One of the first things that you need to know is what exactly currency Forex market trading is, and how it is different from stock market trading. This is one of the most important pieces of information that you can get, so read closely.

Currency Forex market trading is similar in structure to trading on the stock market, but that is about where the similarities end. Forex trading involves the purchase, sale, and trading of foreign currencies. The techniques that are used – the structure – is very similar to stock trading. There are major differences, however.

First, currency Forex market trading is accessible 24 hours a day, 6 days a week. This is mainly due to the fact of international trading that is done. Other countries do not have the same time zones, and the differences in time allow the market to stay open with only weekends closings. The stock market, on the other hand, closes at a specific time each day, and is not open on weekends or holidays.

There is also no trading floor that you have to fight on to make trades. Currency Forex market trading is done online. There are main dealers that are located in central locations throughout the world, such as London and Tokyo.

If you are looking for information about trading, you may be wondering why you should choose currency Forex market trading. The benefits are numerous. The trading hours are one common reason why traders get involved. Another reason is that currency Forex market trading is more predictable, and therefore is much easier to track the ups and downs of the currency that you are trading. This means that there is much more potential for higher profits because you aren’t guessing at what the market may be doing, but instead you are making an informed decision that is based on current and past statistical information.

In addition to those benefits, using currency Forex market trading has a potential to save you money in fees. The stock market charges commissions for each trade that is executed. Forex market trading, in comparison, is commission free; you can make as many trades as you want without having to pay extra fees.

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Welcome to Currency Trading Tutorial’s

FREE  Mini course!

Everything !!!!!! You need to fully understand the Forex trading market!

Chapter 1-Forex Market Basics

You will learn:

_ What is a Forex market?

_ Understanding that speculation is the key!

_ Currencies traded across the world!

_ How financial markets and currencies climb!

The Foreign Exchange Market trades currencies. The Foreign Exchange Market (Forex) is the most traded financial market in the world. The purpose of the Forex market is to facilitate international trade and investment. Various businesses want to convert one convert one currency to another, and Forex market helps in that. For example, it permits an Indian business to import American goods and pay Dollars, even though the business’s income is in Indian Rupees.

Whether it’s an Asian pension fund investing in American Treasury bonds, or a British conglomerate purchasing a Chinese manufacturing facility, each cross-border transaction passes through the Forex market at some stage. Moreover, it’s a market that never sleeps; it is open 27×7, enabling traders to act immediately to news and events. It’s a market where trade worth half-billion-dollar can happen in a matter of seconds and the same may not reflect on prices, while the same is not the case with any other market.

Getting into Calculations

Can you imagine the volume of transactions in the Forex market per day? It is more than $2 trillion. That’s a mind-blowing number, isn’t it?

To have a comparative overview, it is about 10 to 15 times the combined trading volume of all the world’s stock markets.

Speculation is the key

The amount based on speculation is much more than the volumes of commercial and financial transactions in the currency market. Speculation is about traders buying and selling on a short-term basis depending on minute-to-minute, hour-to-hour, and day-to-day price fluctuations. Estimates say that more of 90 percent of daily trading volume comes from speculation (meaning, commercial or investment-based transactions account for less than 10 percent of the average daily volume). This shows that the liquidity of the overall Forex market is incomparable to any other global financial market in the world. The majority of spot currency trading, approximately 75 percent, happens to take place in the “major currencies,” i.e. the currencies of world’s largest and most developed countries. Moreover, activity in the currency market majorly functions on a regional “currency bloc” basis, where the bulk of trading takes place between the USD bloc, JPY bloc, and EUR bloc.

Getting liquid without getting soaked

Liquidity refers to the level of buying and selling volume available at any given point of time for a particular asset or security. The higher the liquidity, the easier and faster it is to buy or sell a security. From a trading point of view, liquidity is an important consideration because it tells us how fast the prices can move between trades. Since Forex is a highly liquid market, it can see transactions worth millions of dollars without any significant price changes. On the other hand, an illiquid market tends to see price fluctuations more quickly even on relatively lower trading volumes.


“Part 2 of Forex Market Basics will follow”!

When you are like most normal human beings, you do not have the capability of watching things 24 hours a day, seven days a week. At some point you will need to sleep and shower. When you are a Forex investor or broker, however, you need to be able to constantly watch the market for any changes that may occur because it will determine whether you trade or buy currencies. Unfortunately, you cannot always spend every single second at this task.

That is where auto Forex system trading can help you!

If you choose an auto Forex system trading program, you gain the ability to make trades or buy currencies automatically. These auto Forex programs are designed to help you gain the ability to create a more effective trading strategy. They utilize certain algorithms that make the same signals that would be used if you were buying or trading currencies on your own.

An auto Forex system trading program is found in a few different types. The most important difference between the different programs is the software that is used. The varied software gives you much more flexibility. For example, you can choose to run the program from your home computer or you can use your managed accounts to let professional brokers handle it all for you.

Having managed accounts within your auto Forex system trading program presents you with quite a few benefits. Trading on the Forex market is generally open at all hours because there are markets in different countries. When you have currencies in these countries, it becomes a necessity to monitor what is happening on those parts of the market. The program that you choose can do this for you by customizing the settings to automatically detect certain trading parameters, which leads the auto Forex system trading program to make calculated decisions on the trades that you have in certain accounts that you assign access to.

When you consider an auto Forex system trading program, you should think of the other benefits that you can experience. With one of these programs, you can bypass conflicts. What this means is that you will not have to worry about emotional decisions about trades and sales of currencies.

The best way to find out which auto Forex system trading program is right for you is to contact your online broker. Most of these program are offered by online brokers as part of their services that you get when you use their company. These programs can be downloaded on any computer for your convenient use.