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Avoiding Forex-Related Frauds & Scams
A lot of people have been ‘burnt' from scam operations on the Internet. Their sites may look so perfectly legitimate that you doubt whether they would have gone through all that trouble building a trading platform just to steal your money....
Generate Traffic And Make Money
A quite new wave sweeps over the internet. Websites with
rotating ads offer their members to surf on their websites. The
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their websites. They also can earn money for surfing on...
How to choose wisely a FOREX broker
Most traders use a FOREX broker to handle their transactions. What exactly are brokers? Strictly speaking, brokers are individuals or companies that buy and sell orders according the investor's decisions. Brokers earn money by charging a commission...
On the Soundness of Our Banks
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Two Great Advantages of Forex Trading
There are a number of advantages Forex traders find once they
start trading for real the Forex markets. On of the main
advantages when deciding to trade for a living is that there is
no need to have a license or certification. Everything you...
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Three Important Forex Concepts For New Traders.
As you enter the world of Forex you will find yourself learning
and using many new concepts that you may not have used or heard
before.
Three of this important concepts that you must understand are
what "Pips" are, What "Volume" is and what you do when "Buying"
and "Selling Short". They may look more like four concepts but
Buying and Selling are like the two faces on the same coin so we
can consider them as a single concept.
Lets first introduce what Pips are. Maybe you have heard or read
already how many pips a day you can make using some trading
system. In short, currency pairs prices will go out to 4
significant digits. For example; if one currency pair is trading
for 1.3451 then an increase to 1.3452 would be a "one-pip"
increase in the price of this particular currency. This is an
increase of one hundredth of a percent of the value of the
currency pair you are trading. And depending the type of account
you have, regular or mini, each pip will have a value of $10 or
$1. So if you make 10 pips a day with a regular account you
would have made $100 and with a mini-account $10.
Now we can talk about the Volume; trading Volume is a quantity
that tells traders how much money is being traded at one
particular moment. And the forex market is known by its high
volume of trading during most of the time markets are open. Some
times there can be spikes in the volume during some type of
news
breaks and during the time New York stock exchange is open. The
volume of transactions in Forex, even in a slow day, will always
be much higher than the volume traded in other large exchanges
at their full capacity.
Now maybe the most obvious of the concepts. Buying refers to the
acquisition of a particular currency pair to open a trade.
Selling short refers to the selling of a particular currency to
open a trade. When you Buy, you are expecting the price of the
currency pair to increase with time, i.e., you buy cheap to sell
high. In the case of Selling short, it looks a bit more
complicated. Here the way to make money is to initially sell a
currency pair that you think will lose value in a given period
of time and then, once it happened, you will buy it back at the
new price but now you can sell it at the previous greater price
the currency had when you opened the trade, so you earn the
difference in prices. I know it seems kind of tricky, but once
you are in front of your trading station it will look much
simpler.
Understand well these three concepts and you will start with
solid steps you trading career.
About the author:
Adrian Pablo is a freelance writer with articles published in a
number of places. Get a free report on Fibonacci Trading and
learn more about the world of trading , visit:
http://www.1-forex.com
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