FOREX MARKET HOURSAt 7:00 pm Sunday, New York time, trading begins as markets open in Tokyo, Japan. Next, Singapore and Hong Kong open at 9:00 pm EST, followed by the European markets in Frankfurt (2:00 am), and then London (3:00 am). By 4:00 am, the European markets are in full swing, and Asia has concluded their trading day. The U.S. markets open first in New York around 8:00 am Monday, as Europe winds down. Australia will take over around 5:00 pm, and by 7:00 pm Tokyo is ready to re-open.All times are quoted in Eastern Standard Time (New York).FX or Forex, currency trading is the trading of one currency against another. In terms of trading volume, the currency exchange market is the world’s largest market, with daily trading volumes in excess of $1.5 trillion US dollars. This is orders of magnitude larger than the bond or stock markets. The New York Stock Exchange, for example, has a daily trading volume of approximately $50 billion. Currencies are traded for hedging and speculative purposes. Various market participants such as individuals, corporations, and institutions trade forex for one or both reasons. Corporate treasurers, private individuals and investors have currency exposures during the the regular course of business. The FXTrade Platform is an ideal platform to hedge any such exposure. An investor, who has bought a European stock and expects the EUR exchange rate to decline, can hedge his currency exposure by selling the EUR against the USD. Currency markets are ideally suited for speculative trading. The foreign exchange market has a daily volume in excess of 1.5 trillion USD, which is 50 times the size of the transaction volume of all the equity markets taken together. This makes the foreign exchange market, by far, the most liquid and efficient financial market of the world. Thanks to its efficiency, there is little or no slippage of market price for the execution of even large buy and sell orders. Traders are able to take advantage of intra-day volatility thanks to the low spreads and enter positions for short time periods, such as minutes and hours. Unlike equity trading, where restrictions limit a trader’s ability to profit from a market down turn, there are no such constraints on currency trading. Currency traders can take advantage of both up and down trends thus increasing their profit potential.The most commonly traded currencies are: USD, EUR, JPY, GBP, CHF, CAD and AUD.The most commonly traded currency pair is EUR/USD.Forex Symbol Guide Symbol Currency Pair Trading Terminology GBP/USD British Pound / US Dollar “Cable” EUR/USD Euro / US Dollar “Euro” USD/JPY US Dollar / Japanese Yen “Dollar Yen” USD/CHF US Dollar / Swiss Franc “Dollar Swiss”, or “Swissy” USD/CAD US Dollar / Canadian Dollar “Dollar Canada” AUD/USD Australian Dollar / US Dollar “Aussie Dollar” EUR/GBP Euro / British Pound “Euro Sterling” EUR/JPY Euro / Japanese Yen “Euro Yen” EUR/CHF Euro / Swiss Franc “Euro Swiss” GBP/CHF British Pound / Swiss Franc “Sterling Swiss” GBP/JPY British Pound / Japanese Yen “Sterling Yen” CHF/JPY Swiss Franc / Japanese Yen “Swiss Yen” NZD/USD New Zealand Dollar / US Dollar “New Zealand Dollar” or “Kiwi” USD/ZAR US Dollar / South African Rand “Dollar Zar” or “South African Rand” GLD/USD Spot Gold “Gold” SLV/USD Spot Silver “Silver” CURRENCY PAIRSAll currencies are assigned an International Standards Organization (ISO) code abbreviation. In currency trading, these codes are often used to express which specific currencies make up a currency pair. For example, USD/JPY refers to two currencies: the US Dollar and the Japanese Yen. SPOT FOREX Spot foreign exchange is always traded as one currency in relation to another. So a trader who believes that the dollar will rise in relation to the Euro, would sell EUR/USD. That is, sell Euros and buy US dollars. The following is guide for quoting conventions: What does it mean to be “long” or “short” a currency?Being long means buying a currency. Being short means selling a currency. If a trader goes long USD/JPY, he or she buys US Dollars and sells Japanese Yen. Buying a currency is synonymous with taking a long position in that currency. A trader takes a long position in a currency if he or she believes it will appreciate in value.If a trader goes short USD/JPY, he or she sells US Dollars and buys Japanese Yen. Selling a currency is synonymous with shorting that currency. A trader would short a currency if he or she believes it will depreciate in value.CURRENCY TRADING: BUYING AND SELLING CURRENCIESAll Forex trades result in the buying of one currency and the selling of another (currency trading), simultaneously. Buying (“going long”) the currency pair implies buying the first, base currency and selling an equivalent amount of the second, quote currency (to pay for the base currency). It is not necessary to own the quote currency prior to selling, as it is sold short. A trader buys a currency pair if he/she believes the base currency will go up relative to the quote currency, or equivalently that the corresponding exchange rate will go up. Selling (“going short”) the currency pair implies selling the first, base currency, and buying the second, quote currency. A trader sells a currency pair if he/she believes the base currency will go down relative to the quote currency, or equivalently, that the quote currency will go up relative to the base currency. An open trade or position is one in which a trader has either bought or sold one currency pair and has not sold or bought back an adequate amount of that currency pair to effectively close the trade. When a trader has an open trade or position, he/she stands to profit or lose from fluctuations in the price of that currency pair.Forex is the backbone of all international capital transactions. Compared to the slim profit margins rendered in other areas of commercial banking, huge profits are generally produced in a matter of minutes form minor currency market movements. Some banks generate 60% of their profits from trading currency aggressively.Trading volume has been growing at a rate of 25% per year since the mid-1980s and therefore it is not difficult to accept the notion that the currency market is one of the world fastest growing industries. What used to require days to accomplish in Europe or Asia now oly takes a few minutes. Needless to say, technology has changed everything and millions of Dollars are moved from one currency into another every second of every day by major banks through computers and for the average investor, with the touch of a computer key.Foreign exchange is the backbone of all international capital transactions. Compared to the slim profit margins rendered in other areas of commercial banking, huge profits are generally produced in a matter of minutes from minor currency options market movements. Some banks generate up to 60% of their profits from trading currency aggressively. Transactions in foreign currencies take place when one country’s currency is purchased (exchanged) with another country’s currency. The price agreed upon or negotiated for the currency purchased is referred to as the foreign exchange rate. Major commercial banks in the money market centers throughout the world are responsible for the majority of foreign currencies bought and sold. Trading volume has been growing at a rate of 25% per year since the mid-1980s and therefore it is not difficult to accept the notion that the currency options is the world’s fastest growing industry. What used to require days to accomplish in Europe or Asia now only takes a few minutes. Needless to say, technology has changed everything and millions of Dollars are moved from one currency into another every second of every day by major banks through computers and for the average investor, with the touch of a phone.FOREX BASICS – What’s a PIP A “pip” is the smallest increment in any currency pair. In EUR/USD, a movement from .8951 to .8952 is one pip, so a pip is .0001. In USD/JPY, a movement from 130.45 to 130.46 is one pip, so a pip is .01. CALCULATING THE WORTH OF A PIP How much in dollars is this movement worth, for example, per 10,000 Euros in EUR/USD? How much is one pip worth per 10,000 Dollars in USD/JPY? We will refer to the size, in this case 10,000 units of the base currency, as the “Notional Amount”. The formula for calculating a pip value is therefore: (one pip, with proper decimal placement / currency exchange rate) x (Notional Amount) Using USD/JPY as an example, this yields: (.01/130.46) x USD 10,000 = $0.77 or 77 cents per pip Using EUR/USD as an example, we have: (.0001/.8942) x EUR 10,000 = EUR 1.1183 But we want the pip value in USD, so we then must multiply EUR 1.1183 x (EUR/USD exchange rate): EUR 1.1183 x .8942 = $1.00 This is in fact a phenomenon you will see with any currency in which the currency is quoted first (such as EUR/USD or GBP/USD): the pip value is always $1.00 per 10,000 currency units. This is why pip (or “tick”) values in currency futures, where the currency is quoted first, are always fixed. Approximate pip values for the major currencies are as follows, per 10,000 units of the base currency: USD/JPY: 1 pip = $.77 (i.e. a change from 130.45 to 130.46 is worth about $.77 per $10,000) EUR/USD: 1 pip = $1.00 (.8941 to .8942 is worth $1.00 per 10,000 Euros) GBP/USD: 1 pip = $1.00 (1.4765 to 1.4766 is worth $1.00 per 10,000 Pounds) USD/CHF: 1 pip = $.59 (1.6855 to 1.6866 is worth $.59 per $10,000)SpreadThe spread is the difference between the price that you can sell currency at ( Bid) and the price you can buy currency at ( Ask). The spread on majors is usually 3 pips under normal market conditions. Market HoursThe spot Forex market is unique to any other market in the world; trading 24-hours a day. Somewhere around the world a financial center is open for business and banks and other institutions exchange currencies every hour of the day and night, only stopping briefly on the weekend. Foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day and the ability to take advantage of global economic events.FOREX or The Foreign exchange rate market is an international market where various currency exchange transactions take place; this is in the shape of simultaneously buying one currency and selling another. The most commonly traded currencies are referred to as “Majors”; over 85% of daily transactions on Forex trading involve the Majors. These seven currencies are the US Currency (Dollar, USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). The Forex system in operation today was established in the 1970s when free currency exchange rates were introduced, this period also saw the US Dollar overtake the British Pound as the benchmark currency. Prior to this and in particular during World War II, exchange rate remained more stable. Forex trading in simplest terms is the buying of one currency and the selling of another. Forex trading, also referred to, as “FX” is open to corporations, small businesses, commercial banks, investment funds and private individuals, it is the largest financial market in the world averaging a daily turnover of over $1 trillion dollars, making it a diverse and exciting market. It is a 24-hour market enabling it to accommodate constant changing world currency exchange rates . According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am. This leaves investors free to respond to global political, economic and social events when they take place, day or night. Unlike trading on the stock market, the forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.



By: Larry Schade

About the Author:

A lot of people have found success and fortune in currency trading. If you want to follow the same path, you should learn to follow the rules first. Here are some good rules to remember about currency trading:

Rule #1: Find out what stirs the market.

Currency is just like other kinds of assets. There are a number of conditions, circumstances and situations that affect the way a currency performs in the market. One of the most important influential factors is the country of origin’s overall economic condition. The political climate, government policies and general economic performance may all affect the opinions of economists which in turn determine the level of desirability of a currency. Aside from getting a good grasp of economic aspects, you should also look into such conditions as the flow of global trade, the rates of interest and the market for equity.

Rule #2: Get a grasp of the proper techniques.

Currency trading may seem like a set of risks taken on impulse. This is farthest from the truth. Different traders use a variety of techniques and strategies to ensure their profits. Aside from individually developed strategies, you may want to consider using three major ones. The first strategy is called carry. Currencies with top rates are bought and those with minimum rates sold. The second strategy is known as momentum. This is where traders keep tabs on the movement of markets. The last strategy is value trading. This one takes into account the opinion of the investor regarding the currency.

Rule #3: Determine what strategy to use.

There are two different ways for you to arrive at a trading decision. You may either choose to look at general factors affecting pairs of currencies or you may opt to look at the future or long term implications of variations in currency pairs. If you tend to look at general economic and international factors you are a macro trader. If you tend to study the future impact of currency changes, you are a technical trader.

Rule #4: Decide on how much you can lose.

One fundamental truth about trading any asset is that it will always involve risks. You have to accept this first but this doesn’t mean that losing any amount of money is acceptable. You have to set a limit on acceptable losses. In other words, you should not allow yourself to lose more than you can afford or to lose everything. Once this aspect is clear to you, use the right strategies such as stop loss to limit your loss.

Rule #5: Don’t trade if you are not familiar with a currency.

There are many currencies from different countries that can be traded. Each currency and currency pair has specific traits and factors affecting it. A successful trader would always be deeply familiar with the pairs he trades with and should continue to study these pairs. Among the most important currency traits to be familiar with include volatility, spread and liquidity. Do not attempt to trade currencies that you only have a shallow understanding for. This is especially if you are not a full time currency trader.

Rule #7: Constantly study, monitor and keep track of currencies and events.

Even if you are only trading part time, you should make it a point to be updated every minute of the day. Currencies, their traits and the factors that affect them shift and move swiftly. Fortunately for the modern trader, there are now a number of online services and tools that will provide real time developments and information that may affect currency pairs.

Rule #8: Don’t let your feelings ruin your strategy.

Trading strategies and techniques help you make logical trading decisions. Human as you are though, you are not immune from bursts of emotion especially if you missed a good trade or overlooked some factor that led to a loss. When this happens, remember to put a cork on your feelings of disappointment and frustration. Otherwise, you may be driven to make an impulsive decision that is not guided by your strategy. This may result in more losses.

Rule #9: Have realistic expectations.

One of the most enduring rules in life applies very well to currency trading. You can’t expect to always be a winner. You will win some and you will lose some. This is true even for those who have been trading for quite some time. The best step to take when you do lose is to carefully assess where some of your trades went wrong and what you can do in the future to prevent a similar loss. It also helps if you keep your long term goals in mind. This will help put your current minor losses into perspective. Losing some is all just part of the path to your bigger goals.

Rule #10: Invest in other asset types.

Currency trading is not meant for every trader. Even if it were meant for you, you still have to face the same considerable risks as all other currency traders. This means you could be on dangerously shaky ground if you choose to risk everything in the currency market. You will be ensuring better financial health if you invested in other assets too. If currency trading isn’t good for a period of time you are at least assured that your other trading assets are doing well.

This is by no means a definitive set of rules, however it does encompass the top 10 principles of trading that one should follow. Finally, remember the most important rule of all: Emotion kills traders. Do not get emotional! The markets will serve up a piece of humble pie faster than you can cancel your order. Stay cool and calm and if you’re wrong on a trade, take the lumps and protect your money so you can come back to trade again.

Use a demo account until you’re batting 66%- 70%+ winning trade average. Measure success using this average and not your account balance % gains.



By: Marc Trimble

About the Author:

jmbuddies asked:


A lot of talk has been back and forth about this interesting trading system, some say “Bad” others, “it’s true” or “Scam”. I would like to hear from those that are actually trading this thing, in particular, the “Russell Sands Turtle Trading”. I personally have no experience in trading Forex (currencies) but have traded options for some years. Since our economy is soooo… “beautifull”, I am looking in other ways of making a living.

Jason B asked:


I imagine it is different than stock gains/loses on a Schedule D.

sam asked:


I want to know how to open and trade in the currency but I don’t know how to start.

needliberty asked:


Is there such a thing? I do not want exposure to the dollar over the next few years.

Jessica J asked:


No scams or fake sites please, just real information and programs that you can access through the internet.

kukumalu asked:


as these companies provide online gaming services for players.When gamers decide to switch to a new game they are able to trade in their existing currency for the new game’s currency. but there are others who believe IGE and sites like it should be banned from the face of the earth since they foster gold farming. What do you think? Does IGE and companies like it provide a valuable service to the gaming community?

rorya asked:


disappearing middle class and a poor perception of your country as a bully and meddler in other countries affairs……
In a post information age/industrial age with stagnant job growth looming…

In such an unlikely scenario, how does one protect oneself from a likely economic collapse of epic proportions?

How should someone unfortunate enough to be in that absurd situation, protect against their eroding financial security?

Bryan D asked:


I have studied a lot of technical analysis and played a little with forex.. currently i make $10 and hour .. I was wondering if it was possible to make just $10 an hour trading… if so let me know i’d love to quit my job and stay at home all day

How much should I have in my account?
Leverage?
What broker?