the forex market, see how it compares with the stock market!

Defining Trading Mistakes

Losing money is a necessary part of learning to trade in the forex markets. It is important to remember this, because there is essentially no trader that can claim to win 90-100% of his trades and still be taken seriously by his peers. Since losing trades are an inevitability, it is unfair to define all losing trades as mistakes - because this simply is not the case. A better approach is to define trading mistakes as the events that are actually under our control and work out in the wrong direction. As long as we keep position sizes to manageable levels and spot true mistakes early (when mistakes are actually made), we can avoid substantial damage to a trading account and correct errors so that we can continue improving and moving forward toward your trading goals.

Analyzing Seemingly Chaotic Markets

When looking to trade and analyze markets that appear chaotic on the surface, it is easy to become frustrated when looking at how price activity unfolds in real-time. This creates some differences when looking at price activity from an historical perspective (which, in hindsight, is much easier). In most cases, new traders will look for ways to improve their methods and build on their strategies using defined trading markets and a specific set of rules on which to base positions. But for most of these early traders, a majority of these positions might turn out to lose money. If you place 10 real money trades and then 6 of those trades lose money, most new traders might say that 6 mistakes have been made - but this is not always the case.

For example, let’s assume that we use classic RSI readings and support and resistance levels to generate trading ideas. The classic trading signal might be seen if the RSI indicator falls below the 30 reading and starts to turn back in the upward direction (indicating oversold price activity). When this signal is seen as prices fall to a clearly defined support level, long positions can be taken on the expectation that prices will rise further in the future.

Unsuccessful Trades vs. Trading Mistakes

In some cases, ideas like this will be successful and generate gains. In other cases, markets will continue through oversold territory and stop out your position for a loss. In the second scenario, did the trader make a mistake? The clear answer is “no,” because all of the original trading rules were in place before the position was established. Once all of these factors are in place, we have no control over what happens next in the market. Using our original definition, connecting true trading mistakes to factors and elements we can actually control, these types of situations cannot be considered mistakes. These are simply unsuccessful trades.

When we look at historical price activity, it is much easier to spot the situations where trading rules unfolded in a successful fashion. In real-time, however, those situations can only be judged in terms of probability. There are key differences here. Market scenarios that do not fall in line with the initial probabilities must be categorized correctly, because assigning the word “mistake” to setups that are normally successful might prevent us from using those strategies again in the future. This can reduce the occurrence of winning trades and limit overall gains as well.

Elements of Trading Mistakes

One way that traders can help their strategies and continue improving is to deconstruct the rules that make up their trading systems. Breaking those rules now becomes the only trading mistake we can make. If, for example, we set leverage limits to create 2-3% account risk at any given moment, a trading mistake could be seen if we enter into a position that creates the possibility for a 5% loss at any given time.

In the RSI trading example above, a mistake might be seen if we were chasing markets and established positions before the RSI indicator actually fell below 30 and started to rise again. Whether your trading system is simple or complicated, remaining loyal to your pre-established rules is a vital prerequisite for success, and can help give you a leg-up over the competition. No trader knows where prices will actually be at the end of the day, so it doesn’t make sense to describe inaccurate price forecasting as a “mistake.” Instead, mistakes are directed at behaviors, and not in the end result of any individual trade.

An alternate viewpoint can be seen in traders that operate with no plan at all. In this case, we might actually say that any trading decision is a mistake. When traders with no game plan are able to execute a successful trade, should these be considered successful behaviors? Luck of the draw does not create a successful traders, because repeating these same behaviors will not result in consistent profitability over time. In order to have consistent success, you will need to have a clear set of trading rules so that you can enter into positions when the opportunity arises.

Analysis vs. Control

Both technical and fundamental analysis can help us to take advantage of changes in price and market valuations - but this does not mean these analysis methods give us control over the markets. Of course, there are behaviors that can be followed which can improve the chances of profitability and minimize the damage seen when markets move in an unexpected direction. But the validity of these behaviors should be judged on performance over time, rather than in individual situations.

Building on the strength of certain analysis methods, setting clear parameters for risk and reward will depend heavily on your ability to implement conservative position sizing. When looking at all of the possible mistakes, failures here mark one of the worst. If this area is not working out for you, this is the first place to focus your attention. There are special apps and calculators that can help with these problems (helping you set percentage risk parameters that will automatically calculate profit targets and stop losses). Other areas to watch are the time of day you trade, methods for trading during active or subdued markets, and how much capital to trade at any given time. Ultimately, you should make time to reassess your trading rules to see if there are inconsistencies for certain market environments. When you watch your progress in these ways, you can minimize your trading mistakes and show consistent improvement toward your trading goals.

Dollar slump against major counterparts amid central bank easing

The dollar declined versus most major counterparts as traders estimated policy makers in the U.S. will maintain or expand monetary stimulus measures. The greenback fell for a fifth day against the euro after Federal Reserve Chairman Ben S. Bernanke stated economic conditions aren’t where he’d like them to be. The dollar plunged 0.4 percent to $1.3060 per euro as of 11:30 a.m. in Tokyo after reaching $1.3068, the least since March 15. It moved a little at 99.38 yen after earlier rising as high as 99.66, the most since May 2009. “The European Central Bank has been reducing the size of their balance sheet whereas the Fed and the BOJ are increasing the size of their balance sheets,” said Richard Grace, the Sydney-based chief currency strategist and head of international economics at Commonwealth Bank of Australia. (CBA) “We’re seeing broad-based dollar weakness based on Bernanke’s comments.” Fed Easing Bernanke said yesterday that Fed tests of whether U.S. financial firms could survive a severe recession have powered up the banking system and helped economic development. “Today the economy is significantly stronger than it was four years ago, although conditions are clearly still far from where we would all like them to be,” he said in a speech in Stone Mountain, Georgia. The Fed is purchasing $85 billion of bonds a month in the third round of its quantitative-easing strategy to spur growth. Policy makers reiterated after their March meeting that the central bank will keep up its buys until there’s significant development in the labor market. Bernanke probably will be succeeded by Vice Chairman Janet Yellen when his term ends Jan. 31, according to a survey last week by International Strategy & Investment Group. Sixty-five percent of those polled at the organization’s conference last week said Yellen, 66, is most likely to be nominated for the top job, according to a report yesterday by Roberto Perli, a Washington-based managing director at the investment research firm.

Most traders forget that the forex market is subject to fluctuations

(4) Most traders forget that the forex market is subject to fluctuations.

Trade the near term is not a game amateur and are rarely the way to riches fast you will not be able to achieve the success of large investment without the presence of significant risks associated with it, but that does not mean that the strategies your business include a high degree of risk, because the trade strategies improper that includes taking degree great danger and lead to contradictory and trade losses and suffering often not successful investment.

The trader who does not have a good strategy in the trade - or does not have a strategy mainly in the trade - it is so, and unfortunately traded player gambling manner and not as a trader learner understands the principles of economics.

Trading foreign exchange does not lead to a successful investment quickly but orderly planning!

Trading foreign exchange is a skill and take the time to learn and skilled traders can get money in this area, in any case is like any other profession may lead to a successful investment or loss.

Trade exchange not a piece of cake, as many people think.

Think about it if she was as well as for each person currency trading has become a millionaire ...

In fact, until even trade experts with years of experience still encounter periodic losses, but certainly better understood causes of losses is incomprehensible what caused.

Think more and make yourself your own: There is no short-cuts to trade foreign exchange because they take a lot of time in order to Mastery, in principle you can learn this profession by at most 3 months or more depending on the understanding and skills and intelligence ..

Your chance is now the hard work and vigilance and the practice of the profession of a successful Forex trading strategies on a demo account or account what is known as the "demo" and I suppose that money demo is the real owner of your .. And never covet not be fooled ..

* What is the demo account Demo account?

Is the default account can get it for free, and is known as Account Demo Demo Account and offering brokerage firm and give him money hypothetical Through this demo enters the merchant to the real market to train on the mechanism of action with the company and also to test strategies learned in the course, which earned him and traded these strategies under the conditions of the real market like the market really genuine Vestelm instant news about the market and analyzes the charts and graphs for coins and then decide to buy or sell currencies through the trading platform, and the real benefit of this account is to help the learner to assess the level of educational level and how well the Link him in the last month of the results achieved by this account.

There have been many of the factors that led to the current format of the Forex market.

There have been many of the factors that led to the current format of the Forex market.

Since the seventies of the twentieth century, experienced Forex Trading massive influx of financial entities, such as banks and hedge funds and brokers, trading houses, all traders along with members entering the Forex arena. Today, instead of being subjected to restrictions banks and national governments,

there is no single factor has control only on the forex market principle of supply and demand. Where is the free-floating system is optimized for modern forex markets as an international trade and commercial activity has abundant rains in the twenty-first century.

There is no doubt that the tremendous growth and the application of advanced technologies on the Forex Market has worked to break down all the barriers between states and nations,

as well
as the fabrication time zones barrier was a result of which a market operates 24 hours a day across time zones in America, Europe and Asia. Through access to the Internet to be a universal tool to the public in all its categories, provided online forex trading for the average investor the size of this dynamic market penetration and practical.

The forex market is simply the exchange of the currency

The forex market is simply the exchange of the currency of one country for the currency of another. The relative values of various currencies in the world change on a regular basis. Factors such as the stability of the economy of a country, the gross national product, the gross domestic product, inflation, interest rates, and such obvious factors as domestic security and foreign relations come into play. For instance, if a country has an unstable government, is expecting a military takeover, or is about to become involved in a war, then the country's currency may go down in relative value compared to the currency of other countries.

The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.

There are five major forex exchange markets in the world, New York, London, Frankfurt, Paris, Tokyo and Zurich. Forex trading occurs around the clock in various markets, Asian, European, and American. With different time zones, when Asian trading stops, European trading opens, and conversely when European trading stops, American trading opens, and when American trading stops, then it is time for Asian trading to begin again.

Most of the trading in the world occurs in the forex markets; smaller markets for trade in individual countries. Simply put forex trading is the simultaneous buying of one currency and selling of another. Over $1.4 trillion dollars, US of forex trading occurs daily and sometimes fortunes are made or lost in this market. The billionaire George Soros has made most of his money in forex trading. Successfully managing your money in forex trading requires an understanding of the bid/ask spread.

Simply put the bid ask spread is the difference between the price at which something is offered for sale and the price that it is actually purchased for. For instance, if the ask price is 100 dollars, and the bid is 102 dollars then the difference is two dollars, the spread. Many forex traders trade on margin. Trading on margin is buying and selling assets that are worth more than the money in your account. Since currency exchange rates on any given day are usually less than two percent, forex trading is done with a small margin. To use an example, with a one percent margin a trader can trade up to $250,000 even if he only has $5,000 in his account. This means the trade has leverage of 50 to one. This amount of leverage allows a trader to make good profits very quickly. Of course, with the chance of high profits also comes high risk.

Like many other speculative investments, a key part of money management for the forex trader is only using money that can be put at risk. It is wise to set aside a portion of your net worth and make that the only money you use in forex trading. While the chances of good profits are there, if you should have a problem and get wiped out, you'll only have a limited amount of money placed at risk. Also remember that the market is n constant motion. There are always trading opportunities. If a currency is becoming stronger or weaker in relation to other currencies there is always a chance for profit. For instance, if you believe that the Euro is gong to become weak compared to the US dollar then selling Euros is a good bet. If you believe that the dollar is going to become weaker than the yen, or the pound sterling, then selling dollars is wise. Staying current on the news and current events in the countries whose currency you hold is a smart move. Many people reach points where they can predict currency changes based on political or economic news in a given country. Remember though that forex trading is speculation, so be careful when managing your funds and only invest what you can afford to risk.

Please always make sure you check with the pros when dealing in this market unless you are doing this as a hobby and don't have a lot at stake in it. There are a lot of big boys playing here and they won't lose much sleep if you and thousands others lose their shirts...