Forex.com ResearchForex.com Research Trading currencies on margin lets you increase your buying power. Here’s a simplified example: If you have $2,000 cash in a margin account that allows 100:1 leverage, you could purchase up to $200,000 worth of currency-because you only have to post 1% of the purchase price as collateral. Another way of saying this … Read more
Forex.com Research Reading a foreign exchange quote may seem a bit confusing at first. However, it’s really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1. The US dollar is the centerpiece of the Forex market … Read more
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technician, though most will also keep a close watch on volume and open interest in futures contracts. The bottom line when utilizing any type … Read more
The Foreign Exchange market, also referred to as the “Forex” or “FX” market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion — 30 times larger than the combined volume of all U.S. equity markets. “Foreign Exchange” is the simultaneous buying of one currency and selling of another. … Read more
The global foreign exchange market is the largest, most active market in the world. Trading in the forex markets takes place nearly round the clock with $1.9 trillion changing hands every day. It is the main event. The benefits of forex over currency futures trading are considerable. The dissimilarities between the two instruments range from … Read more
If you are interested in trading currencies online, you will find that the Forex market offers several advantages over equities trading. 24-Hour Trading: Forex is a true 24-hour market, which offers a major advantage over equities trading. Whether it’s 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign … Read more
For ease of use, most online trading platforms automatically calculate the P&L of a traders’ open positions. However, it is useful to understand how this calculation is derived. To illustrate a typical FX trade, consider the following example. The current bid/ask price for EUR/USD is 1.2320/23, meaning you can buy 1 euro with 1.2323 US … Read more