Sunday, September 23, 2012

Welcome to forex tutorial blog......: What is Forex?,,,,,,

Welcome to forex tutorial blog......: What is Forex?,,,,,,: If you've ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the ...
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What is Forex?,,,,,,






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If you've ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet (if you're a dude) or purse (if you're a lady) or man purse (if you're a metrosexual) into the currency of the country you are visiting.
You go up to the counter and notice a screen displaying different exchange rates for different currencies. You find "Japanese yen" and think to yourself, "WOW! My one dollar is worth 100 yen?! And I have ten dollars! I'm going to be rich!!!" (This excitement is quickly killed when you stop by a shop in the airport afterwards to buy a can of soda and, all of a sudden, half your money is gone.)
When you do this, you've essentially participated in the forex market! You've exchanged one currency for another. Or in forex trading terms, assuming you're an American visiting Japan, you've sold dollars and bought yen.
Before you fly back home, you stop by the currency exchange booth to exchange the yen that you miraculously have left over (Tokyo is expensive!) and notice the exchange rates have changed. It's these changes in the exchanges rates that allow you to make money in the foreign exchange market.
The foreign exchange market, which is usually known as "forex" or "FX," is the largest financial market in the world. Compared to the measly $22.4 billion a day volume of the New York Stock Exchange, the foreign exchange market looks absolutely ginormous with its $5 TRILLION a day trade volume. Forex rocks our socks!
Let's take a moment to put this into perspective using monsters...
The largest stock market in the world, the New York Stock Exchange (NYSE), trades a volume of about $22.4 billion each day. If we used a monster to represent NYSE, it would look like this...

Read more: http://www.babypips.com/school/what-is-forex.html#ixzz27JTY6nN6




ou hear about the NYSE in the news every day... on CNBC... on Bloomberg...on BBC... heck, you even probably hear about it at your local gym. "The NYSE is up today, blah, blah". When people talk about the "market", they usually mean the stock market. So the NYSE sounds big, it's loud and likes to make a lot of noise. But if you actually compare it to the foreign exchange market, it would look like this...

Read more: http://www.babypips.com/school/what-is-forex.html#ixzz27JTfLFgM


Check out the graph of the average daily trading volume for the forex market, New York Stock Exchange, Tokyo Stock Exchange, and London Stock Exchange:

Read more: http://www.babypips.com/school/what-is-forex.html#ixzz27JTlOPBe





The currency market is over 200 times BIGGER! It is HUGE! But hold your horses, there's a catch!
That huge $5 trillion number covers the entire global foreign exchange market, BUT retail traders (that's us) trade the spot market and that's about $1.49 trillion. So you see, the forex market is definitely huge, but not as huge as the media would like you to believe.
Do you feel like you already know what the forex market is all about? We're just getting started! In the next section we'll reveal WHAT exactly is traded in the forex market.

Read more: http://www.babypips.com/school/what-is-forex.html#ixzz27JUM6qOu
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Secret tips of forex maney making.......





  1.  Make pips
  2. Keep pips
  3. Repeat
    4.
If you can repeatedly do these three things, then you're on your way to being a superstar forex trader! But we warn you, it's no cakewalk.
Remember when you were but a little teeny weeny bopper attending grade school?
No?

Well, let us take you through the whole schooling jungle again, but we're doing it FX-Men style.
You'll start schooling by rolling into pre-school with your chocolate milk and snack pack. This is where you'll learn the basics of the forex industry.
Pip Diddy, a former super underwear and sock model and now a fundamental analysis specialist, will take you through Kindergarten where you'll learn the different types of analysis.
If you pass, you'll join the big boys and girls in elementary school where Big Pippin, the coolest cat in the forex block, will teach you all you need to know about technical analysis. But don't worry, we still have nap time in Grade 1. If you pass Grade 1, the next year you'll enter Grade 2, and so on, all the way to the end of the summer school.
Forex newbie carrying forex booksWait. What's that?
Summer school?
Yep. Summer school.
To make sure you are fully prepared for high school and the awkward challenges you will face, we've added summer school classes to at least help ease your academic transition.
As for trying to get a date for the prom, we can't help you there. Even Dr. Pipslow is still looking for one. And he's 600 years old. Too bad he's forgotten that his prom already happened 583 years ago but we feel bad breaking the news to him.
So....shhhhhhhh. It'll be our little secret.
Aside from dating drama, try not to get senioritis in Grade 12.
Why?
Because our high school goes up to Grade 14! That's how Forex Gump, a former senior macroeconomics professor at Pipvard University and now a blogger of all things related to economics, likes it.
If you've done well throughout grade school and high school, you get a full scholarship to our college! All expenses paid!
We won't even require you to fill out any applications or write essays. That's right....we like to hand out scholarships just as much as we like to hand out cute bunnies to Cyclopip for him to eat.
Our curriculum here at the New School of Pipsology will make a bold attempt to cover all aspects of forex trading.
You will learn how to identify trading opportunities, how to time the market (aka smart guessing), and when to take profits or close a trade.
But that's still not all folks. There's more! After Forex Gump explains the tricks of the trade, you'll head over to the Sophomore part of the school, where Dr. Pipslow, an ancient and revered trader of currencies, will share his nuggets on everything you need to know about the psychology of trading.
Once you finish all your courses and you already feel like you're the next forex trading superstar, Forex Ninja, our resident spy and one of the master traders, will keep you on your toes and remind you of the dangers of the forex jungle.
Forex trading isn't easy, but with a lot of studying and hard work, you can become a successful trader.
So grab your security blanket and favorite teddy bear and let's head over to Pre-Schoo

Read more: http://www.babypips.com/school/?gclid=COfhkqDty7ICFUsb6wodn0UARw#ixzz27IjTuU7I
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History of forex trading.................

  1. History

    • Foreign exchange earnings date back centuries, to the time when explorers and merchants traveled to distant foreign lands and bartered their goods for items of value from the native population.

    Significance

    • Foreign exchange earnings are one of the most significant factors affecting the profitability of thousands of companies around the world. Many of them earn more in foreign countries than they do in their own domestic market.

    Geography

    • Major multinational companies have operations in almost every country in the world, often allowing them to earn profits in dozens of different foreign currencies.

    Size

    • Foreign earnings account for almost half the profits made by many multi-billion-dollar global companies like Coca Cola, Pepsi, and Procter and Gamble.

    Benefits

    • The primary benefit of foreign earnings is that companies and countries are not exclusively dependent on domestic consumption. Earning profits in foreign countries helps them to diversify risks and expand opportunities.


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ABOEUT FOREX,,,,FAQ...5


Question: What is the difference between FOREX and Futures?







Answer:
Currencies are the money that represent the monetary system from different countries. For example; the Japanese Yen, Canadian dollar, Brazilian Real, Swiss Franc, etc. Futures trading of currencies is done in trading pits, where you are trading those currencies today, but for future prices. FOREX trading is trading actual currencies at today’s exchange rate with banks. All trades are done through brokers or market makers.
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ABOEUT FOREX,,,,FAQ...4


Question: How do you make money trading currencies?




Answer:
Currencies are traded on a pip system. A pip is another word for a point in the currency trading arena. Traders are trying to capture points. Depending on the currency, each point is worth a different amount. For example; the British Pound is worth about $10 per point that is traded per lot. If you trade 1 lot and capture 40 points, you just made $400. If you trade 10 lots and capture 40 points, you just made $4,000.00, etc.
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ABOEUT FOREX,,,,FAQ...3



Question: What is a margin account?




Answer:
A margin account is a bond account. It is like a savings account. Before you can trade, you need to place a certain amount of money in what is called a margin account. You are guaranteeing other traders that you can pay them if you lose. That account is overseen by your broker. He monitors your account when you trade. He usually will not allow you to risk more than what is in your margin account. The margin account exists so, as you win on a daily basis, they have a place to deposit your money. Conversely, when you lose, they have an account to withdraw the money.
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