.What is Forex Trading ?
The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions.
What is traded in Forex Trading ?
The answer is Currency
. Currencies are always traded in pairs, such as EUR/USD, GBP/USD, etc. Why ? Because when you trade forex, you are exchanging 1 currency to another currency simultaneously (buying 1 currency and selling the other at the same instance). You will gain from differences of traded currency price rates.
FOREX BUSINESS:
The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends.
FOREX (Foreign Exchange Market)
is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand.As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. According to various assessments, money masses in the market constitute from 1 to 2 trillion US dollars a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. Practically in every time zone (that is, in Frankfurt-on-Main,
There are many advantages to trading spot foreign exchange as opposed to trading stocks and futures. Below are listed those main advantages
.1. Bid/Ask Spread rates
Spread rates have tightened dramatically in the last years. Most online forex brokers offer a spread of 5 pips on EURUSD which is the most widely traded and liquid currency pair.In the futures market spreads can vary anywhere between 5 and 9 pips and can become even larger under illiquid market conditions (which tends to happen substantially more often in futures currencies)
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2. Margins requirements
2. Margins requirements
Usually a foreign exchange trading with a 1% margin is available. In layman's terms that means a trader can control a position of a value of USD 1'000'000 with a mere USD 10'000 in his account. By comparison, futures margins are not only constantly changing but are also often quite sizeable. Stocks are generally traded on a non-margined basis and when they are, it can be as restrictive as 50% or so
.3. 24 hour market
.3. 24 hour market
Foreign exchange market trading occurs over a 24 hour period picking up in Asia around 24:00 CET Sunday evening and coming to an end in the United States on Friday around 23:00 CET. Although ECNs (electronic communications networks) exist for stock markets and futures markets (like Globex) that supply after hours trading, liquidity is often low and prices offered can often be uncompetitive
.4. No Limit up / limit down
Futures markets contain certain constraints that limit the number and type of transactions a trader can make under certain price conditions. When the price of a certain currency rises or falls beyond a certain pre-determined daily level traders are restricted from initiating new positions and are limited only to liquidating existing positions if they so desire. This mechanism is meant to control daily price volatility but in effect since the futures currency market follows the spot market anyway, the following day the futures market may undergo what is called a 'gap' or in other words the futures price will re-adjust to the spot price the next day. In the OTC market no such trading constraints exist permitting the trader to truly implement his trading strategy to the fullest extent. Since a trader can protect his position from large unexpected price movements with stop-loss orders the high volatility in the spot market can be fully controlled
.5. Sell before you buy
Equity brokers offer very restrictive short-selling margin requirements to customers. This means that a customer does not possess the liquidity to be able to sell stock before he buys it. Margin wise, a trader has exactly the same capacity when initiating a selling or buying position in the spot market. In spot trading when you're selling one currency, you're necessarily buying another.
As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks.[citation needed] According to the Bank for International Settlements,[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion.[when?] Trading in the world's main financial markets accounted for $3.21 trillion of this.
This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:$1.005 trillion in spot transactions$362 billion in outright forwards$1.714 trillion in foreign exchange swaps$129 billion estimated gaps in reporting Forex Trading -Who participate in Forex Trading?
In the last years, the foreign exchange market has expanded from one where banks would execute transactions between themselves to one in which many other kinds of financial institutions like brokers and market-makers participate including non-financial corporations, investment firms, pension funds and hedge funds.Its' focus has broadened from servicing importers and exporters to handling the vast amounts of overseas investment and other capital flows that currently take place. Lately foreign exchange day trading has become increasingly popular and various firms offer trading facilities to the small investor.Foreign exchange is an 'over the counter' (OTC) market, that means that there is no central exchange and clearing house where orders are matched. Geographic trading 'centers' exist around the world however and are: (in order of importance)
The forex market operates 24 hours per day but many of you do not have the time to sit on your computers and fully exploit the market.I have a better solution to that by introducing the MANAGED FOREX ACCOUNTservice to you.
All you need to do is ;to open a FOREX TRADING ACCOUNT
.Upon opening your account, you will receive a login ID and password.This gives you read only access to your account and the ability to monitor your account 24 hours per day, 7 days per week. In addition, you can actually view the trading activity in real time. If at any time you’re dissatisfied with the performance, you can simply close your account and all remaining funds will be returned to you within 48 hours.Nobody can withdrawal or deposit any funds on that account except the account holder/owner(client),I am only given powers of atorney to trade that account.If you can not access the internet 24hours a day, no problem,You can still receive updates for your account via email on a daily basis,all information shall be got directly from the broker's server Pepperstone Australlia and they shall be sending you this information by email everyday.
Forex Managed Account
Nowadays it is getting harder and harder to find a safe and profitable place to invest. Inflation and low bank interest rates make it impossible to have the financial stability and security every family is looking for. If you wish to take the best the Forex market has to offer with no trading risk to your investment, string along with my managed Forex trading programme.
A managed forex account
can give an investor who cannot watch the market 24 hours a day an opportunity to participate in the colossal world of forex trading. A managed forex account may also be appropriate for the investor who prefers to have his capital managed by professionals. Studies of professionally managed forex accounts have shown returns that are not related to the performance of the stock market. Consequently, allocating a portion of an investment portfolio to a forex managed account may be an appropriate way to increase the portfolio's total diversification.Whether your investment objectives include income, growth or a combination of the two,
I can help you take a disciplined approach to investing in foreign exchange market.I offer both individual and institutional investors an opportunity to benefit from my market knowledge and experience.The increasing complexity of the financial markets is one reason why more and more investors are turning to full-time professional investment managers. With a professionally managed portfolio, you don’t have to constantly monitor currency market or try to keep abreast of market movements; your manager does that for you..In comparison with currency hedge fund, separatly managed account provides more transparency for investor and more cost effective due to less administrative cost. Also it is more comfortable for investor since all funds are held under his name with reputable and strictly regulated financial institution .
My programme has got the following advantages:
1) Asset diversification from forex trading that is not tied to the stock market.2) Professional forex account management.3) Diversified forex trading discipline using the major currencies only.4) High risk, high return objective.5)Trading opportunities in rising and falling markets.6) Real-time account management and reporting.7) Liquidity of assets - money can be withdrawn at any time..
I trade only liquid pair currencies like Eur/usd,Gbp/Usd,Usd/Jpy,Eur/Gbp.The minimum account size i can trade ranges from as low as 5000usd to as high as1000000Usd(1m)If you are serious about investing your funds in forex trading ,you can ask me any question through my blog and i will answer you within 12 hours.I am a pro Forex Trader.I am an introducing broker with Pepperstone Financial pty ltd an Australlian based regulated broker.You can find out more about my broker by visiting their Website on www,pepperstone.com.You can visit Pepperstone by simply clicking on their banner from this blog,you will be taken directly to the company's website.You can apply for a forex trading account today by visiting the sign up page by clicking http://pepperstone.com?a_aid=samg
I can generate a minimum of 20% return on investment every month.I charge a small performance fee of 30% of the profits earned above the water mark. I currently offer training services to those who would like to become successful forex traders .
I currently offer training services to those who would like to exploit the Fx market themselves.The training comes with an Expert Adviser designed from your custom indicator and a Trading Template .
I also design Automated Trading systems(Forex Robots), Trading Templates and custom designed Trading Indicators.CurrentlyGalix(Fx Robot) V.5c is on sale. Just contact me and i send you a copy of the EA.Each copy of the Expert Adviser is Licensed to One Live account and unlimited Demo accounts to test the program.
I can design any Expert Adviser,so if you have any indicator and you are confident that i can trade your account profitably, just contact me , we shall meet and design the Robot from that indicator within two hours.I can design Trading systems for Financial Institutions and Long term investors.
You can pay online via pay pal or with your credit card,but make sure that you use an email address which is accessible to you because this is where we shall send the download link.
RISK DISCLOSURE
Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Samuel Galiwango
P.O Box 121
Mukono Uganda.Tel +256752625289
