CFD Trading: A Guide to Jumpstarting Your Trade Right

CFD stands for Contract of Difference. This is an agreement made by two parties when exchanging their differences from closing and opening prices of a contract. Most traders use CFD to anticipate the movement of market prices in the future. This does not depend on the current situation of the market. Whether current trend is falling or rising, CFD allows you to make two actions: One, to sell and go short; and the second is to hedge in order to make the portfolio have an offset to the physical investment. 

CFD Trading Features

The CFD permits every trader to sell (go short) once the market seems to fall and buy (go long) if the trader thinks that the market will rise. The CFD can be used to increase the profits along the fall price is the trader used it to sell his assets. Once the prices move against your bet, then losses will come haunting you. Moreover, CFD will help every trader to offset his loss through short selling his existing portfolio.

CFD traders are allowed to play in the market for 24 hours. This will be very helpful in accessing your trade whenever you want. It means that you can make actions just as the market moves in your favour. With its 24 hour availability, you can access not just your trade but also opportunities from other traders and brokers whose information are made available at http://www.cfdspy.com/. There you will be able to compare brokers and choose what you think can broaden your chances for great deals. 

CFD Trading Rules You Need to Know

1. Use rational thinking. Most traders depend on their thoughts and logic instead on delving into what their hearts tell them. Trading is analysis and in order to catch the good trend, one has to open his mind and clear his thoughts from emotional anxieties. When you think you are overwhelmed by some emotional instability, better get out of the platform and calm yourself.

2. Avoid exposing your assets in a single trade. There are traders who focus on single trade and risk almost all of their trading capital. This is not considered trading. Those who do so are called gamblers. Logical trading should not risk more than 5% of a trader's capital.

3. Combine technical and fundamental analysis. The fundamental analysis should be used to trigger any existing trade whole technical analysis works better to know the right time to enter the market.

4. Use the trend lines to refrain from adding capital to losing trades. Never ever confuse trending markets from those which are bounded by range. You might be inspired to expect something will rise and yet in the end, you just added something to a losing market.

5. Trade in differ4nt kinds of markets. Diversify your attention to different industries. If one of your trading activities involves oil companies, then try a chance in food and beverage or others which will not follow the same trend.

6. Identify your weaknesses. Once you knew what makes you fall, you will be reminded to stick to your plans and manage your money properly.

CFD trading has a long history, and the history will only continue as long as traders find this to be a successful way of trading in various markets all from one platform. It's much easier to figure out than other types of trading, and there are great benefits that come from working with a reliable provider. Basically, CFD trading is the easier method of making profits from trades from those that aren't prepared or ready to jump into the world of actual trading. Traders can learn from CFD trading and apply their knowledge to other types of trading when they feel ready.

Peter Dav is a seasoned financial analyst and forex market trader. His experiences in the volatile market arena has taught him and others on how to manage their finances right especially when involved in currency trading. 

The FAQs of Currency Trading

Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)

Trading currency in the foreign exchange market is literally a trillion dollar business. And it used to be only large financial institutions and very wealthy people could take part in the trade. Now, with the advent of the internet, the average person can trade on the market with the click of a button. If you’re interested in getting started in trading currency, here are some frequently asked questions that might help you get going.

What is the Forex?

“Forex” is a moniker for the foreign exchange market. You may also see FX.

What is a liquid market?

You will often hear the Forex referred to as the most liquid market in the world. A liquid market is one filled with liquid assets, or assets that can be sold instantly with almost no loss in value. You car, for example, is not a very liquid asset. Although you could probably sell it very quickly, you would have to lower the price. In order to find a suitable buyer willing to pay a suitable price, you’d likely have to wait a while.

In the Forex, because currency is such a massive asset, it can be traded almost instantly. The sheer size of the Forex (it’s a worldwide market) also means that no key players or institutions, no matter how large, can control the price of currency. This makes the Forex the most stable market in the world.

Who trades in the foreign exchange market?

Like I said, it used to be mostly large financial institutions, central banks, hedge funds, international corporations, and massively wealthy people who traded on the Forex. Now more and more individual people are able to take part. 

How is money traded on the market? Is physical money traded?

No. Most often money is simply traded virtually. In fact, there is no centralized market in the Forex. Trades take place between traders all over the world through the internet. The Forex is open 24 hours a day, five days a week (closed on the weekends), across all time zones. This means that as the market closes in the U.S., it’s opening somewhere else in the world, so the market is active at every point in the day.

How do you make money in the Forex?

Currencies are usually traded in pairs on the Forex. To make money, you basically have to correctly predict which currencies will gain and lose value. For instance, one popular pair of currencies is the U.S. dollar and the euro. Currently, the exchange rate between the dollar and the euro is .73 dollars to one euro. That means it takes about 1.3 dollars to equal one euro. In order to make money in the Forex, you would have to predict when the dollar would reevaluate or when the euro would devaluate, and buy currency accordingly.

What currencies are traded on the market?

Although some retail traders deal in less-known currencies, the most popular currency pairs are:

• EUR/USD (euro/dollar)
• USD/JPY (dollar/Japanese yen)
• GBP/USD (British pound/dollar)
• USD/CHF (dollar/Swiss franc)

As well as the three “commodity pairs.” The commodity pairs are so called because they are from countries that include a large amount of commodities. That means these pairs are highly correlated to changes in commodity prices. They are:

• AUD/USD (Australian dollar/U.S. dollar
• USD/CAD (U.S. dollar/Canadian dollar)
• NZD/USD (New Zealand dollar/U.S. dollar)
• 
  

What is “leverage” in the Forex?

Leverage is using borrowed capital to get a higher return on your investment. Let me unpack that phrase for you. Basically, leverage is borrowing money in order to trade more than you have. If you have a mortgage on your home, you are already leveraged.

In the Forex, there are often many high leverage opportunities, sometimes up to a 100:1 ratio. That means if you had a dollar in the Forex, you’d be able to leverage that dollar to trade one hundred dollars. If you have a thousand dollars, that amount goes up to one hundred thousand. This high leveraging makes it easier to trade large amounts of currency and keep the market moving.

What is carry trading?

To understand carry trading, you have to understand that each central bank determines the interest rate on currencies. Carry trading is all about funding the purchase of a currency with a high interest rate with a currency with a low interest rate.

For example, in 2005, many people bought New Zealand dollars (whose interest rate was 7.25%) with the Japanese yen (whose interest rate was 0%). In this interaction, because there was such a huge difference in the interest rates between the two currencies, carry traders were making money in the trade alone, without having to wait for the money to gain value. 

What does “long” and “short” mean in foreign exchange?

Because currencies are traded in pairs in the Forex, you are often “long” one currency and “short” another. For instance, if a person traded 100,000 dollars for yen, she would be “short” the dollars she just traded, but “long” the yen she received.

This is just the beginning of the Forex! It’s a very complex, but exciting market. If you’re interested in learning more about the trade, I’d visit Investopedia, as they have a lot of great resources about the fundamentals of the Forex.

Mary Kremer writes content for Dinar Daddy, the number one source of information for trading the Iraqi dinar.

50 Plus Travelers Going on Vacation: Planning Ahead for Cash Purchases

Traveling can be stressful. There are a lot of plans that have to be made, reservations, itineraries, not to mention saving up and setting a budget. If you’re going outside the country all those things can get even more complex, and at the same time you have to add on concerns about passports and customs and so forth. Whether it’s a family vacation or a business visit, anything you can do to simplify your life when that trip comes up is a good idea. One of the things that make the biggest difference is planning ahead for your money. Here are a few ways to be prepared when it comes to your wallet.

Make exchanges before you go whenever possible

Foreign exchange is tricky. Every market plays a role in how much one currency is worth as compared to another. Those rates are constantly changing, and it can be pretty difficult to keep track and make sure you’re making smart moves even without the added stress of traveling. If possible, you should plan ahead and exchange some currency before it’s time to leave. In most cases you’ll be able to use your credit card, at least at an ATM, or find someplace with decent rates for currency exchange. Some places, especially if they’re popular tourist areas, may just accept your US dollars. But why bother with the hassle if a little planning ahead can save you?

This plan gets a lot more complicated if your trip is taking you through multiple countries who don’t share a common currency. You don’t want to be carrying too much cash around, even if it is from a variety of countries. While you may want to plan on exchanging most of your cash as you go, it’s still a good idea to have a little of each, just in case you find yourself in a tight spot somewhere, say you can’t find an ATM that will accept your card.

With that being said though, try to budget as close as possible. If you have a lot of cash left over after your trip, you’re going to pay to exchange it back into US dollars. Pull out as close to what you will need as possible, and if you are going on another trip any time soon, save the extra instead of exchanging back and forth.

Learn to recognize the currency you’ll be using

Another advantage of exchanging some cash beforehand is that you can get to know it. When you’re already in an unfamiliar place, likely with an unfamiliar language, adding to that trying to count unfamiliar money is just a nightmare. Most of us completely take for granted how well we know our currency. We can tell how much a bill or a coin is worth with a quick glance. You could probably tell me a value just by seeing the president.

If you don’t have a feel for the currency, you run a few risks. First, you might just be embarrassed taking so long to count it out. Second, it makes it a lot easier for someone with less than honest leanings to take advantage of you. Third, you don’t want to accept counterfeit bills, and tourists are the perfect target for that type of scheme.

Try to get a feel for how much things cost

While you’re busy keeping track of how much your cash represents, there’s another easy way for you to be scammed. You have a pretty good idea how much something is worth in US Dollars. You wouldn’t pay $20 for an ice cream cone, even in Disneyland. That is a real risk if you don’t have some intuition about the currency you’re working with though. You’ll be so busy making sure you counted right, you may not notice that you were charged a fortune. At the same time, don’t let them charge you in US Dollars either. In that case, they can use any exchange rate they want. Even if it seems reasonable, it may be anything but.

As of this writing, $1 US is equal to:

• 101.55 Yen
• 13.16 Mexican Pesos
• 0.72 Euro
• 0.60 British Pounds

Keep in mind these numbers fluctuate constantly, so look up the current exchange rate before your trip. Getting an idea of what to expect can keep you safer, and likely save you quite a bit.

Tens Ways in Which Forex Trading is Superior to Playing the Stock Market

English: A view from the Member's Gallery inside the NYSE (Photo credit: Wikipedia)

James Sheffley fancies himself a Jack-of-Some-Trades in the finance game. After graduating from the University of Chicago with a degree in economics, Sheffley began his incredibly lucrative career writing for e-econ blogs. As a sideline, he enjoys a marginally successful career as a stock and forex day (and night) trader. When not firmly ensconced behind his keyboard, Sheffley can be found following in the footsteps of his hero, Sudhir Venkatesh, tracking underground economies.

When the average self-respecting, cash-hustling, prospective Master of the Universe considers or mentions “playing the market”, chances are excellent that the market being referred to starts with an “s” and ends with a “tock”. And for laymen, “play”-able markets that aren’t the stock market are rarely, if ever, considered. That’s an unfortunate state of affairs, because the foreign currency exchange market (Forex) is in many ways superior to the stock market as an investment opportunity for average people. How so? Well, read on.

1. You Don’t Have to Worry About Middlemen

One of the primary benefits of forex trading is the trader’s ability to do so without a proxy. Traders, from hobbyist amateurs to seasoned pros can interact directly with the currency pairs being traded.

2. Saving Money on Every Trade

And what is perhaps the chief benefit of bypassing those middlemen (or middle-women)? Saving money. There are no commissions that need paying, no exchange, governmental fees and generally not even a cut from your pocket to a retail trader if you use one. Those guys are generally paid via the bid/ask spread.

3. Forex Offers Greater Liquidity than the Stock Market

The stock market is big- about $22 billion is traded on the NYSE a day. That’s not chump change. The currency market, however, is roughly 2500 times bigger than that. That’s $5 trillion a day. That’s “trillion” with a “tr”. With that much money being traded, you’re pretty much guaranteed to have someone on the other end of your currency trade willing to buy what you’re selling or vice versa. That’s definitely not the case with the stock market. 

4. The Market that Never Sleeps

When the closing bell rings in New York, the stock market slows down significantly. Not entirely of course, but significantly. However, the currency market is pretty much a non-stop party. There are certainly times when that party is particularly jumpin’- when the Forex markets in New York and London overlap, or those in London or Tokyo, you get some hotspots. However, even in the middle of the night for you, that guy on the other end of your currency exchange in Kyoto, Japan or Sydney, Australia might have just had his first cup of coffee.

5. There Are No Fixed Lot Size

The non-Forex market which perhaps most closely resembles Forex in the way it operates is the futures market. (I have a lot to say about Forex vs. futures). Those futures are purchased in lots, like 100 ounces of gold for instance, and there are futures contracts that determine the size of those lots. Not the case with Forex. You can trade with $25 or $25,000,000.

6. No Cornering the Market

Another benefit of the currency market’s incredible size is that no one (or more) facet of that market can be “cornered” by a very wealthy person, collective, corporation or even giant bank. Cornering a currency market would pretty much be the literal equivalent of buying a country.

7. Begin Trading with Less Money

Just like that more monetarily liberal lot-allotment can facilitate trading with less capital at your disposal, it also allows an entry into the market for less wealthy people. Currency trading, more so than stocks, can be accomplished without risking large sums of money. That means a lower “barrier to entry”.

8. Great Leverage

You may be asking, “Great, so somebody can open a forex trading a count with as little as $25. Why would anyone want to trade with $25?” Well, the answer is a two-parter. Part one: leverage. Forex brokers can, to a large degree, determine their own leverage ratios- like 50-1 for instance. So while $50 could net you $1250 in trading funds, kicking in $1000 or $5000 starts adding up to real money.

9. Real Time Preparation and Free Stuff

Another excellent bonus of the whole Forex-trading sphere are the free preparatory tools, demos and perks offered by the forex brokerage services. Demo accounts, forex tracking in real-time, forex news and more, all of which can be had for free. And not only is it convenient to take advantage of those tools, anyone planning on forex trading should get themselves a demo account and be consistently making (virtual) money before they start playing with real dough.

10. All of This Makes Forex Trading More Democratic

Demo accounts, a lower necessity-threshold for middlemen; a reduced or nonexistent threat of getting entirely rolled in some market-cornering coup; lower barriers to entry; the lack of fees, commissions, government taxes, etc.; far greater liquidity and the other benefits to forex trading both mentioned and missed here, all contribute to foreign currency market’s greater availability to the average consumer than the stock market.

Good luck and good trading.

Top Reasons Forex Traders Fail

What is Forex? Is it an animal? Possibly, in the way that it behaves. Is it a corporation? Perhaps, many can fall from a bad investment. Simply, Forex is an abbreviation for the foreign exchange market. 

Forex does not possess the glitz and glam of the stock market, but it is the granddaddy of them all. On the outside, Forex might seem for everyone, independent of age, gender, location. You can even be retired and still try Forex. If it works for you from the start, then you are lucky. If it doesn’t work, here are the reasons why that might happen. 

More Details about Forex

On average, 4 trillion positions are traded daily. Currency is bought and sold on Forex. Forex runs 24/hrs in the major markets, of New York, London, Tokyo, Sydney, Zurich, Frankfurt, Hong Kong and Paris. With such a great opportunity, and the advent of technology, anyone can join the Forex market, and there in lies an inherent problem.  

Forex at one time was left to large corporations and individuals with large amounts of money, however, with the boom of the internet and online futures trading, anyone can open an account and trade online- average Joe. The allure of great wealth and prosperity seems attainable, but beware there are some great pitfalls of why Forex Traders are not successful. 

No. #1: Lack Of Discipline

Having passion for your industry and your field is an admirable quality. Emotions, have garnered some of the best speeches: "I Have a Dream," "Gettysburg Address," and "Kings Speech,” Each of these speeches were given in times of great anarchy, political identity crisis and personal failings. 

When trading, there is a constant motion, say if you will be organized pandemonium that is meant for principled, level-headed tradesmen. Successful traders, land enormous wins, but suffer a great deal of loss. Some of these losses are consecutive and will test the mettle of a skilled trader. 

Conversely, a series of great gains, can leads to greed. Moreover, it is how you react and address these collective opportunities that can define your character as an online investor. With two sides of the spectrum, most traders do not possess the focus and the wherewithal, to see the sensible way to approach the Forex market, which leads to a lack of vision.

No. #2: Poor Planning

Trading plans are the blueprints to success and failure. If we think of Target, Coca-Cola, each of these companies, had a distinct DNA that led to a path of success. Inexperienced traders, do surface research and ascertain a general idea of assets, risk management, without projecting for returns on investments (ROI). 

In addition to planning, some will create a detailed synopsis with charts, projections, but will not adhere to the proposed investment strategy, because a bigger asset seems to be lurking.In trading, usually the tortoise, not the hare wins the race. Without perspective, it can be confounding to adjust, to trends in the marketplace. You could be easily, pouring cement around your feet, waiting for it to dry and eventually you are- stuck. 

No. #3: Not Adapting To The Market

In order to survive in this Darwinist ideal of business, you have to adapt. Being a chameleon is an advantage, but most traders with experience, see a certain way to follow. Accepting differing points of view, you gain a broader understanding of how specific financial sectors operate. What may trade well in Hong Kong, maybe worth miso soup in London? 

There is no full-proof plan for success in trading. Granted there are indicators, but trying to apply every type of financial model to the financial markets, is like putting a round peg in a square hole. In planning, and trying to align with markets, there has to be a backup, for the backup, for the backup, so that if there is quick pivot, it's not a surprise, it is a pause to position oneself to power. 

Simply, stay rooted, you plateau. Online futures trading truly can be rewarding, risky venture that takes great fortitude, skill and planning. Principally, you want to have enough capital to truly make your investment worthwhile. Consequently, discipline is essential, because you would have studied and gain an apt understanding of the metrics needed to begin creating a solid investment plan. 

Being under-capitalized (simply not enough money to conduct business), will hinder efforts to make a successful and profitable gain, in the world of global trading. Moreover, planning and making ready adjustments are hallmarks to truly finding success in online futures trading. If your investment plan is sound, when changes eventually emerge, they are not surprises; it just becomes part of the larger plan. 

Overall, become a student to other traders, and to the various markets you intend to invest. Allow time to pass, before making hasty decisions. Gettysburg concluded strongly, by saying that government is for the people, by the people, if you then think, the markets are for the people, but its success truly lies in your hands.

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. 

Looking To Invest? 5 Foreign Investment Ideas For Your Portfolio

Luckily, no one needs to scour through information on hundreds of countries or upcoming trends in developing states in order to invest internationally. Instead, here is a look at five simple investment ideas that many have not though of when it comes to expanding the portfolio. 

1. French Wine

What many investors are surprised to hear is that wine funds are both popular and a great investment. Much like a hedge fund, a specialist in both wines and finances will allow investors to pool money in order to invest in new or established wineries, bottles, or companies.

This not only will diversity your portfolio, but it yields good results as well. When investing it is best to spread out your money, this is a great option to mix things up and still be happy with the results. 

2. Chinese Clean Energy

While China is a global player, the country is now encountering huge issues with air pollution, toxins in the soil, and irreversible damage to wildlife. This has led them to begin looking at projects for clean energy in all parts of the country. Investors should take a look at their up-and-coming hydroelectric plants and solar panel fields to get an idea on the scale of growth they can expect. This is a great potential opportunity. Something is going to have to be done in China, if you are invested in the right companies you could really benefit through the market. 

3. Iraqi Currency

The value of the Iraqi dinar has risen and fallen due to instability in the region, but many are looking to dinar news to see that this form of currency is looking profitable in the near future. For those that do buy dinar, even minor changes to the region could result in dramatic increases to the currency’s global worth making it an excellent investment opportunity.

4. German Housing Market

Japan has long been one of the most undervalued investment markets for property, but foreign investing can become a lifelong hassle. This is why many investors may want to look at the German housing market. Both German land and German houses have remained chronically undervalued by as much as 15 percent when rent, home sales, and land prices are taken into consideration.

By being aware of history and trends, you will be able to better understand the market and how the stocks will react and change. 

5. Globally Appealing Art

A few pieces of art around one’s home can be much more than decoration, but investing in art is not for the faint of heart. Sometimes considered to be more complex than any other form of investment, investors will want to ensure that they not only love art, but are devoted to the extensive research that each piece will require along with global art trends.

Diversifying one’s portfolio is an absolute must in today’s volatile economic climate. With these few international ideas, investors have a number of great new options for unique and exciting markets.

Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn't writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.

Price Action Trading - The Most Successful and widely used Forex strategy

There are a number of strategies that are used by traders to maximize their profits in Foreign Exchange (Forex) market. For instance, some make use of various technical indicators such as RSI, Stochastic Oscillators, Bollinger Bands etc., some observe MACD and Moving Average Crossovers while others solely rely on fundamentals. However in my opinion the best way to succeed in Forex market is to use a combination of different strategies and one such combination is known as Price Action Trading. Traders from all over the world have been using this combination for many decades and practical experience has proven it to be a very reliable and successful strategy.

Key components of Price Action Trading

Price Action Trading is based upon following components: 

• Support & Resistance levels 
• Trendline 
• Psychological Numbers 
• Fibonacci Levels 
• Confirmation Bars 

Let us discuss each one by one.

Support & Resistance levels. Support & Resistance is one of the most fundamental concepts in Forex Trading. A level that prevented price to go up during any period of time in past is known as Resistance level. Whereas, a level that stopped price to slide down during any time period in past, is called Support level.

Chart Source: http://www.rightline.net/education/support-resistance.gif
The above chart clearly highlights the support and resistance levels.

Trendline

Trendline is drawn on a chart by joining the key resistance and support levels. Have a look on the following chart.

In this chart, a trendline is drawn by joining two support and two resistance levels. According to this trendline, the price of EUR/USD will face a strong resistance at 1.3895, thus traders will tend to sell EUR/USD at 1.3895 to 1.3900 region. Similarly, if the price of EUR/USD falls and eventually hit the lower trendline, that point of lower trendline will act as a strong support level and the price will most probably be bounced back. Therefore, traders will tend to buy EUR/USD from that support level. 

Psychological Numbers

Psychological numbers are the round numbers that are easy to remember for instance 1.5900, 1.6300, 1.5500, 1.8300 etc. A resistance or support level close to any psychological number is comparatively more significant. In our EUR/USD example, we will consider psychological number 1.3900 a very major resistance level as it is close to trendline resistance 1.3895. 

Fibonacci Levels

Leonardo Fibonacci was the founder Fibonacci levels. These are the points of possible reversal or trend change in price. In order to draw Fibonacci levels you can make use of an MT4 tool, follow the following command: 

Go to: Insert >>>>Fibonacci >>>> Retracement

Now insert the retracement tool at the nearby lowest or highest level on an appropriate timeframe such as One Hour (H1), Four Hour (H4) or Daily (D), now fully stretch the retracement tool by moving your cursor in opposite direction as shown in the following chart.

Chart Source: http://farm5.static.flickr.com/4098/4752860472_6e3bced684_b.jpg

You can see that the price showed upward trend upto 68.8% Fibonacci level and then suddenly changed the trend and started sliding down, that means, 68.8% Fibonacci level acted as a resistance and forced price to go down. The most common Fibonacci levels are 68.8%, 50% and 38.2%, the price usually shows a reversal from such levels. 

Confirmation Bars

Confirmation bars are basically candles in candlestick pattern such as Hammer, Shooting Star, Pin Bars etc. that confirm the change in price trend.
Conclusion

An ideal opportunity to enter the market arises when the price is near any major support/resistance level (derived from trendline), and such level is close to any psychological number or Fibonacci level and confirmation bar is also there to confirm the change in trend. This was a brief summary of Price Action Trading.


Author bio:
Egor Prokof'ev is an experienced Forex trader who writes about online currency trading and PAMM investments. He is also one of market analysis experts at FXOpen and economic forecasts writer at TradingPoint.

Why Dealer Transparency Is Key When Making a Foreign Exchange Deal

When looking to make an exchange or payment worth hundreds of thousands of pounds, there is no doubt that transparency should be everything when it comes down to your chosen broker or exchange company.

After you have registered with a larger foreign exchange provider, the usual process is for one of their dealers to ring up and negotiate a transaction over the phone.

Without actually seeing the figures and rates at hand however, this can get confusing, and you may not actually be getting the best deal.

In fact, some brokers even calculate their rates on the status of the customer, meaning that depending on who you are, or how big your business is, you may be paying more than others.

Companies such as www.4xcurrency.com calculate their rates as a percentage away from the inter-bank rate and according to the size of the trade; so that everyone gets the same exchange rate.

Choosing the right broker is therefore imperative if you are looking to save your business as much money as possible.

Ideally, you should be able to see the exchange rate on a computer screen before you make a deal, so you can compare the price you receive with other providers. Often this will be streamed to your computer via the broker’s exchange system.

If it is done correctly, this means that you should be able to view currency rates in the exact same manner as large corporations and foreign exchange traders; allowing you to make the right payment at the right time, with maximum ease and security.

In addition to this, some brokers even back up their deals so that you will always get the agreed amount of foreign currency at the time of when the deal is made. This is bonding, even if the rate of exchange changes overnight or when the transaction is fully complete.

But what about bank exchanges?

Though bank exchanges offer great security, the truth is that the primary business of a bank is not in foreign exchange, so you shall probably be given a lesser rate and charged for the exchange that you are about to make. In fact, some banks impose fees of up to £30 - £40 per exchange.

Not only that, but if you go with a specialised broker, it is far more likely that they will spend the time and effort into making sure that their clients are given the best rates possible.

Though transparency can vary between individual banks, it is generally held that they do offer a good level of clarity when making an exchange, even if the bank charges more than a broker.

Scalping: How The Smaller Profits Can Start To Add Up

Scalping is known as a type of trading that specializes in taking the profits on the smaller changes of price, typically right after a trade has been entered and is now profitable. This means that the CFD trader will need to have a strict strategy for exit since a single large loss will eliminate all of the smaller gains that were obtained through hard work. With the right resources and tools, like a live feed, the stamina and the right broker you will be successful in your strategy. 

Main Premises Of Scalping

There are three main premises of scalping that you need to keep in mind if you are planning on using this as your primary strategy of trading. These include: 

Less Exposure Will Limit Risk 

• When you have a brief exposure into the market, you will diminish the chances of facing an adverse event. 

Smaller Moves Are Simpler To Get 

• A larger amount of demand and supply is needed in order to get a larger change of price. It is much easier for the market to move 10 cents than it would be to move a whole $1. 

Smaller Moves Are More Frequent 

• Even during the markets that are generally quiet, a smaller move is more likely to occur than a large move. Plus it's better for you to have smaller moves than larger moves in the first place. 

Primary Style Of Scalping 

A scalper will usually make a great amount of trades in a single day, anywhere from 5 to several hundred. They will usually use one minute charts; this is because the period of time is very small and they need to see the set ups as close to real time as they can. The instant and automatic execution of their orders is very important to scalpers, therefore a 24/7 broker is the best tool for them to use. 

Supplementary Style Of Scalping 

Those CFD traders that are within other frames of time have the option of using scalping as their supplementary approach in many different ways. The best way would be to use it when the market is locked in a range that is narrow or choppy. When there are no trends within the longer frames of time, moving to a frame of time that is shorter might show exploitable and visible trends, which might lead to scalping by the trader. 

The Bottom Line Of Scalping 

Scalping is a method that might product great profit for some CFD traders that choose to use it as their main strategy, or also for those that would like to use it as their supplementary strategy along with their other strategies. Making sure that you pay attention to the strict strategy of exiting is very important for making sure that your small profits are turning into large gains in the end. The frequent amount of small moves and making sure that you have brief exposure in the market are very important aspects that are the main reasons why this is such a popular strategy among many of the most successful CFD traders.

Author Bio
Alisa Martin is a master at scalp trading and has been working with stocks for 13 years. She prefers scalping with CFDs as her primary strategy for trading, due to how simple it is to use and how effective it can be if you use it right.

Forex Trading Demo For Beginners

Forex trading is a speculative business and before you enter this world it advisable that you practice trading by opening a Forex trading demo account. Most of the Forex brokers provide you with free demo accounts but it is important to choose the correct one. The account should have close resemblance with real money accounts and have maximum time limit for operating them. There should be minimum difference between a real and a demo account so that you are not heartbroken when you step into the real world. 

How to open a Forex demo account?

Forex trading demo account deal with virtual money and it is important to look for the amount of virtual money they offer. The more, the merrier. There are numerous Forex demo account providers but it is advisable to choose the one by seeing what brokerage is offering it. You should also look into the trial package it offers along with the charges and mode of payment. The necessary steps in order to open a Forex demo account is quite simple. You need to visit the brokerage website, register your name and e-mail, look at the terms and conditions, and you are all set to trade with your virtual money.

Advantages of trading on demo first:

Using a Forex trading demo account can be worthwhile experience for new budding traders. Firstly, you get a realistic feel of the forex market as the accounts have a realistic touch to them. Secondly, you can learn while you trade and that’s a very good opportunity to newbie’s who wants to get the understanding of the market. Thirdly, there is no real money involved so, a trader can do business without any risk of losing money. Lastly, it provides a good platform to test a strategy. You can always try your creative business mind and see the results for yourself. A Forex trading demo account can be a learning curve for all amateur traders out there.

What drives the Forex market?

Forex market is elastic and changing. It does not follow anyone’s guidelines nor will it follow your set of rules. It is driven by these factors namely- politics, speculators, business transactions and central banks. Political condition of a nation reflects the economic stability. Political unrest forces the investors to sell which results in the fall of currency. The role of central banks in determining the rate of interest also impacts the exchange rate of a nation. Foreign exchange being one of the largest markets in the world boasts of great business transactions. These great transactions often affect the Forex market and the currency of the country as well. As mentioned earlier, that Forex being a speculative business is bound to work on the theories and guess work of the traders. If the traders believe that prices may go high in future, they tend to buy, ultimately impacting upon the prices.

It’s easy to open a Forex trading demo account and quite risk free to trade with fake money. Although it is not serious business when you are trading with your demo account but it should be dealt seriously as it is the foundation stone to your Forex dreams.

Quick Insight into Top 4 Benefits of Online Share Trading

Investing in the share market is a great way to raise capital, given that you do the needed research and make the investment strategically. With the advent of Internet, today people can now easily access the markets and related information online, which were earlier only available through a broker. With such convenience, online share trading has slowly started replacing offline share trading due to its innumerable benefits. 

Online trading has given the modern traders of today the convenience, but this, in no way, means that they are investing in a smarter way. An increasing number of individuals opt to trade online as against offline trading today. People who learn to trade forex online today would never want to go back to the conventional method of offline trading. Let’s take a look at what has been attracting the investors towards this online trading strategy by understanding its benefits. 

Convenience

The first and foremost advantage of online share trading that has been appealing to investors is convenience. Traders can manage their investments online during any time of the day or night, which is extremely convenient to them. Such trading also lets the traders watch out their investments throughout and gain access to info that were earlier accessible only by brokers. Thus, online trading saves money and time by trading according to your convenience. You can trade from the flexibility of your home, office or internet café.

Apart from a computer and Internet access, the only other important thing that you need for online trading is a bank account for all your money transactions from time to time. Once you have the needed money in your account, you have the freedom to purchase your favorite stocks. Your share trading account and bank account will be linked to each other to enable you in purchasing shares online.

Diversity

The next benefit is the diversity of investments and assortments available. Few of the most popular online brokerages are AmeriTrade, Fidelity, and Scottrade. You will gain access to various markets like foreign bonds, and stocks based on the brokerage, which will open up your chances of making more money in the longer run.

Instant Access to Stock Markets

A trader gains instant access to his online share trading account and details pertaining to the stock market with just few mouse clicks. Further, he or she can avoid making decisions in haste since the investor can stay updated concurrently with the recent stock details and latest news about the firm in which they have invested or about any other potential firm they would want to invest in.

No Limit on Trading Hours

One more benefit of online selling and buying is that you can place your orders even during non-market hours. On the contrary, in offline trading buying and selling shares need to be done only during market working hours. The fact that there is no restriction with respect to market hours is an added advantage in online trading.

With these many advantages of online share trading at the fingertip of every online trader, there is no reason as to why any investor would want to ignore the convenience of online trading. So, become a smart trader, and leverage the power of Forex trading today.

Author Bio
Alisa Martin is an online share and stock market trader. She has been using this convenience ever since online trading was introduced in the market, and happens to be one of the veteran traders.

The Internet’s Role in Forex Trading

The investment market has been expanding its client base steadily for many years now. Individuals from any and every occupation and background can participate in a range of trades including stock exchange, real estate, currency trade etc. Out of these the last one i.e. the currency trade or foreign exchange is the investment market which has garnered the most popularity in recent times. This new found popularity is not unfounded as foreign exchange can lead to high pay outs and is accessible to all participants via the Internet at any time. The massive participation of this market has resulted in a daily transaction of about 4 trillion USD. 

The most important factor which can help a trader to transact successfully with considerable profits in this market, is the Internet. It is this online world which has skyrocketed the market’s popularity by throwing it open to everyone, everywhere. Apart from this factor, there are also a number of forex market related benefits that are available to us, because of the Internet.

Following are listed a few such benefits:

• Research – Foreign exchange is a currency trade involving pairs of currencies from various nations e.g. currency pairs USD/GBP, USD/JPYen, USD/Euro, GBP/Euro etc. (most popular being the USD/EUR). Therefore, it is imperative that we know the major economical trends of the nations whose currencies we deal with. Here the importance of research cannot be stressed enough. It is through effective and optimum research that we can analyze all those national and international indicators that affect the currencies we trade. Thus, proper research will lead to sound analysis and accurate decision making, thereby enabling us to maximize our profit while limiting our losses. And since the Internet makes news from the remotest parts of the world available to us at the click of a finger, it is the most potent source for such research.
• Leveling the field – As mentioned above, foreign exchange as an investment market is available to one and all. There is no particular body governing or regulating the trade, hence direct participation without any middleman or forex broker is possible. Also, due to the sheer amount of money and number of players involved, it is not possible for any person or business entity to monopolize the entire market. The Internet further makes the process obstacle free and levels the field for all traders as it makes all the required information including research materials, training programs, rules and procedures available to one and all.
• Practice makes perfect – This involves one of the best forex related services provided via Internet i.e. demo account. A demo account is a virtual currency trading account through which you can invest virtual cash till you’re confident in yourself and have narrowed down on a particular trading strategy. These accounts are offered by many websites like teletrade (they offer it for free). All you have to do is to fill out the necessary details and download the relevant software (in the case of teletrade it is Meta Trade 4 or 5), and you’re ready for practice.

As mentioned earlier, the information stock of the Internet is inexhaustible, hence for further information on the subject you can look up the other available websites specializing in this field.

Author’s Bio – Alisa Martin is an investment advisor. She also regularly writes for teletrade and other popular forex and investment related websites.

Beginning Online Trading: Some Tips To Follow

Forex-sm (Photo credit: Wikipedia)

Online trading has been a newer interest among the speculators and stock market investors. Features like low entry price, user friendly software and no experience has made the entire process, including trading, charting etc. researching quite easier. While the entire trade seems to be promising enough, there are many tricks and traps as well. 

Though it is not a big deal for those who are dealing with the processes for a considerable period of time, the new traders might not be familiar enough with the different techniques and even a little mistake might reduce their account balances hugely. So, here are some tips for the new investors in online trading; take a quick look before you are going to invest - 

• Assess your financial situation – While investing in online trading is a good option for making money, it is important to check out if your financial status is stable enough for such an investment. Consider your present income, what are the basic expenses, what assets you have, how much debt you owe to the market, how much you can save after making an emergency fund etc. Make sure you have enough risk capital before investing and don't trade on options, stocks, currencies or commodities as that might lead you to serious financial crisis. It is advisable to be mentally prepared to lose some money and this is why it is important to have some meaning money or risk capital for making these investments. You can also consider using a demo account to get a feel of the market trends and how the entire process works. 
• Learn about charting – Charting is an important process of online trading and hence it is advisable to study the movements of charted price of individual instruments or stocks. Consider observing the movements during different time periods of the day, moving from longer to shorter periods of time. This will help you understand the long term and short term trends of the market. Follow the long term trend thoroughly and set your trading strategies based upon that. 
• Be concerned about the Entry Points – Observe the support and resistance levels closely when you are going to initiate the investment. Support level is that above which the stocks or other instruments stay while falling and resistance is the level at which the stocks and other instruments turn down on a rise. Always wait until the price reaches either of the level. Once you can track the underlying trend, be it support or resistance, open a position. 
• Learn the basics of online trading on your own – It is advisable for the beginners to trade in a practice environment to feel your personal trading style. There are different spans of time available and you can choose according to your preferences. While some prefer turning the trades around regularly, others prefers to hold the positions for weeks or at least for several days. Choose your suitable terms of trading and do through research on that. You can visit teletrade in order to get information about FOREX, and know the terms and conditions of dealing with FOREX etc. 

Author's Bio – Jacks is a renowned blogger and he has been associated with guest blogging for the last ten years. He is a pro on writing on online trade, stocks investments, finance etc.

Tips to make money online by investing in forex market

Foreign exchange market, also referred to as forex market, forex capital market, currency exchange market or fx, deals in currencies from all around the globe. The market permits financial institutions including banks to trade different currency denominations in an easy way. The best thing about forex trading is that it can be done online. 

However, before investing hard earned dollars in the forex market, one should consider some essential information about the market to understand how he or she can make noteworthy profits through this investment tool. Here are the factors to take care of before having a jump start in the market.

• Have a clear concept – At the outset, one must have a clear concept about what is forex market and how to trade in it. Foreign exchange market allows a trader to buy a certain amount of a particular currency paying the exact amount of currency from another country. The motto is obviously to purchase at a low and sell at a high price. This is same as the procedure followed in the stock market. For instance, if a trader believes that Euro is going to rise in terms of value, he can buy particular amount of Euro through forex market using American dollar or any other currency of his choice. 
• Understand the worthiness of forex – One must understand that forex trading is not as popular as stock trading. According to many economists, foreign exchange trading is nothing but currency speculation. Some of them even call this as a type of gambling. But that doesn’t make any sense as even buying bonds or stocks depends on sheer speculation. Nevertheless, before actively participating in online forex trading, a wise investor must open a free demo account with any forex trading website and gather hands on experience in the subject and about the market. A trader can operate virtual transaction through such an account for as long as thirty days. Trading in the forex market can be done online through a forex broker or forex mini account. Such an account can be created by signing up for an online trade account with reputed forex brokerage companies like FXCM, FX Solutions and GFT Forex. Taking a course on forex trading may come handy in order to trade successfully in the forex market and ensure minimum loss as well. Participating in mock forex trading can also come handy to gather experience. 
• Know the scams – To conclude, one must understand what is genuine and what is not. The beginners often get confused with promises like ‘forex made easy’, ‘make huge profit in forex’ etc. These are often misleading or even scam. One should study the market and know the basics of forex trading before he invests his hard earned money in it. He may also participate in seminars or webinars related to forex trading to enhance his ability to make more dollars by trading in the foreign exchange market. 

These are some good and helpful forex trading tips that come really handy especially for the newbie in the market. If you were looking for foreign exchange try here https://www.hsbc.com.au/1/2/personal/foreign-exchange/getrate

Some 15 Important Questions to Ask Your Forex Broker

International Currency Money for Forex Trading (Photo credit: epSos.de)

Day in and out, there are so many news bulletins that are saying different things with regards to currency changes and also forex changes. The truth is that, with every change there is one side that has negative effect with the other having positive. That is exactly how the world of business works. Well, if you have been in forex trading for long, you will understand all this and how forex works. However; if you are new to forex trading, there are so many very important and vital tips to consider before you decide to risk your hard earned money trusting a broker. 

Having a reliable and credible broker is splendid and will give you the best of the forex trading world. However; not all forex traders are really worth trusting to safeguard your investments. This is why you need to make sure the questions below are asked and found out into detail before you decide to put your investments in their hands.

1. For how many years have you been in the forex trading business as a forex broker? This question is important because; this will tell you and give you an idea as to the level of years of experience of the broker and if it is enough for you. 
2. In what exact condition is your brokerage firm in financially? When this question is asked, there are so many lies you can get. This is why you need to go on to ask if the forex broker will be willing to give you a copy of the company’s earnings and also profits (balance sheet). This will make you know if the broker was telling the truth or lies and mostly, if they are telling lies, they will not want to show you their balance. 
3. Ask if the broker has a cordial rapport with some of the best banks in the area or even online? This helps to put you in a sound position of your investments. 
4. Also, make sure you ask who will be quoting the rates. Ask if it is your broker, the bank or a group of banks. 
5. Also, make sure you find out if the spreads are variable or fixed. 
6. Make sure you also find out how tight the spreads are. 
7. Ask if the broker provides Fractional Pip Pricing 
8. Find out all the restrictions the broker has and also the rules he or she works under. This will help you to invest well. 
9. Also, find out whether you are allowed to make orders within the Spread 
10. Find out from your broker is you can make more interest or returns on positive rolls 
11. Also, inquire if you get more positive rolls at all margin points 
12. Ask if rollover rates are showed frequently and also find out where if the answer is yes from them. If the answer is no, do not bother investing with that broker. 
13. Ask if the trading stage permits you to hedge 
14. Also, ask your forex trader if you can lose more cash than that which you deposited into your account 
15. Finally, make sure you check out on the credibility and accessibility of client service by the forex broker. 

All questions above are the best of 15 you can use to get to know if your broker is really serious. If you feel you do not want to stress so much, make sure you study the broker and also examine the way in which he or she answers the questions and how willing they are to go on with more questions.

Author Bio:-

Nisha Pandey is a professional writer in forex trading articles and always recommends reading reviews and ratings of forex brokers before selecting one. You should also examine AvaFX ratings and reviews to find reviews written by forex experts.

Forex Basics

International Currency Money for Forex Trading (Photo credit: epSos.de)

The Internet and advent of electronic funds transfer in the early 90s made the world’s forex markets readily accessible. Today, the forex is one of the largest securities market in the world. Different players contribute to its market volume including individual investors, and huge hedge funds among others. Forex trading continues for 24hours as traders try to profit from changes in currency exchange rates. 

Basically, forex trading is quite simple because it involves buying one currency with another. If a trader buys a currency with another and the exchange rates of the two currencies move in the favour of the trader, the forex trader can buy back the original currency at a profit.

Trading in the forex market is based on a bid/ask system. The difference between a seller’s asking price and the buyer’s bid is called a spread. The smallest increment in the exchange rate is known as a pip and is usually one one-hundredth of the US cent. Commissions are not charged by forex brokers. However, brokers mark-up spreads to 3-20 pips and keep it as their fee.

Forex trading is all about exchange rates. To monitor changes in currency exchange rates, traders need to analyse forex charts, which show trading activities within a certain timeframe. There are several types of forex charts but the most common are bar charts and candlestick. Traders should have proper understanding of these charts to spot trends and make smart trading decisions.

How to read a Forex Chart

• Locate a chart to analyse. Charts can be found online or in specific forex markets
• Find the range. Charts are a reflection of short and long term trading. Forex trade beginners can easily read charts with a range of at least a day but not more than one week. 
• Identify the chart type. Bar charts have price ranges indicated with vertical bars while candlestick charts have vertical rectangles. Line graphs do not have bars or rectangles. Charts come in different forms and traders can switch to candlestick or bar charts for easy interpretation. 
• Locate open and close prices on horizontal “pegs” in a bar chart and top and bottom of rectangles on a candlestick. When the open rate is lower than the close rate, the rate has an upwards trend and the opposite is true. 
• Look at the chart as a whole. It will have groups of bars with different colors moving up or down indicating upward and downward trends respectively.

Common Mistakes in Forex Trading

Lack of knowledge
Forex trading is complex. There are many factors that affect currency markets including interest rates, inflation, elections, wars and money supply among others. These cause currencies in affected regions to swing up or down. Traders without knowledge of the countries whose currencies they trade in can make poor trade decisions.

Lack of discipline
One of the most important traits that forex traders should possess is money management skills. Traders with a plan on where to sell in case a trade is losing money can make higher profits.

Getting too complicated
Some people believe that the more complex an investment is, the more profitable it can be. This is not always the case with forex trading. Most traders who benefit from forex trading do the basics.

Greed
Some traders also believe they can make high returns every day. This makes them take huge risks in a bid to make more. Eventually, they lose all their money if they invested blindly.

With forex, traders can make huge profits on their investments but with the wrong decisions, they can also incur huge losses. Forex traders who learn the basics can avoid making blunders that will make them lose money.

If you want to learn more about Forex trading and want to understand those seemingly complicated currency charts, you can visit http://www.forexcharts.net/.