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If you start your own home business what sort of business would you choose?
My personal opinion about home business is to create multiple
home income streams. This is essential to make your
homebusinesses to a success. Big question is what sort of
businesses would you choose. If you choose to create several
businesses...
Poor Man's Access to Foreign Currency Trading
By far, the largest trading market in the world is the foreign
currency market. Speculators make up only a small part of the
spot (cash market) and forward (futures market) currency
exchange transactions. So if you are considering speculating...
Three Reasons Why Forex Trading Is Great.
As a Forex trader you will always be attempting to make more
profits than losses from the fluctuations of exchange rates
between currencies in the forex market; in short, this is what
is called forex trading. The good news is that nobody is...
Trading Analysis: The Big Mac
The Big Mac Factor... And What It Means to You
When "experts" say the dollar is "overvalued and about to
crash," what exactly is it that they're talking about? How do
they know?
It turns out, they don't know what they're talking about......
Yes, You Can Start Trading Forex For Free!
Yes, it's true, you can trade the forex markets for free and
using the same state-of-the-art software packages that
professional Forex traders, around the world, are currently
using to make real-time, live currency trades.
And you can also...
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The Seven Most Traded Currencies in FOREX.
Currencies are traded in dollar amounts called “lots”. One
lot is equal to $1,000, which controls $100,000 in currency.
This is what is known as the "margin". You can control $100,000
worth of currency for only 1,000 dollars. This is what is called “High Leverage”.
Currencies are always traded in pairs in the FOREX. The
pairs have a unique notation that expresses what currencies
are being traded. The symbol for a currency pair will always
be in the form ABC/DEF. ABC/DEF is not a real currency pair,
it is an example of a symbol for a currency pair. In this
example ABC is the symbol for one countries currency and DEF
is the symbol for another countries currency.
Here are some of the common symbols used in the Forex:
USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar
There are symbols for other currencies as well, but these
are the most commonly traded ones.
A currency can never be traded by itself. So you can not
ever trade a EUR by itself. You always need to compare one
currency with another currency to make a trade possible.
Some of the common PAIRS are:
EUR/USD Euro / US Dollar
"Euro"
USD/JPY US Dollar / Japanese Yen
"Dollar Yen"
GBP/USD British Pound / US Dollar
"Cable"
USD/CAD US Dollar / Canadian Dollar
"Dollar Canada"
AUD/USD Australian Dollar/US Dollar
"Aussie Dollar"
USD/CHF US Dollar / Swiss Franc
"Swissy"
EUR/JPY Euro / Japanese Yen
"Euro Yen"
The listed currency pairs above look like a fraction. The
numerator (top of the fraction or "left" of the / however
you want to SEE it) is called the base currency. The
denominator (bottom of the fraction or "right" of the
/however you
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want to SEE it) is called the counter currency.
When you place an order to buy the EUR/USD, for instance,
you are actually buying the EUR and selling the USD. If you
were to sell the pair, you would be selling the EUR and
buying the USD. So if you buy or sell a currency PAIR, you
are buying/selling the base currency. You are always doing
the opposite of what you did with to base currency with the
counter currency.
If this seems confusing then you're in luck. You can always
get by with just thinking of the entire pair as one item.
Then you are just buying or selling that one item. Thinking
like this will still enable you to place trades. You only
need to be aware of the base/counter concept for Fundamental
Analysis issues.
So why is it important to know about the base/counter
currency? The base/counter currency concept illustrates
what is actually taking place in a Forex transaction. Some
of you reading this, know that short-selling was restricted
in the stock market *(Short-selling is where you sell a
stock/currency/option/commodity first and then try to buy it
back at a lower price later). But in the FOREX you are
always buying one currency (base) and selling another
(counter). If you sell the pair you are simply flipping
which one you buy and which one you sell. The transaction is
essentially the same. This allows you to short-sell with no
restrictions.
You want to be able to short-sell with no restrictions so
you can make money when the market drops as well as when it
rises. The problem with traditional stock market trading is
that the market has to go up for you to make money. With
FOREX trading you can make money in all directions.
http://www.1-forex.com
About the Author
FOREX Trader and Freelance writer.
http://www.1-forex.com
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