Wednesday, March 26, 2008

A great article on forex foreign exchange broker

What to look for in FOREX Trading Software


With the growth of the Internet and its accessibility to the general
masses, every FOREX broker maintains a software package for his
clients to transact and get information about market prices
online. With the increasing popularity of online trading with traders,
the FOREX brokers are improvising their tools keeping in mind
the clients needs in terms of software tools.

The two basic types of the FOREX trading software are - web
based and client based. Since the most crucial functionality of the
online trading tool must be the ability to provide market
information at real time and updating it in the flash of a second;
the software must be able to perform with minimal processing
delay and must be accurate to deliver the entry and exit points
for the trade.

The web based software is the one which is on the broker's
website. There is no installation required on the client?s computer.
The client based software is the one which is first downloaded and
then installed on the client?s machine which is in synch with the
broker?s. The web based client software is considered to be more
popular due to their convenience, safety and reliability
characteristics as the users can log in to them using their unique
account from any computer and from any location over an Internet
connection. Whereas the client based software has the
restriction of using one chosen computer for every trade.

Another mandatory requirement for trading software is
security or protecting the user?s critical data over the net. In the
web based software the user information is secured with
high-strength encryption to prevent viruses, intruders or
hackers to access or modify the user?s data during transmission.
Although the client based software is also secured during
transmission, it has the shortcomings of the usage of a single
trader?s computer and hence the possibilities for data loss are
higher in this case.

The FOREX software is aided by a series of data servers which
hold the web site content and user transactions. These servers
are reliable in securing the user information and data integrity and
ensure accurate transaction processing. Since servers are subject
to power outages and natural disasters, at least two sets of servers in separate locations are maintained to ensure maximum uptime and data backups guaranteeing the integrity of the user?s financial data in case of server failure.

One of the problems in online trading software/tools is the processing or the data transmission delays. There are a number of factors that result in a delay in data transmission for software like Internet connection speeds and the physical distance between the client machine and main server. To avoid these obstacles in trading the FOREX traders should have a reasonably high-speed modern computer and a fast paced stable Internet connection to ensure the full functionality of the FOREX software offered by their broker. Also the broker must be chosen in the same area as one?s trading place to avoid the delays in this extremely volatile market.

Most popular trading software have integrated charting functions with a variety of viewing functions facilitating the access of real-time price quotes for most currency pairs and they allow the trader to buy or sell at market prices or enter and exit the market using stops or limits. Some brokers offer advanced packages like the ability to trade directly from the chart and full analytical functions in their software for a monthly fee.



Psychology of Forex Trading - How Your Emotions Can Mess You Up



Most sites that offer advice on succeeding in the Forex market are going to point out to you that the biggest enemy you face is not the market itself, but rather your own emotions. This is true in just about any activity that involves financial risk. It is really not all that different from playing poker. If you go into it afraid of losing, then most likely you are going to lose. It is pretty much accepted that most human beings have an innate desire to prosper. This desire is what makes failure so frightening.


Regardless of how you make your decisions you need to proceed with confidence tempered with caution. Whether you use technical analysis or fundamental analysis or flip a coin, it really doesn't matter as much as developing your own investment strategy, and proceeding with it until you are sure it is working or failing. Do not take council of your fears, and bounce around with no pattern, overreacting to every setback. Nor should you grow overconfident and let a small temporary success lead you into foolishness. Remain constant and stick with your plan.


The Forex market has some peculiar emotional landmines that you need to be aware of, and need to avoid. You are dealing with the currency of foreign countries and how they are going to be valued against the currency of other countries, one of which is your own country. It is important to keep things in perspective. If you find yourself rooting for the USA and booing Japan like they are your alma mater's football team and its biggest rival, then you should not be investing in this market, but saving for tickets to the next Olympic Games.
Investment of any kind takes self control, and emotional stability, and Forex is no exception.

About the Author


John Chen is a professional trader and course instructor. He is the creator of the highly acclaimed Profitable Trend Forex System - a unique and revolutionary trading system that allows traders to take advantage of and profit from riding big trends.
Find out more http://www.trendforexsystem.com

Getting Started in the Exciting World of Forex Trading!



The Forex and the stock market have some similarities, in that it involves buying and selling to make a profit, but there are some differences. Unlike the stock market, the Forex has a much high liquidity. This means, much more money is changing hands everyday. Another key difference when comparing the Forex to the stock market is that the Forex has no place where it is exchanged and it never closes. The Forex involved trading between banks and brokers all over the world and provides twenty-four hour access during the business week.


Another difference between the stock market and the Forex is that Forex trading has much higher leverage that the stock market. When someone decides to invest in the Forex, they can expect much higher profits when they are experienced and understand how it works. There can also be the potential for losing much more money as well.


The Forex is a foreign currency exchange. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.


For those using the Forex, a broker is usually a good idea. Brokers are professionals when it comes to trading on the Forex and their experience is invaluable, especially to the new trader. When it is time to find a broker, there are several factors to consider. One thing to look for when choosing a Forex broker is to go with someone that offers low spreads. The spread is calculated in pips, or the difference between the price at which currency can be purchased and the price it can be sold at any given time. Because Forex brokers do not charge a commission, they will make their money off of the spreads, or the difference. When choosing a broker, look at this information and compare that with other brokers.


Many brokers provide the service of trading using the mini-Forex system. This has a smaller minimum deposit, usually $100. This makes it easier for those learning how to trade on the Forex to have less of a chance of losing a lot of money and to learn how the system works.

About the Author


Author Tony Buel: http://www.forextrading-101.com/
Full article can be found at: http://www.forextrading-101.com/

what are forex websites Facts

Simulated Forex Trading Uses Simulators As A Guide For Traders (Part I)


There are plenty of people trading in the forex, and why not, there are so many reasons to do it. By trading in the forex demo you are able to start by using a free demo on real time, you have a leverage of 400:1, or another simple reason is just getting into the action and trading with international currency. However, even when you practice in real time testing services and other strategies you can still fail. Using the trading demo may not be enough; the trader must know what he is doing.

There are three things that all forex traders must remember if they are to succeed: practice, reinforcement and repetition. For this you will need to refine your strategies and you will also need skills. Therefore, I recommend that traders include forex simulators in their strategies in order to save money and help themselves start as winners and not as losers.

Compared to a demo that provides functions in real time, forex simulators allow traders to upload, review, and view historical data any time. This way, traders can fast forward and rewind and recognise valuable trading signals. This means that traders can better test their knowledge of the forex and therefore improve their trade and change, so they can stay in the pace of the ever changing conditions found in the forex market.

Forex simulators are an essential tool for traders. Simulators allow a high level of training within a few days of work as traders can pause, rewind, fast forward and play around with whatever knowledge they have acquired. A five-minute timeframe can be set-up to whatever chosen area. Simulators allow you to get snapshots, use any indicators you wish, and even keep journal trades in order to refine strategies.

Register Now at Easy-Forex; it is quick, easy and there is no obligation. You can start trading with a small deposit of $25. Credit Cards are welcome. There are no hidden costs, no software downloads. Click Here to Start Trading Now.



Forex Option Brokers


The word Forex is derived from combining two words - Foreign Exchange. It deals with buying of one currency and selling of the other at the same time. Over $2 trillion in foreign exchange is transacted everyday.

Currency exchange is a new option that has emerged for small investors. Earlier, the market was not easily accessible to small investors. Only banks, multinational companies and large conglomerates engaged in trading. Now, with the help of technology, everyone can derive benefits from this low risk, high return market. A proper understanding of the system is necessary to avoid losses. Brokers help individuals, as well as institutional investors to establish their accounts for currency exchange.

Option trading is a kind of trading wherein a contract allows a person to buy a certain security (whether stocks or currencies) at a particular price at a certain point in time.

There are basic two categories of option brokers. Some brokers offer their services online, while others offer their services over the phone. Some forex brokers offer both options.

The minimum amount required for trading accounts varies amongst forex option brokers. They may also have specific rules about trading contracts of a minimum value. Contract liquidity is also an important factor. Some brokers allow the investor to enter and exit at any time, whereas others may have fixed time periods.

Standard option contracts that are traded over-the-counter (OTC) are generally referred to as Plain Vanilla Forex Option products. They have very good liquidity for major currencies. The brokers who offer this product are known as Plain Vanilla Forex Option Brokers. However, not many option brokers offer plain vanilla forex option online, but do so only over the phone.

Another type of broker is the Exotic Forex Option Broker. By definition, they deal with currencies that are not traded too often. Also, these products are called non-vanilla, as their structure may be quite different from the standard option. They are also not very liquid, and are generally designed to suit individual needs.

There are many different forex option-trading products available. It is very important to understand all the risk factors associated with all of them before choosing a suitable one. The forex option broker helps the investor make the right choice.

Forex Brokers provides detailed information on Forex Brokers, Forex Trading, Forex Market Makers, Online Forex Brokers and more. Forex Brokers is affiliated with Forex Brokers.



Understand Fundamental Analysis to Succesfully Trade the Forex Market



Fundamental analysis is considered to be the opposite of technical analysis, and both are used in the Forex market. Fundamental analysis considers the intrinsic value of an investment when making a decision as to its future activity. There are some who feel that this is an excellent method of making decisions in the Stock market as a lot of data can be gathered and studied concerning the value of a Company. But, they ask, how can a Nation have an intrinsic value?


The answer is fairly simple. The economy of a country goes through a basic business cycle, and there are a lot of indicators available to the investor to measure where a particular economy is at any given time. The analysis would involve matching the stage of the cycle with its impact on the value of its currency. The normal economic cycle consists of periods of inflation and deflation with peaks and troughs in between. Certain indicators such as the GDP, CPI, and current prime interest rates can give a good idea of the stage of the economy at any given time.


Each of these indicators would tend to impact currency valuation in different ways, and sometimes would even vary from country to country. In the United States, rising interest rates are normally associated with currency deflation, for example, and it is factors such as this that are the heart of fundamental analysis. This analysis can become quite detailed, but the focus remains on the country and its economy. Every factor that impacts the country and its economy can play a role in the value of the currency, and understanding these factors are the tools the fundamental analyzers uses to guide their investment strategy.

About the Author


John Chen is a professional trader and instructor. He is the creator of the highly acclaimed Profitable Trend Forex System - a unique and original trading system.
For more information visit http://www.trendforexsystem.com

The Best Form Of Forex Training


It would be foolhardy to jump directly into Forex trading without first completing some form of Forex training. While a strictly hands on education is possible, it can be extremely possible during those first few trades. This is especially true of those who have absolutely no knowledge. Knowledge really is power, especially in the case of making a profit from the Forex industry. In order to gain and take advantage of this power it is necessary for traders to learn many aspects of Forex trading.

Because there is such a barrage of information associated with the Forex market, one of the most difficult aspects of learning the Forex market is determining which information is relevant. In the case of Forex trading, relevant data is that which would seem to point towards or against a movement in currency prices.

Armed with just a single piece of useful information, traders already have the beginning of a trading strategy or a trading system. It will usually be necessary to refine information even further through the use of more data and more analysis but eventually students will be left with indicators that point to a particular movement. These indicators will be the basis of any trades initially completed.

When conducting Forex training it is important to remember that even the most successful traders suffer short-term losses. The key is to make a profit over the long term. Using any form of analysis and any available data at their disposal traders will try to find any indicator that gives them a leading edge over the rest of the market.

True profit is only generated if a trader can beat the rest of the market to a particular trade. Once the market cottons on to a movement in prices many more traders inexperienced in this area of data will also try to take advantage by milking out a few more dollars from the trade.

Forex training teaches traders to start a position at the appropriate time but, equally important, to close that trade at the right time. Inexperience can lead some traders to selling too early or holding on to currency for too long. Either of these can eat into the potential hard earned profits already gained.

Practice accounts combined with a Forex training course is the most potent method of learning to trade the Forex. The hands on experience that a real account provides combined with the background knowledge that can be taken from industry experts leaves virtually no stone unturned in the hunt for Forex profits.

For information pertaining to various forms of Forex training visit the http://www.forextradereducation.com website. It contains various tutorials ranging from basic but invaluable information to some of the key fundamentals and charting procedures involved in Forex trading. The Forex Trader Education website also offers traders the analysis software called VantagePoint, among the most powerful software applications available to Forex traders because of its proven 80% accurate forecasts.


About the Author:

www.ForexTraderEducation.com is dedicated to helping traders with Forex Training as well as futures and options about trading and important concepts.





Why I Like chart forex signal

Forex Strategy: How The MACD Indicator Can Save You Anxiety


The MACD (Moving Average Convergence Divergence) indicator can add a degree of certainty to your Forex strategy.

As with any indicator, it is too risky to enter trades on this signal alone. However, as we will see, used with caution on higher time frames, it can help confirm you are going in the right direction and that your trade is higher probability.

First, let?s take MACD apart and describe it?s component parts.

The default MACD on most charting packages sets 2 EMA?s (Exponential Moving Averages) at 26 and 12 days.

This is represented by a colored line (color varies according to charting package) which crosses a different colored 9 EMA often termed the trigger line.

When MACD (the 12/26 EMA) crosses above the trigger line (9 EMA) upward momentum is indicated and vice versa.

A center line, or zero line, often called the water line is also shown in the MACD indicator. When MACD is above the water line an upward trend is indicated, when it is below the water line, a downward trend is indicated.

MACD also includes a histogram, small vertical lines that appear above or below the zero line, not unlike mountains and valleys in appearance.

MACD is a lagging indicator which follows price action.

The histogram is an indicator of MACD. So watching the histogram can give you an early indication of where MACD is going. The height of the histogram can be a good momentum indicator.

How can you use MACD to your advantage?

If you want to be very cautious in your Forex strategy, going only for high probability trades, then pay attention to MACD on the 4 hour and 1 hour charts.

Some traders will only enter a trade when the 4 hour and 1 hour MACD?s are going in the same direction. This will mean a lot less trades but the ones you do take are likely to be profitable. (Agreement of the two MACD?s is used in conjunction with other indicators, not by itself.)

MACD on the 1 hour chart is particularly powerful. If you want to stay out of trouble and avoid trades you might later regret, NEVER trade against the direction of the 1 hour MACD. To do otherwise is not necessarily foolhardy if you know what you are doing.

But for the newer, less experienced trader, only trading long when MACD has crossed up, or short when MACD has crossed down on the hourly chart when your other favorite indicators line up, will make for a higher success rate with your Forex strategy. It will also save you much anxiety!

To see the above information presented graphically, follow the link in the Resource Box.

Michael A. Jones is a writer and webmaster with over 10 years experience who also trades the forex regularly. For screen shots of MACD with explanatory notes go to this page:
www.vitalstop.com/Forex/forex-strategy-macd-indicator.html

Click here for his advice for absolute beginners:
www.vitalstop.com/Forex/learn-to-trade-the-forex.html

Michael has also put together a list of key free resources which he finds invaluable:
www.vitalstop.com/Forex/forex-directory-free-resources.html



Forex Investment - Making The Decision Is The Hardest Part


When investing in the Forex market, making a Forex investment can be the best decision and can definitely earn you the best profits. Because there is very little in the way of barring entrance to the Forex market making a Forex investment is an excellent opportunity. Especially for those individuals who have low investments to start with, this can allow them to gain a large return regardless. Of course it also depends on how well they understand the Forex market in order for them to truly benefit from a Forex investment.

In the past Forex investment was limited to only banks and financial institutions due to large transactions and strict financial requirements. Of course now with online trading widely available making a Forex investment is more readily accessible to individuals as well. This means just about anyone can invest in Forex and actually make money from it.

When making a Forex investment you are allowed to do so either directly or through a Forex broker. Banks and financial institutions now are forced to acknowledge that small and individual investors are involved in the Forex market and therefore have been providing online trading packages to them. A lot of these have high leverage available to clients, which when it involves a Forex investment can lend itself to an environment where high gains are made with comparatively small amounts.

This means that someone who chooses to open a mini account in the Forex market has a great leverage ratio of one hundred to one. This means that a one thousand dollar investment can buy or sell a 'lot' of one hundred thousand dollars in foreign currencies. Most mini accounts can be opened with two hundred and fifty dollars as a minimum Forex investment.

Because of this a huge increase has occurred in the amount of trades currently in the Forex market. This also causes a high liquidity with a daily turnover that has been known to reach two trillion dollars. Yet this has also mad Forex trading a bit more transparent. Making a Forex investment can be done in multiple currencies in multiple markets in real time without any barriers or physical boundaries.

What is very important in making a Forex investment is realizing that the there is an instant nature to the trade and huge amounts being traded every single day. This means that each investor must be very familiar with the way the Forex market works. They also need to have a clear understanding of trading strategy in order to gain the best profits. Those who don't understand this can feel that the Forex market is too risky. So when making a Forex investment, make sure you have someone who thoroughly understands the inner workings and who can handle the risky nature of the Forex market, and you will have a better chance of gaining the best profits.