Global Forex at Forex Trading Guide

Main Global Forex sponsors

Global Forex

Welcome to Forex Trading Guide

Article

Day Trading Forex Market Behaviour

Jay Moncliff

Technology advances like the internet have spawned a new craze, where anyone with a secure internet connection prepared to undertake a small amount of training can engage in trading foreign exchange on the forex market.

Just as a day trader will closely track stock price movements on the Dow Jones Industrial Average, all over the world forex traders monitor currency fluctuations in a similar fashion.

Forex traders have the aim of using the smallest amount of one currency, say the US dollar, to purchase another currency like the British Pound. If supply of the pound lessens in a busy market, it will cost more dollars to buy pounds, and the forex trader hopes to sell their pounds at a higher than their purchase price. In many respects, this type of trading behaviour is very similar to trading in stocks, where the aim of nearly all traders is to buy low and sell high.

The trading process works under a bid/ask system. In the above example, a forex trader might bid 10 dollars in return for 5.7 British pounds, and the seller of the pounds could be asking 11 dollars for the same amount of pounds. If the seller accepts the bid, the trader then hopes the pound continues to increase in price, so that when time comes to sell, they can get in excess of the 10 dollars initially paid.

As only registered traders have access to this auction process, most online speculators will trade through a bank or broking house. Such brokerages charge a commission for facilitating the trades, and forex traders should consider these transaction costs when calculating their selling offer when time comes to exit their position, as this will influence their profit margin.

The global foreign exchange market can trade in excess of a trillion dollars a day. Sheer market size means there is considerable money to be made, and lost, through miscalculation. It is neither a guaranteed, nor easy path to riches, so traders should be educated in how to play the market. Instructional packages are available, and should be carefully reviewed as they can easily range in quality and price.

About the Author: Jay Moncliff is the founder of http://www.forexadvise.info a website specialized on Forex, resources and articles. This site provides updated information on Forex. For more info on Forex visit: http://www.forexadvise.info

Source: www.isnare.com

Global Forex News

global forex

TOKYO, Nov 20 (Reuters) - Risk aversion kept the yen and the dollar firm on Thursday as global recession worries and credit jitters fuelled by uncertainty over the struggling U.S. auto industry led investors to cut risky assets. Yen-buying gained ...

Yen rises on credit fears, global recession worry - Guardian Unlimited

The Dollar was stronger on Tuesday as investors continue to seek for safety. But a late rally on Wall Street limited dollar gains against Euro and Sterling and boosted it against the Yen on hopes that financial market turmoil may be starting to ease ...

Forex − Dollar keeps rising on global economy worries - FXStreet.com

New Delhi, Nov 16: India's foreign exchange reserves, having peaked at $314.62 billion in May, dropped by over $44 billion in the past two months, thanks to the widening trade deficit and FIIs pulling out of emerging markets with worsening global ...

India loses $44bn forex on global woes - Central Chronicle

TOKYO, Nov 19 (Reuters) - The yen rose against the dollar and the euro on Wednesday, rebounding further from losses due to a late rally in Wall Street shares, as investors remained worried about a deepening global recession and returned to the safety ...

FOREX-Yen rises as global recession worries remain - Forbes

TOKYO, Nov 19 (Reuters) - The yen rose against the dollar and euro on Wednesday as investors continued to fret over a deepening global recession and sought safety in the Japanese currency, while Asian shares dropped despite a rally on Wall Street ...

FOREX-Yen rises as global recession fears erode confidence - Forbes

New Delhi, Nov 16: India's foreign exchange reserves, having peaked at USD 314.62 billion in May, dropped by over USD 44 billion in the past two months, thanks to the widening trade deficit and FIIs pulling out of emerging markets with worsening ...

India loses USD 44-bn forex in Sep-Oct on global woes - Zee News

NEW YORK, Nov 17 (Reuters) - The dollar fell against the Japanese yen on Monday, as weak U.S. manufacturing data deepened worries about the global economy, and investors fretted that leaders worldwide ended a weekend meeting with few concrete ...

FOREX-Dollar falls vs yen on global recession fears - Reuters

MUMBAI: After pumping in around Rs 2.80 lakh crore liquidity into the banking system, the Reserve Bank today announced a slew of measures to give a boost to the real estate sector, in addition to taking steps to arrest decline in forex reserves. In ...

RBI steps to spur growth in real estate, arrest forex decline - Economic Times

LONDON, Nov 18 (Reuters) - The euro fell against the dollar and the yen on Tuesday, as a stream of evidence that the global economy is continuing to suffer kept demand high for unwinding risky positions in favour of low-yielding currencies. Shaky ...

FOREX-Euro slides on weak shares, grim economy outlook - Reuters

Nov 19 - Timing Your Exits with Fibonacci Extensions Nov 19 - Forex Wrapup 11.19.08 Nov 18 - Forex Wrapup 11.18.08 Nov 14 - How To Use Fibonacci Retracements In Your Trading Nov 17 - Forex Wrapup 11.17.08 Nov 17 - Forex Forecasts Revised as Fears of ...

Forex Trading Guide - Global Forex Section

Global Forex Navigation

2005 Best Seller!

Best Global Forex products