Forex Quote at Forex Trading Guide

Main Forex Quote sponsors

Forex Quote

Welcome to Forex Trading Guide

Article

Ron King

You can see the claims on some FOREX web sites, implying that FOREX is a risk-free pastime. No investment is risk-free.

In FOREX you are trading substantial sums of money, and there is always a possibility that a trade will go against you. There are several trading tools that can minimize your risk, yes, but eliminate it, no. With caution, and above all education, the FOREX trader can learn how to trade profitably and minimize loss.

The Scams

FOREX scams were fairly common a few years ago. The industry has cleaned up considerably since then. Still, you should exercise caution before signing up with a FOREX broker by checking their background.

Reputable FOREX brokers will be associated with large financial institutions like banks or insurance companies, and they will be registered with the proper government agencies. In the United States, brokers should be registered with the Commodities Futures Trading Commission or a member of the National Futures Association. You can also check with your local Consumer Protection Bureau and the Better Business Bureau.

The Risks

Assuming you are dealing with a reputable broker, there are still risks to FOREX trading. Transactions are subject to unexpected rate changes, volatile markets and political events.

Exchange Rate Risk: refers to the fluctuations in currency prices over a trading period. Prices can fall rapidly, resulting in substantial losses unless stop loss orders are used (see below).

Interest Rate Risk: can result from discrepancies between the interest rates in the 2 countries represented by the currency pair in a FOREX quote. This discrepancy can result in variations from the expected profit or loss of a particular FOREX transaction.

Credit Risk: is the possibility that 1 party in a FOREX transaction may not honor their debt when the deal is closed. This may happen when a bank or financial institution declares insolvency. Credit risk can be minimized by dealing on regulated exchanges, which require members to be monitored for credit worthiness.

Country Risk: is associated with governments that may become involved in foreign exchange markets by limiting the flow of currency. There is more country risk associated with "exotic" currencies than with major countries that allow the free trading of their currency.

Limiting Your Risk

FOREX trading can be risky, but there are ways to limit risk and financial exposure. Every trader should have a trading strategy; i.e., knowing when to enter and exit the market, and what kind of movements to expect. Developing strategies requires education, which is the key to limiting risk. At all times follow the basic rule: Never use money that you cannot afford to lose.

Every FOREX trader needs to know at least the basics about technical analysis and how to read financial charts. He should study chart movements and indicators and understand how charts are interpreted. There is a vast amount of information on FOREX trading available both on the Internet and in print. If you want to be successful at FOREX, then educate yourself.

Stop-Loss Orders

Even the most knowledgeable traders, however, can't predict with absolute certainty how the market will behave. For this reason, every FOREX transaction should take advantage of available tools designed to minimize loss.

Stop-loss orders are the most common way to minimizing risk. A stop-loss order contains instructions to exit your position if the price reaches a certain point. If you take a long position (expecting the price to rise) you would place a stop loss order below the current market price. If you take a short position (expecting the price to fall) you would place a stop loss order above the current market price.

Stop loss orders can be used in conjunction with limit orders to automate FOREX trading. Limit orders specify that an open position should be closed at a specified profit target.
About the Author

Ron King is a full-time researcher, writer, and web developer. Visit http://www.forex4u-now.com to learn more about this fascinating trading vehicle.

Forex Quote News

forex quote

Go to the new RSS page and renew your subscription.]]>

IMPORTANT: Bing News RSS feed has moved!

At the moment of writing, the AUD/USD quotes at 1.0735 after touching 1.0753. Mataf.net analysts point to resistances at 1.0740, 1.0760 and 1.0790. On the downside, supports might act at 1.0675, 1.0595 and 1.0535. © 2012 “FXstreet.com. The Forex Market ...

Forex: AUD/USD jumps above 1.0600 on NFP data

InvestTechFX also uses click on a live streaming price feed, no re-quotes whatsoever in fast markets, with no dealer intervention. InvestTechFX provides consistent liquidity under all market conditions while working on forex ECN with only the top ...

Secured Online Forex Trading – The Latest Online Security Information

As mentioned previously, all Forex exchange rates are quoted in terms of currency pairs. Although it might look confusing initially, it is relatively easy to understand. Each currency pair is denoted in the format XXX/YYY as specified by ISO ...

A Brief Guide to Trading the EUR/USD – Chapter 4: Forex Quotes

(Updates prices, adds quotes, detail) * Euro sheds gains as Greek deal uncertainty ... hinting at the chance of solo intervention in forex markets as the yen edges higher versus the dollar. Analysts said Japan may intervene if dollar/yen drops below ...

FOREX-Euro falls on Greece worries, sheds earlier gains

NEW YORK and LONDON, Jan. 26, 2012 /PRNewswire via COMTEX/ -- FOREX.com, the online retail trading division of GAIN Capital Holdings, Inc. /quotes/zigman/3135546/quotes/nls/gcap GCAP 0.00%, has launched a new service providing German investors ...

FOREX.com Launches New German Service in Support of Long-Term European Expansion Plans

FXCM's UK subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade forex, oil, gold, silver, and stock indices on one platform. In addition, FXCM offers educational courses on forex ...

FXCM Inc. to Present at the 13th Annual Credit Suisse Financial Services Forum

Quotes from RBC Capital Markets: -And while markets would suggest that there has been a palatable relaxation in risk and an improvement in the EU narrative, it should not be taken as an improvement in terms of the Canadian balance of risks translating into ...

RESEARCH: CAD is not yet a central bank story

MUMBAI (Commodity Online): RiddiSiddhi Bullions Ltd (RSBL), India’s largest bullion trading company, has lauched mobile application for RSBL SPOT trading that will provide international gold, silver, platinum, AM/PM fix and forex rates on mobile phones.

RiddiSiddhi launches mobile app for bullion trading

Quotes are delayed unless otherwise noted. FICS is owned by FMR LLC and is an affiliate of Fidelity Brokerage Services LLC. Terms of use for Third-Party Content and Research.

Forex Trading Guide - Forex Quote Section

Forex Quote Navigation

2005 Best Seller!

Best Forex Quote products