Understanding Forex and Currency Trading
Understanding Forex and Currency Trading
You have heard about forex and interested to start a career in currency trading. Well, if the same is applicable to you, you need not to change your stance for forex is the largest trading market of the world and the most watched platform for trading currencies of world’s most powerful economies. Thus, starting a career of currency trading in forex could be an apt decision. However, before landing in forex, you need to be both competent and confident. So, how can you? A little endeavor is made below to trace the answer.
For a newcomer in Forex, the first essential is perhaps protecting himself from frauds. With its high trading volume and liquidity, forex market has become the foremost place to trade currencies. Add to this, the market is featured with geographical dispersion meaning it is wider and spreading across the globe. All such traits contribute to the enhancement of forex so also made it a target of frauds. Considering the complexities of currency trading and lack of knowledge of newcomers, several fraud brokers and currency trading firms have come into being.
The frauds of forex market usually speak in high tone, giving full assurance of success. Stay away from them to protect yourself from being tricked. The best way to get assistance regarding currency trading in forex is asking around yourself. Do not hesitate to reveal all your queries to those who are trusted and have experience of currency trading in forex.
Now, what if you do not have a trusted source of information around you? Well, in such a case, the best thing is to stick to your Personal Computer. With the help of World Wide Web, you have access to several forex portals and websites, who specialize in providing robust knowledge about currency trading in forex. Many of them offer online courses and tutorials about forex and trading secrets. You can opt for any online currency trading course. However, before considering any, make sure the tutorial suits all your expectations and has a good reputation of forex teaching.
Currency trading in forex is full with possibilities. But everything depends upon yourself. Forex can promise you money only when you are loaded with wisdom regarding the market and its currency trading system in all its respects.
Forex is the largest market place of currency trading. While currency trading in forex or dwelling over currency market, one should mull over the present scenario and future prospects of the country, currency of which he is trading.
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Question by David C: spot forex and futures? whats the benefit? futures brokers are much cheaper?
Hi
FXCM has been recommended to me for trading spot forex currency pairs.
I mainly trade emini futures through a futures broker at .75 per contract per round trip.
It seems much more expensive in the spread commission of 3 pips to trade currency pairs through FXCM to get the same profit per pip.
What is the benefit of using FXCM or any other spot broker when I can just get .75 per round trip through a futures broker, I just can’t see the point of paying a 3 pip spread.
Am I missing something?
Julia dear, please stay in Africa if you have nothing relevant to contribute.
Best answer:
Answer by John S
There IS no point. 3 pip spread is daylight robbery. So, stick with the futures or find a more reputable broker. I’m not a forex trader, but I know Dukascopy and IB are two big retail ECN brokers, and the spread for EUR/USD is normally 0.5 to 1 pip and 0.5 for USD/JPY.
Know better? Leave your own answer in the comments!
Tags: Complexities, Currency, Currency Trading, Endeavor, Foremost Place, Forex, Forex Market, Forex Trading, Frauds, Full Assurance, Geographical Dispersion, High Tone, Lack Of Knowledge, liquidity, Newcomer, Newcomers, Online Forex, Personal Computer, Portals, Robust Knowledge, Target, Trading, Trading Secrets, UnderstandingPosted in
The only real advantage of Forex vs. currency futures is that Forex allows you to scale as small as you want to trade, while futures is only available with a contract size that may be too large for many accounts to safely handle. A person with a smaller account may find the ability to trade even a fractional micro-lot reason enough to switch.
Perceived advantages may include the increased liquidity of the major pairs on spot vs futures, but in reality the other side of your position is almost always taken by your forex broker, because he expects and usually wants you to lose.
Another advantage some point to is that it is much less likely to run through a stop in Forex than in futures, but at the same time I would submit that it is much more likely that the Forex shops would shade the price enough to trigger stops just to take their customers out of trades, which you don’t see on the regulated futures exchange.
Some say that forex has no commissions, but in reality, as you have noted, the spread is much more expensive than the commission.
Others point to the fact that you can open a Forex account at many firms for less than $100 and receive 400-1 margin, however, could also be suicidal to your account to use this type of leverage.
I have traded Forex for many years and educate traders as well, and I would encourage all of my clients to stick with the futures unless their account is under $10k. I have noticed that the business has become increasingly dishonest - there are only a couple of shops that are truly legitimate - one, Dukascopy, is excellent, but is increasingly difficult for Americans to deal with since the IRS crackdown on Swiss accounts and requires a very large minimum account size. I switched to currency futures two years ago and you couldn’t pay me to go back to Forex.
try this site..maybe it could help you..
http://www.currency-trading-tutorial.net/
Aaaaaaaah yes. If you have largest trading market software with you, then you don’t want to worry about your currency trade.