Forex Highlights

Forex Economic Calendar 2010 – Is it Really Important in Forex?

September 3rd, 2010 by admin in Trader Forex with 0 Comments

Forex Economic Calendar 2010

The most common cause of volatility in the Forex markets are the release of economic indicators by governments and corporations. It’s vital that as a trader you are never surprised by these announcements.

A sure fire way to avoid being surprised is to keep an economic calendar. There are two excellent calendars about Forex available and they both happen to be free.

The first one is from briefing.com and it’s an extremely thorough calendar.

The best feature of this calendar is that it allows you to see what announcements will be made several weeks from the current date. Also, when you click on the name of one of the announcements, a new window opens, providing you with a wealth of details about that particular announcement. It usually tells you the “Release Details” – the importance of the information as it relates to the Forex market.

The indicators come in the form of the letters A through F. An announcement with an “A” importance tells you that this indicator will have a great effect on the Forex market. Conversely, an announcement with an “F” importance will have a minimal effect on the volatility of the market. Forex Economic Calendar 2010

The second economic calendar that you should be aware of is from dailyfx.com.

The best feature of this calendar is the option to filter out only the indicators that relate to the currencies you care about the most. You’ll appreciate the ability to remove information you don’t need.

One other feature worth mentioning in the dailyfx.com calendar is the option to click on the name of an economic event. When you do this you can see a definition of the indicator as well as a summary of its relevance to the volatility of Forex markets. As we mentioned earlier, knowing the factors that cause volatility is critical to the success of any trader. Forex Economic Calendar 2010

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how can i be a forex trader?

September 2nd, 2010 by admin in Trader Forex with 8 Comments

i pass technical analyze courses and now i want to be a trader.should i pass the fandamental analyze courses? how can i choose a good broker?

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Forex Interbank – Who Are Your Competitors?

September 2nd, 2010 by admin in Trader Forex with 0 Comments

Forex Interbank

To win in any game it is imperative that you know who you are running up against and what role they play in the game it self and when trying to make Forex made easy, this is one way that you can adequately prepare yourself against the market and at least be more prepared when something happens. Knowing who the market participants are is one of the most important things about trading that you can do. So, let us look at the market now and assess just who are those who have been trading in its arena.

For one thing, you can break this down to many tiers, and the top of the tier, the cream of the crop, sits the market that includes the existence of the banks, which is also known as the inter bank market. Here is where most of the central banks are placed and they are the ones who have the demand and the access to most of the capital running around in the Forex market. Within the interbank market place, you have to know that the spreads, which are the deviances between the ask and the bid price, are much too sharp and not available to most traders. Forex Interbank

Most of the trading that goes on here is very internal and one could say perhaps the most exclusive trades are being done in the inter bank market. It is very hard for anyone to actually come in and trade there, without having a financial corporation backing them up. When dealing with the best in the business, this is more often than nought the case. If you think that there are so many layers to the market participants, you would know that the inter bank market controls more than half of the market activity, which just goes to show you just how much money they are dealing with. The other level that you might want to look at are the commercial companies, who are also the ones dealing with large amounts of money. Forex Interbank

They may not be trading in billions of dollars a day, but they have access to a commanding amount of money, which they use to trade on a daily basis. One thing you have to know is that they are also part of the trade flow in the market, and more often than not, they will align their trade with the direction that the banks are taking. Below that, you have governments, hedge fund speculators and the rest of the investing world, which make up the highest number of traders in the Forex markets today. When thinking on how to make Forex made easy seem something of a code breaker to the complexities of the market, knowing who you are dealing with on a daily basis is a really useful way for you to actually made certain that you know what you are getting into and what you have to do to make the most of the market and gain that financial freedom. Forex Interbank

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Forex Dealers In Mumbai – Understand the “Art of the Deal” Before Choosing Your Forex Dealer

September 1st, 2010 by admin in Trader Forex with 0 Comments

Forex Dealers In Mumbai

Before you begin trading in the forex market, it’s important for you to understand how the dealing process works. You should also take the time to investigate several dealers before you open an account.

Forex dealers are considered over-the-counter market makers. What that means is that when you are buying a currency pair, they are selling you that pair. Likewise, when you are selling a currency pair, they are buying that pair.

Your trading platform “quotes” you the price the dealer is willing to buy or sell the currency contract for.

What you’ll notice, and this may strike you as being a bit odd, is that all the quoted prices by the various dealers will be almost identical. How can this be if all the dealers are independent of one another?

The reason for this is that all the dealers receive current pricing on each currency pair from one or more banks that they have a relationship with. The banks receive their prices through the interbank market. In fact, most dealers use the same major banks. So at that level they’re all seeing the same prices. Forex Dealers In Mumbai

Keep in mind, that this arrangement does not mean that you are dealing directly with the interbank. Many dealers will, intentionally or not, leave you with the impression that when you trade in an account with them you are getting direct access to the interbank. This is never the case. The dealer is handling the transaction and needs to be compensated by somebody. And it’s always you who compensates them when you trade.

One of the appealing aspects of trading the forex market is that you don’t pay a commission as you do with stocks and options. You do, however, pay a “spread.” It’s the spread that goes to the dealer and is how they make their money.

The spread is the difference between the price paid for a contract (the bid) and the price paid when the contract on that same pair is sold (the ask). (This is similar to the bid and ask prices for single stocks.) Many traders ignore this seemingly insignificant cost for opening or closing a trade but you shouldn’t. All costs, even the small ones, add up and can determine whether or not you’ll be a successful trader.

Forex dealers can adjust currency prices in a several ways. When you are out shopping for a dealer find out whether they offer fixed spreads or variable spreads.

Dealers offering fixed, or “consistent”, spreads are typically wider than the spreads they are paying the bank(s) they use as their broker. This difference represents a major portion of their revenue. Forex Dealers In Mumbai

A dealer offering a variable spread is usually offering to you a narrower spread than what is offered by a fixed spread dealer, but be careful! That spread will widen considerably with increased market volatility.

The dealers are not in the business of making money on changes in the movement of pairs. Their money is made by processing and executing your transaction through the spreads. Therefore, when you open a long position on the EUR/USD, for instance, they are selling that pair to another participant in the interbank to off-set your trade.

You also don’t want to be fooled by claims made by dealers that you will get better pricing from them because you won’t be trading through a dealing desk. It may not be their desk that your trade will land on – but somewhere along the line it will hit a dealing desk.

The last point to be made is that you gain no advantages by trading through an electronic clearing network (ECN). Even though they’ll show you bid and ask prices that are above or below a current price of any particular pair, they still can’t guarantee that your trade will be executed at that price and, in most cases, dealers are seeing the same thing. Forex Dealers In Mumbai

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